Are you ready for 8(a) graduation? | Federal Compass

Are you ready for 8(a) graduation?

05/26/2020


The clock is ticking, that 8(a) exit date is fast approaching, and soon, you'll be cast into an unfamiliar and challenging environment. Once outside of your protected status you'll be facing competitors with mature processes, experienced in operating in the wilds of unrestricted competition. Are you ready for graduation?

What to Expect

Looking back at award data for graduating 8(a) contractors from 2012 through 2019, we see a clear picture; awards peak one year prior to graduation with a full recovery taking over six years. See chart below

NAICS graduation cliff

Award dollar trends of exiting 8(a) cohorts

Defending Award Dollars

One of the first questions we ask is, "What's your strategy for protecting revenue?" How do you leverage the contracts that you have today to maintain revenue moving forward? While you could attempt to convince your customers to consider recompeting your work outside of 8(a) restrictions, this is highly unlikely to work. Your past performance has value, and you should leverage it to form relationships. Learn more by downloading the free eBook, 8(a) Exit and Transition Guide.

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