As a leader in providing contracting and subcontracting opportunities to small businesses, the Department of Energy (DOE) continues to challenge the private sector by encouraging its major prime contractors to seek ways to include small businesses in its procurement process.

A very effective vehicle used in developing subcontracting opportunities for small disadvantaged businesses was the introduction into the procurement process of the "8(a) Pilot Program." In 1991, the Program was established to:

• target 8(a) businesses for DOE procurement opportunities at the subcontract level;
• allow flexibility to DOE's major prime contractors in awarding subcontracts to 8(a) business concerns; and 
• create additional ways for 8(a) businesses to access the economic mainstream of American society.

The Program, which is voluntary to DOE's major prime contractors, achieved $167,182 in its first year of operation.  The Program's achievement has grown to more than $150 million today.

The Program strengthens DOE's support of the federal 8(a) Program administered by the U.S. Small Business Administration (SBA). The Small Business Act (15 U.S.C. 644) authorizes the SBA to enter into contracts for goods and services with other federal agencies, and reserve up to a value of $3 million ($5 million for manufacturing) in contracts non-competitively to 8(a) certified firms. If a procurement is valued in excess of $3 million ($5 million for manufacturing) and two or more capable 8(a) firms can be so identified, the procurement shall be set-aside for competition among 8(a) firms (see FAR 19.805-1(a) (2)).

Benefits of the Program
The Program is popular among 8(a) certified firms as it mimics the SBA 8(a) Program and have similar benefits for its participants, e.g.:

• Participants can receive sole-source contracts up to $3 million for goods and services, and $5 million for manufacturing.
• Participants can bid/propose on competitive procurements above $3 million for goods and services, and above $5 million for manufacturing that are set-aside for 8(a) participation only.
• Participants gain a prime position to market private sector firms to become a protégé.
• Participants gain a prime position to partner with its private sector prime contractor in order to obtain future procurement opportunities.

Program Operation
Small business contractors that are 8(a) certified and interested in seeking 8(a) business opportunities with DOE's major prime contractors, access our Directory of Small Business Managers to identify prime contractors that participate in the Program.  When an 8(a) firm receives a contract from a DOE prime contractor participating in the Program, the contract becomes a bilateral agreement between the prime contractor and the 8(a) business concern.  Prime contractors that wish to identify 8(a) business concerns to perform its work may use its own sources or contact the OSDBU.