Small Disadvantaged Business (SDB)
SDB & 8(a) Business Development Programs
SDBs are small businesses that are at least 51% owned and controlled by a socially and economically disadvantaged individual or individuals. African Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent Asian Americans and Native Americans are presumed to qualify. Others may qualify if they show by a preponderance of the evidence that they are disadvantaged.
All individuals must have a net worth of less than $750,000, excluding the equity of the business and primary residence. Successful applicants must also meet applicable size standards for small businesses in their industry. The program is intended to help federal agencies achieve the government-wide goal of 5 percent SDB participation in prime contracting. More information on the SDB Program can be found on the Small Business Administration (SBA) website at http://www.sba.gov/category/navigation-structure/contracting/contracting-support-small-businesses/8a-business-developme#
8(a) Business Development Businesses
Section 8(a) of the Small Business Act authorizes SBA to contract for goods and services with federal agencies. SBA then subcontracts actual performance of the work to socially and economically disadvantaged small businesses, which have been certified by SBA as eligible to receive these contracts. The major advantage of this program is that it allows the government to contract, on a noncompetitive basis, with socially and economically disadvantaged small businesses. SBA also offers managerial, technical and financial support to participating firms not to exceed $3 million per contract.
Program participation is divided into two stages. The developmental stage is designed to help 8(a) certified firms overcome their economic disadvantage by providing personalized business assistance in expanding their business and fostering meaningful business relationships. This period covers years one through four of a firm's participation. The transitional stage is designed to help program participants become more effective in both the large business and government sector market in dealing with complex deals and to prepare them for post 8(a) program expansion and development. Formal certification is required by the SBA. The period occurs from the fifth through the ninth year of the firm's participation in the program. Businesses must meet eligibility requirements established by the SBA each year, including pre-established 8(a) vs. non 8(a) revenue mixes.
More information about the 8(a) program can be found on the SBA Website.
NAVFAC SDB PROGRAM
NAVFAC is committed to providing assistance to SDBs to meet their needs in doing business with the Navy. Our commitment is demonstrated in consistently exceeding our SDB goal in the past five years, both for prime and subcontract awards to SDB concerns. NAVFAC is proud of this record and continues to seek qualified SDB business participation in procurement actions.
|NAVFAC SMALL DISADVANTAGED BUSINESS ACHIEVEMENT HISTORY**|
|FY 2018||FY 2019||FY 2020|
|Total U.S. Business||$8,108,901,739||100%||N/A||$9,523,263,708||100%||N/A||$4,552,474,114||100%||N/A|
|Small Disadvantaged Business||$2,602,460,249||32.09%||30.50%||$2,607,151,095||27.34%||31.00%||$933,548,509||20.51%||23.57%|
Total U.S. Business
|Small Disadvantaged Busines||$2,905,633,118||16.90%||15.00%||$3,075,394,502||16.20%||5.00%||$32,228,690||12.20%||5.00%|
**Data as reported in FPDS-NG on 04/13/2020
Data as reported in eSRS on 04/17/2020