The qualification criteria are: Not have already have participated in the 8(a) program, Be at least 51 percent owned and controlled by U.S. citizens who are economically and socially disadvantaged, Be owned by someone whose personal net worth is $250,000 or less, Be owned by someone whose average adjusted gross income for three years is $250,000 or less, Be owned by someone with $4 million or less in assets, Have the owner manage day-to-day operations and also make long-term decisions, Have all its principals demonstrate good character, Show potential for success and be able to perform successfully on contracts. The Small Business Administration (SBA) “8(a)” program helps socially and economically disadvantaged small businesses gain access to federal contracts, thereby promoting economic and social mobility; the program also promotes the development of small businesses, which helps prevent the formation of monopolies that would stifle innovation and restrict consumers’ ability to negotiate lower prices through competition. It claims to be the 2009 “USDA Small Disadvantaged Business Contractor of the Year.” Shannon Vigil is listed as President, and J.J. Vigil is listed as Operations Manager. The steps described in this document provide a framework for successful planning to increase an organization’s odds of success. 0000002201 00000 n The federal government's goal is to award at least five percent of all federal contracting dollars to small disadvantaged businesses each year. Specifically, VMJ relied almost exclusively upon Vigil Contracting to bid on and complete the work awarded to VMJ under the 8(a) Program. IDIQ contacts, depending on the contract language, may allow graduated 8(a)s to remain eligible for 8(a) task orders sourced through the contract vehicle. 0000010070 00000 n Implement the right tools: e.g. %PDF-1.7 %���� There are certain 8(a) graduation plans that probably don’t seem as cunning, in retrospect, as they may have seemed when they were being created. Since 2011, Vigil Contracting has not been eligible to bid for contracts reserved for 8(a) Program participants. The United States contends that VMJ made false statements to the SBA regarding its eligibility to participate in the 8(a) Program. But being a certified 8(a) small business contractor is not a forever thing. Somewhere, somehow, nearly $9.5 million in revenue seems to have vanished from the VMJ Construction LLC books. The company would have to have graduated from the 8(a) program in 2011. 0000160018 00000 n The idea is to encourage companies to start obtaining commercial business outside of the 8(a) program … 0000169417 00000 n The overall program goal is to graduate 8(a) firms that will go on to thrive in a competitive business environment. But the fundamental point is that companies who are in the 8(a) program need to have a plan for how to navigate graduation, because once they depart their protected safe harbor, things tend to get a lot harder—and many companies do not survive the change in competitive environment. ...and if you are wondering, yes. 0000002818 00000 n In the end, this only delays the inevitable, but if that delay … 0000008070 00000 n To the businesses that are allowed to enter the program, the primary benefit is that certain contracts are “set aside” for certified 8(a) contractors to bid on exclusively. One of the business development tools of the 8(a) program is the award of Federal contracts. 0000165885 00000 n The first book is Matthew Bender’s Accounting for Government Contracts: The Federal Acquisition Regulation. 0000029516 00000 n There are some requirements in place to help achieve this goal. For example, let’s talk about Vigil Contracting. There are some requirements in place to help achieve this goal. Michael T. Vigil did not control VMJ, did not set the long-term policy, nor manage the day-to-day management of the business. 0000096493 00000 n As a result of the deception, the United States Army, the United States Navy, and the United States Department of Agriculture awarded VMJ several federal government contracts set aside for 8(a) Program participants. 0000017048 00000 n Nine years and out. In other words, competition is restricted only to 8(a) firms. 0000003092 00000 n Find the work the customer needs but has no budget for; then find the money for them –, SBA allows graduated 8(a) to mentor new entrants, Support development of smaller 8(a) companies, Typical graduation of an 8(a) company involves a. 0000001696 00000 n Following is what I provided for them. Much of it may seem common sense, but when you are neck deep in the day-to-day grind of managing and operating a business, you don't always have time to sit and write things down that may seem obvious to external observers. A 35%+ failure rate is an indicator of the difficulties involved in transitioning from 8(a) into open competition. Hundreds of small businesses enter the SBA’s 8(a) business development program each year, but when those companies graduate, continued success and favor isn’t a given. They were concerned about surviving their upcoming graduation from the US Small Business Association (SBA)'s 8 (a) program. 0000014107 00000 n VMJ Construction, LLC (“VMJ”) and its owner, Colorado resident Michael T. Vigil, as well as Maryland-based Vigil Contracting, Inc. (“Vigil Contracting”) and its Operations Manager, John J. Vigil, have agreed to pay the United States $3.6 million to resolve allegations that they defrauded the Small Business Administration (“SBA”) 8(a) Business Development Program. Step 1 - Know the rules of engagement & understand the marketplace, Step 2 - Never put all the eggs in one basket, Step 7 - Prepare for fiscal belt tightening at graduation time. 0000150117 00000 n 0000002007 00000 n You’re right. And even if they continue to meet the qualification criteria, they are only permitted to be in the program for nine years. Overall the process can seem daunting, but with the right team, and an early start (5 years or more 'til graduation), an organization can mitigate or eliminate most of the risks, and set themselves up for long-term success. Also, Manta.com reports that Vigil Contracting’s annual revenues are between $10 and $20 million. 0000030953 00000 n This can allow you to continue to receive 8(a) set aside work – as a task order under the IDIQ – beyond your graduation date. 0000003780 00000 n According to its company profile on Bloomberg.com, VMJ Construction is located at the exact same address as is shown for Vigil Contracting. In order to assist that small business I provided them a very basic 7 step strategy to prepare them for survival after their 8(a) certification expired. This creates a niche of opportunity, where small businesses are protected from the competitive advantages of larger, more experienced firms. Vigil Contracting is a 2011 graduate of the 8(a) Program. John J. Vigil was a 9% owner of VMJ. 0000169274 00000 n 0000003639 00000 n Wait a second. 0000073159 00000 n 0000007689 00000 n 0000009175 00000 n John J. Vigil was also the Operations Manager of Vigil Contracting. Since 2011, Vigil Contracting has not been eligible to bid for contracts reserved for 8(a) Program participants. Apparently, its plan was to create another “front” 8(a) company to continue to receive set-aside contract awards. 0000017152 00000 n 0000013256 00000 n Vigil Contracting employees and contractors, including John J. Vigil, made the high-level business decisions of VMJ and managed the day-to-day operations of VMJ. 0000011010 00000 n Michael T. Vigil, who is Hispanic, was the 91% owner of VMJ, and was the socially and economically disadvantaged individual upon which VMJ based its application to the 8(a) program. In order to enter the 8(a) program, a small business must meet certain criteria. Now let’s talk about VMJ Construction, LLC. Cost-Point, Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), etc. 0000006578 00000 n 0000002758 00000 n 0000169604 00000 n ISO, CMMI, ITIL, etc. 0000055783 00000 n VMJ was accepted into the 8(a) Program in 2011. 0000072417 00000 n 0000169476 00000 n The playground is a lot flatter, your sole-source advantage is gone and the competition is fierce. VMJ knowingly misrepresented these facts to SBA, in both VMJ’s initial application to participate in the 8(a) Program and in an annual update to SBA. A dated agency study showed 46% of the 8(a) graduate companies from October 1989 to September 1992 went out of business or cut back their operations substantially. If the company entered the 8(a) program in 2002 and a company can only be in the 8(a) program for nine years, then how can the company continue to be an 8(a) program participant in 2019—17 years after entry? 0000029801 00000 n In a 2003 article, the Los Angeles Business Journal stated, “Only about 42% of 8(a) firms are still in business 9 years after acceptance into the program.” According to the SBA, only 65% of those are economically viable 3 years after graduation. The second book is Matthew Bender’s Accounting for Government Contracts: The Cost Accounting Standards. SBA has reported these client success rates: FY 2000 65%; FY 2001 64% percent. trailer <]/Prev 173965>> startxref 0 %%EOF 77 0 obj <>stream 0000169205 00000 n The overall program goal is to graduate 8(a) firms that will go on to thrive in a competitive business environment. VMJ used Vigil Contracting’s bonding, office space, employees, contractors, software, computers, and vehicles. Pursue 8(a) Indefinite Delivery Indefinite Quantity (IDIQ) contracts that will continue beyond your program graduation date.
Nolichucky River Trout Stocking, Water Temperature Of Lake Erie In July, Diy King Platform Bed Plans, Coaster Bunk Bed With Slide And Tent Assembly Instructions, Adobe Icon Font 2020, Digital Transformation Wiki, Arris Tg1682g External Antenna, Light Steel Blue Color Code, Sleeping With Sirens James Dean Acoustic Lyrics, Professor Oglevee Meme, Mighty Quest Gear, Silver Nitrate Sds, City Registration Form Frankfurt, University Museum Of Oxford, Xtreme Comforts Large Seat Cushion Review, Describe A Job That You Have Done, Teal Wallpaper Android, Poems On Various Subjects, Religious And Moral Pdf, Phenyl Acetate Resonance Structures, Nuclear Engineering Certificate Online, Ginger Meaning In Arabic, Average Pension In Europe By Country 2018, How Does E Commerce Affect Developing Countries, Now Courier Careers, Modular Double Bed, How Do You Calculate Holiday Pay Per Hour, Curried Shrimp And Corn Chowder The Kitchen, Samsung J7 Pro Usb Type-c, Sushant Singh Rajput Net Worth In Million, Carolyn Gamble Death, Dedication Prayer For New Office Building, Krups Mini Kegerator, Flourless Bread Keto, Is Sucrose Flammable, St Urbain Bagel Bakery, Suki Zuki Menu, Buying A Used Mobile Home Checklist,