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Jan 22 2016    Next issue: Feb 5 2016

What are the best and worst states for 8(a) set-aside federal contracts?

Count yourself lucky if you are an 8(a) Business Development Program participant based in Virginia or Maryland.

There are $2.5 billion worth of 8(a) set-aside federal contracts previously awarded to 8(a) firms in Virginia that are expiring in 2016 and beyond and are likely to be recompeted.

For Maryland-based firms, there are $1.6 billion in such 8(a) pending recompetes.

Under federal rules, 8(a) set-asides generally must be recompeted as 8(a) set-asides once they expire. That means opportunities for additional 8(a) firms.

But you would be hard-pressed to find recompete opportunities for 8(a) set-asides in New Hampshire, Rhode Island or Vermont. There are no current 8(a) set-aside contracts awarded to vendors in those states, Set-Aside Alert found.

Set-Aside Alert has compiled a list of the best and worst states for 8(a) set-asides as part of its recent research into the 8(a) program.

The 8(a) program is the flagship effort of the Small Business Administration for assisting small disadvantaged firms. It offers free training, mentors and set-aside preferences in federal contarcting.

We downloaded data from the Federal Procurement Data System to compile a data set of $7.4 billion in 8(a) set-aside-only awards expiring in calendar 2016 and beyond. The data was sorted and ranked by vendor state.

We found wide disparities in the amount of awards to 8(a) firms by state. Of course, some vendors may provide service beyond their home state as well.

Proximity to federal offices likely was a factor in putting Virginia and Maryland in the lead. The District of Columbia also was in the Top 10 with $171 million in 8(a) set-asides expiring in 2016 and beyond.

Ranking in the Top 10 for 8(a) set-asides were Virginia, $2.5 billion; Maryland, $1.6 billion; Ohio, $537 million; Alaska, $438 million; Colorado, $245 million; Florida, $201 million; California, $191 million; Texas, $187 million; DC, $171 million; and Georgia, $153 million.

The bottom-ranked states were New Hampshire, Rhode Island and Vermont, all zero; Iowa, $29,000; Arkansas, $35,000; Maine, $335,000; Connecticut, $584,000; and Minnesota, $777,000.

See the complete list below.

Expiring 8(a) Set-Aside Federal Contracts,
Ranked by Vendor State, for 2016 and Beyond

1. VA $2.5 billion
2. MD $1.6 billion
3. OH $537 million
4. AK $438 million
5. CO $245 million
6. FL $201 million
7. CA $191 million
8. TX $187 million
9. DC $171 million
10. GA $153 million
11. OK $112 million
12. AL $102 million
13. MO $88 million
14. SC $88 million
15. NC $77 million
16. HI $72 million
17. WA $67 million
18. MI $60 million
19. UT $59 million
20. PA $48 million
21. AZ $37 million
22. WV $34 million
23. NY $33 million
24. NJ $33 million
25. NE $32 million
26. MA $32 million
27. GU $19 million
28. KS $16 million
29. PR $13 million
30. MT $12 million
31. WI $12 million
32. IL $11 million
33. MS $11 million
34. IN $10 million
35. ND $10 million
36. NV $9 million
37. TN $7 million
38. LA $7 million
39. NM $7 million
40. ID $7 million
41. DE $5 million
42. OR $4 million
43. WY $3 million
44. KY $2 million
45. SD $934,000
46. MN $777,000
47. CT $584,000
48. ME $335,000
49. AR $35,000
50. IA $29,000
51. RI zero
52. VT zero
53. NH zero
Total: $7.4 billion

(Editor’s note: The expiring 8(a) set-asides contracts generally must be recompeted as 8(a) set-asides when they expire. All data was compiled from the Federal Procurement Data System. Data includes Puerto Rico and Guam.)

What are the best and worst states for 8(a) set-aside federal contracts?

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