Democrats Propose Changes in 8(a) Program House Democrats have proposed an overhaul of the 8(a) program that would double the limits on sole-source contracts and create a “Pre-8(a)” program for young companies. Under the legislation, the Minority-Owned Venture Empowerment Act, 8(a) sole-source awards would be permitted up to $6 million, and $10 million for manufacturing, twice the current limits. The principal sponsor, Rep. John Barrow (D-GA), said: ”The 8(a) program is the country’s principal minority business development initiative, but it’s been almost 20 years since it was last updated. The MOVE Act will bring the 8(a) program up to speed with the times and help ensure that America’s emerging minority-owned businesses get a fair shake at government contracts.” The Federal Procurement Data System reported 8(a) firms received 2.8% of federal contract dollars in fiscal 2004, down from 3.6% the year before. Democratic members of the House Small Business Committee say that drop cost 8(a) companies $2.4 billion in lost revenue. Because its two-dozen sponsors are Democrats, the bill likely faces an uphill battle in the Republican-controlled Congress. The bill, H.R. 4474, would create a “Pre-8(a) Program” that would be open to small disadvantaged businesses “without regard to operating history.” Currently a firm must have been in business for two years before it is eligible for 8(a) certification. The new program would provide technical assistance for startup and young firms to break into the federal marketplace. A company could be terminated from the program if it was “not making progress toward financial soundness and participation in Federal contracts.” Pre-8(a) firms would not be eligible for sole-source contracts. New entrants into the 8(a) program would have a six-year developmental phase, up from the current four years. The bill would make graduates of the 8(a) program eligible for set-asides for small disadvantaged businesses. No SDB set-asides have been permitted since the Clinton administration put a moratorium on the program following the Supreme Court’s 1995 Adarand decision limiting affirmative action. SBA officials announced an overhaul of the 8(a) program nearly four years ago. One result was the creation of an online application form for companies wanting to enter the program. An SBA spokeswoman did not respond to questions about the matter.