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Section 8(a) Confirmation

Through our work with 8(a) Business Development companies like yours, we know you may have questions about how the Small Business Administration’s requirements apply when working with temporary employment companies like CLP.  Let us put your mind at ease.

In connection with the Section 8(a) Business Development Program, the SBA has provided us with a detailed opinion letter regarding  Business Development Procedural Notice No. 8000-63. It states that, “The employees of the 8(a) BD participant that are co-employed by a PEO (Professional Employer Organization) arrangement will be deemed employees of the participant for the purposes of applying subcontractor limitations,” and goes on to say that this applies equally to temporary employee agencies like CLP.

In other words, it appears that 8(a) BD participants are able to count temporary employees towards meeting the self-performance requirement under the SBA’s subcontractor guidelines.

In accordance with the SBA’s letter, we have created a special agreement that we use exclusively with 8(a) BD Participants, which complies with the recommendations set forth by the SBA.

If you have any additional questions, or would like help navigating the intricacies of government contracts, please contact your CLP representative.

 

DISCLAIMER: The following information is not legal advice.  It is for informational purposes only and intended to convey information received by CLP from the SBA. Please seek the advice of counsel and/or guidance from your local SBA office to determine the applicability of the SBA opinion letter to your individual situation, before acting or relying on any statement contained herein. 

 

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