Diversity is a hallmark of 8(a)

Agencies spending the most with small businesses:

Army ? $11.1B

Navy ? $7.1B

Air Force ? $5.3B

Defense Department ? $3B

DHS ? $2.8B

Health and Human Services Department ? $1.9B

NASA ? $1.5B

GSA ? $1.1B

Source: FedSources Inc.

A look at several of Washington
Technology's Top 25 8(a) small
businesses reveals the broad spectrum
of services such companies provide
the federal government.

For example, M2 Technology Inc., of
San Antonio, provides services such as
systems design and architecture, systems
integration, and data migration.
The company, which ranks No. 6 on our
list, had $41.2 million in prime-contracting
revenue in 2007. Of that, $24.8 million
came from 8(a) contracts.

The No. 1 company, USfalcon Inc., of
Morrisville, N.C., has capabilities in
command-and-control systems, logistics,
and training.

To reach the top spot on our list, the
company had $95.4 million in prime-contracting
revenue, with $8.2 million in 8(a)
work.

At No. 25, SofTec Solutions Inc. touts
skills in application development, customer
relationship management and
consulting.

The small businesses count an array of
agencies as their customers, including the
Army Corps of Engineers, Federal
Railroad Administration and Forest
Service.

Market research firm FedSources Inc.
conducts the analysis for the Top 25 8(a)
companies list, using the same product
services codes and methodology that it
uses for the annual Washington
Technology Top 100 government contractors
list.

The small businesses are ranked
according to their total prime-contracting
dollars in fiscal 2007,
not only their 8(a) work.

Washington Technology believes that is the best way to judge 8(a) small businesses' progress and success
because the program's goal is to help create companies that remain
viable after graduating. We set a minimum of $1 million in 8(a) work
because that shows that the program played a role in the companies'
success.

Of the 25 companies,
only nine
received more than
half of their prime-contracting
revenue
from 8(a) set-aside
contracts. Most of the
companies rely on
non-8(a) work for the
bulk of their revenue.

Many of the companies
on this year's
list are newcomers, with only four repeats from the 2007 rankings.
This is partially because we've broken out Alaska Native
Corporations and tribally owned 8(a) companies into a separate
ranking. (see related story, Page 30).

All of the returning companies broke into the top 10, with Blue
Tech Inc. leading the way at No. 4, up from the No. 9 spot last year.
Catapult Technology Ltd. moved to No. 5 from 14. McKing
Consulting Corp. reached No. 8 from 20, and Access Systems Inc.
hit No. 9, up from 18.

Catapult and Access Systems are making their fourth straight
appearance on the Top 25 list. For Access Systems, it will likely be its
last. It graduates from the 8(a) program in November.

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