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U.S. Small Business Administration Refers 689 Firms to GSA for Comprehensive Contract Review Following 8(a) Program Suspensions
WASHINGTON, D.C. — Today, the U.S. General Services Administration (GSA) and the U.S. Small Business Administration (SBA) are announcing that federal contracts with 689 firms are being audited for potential fraud following the firms’ suspension from the 8(a) Business Development Program.
The review follows an SBA assessment finding that hundreds of 8(a) program participants had not demonstrated compliance yet received federal benefits, procurement priority, and contracts with a collective ceiling of $5.5 billion. GSA will examine the noncompliant businesses’ federal contracts and refer suspected fraud to the Office of Inspector General and the Department of Justice.
“Under President Trump and Vice President Vance’s leadership, GSA is partnering with SBA to root out fraud, eliminate abuse, and restore accountability to federal contracting,” said GSA Administrator Edward C. Forst. “Those who manipulate the system, defraud taxpayers, and steal opportunities from legitimate small businesses will be held accountable. We will refer suspected fraud to the Department of Justice and pursue every dollar owed to taxpayers. Federal contracts are a privilege, not a license to defraud the American people.”
“SBA has spent the last 21 months cleaning up the 8(a) Program to clear out the firms that abused set-aside contracts designed to help legitimately economically disadvantaged small businesses to compete for federal contracting opportunities,” said SBA Administrator Kelly Loeffler. “Every firm we identified will now face deeper scrutiny from GSA over the taxpayer-funded contracts they secured. While prior Administrations looked the other way, the Trump SBA will not tolerate bad actors exploiting federal contracting programs at the expense of honest, eligible small businesses.”
The SBA’s 8(a) Business Development Program helps eligible small, disadvantaged businesses to compete for federal contracts. To qualify, a firm generally must be a small business and meet SBA requirements related to personal net worth, adjusted gross income, total assets, good character, potential for success, and other eligibility criteria.
