BREAKING: SBA Launches an End of Year 8(a) Program Audit

8(a) Program participants received an early holiday surprise from the SBA’s 8(a) Program this past week. A mass request was sent out to 8(a) Program participants and some graduates requesting extensive (mostly financial) internal documentation so that the SBA could audit the program for any potential fraud, waste, or abuse. While the need to protect taxpayer funds and the 8(a) Program are fundamentally important, such a sudden wide ranging document request came as a surprise to many across federal contracting. The SBA’s explanation provided some insight for this broad request.

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2026 NDAA: DoD CPARS Changes Coming

Both the Senate and House, as part of the draft 2026 National Defense Authorization Acts (NDAA), have proposed nearly identical ideas on overhauling the Department of Defense’s Contractor Performance Assessment Report System (CPARS) processes. While both NDAAs have passed, and therefore require reconciliation in a committee, their ideas are extremely similar and signal a coming change in CPARS processes for defense contractors. One big change is to focus on specific negative performance events using “a standardized scoring mechanism” and to remove reporting on “positive or neutral performance assessments.”

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DOT Issues Guidance on Impact of Removal of Presumed Disadvantage

As discussed in a previous post on SmallGovCon, the Department of Transportation (DOT) recently issued a interim final rule removing certain presumptions of disadvantage from its eligibility requirements for the Disadvantaged Business Enterprise (DBE) Program. As part of that change, DBE Program participants and applicants will have to submit new narratives discussing their social disadvantage. The DOT has released further guidance on the changes felt by the interim final rule, including impacts on the disadvantage narrative and current contracts.

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DOT Ditching DBE Program’s Presumed Social Disadvantage

The Department of Transportation (“DOT”) has administered aspects of the Disadvantaged Business Enterprise (“DBE”) program for decades for work to be performed for state and local transportation agencies. The DBE program’s eligibility requirements are quite similar to those under the Small Business Administration’s (“SBA”) 8(a) Program. As is well known, over the past few years the 8(a) Program has undergone many changes and legal challenges, altering its application and eligibility processes, especially with respect to presumed social disadvantage. Now the DOT DBE program seems to be undergoing very similar changes regarding disadvantage requirements.

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SBA’s SDVOSB Warning: Spell Out Veteran Control in Business Documents and Minutes

It is quite common for businesses in the private sector to share control and duties among many executives or individuals. However, as many who have looked into SBA socioeconomic certifications have found out, to gain certification in a set-aside program, basically all control needs to reside with one individual. Recently, the SBA’s Office of Hearings and Appeals (OHA) reviewed a SDVOSB recertification denial, and provided a reminder to contractors interested in the SDVOSB and VOSB program that the veteran must be the sole individual in control.

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SBA Proposes Increases to Receipts-Based Size Standards

Every five years the SBA is supposed to review some of its size standards. In August 2025, the SBA issued a proposed rule which would increase the size standard for over two hundred and sixty industries. As the proposed rule explains in great detail, SBA increased size standards for some NAICS codes and retained others. Let’s take a closer look.

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GAO Pushes Back on 2025 NDAA’s Fee Shifting Suggestion

Diving into the National Defense Authorization Act (“NDAA”) has become something of an annual tradition in federal contracting. There seem to always be some sections that impact federal contracting, pushing for changes in processes or procurements. Part of 2025’s NDAA suggests fee shifting when there is a GAO protest of a Department of Defense (“DoD”) procurement. Basically, the 2025 NDAA suggested that if a bid protest of a DoD procurement is unsuccessful, the protester would be required to pay certain costs. Unsurprisingly, the GAO emphatically objected to this proposed change to its bid protest process.

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