"SBA requested the information from all 4,300 8(a) companies in December as part of its campaign to remove what the agency considers illegal diversity, equity and inclusion practices. SBA is also scrutinizing pass-through work at 8(a) companies."
"When added together, the total termination actions hit 782 out of nearly 4,300 8(a) companies in the program. If all of the terminations become final, SBA will have cut the program's participation roster by 18.2%."
"Other moves against the 8(a) program include reducing the Biden Administration's 15% 8(a) contracting goal back to the statutory goal of 5%. Contracting officers were also warned of penalties if they failed to report suspected fraud, waste and abuse involving 8(a) contracts."
The Small Business Administration removed 628 companies from its 8(a) program for non-compliance with a December data request requiring three years of financial records. This removal was part of a larger group of 1,091 companies initially suspended in January for missing the deadline. The SBA's actions extend beyond data compliance, including termination of 154 Washington D.C.-based firms for failing economic disadvantage requirements and reduction of the 8(a) contracting goal from 15% to 5%. Combined termination actions affect 782 companies, representing 18.2% of the program's 4,300 participants. Additional enforcement includes audits spanning 15 years of contracts and warnings to contracting officers regarding fraud reporting.
#8a-program-enforcement #small-business-administration #diversity-and-inclusion #program-compliance #government-contracting
Read at Nextgov.com
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