This bill temporarily prohibits the Small Business Administration (SBA) from awarding sole-source contracts under its 8(a) Business Development Program until the agency completes a full audit and reports its findings to Congress. The 8(a) program is designed to help socially and economically disadvantaged small businesses win federal contracts. The moratorium applies from the bill's enactment until the SBA finishes an audit that was ordered by the Administrator in June 2025 and submits the results to the Senate and House Small Business committees. The bill includes a narrow waiver provision allowing sole-source contracts to proceed if a contracting officer determines national security requires it and can justify why only that specific small business can perform the work—such waivers must be approved by the SBA Administrator or Deputy Administrator and cannot be delegated further. This legislation affects federal agencies that use the 8(a) program to award contracts and small businesses seeking to compete for these contracts.
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