SBA boots 628 more companies from 8(a) program

The Small Business Administration has removed 628 more companies from the 8(a) program because the agency says they did not comply with an order to turn in three years’ worth of financial data.

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.

This new set of 628 was part of a group of 1,091 companies that SBA suspended from the 8(a) program in January because they did not provide the data by the initial Jan. 5 deadline. SBA said at the time that the portal for submitting the data would remain open until Feb. 19.

Companies also have the option of appealing their removal to SBA and at the U.S. Court of Federal Claims.

Suspension and removals of companies from the 8(a) program for not complying with the data request are not the only actions SBA has taken against the program.

In February, SBA announced plans to terminate 154 8(a) companies headquartered in the Washington, D.C. region because the firms failed to meet “economic disadvantage” eligibility requirements. Those companies were suspended through March 11, when their termination becomes final.

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.

SBA also launched an audit in June of the 8(a) to look at contacts over the past 15 years. The Defense Department launched its own 8(a) audit in January.