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119-s-3173119th CongressWALLET

Stop 8(a) Contracting Fraud Act

Sponsored By: Senator Ernst, Joni [R-IA]

In Committee

Summary

Establishes a moratorium on sole‑source 8(a)(16) contracts. The pause lasts until the Small Business Administration (SBA) completes an audit of its business development program and submits the audit findings to the House and Senate Small Business committees.

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  • Small businesses in the 8(a) program face a halt to new sole‑source awards under section 8(a)(16) while the moratorium is in effect, except when a narrow waiver applies.
  • Federal contracting officers may request a national‑security waiver. Waivers must be written, first approved by the agency head acquisition officer, then submitted to the SBA Administrator or Deputy Administrator, and must show the work is imperative for national security and not performable by another small business.
  • The SBA must finish the specified audit and report its findings to the congressional small business committees. The moratorium ends once that report is submitted.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Pause on SBA 8(a) sole-source contracts

If enacted, the SBA would be barred from awarding sole-source contracts under 8(a)(16) starting on the date of enactment. The pause would remain until the SBA completes the audit of its business development program ordered on June 27, 2025 and sends a report with the audit findings to the Senate Committee on Small Business and Entrepreneurship and the House Committee on Small Business. This would block a source of contract revenue for affected 8(a) firms and could delay some agency procurements while the audit and report are pending.

National-security waiver for 8(a) awards

If enacted, contracting officers could seek a waiver to the moratorium when a sole-source 8(a) award is imperative for national security. The contracting officer must submit a written request to the agency’s head acquisition officer for approval, and then that officer must send the request to the SBA Administrator or Deputy Administrator. The written request must explain why the waiver is imperative for national security and why no other small business can perform the work. The SBA Administrator or Deputy Administrator may approve the waiver and may not delegate that authority.

Sponsors & CoSponsors

Sponsor

Ernst, Joni [R-IA]

IA • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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