SBA Orders Full-Scale Audit of the 8(a) Contracting Program
SBA Administrator Kelly Loeffler directed an immediate and comprehensive audit of the agency’s 8(a) Business Development Program following DOJ findings of fraud and bribery in USAID contracting. The audit spans approximately 15 years of contracts, focusing first on high‑value and limited‑competition awards.
Key Details:
- Launch date: June 27, 2025
- Scope: 8(a) contracts awarded since 2010, prioritizing sole‑source, set‑aside, and joint venture work
- Led by SBA’s Office of General Contracting and Business Development
- Findings will be referred to SBA OIG and DOJ; recovery of misused funds anticipated
- Prompted by the DOJ’s uncovering of $550M+ in illicit awards steered by a USAID contracting officer
This audit signals heightened scrutiny of 8(a) awards, especially those involving joint ventures and limited competition. Contractors, both primes and subcontractors, must prepare for audit inquiries, ensure documentation is complete, and examine internal controls. Early transparency and voluntary corrections could help mitigate risks.
DoD Imposes New Review & Approval Process for IT Consulting, Advisory & Management Services Contracts
The Department of Defense (DoD) issued a memorandum under Executive Order 14222, establishing a new approval and review process, via the Department of Government Efficiency (DOGE), for most unclassified contracts or task orders involving IT consulting, management services, and advisory & assistance services above defined thresholds. This move aims to prioritize in-house capabilities, improve cost efficiency, and align acquisitions with the DoD’s strategic priorities.
Key Details:
- Contract Review Requirements: All new IT consulting or management services contracts/task orders over $10 million, and advisory & assistance services (A&AS) over $1 million, must be submitted to DOGE for formal review and approval, including a cost-benefit justification and alternatives analysis
- Submission Timeline & Process: Contractors must include the required “Contract Approval Data Capture Elements” when submitting request packages. DOGE must respond within two business days; if no response, acquisition can proceed
- Exemptions Include: Contracts/service providers in direct support of weapon system programs, and contracts/task orders under $10M (IT) or under $1M (A&AS). Splitting to avoid thresholds is prohibited
- Ongoing Compliance Checks: DoD will conduct periodic compliance reviews; non-compliant contracts may face termination for convenience
This policy represents a substantial tightening of DoD procurement oversight for IT and advisory services. Contractors bidding on such opportunities must now prepare justification documents, cost/benefit analyses, and demonstrate that in-house DoD resources are insufficient. This creates additional proposal complexity, especially for contracts subject to DOGE review. Small businesses offering these services should focus on highlighting niche expertise, cost-effectiveness, and mission alignment to stand out in a more tightly controlled contracting process. Legacy or existing task orders may also be reevaluated and potentially terminated, so contractors should proactively maintain records to support potential claims. While this memo may reduce opportunities for broadly defined consulting services, those offering critical, differentiated capabilities aligned with DoD priorities, especially in niche or hard-to-fill areas, can still find a pathway forward.
GAO Releases FY 2024 Government-Wide Contracting Dashboard
The U.S. Government Accountability Office (GAO) launched an interactive dashboard titled “A Snapshot of Government‑Wide Contracting for FY 2024”. The tool offers a visual summary of how the federal government spent approximately $755 billion on contracts during fiscal year 2024, a decrease of about $22.5 billion from FY 2023 (adjusted for inflation)
Key Details:
- Total Contracting Obligations: $755 billion in FY 2024, down from $777.5 billion in FY 2023 (adjusted)
- Agency Breakdown: Defense agencies accounted for approximately $445.1 billion, while civilian agencies obligated around $310 billion
- Top-Spent Categories: Among civilian agencies, pharmaceuticals and biologicals topped product spending; for Defense agencies, fixed-wing aircraft led product contracts
- Dashboard Features: Users can filter by agency, contract types, and spending categories to analyze where dollars were directed and how contracting trends shifted
This dashboard gives contractors and small businesses a high‑level view of federal spending patterns, with transparency into which agencies and categories dominate contracting. Although the tool lacks granular detail (e.g., breakdowns by NAICS or SBA program categories), it offers strategic insight into market demand, enabling firms to identify which agencies are spending the most and what they’re buying. This can support business development planning, bid strategy, and competitiveness, helping align proposals to higher‑spend segments of the federal market.
Last Protest Dismissed: $60B NASA SEWP VI GWAC Clears Final Hurdle
The last remaining protest against NASA’s $60 billion SEWP VI Government-Wide Acquisition Contract (GWAC) has officially been dismissed. With this, NASA is now in the clear to begin awarding spots on this 10-year contract that will redefine federal technology procurement. The Solutions for Enterprise-Wide Procurement (SEWP) program has been one of the federal government’s most relied-upon channels for acquiring commercial IT products and services. SEWP VI, the sixth iteration of this highly successful GWAC, is expected to have a ceiling of $60 billion and serve all federal agencies.
Protest Timeline and Dismissals
As is common with large federal contract vehicles, SEWP VI faced a series of pre-award bid protests from firms concerned about eligibility, evaluation criteria, and terms of participation. These challenges temporarily paused the evaluation process, raising questions about potential delays in award timelines.
Here’s a breakdown of the key protest activity:
ProCustom’s case (B‑423306.5), dismissed on July 3, was the final active protest. It marked the end of the legal holding pattern and cleared NASA’s path to proceed with contract awards.
Now that all protests are behind, NASA is expected to move quickly, but carefully, to finalize the evaluation of the thousands of proposals submitted under SEWP VI.
Anticipated Next Steps:
- Award Announcements: Potentially as early as late Q3 or Q4 of 2025
- Onboarding of Awardees: Into the SEWP VI contract vehicle during FY2026
- Agency Access: All federal agencies will be able to begin using the SEWP VI portal for acquisitions once NASA completes the rollout
Despite the protest-induced delays, the dismissal allows for a much-needed refresh to the federal IT procurement ecosystem.
FPDS Modernization Complete: ezSearch Now Live on SAM.gov
As of July 25, 2025, the long-anticipated modernization of the Federal Procurement Data System (FPDS) has been completed. The integration of ezSearch into SAM.gov is now live, consolidating contract award data access into a single streamlined platform. This marks a major milestone in the federal government’s digital transformation of procurement systems.
Key Details:
- Effective Date: Integration went live on July 25, 2025
- What Changed: Users can now access federal contract award data directly through the ezSearch feature on SAM.gov, eliminating the need to use the separate FPDS portal
- Centralized Interface: All contract opportunities, entities, and award information are now searchable in one place, improving usability for vendors and agencies alike
- Improved Search Experience: The update enhances filtering capabilities and data transparency, aligning award insights with active opportunities and vendor registrations
How It Affects Government Contractors or Small Businesses:
For contractors and small businesses, this change simplifies how procurement data is accessed and utilized. It eliminates the need to switch between multiple platforms and brings award data closer to real-time opportunity tracking. With this integration, small businesses gain a competitive edge through faster research, better compliance visibility, and streamlined reporting. The update also enhances the overall user experience by reducing friction in market intelligence gathering, critical for firms actively pursuing federal contracts.
OMB Issues Guidance for Consolidating Federal Procurement Under GSA Oversight
On July 18, 2025, OMB Director Russell Vought issued a formal memorandum directing federal agencies to consolidate procurement of common goods and services under the oversight of GSA. This guidance implements the earlier Executive Order “Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement”, aiming to reduce duplication and leverage GSA’s buying power to drive efficiency and cost savings.
Key Details:
- Agency Consolidation Mandate: Agencies are instructed to channel procurement of common goods and services, such as office supplies and standard software, through GSA-managed contracts and category management vehicles
- Two Strategic Workstreams:
- Centralized Contract Consolidation using category management
- Procurement Function Centralization, including shared administrative capabilities managed by GSA
- Timeline & Scope: Agencies have 60 days to coordinate with Category Management leaders to recommend spend areas suitable for consolidation and align on necessary actions
- Performance Agreements: Implementation will rely on service-level agreements (SLAs), performance tracking, and ongoing collaboration between OMB, GSA, and agencies
This memo signals a major shift toward centralized purchasing and standardized contracts, which may reduce fragmented contracting opportunities. Providers of commonly procured goods and services must adapt to working within GSA-led vehicles, potentially limiting direct agency-level solicitations. That said, contractors specializing in niche or mission-specific offerings may still compete at the agency level. Smaller firms should proactively engage with GSA’s initiatives and Category Management teams to remain visible in consolidated procurement pools. The move also underscores the importance of GSA contract vehicles as the first line of access for contractors offering scalable, standardized services across agencies.
What Contractors Are Looking at in the DoD and DHS Budget Submissions
The Department of Defense (DoD) and Department of Homeland Security (DHS) budget requests for FY 2026 highlight strategic priorities, including significant investments in border security and cybersecurity, while signaling flat or reduced funding in other areas. These budgets provide a roadmap for industry where contracting and hiring opportunities are expected to concentrate.
Key Details:
- Budget proposals emphasize border security, cybersecurity, and law enforcement capacity-building, with large-scale investments in hiring and IT systems
- DoD’s programs reflect shifting mission focus, and DHS anticipates a major hiring push (e.g., ICE and CBP), indicating where contracts may increase
- PSC reports ~40% of its government-contracting members are defense contractors impacted by these budget signals
With budget clarity, contractors can better align proposals with agency priorities like cybersecurity, enforcement, and staffing services. Small and mid‑tier firms should target contract vehicles that support DHS hiring initiatives, cybersecurity training, and border tech solutions. Agencies pausing non‑core work may reduce opportunities in those niches, so focusing on emerging priorities can yield dividends in near-term procurements.
