This bill establishes a moratorium on the Small Business Administration's ability to award sole source contracts under section 8(a)(16) of the Small Business Act. This prohibition will remain in effect until the Administration completes a specific audit of its 8(a) business development program, which was ordered on June 27, 2025. Furthermore, the SBA must submit a comprehensive report detailing the audit's findings to the Senate and House Small Business Committees before the moratorium can be lifted. The bill includes a critical waiver provision, allowing sole source contracts to proceed if a contracting officer determines it is imperative for national security . To obtain a waiver, a detailed justification must be provided, explaining why the contract is essential for national security and why no other small business can perform the work. This waiver request must be approved by the SBA Administrator or Deputy Administrator, and this specific authority cannot be delegated.
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Timeline
Introduced in Senate
Read twice and referred to the Committee on Small Business and Entrepreneurship.
Committee on Small Business and Entrepreneurship. Hearings held.
Introduced in Senate
Read twice and referred to the Committee on Small Business and Entrepreneurship.
Committee on Small Business and Entrepreneurship. Hearings held.
Commerce
Accounting and auditingCongressional oversightFraud offenses and financial crimesPublic contracts and procurement
Stop 8(a) Contracting Fraud Act
USA119th CongressS-3173| Senate
| Updated: 12/10/2025
This bill establishes a moratorium on the Small Business Administration's ability to award sole source contracts under section 8(a)(16) of the Small Business Act. This prohibition will remain in effect until the Administration completes a specific audit of its 8(a) business development program, which was ordered on June 27, 2025. Furthermore, the SBA must submit a comprehensive report detailing the audit's findings to the Senate and House Small Business Committees before the moratorium can be lifted. The bill includes a critical waiver provision, allowing sole source contracts to proceed if a contracting officer determines it is imperative for national security . To obtain a waiver, a detailed justification must be provided, explaining why the contract is essential for national security and why no other small business can perform the work. This waiver request must be approved by the SBA Administrator or Deputy Administrator, and this specific authority cannot be delegated.