On paper, 8(a) contract dollars may look stable. On the ground, it’s a very different story.
A new article from Federal News Network takes a closer look at the challenges currently facing the SBA 8(a) program, particularly as Department of Defense audits and administrative slowdowns continue to impact small businesses.
In the piece, GCP Chairman John Shoraka shares what we are seeing across our client base.
“I think if you look at the dollars in the 8(a) program, especially at DoD, some will point to the fact that they actually went up in 2025,” says Mr. Shoraka.
“But the challenge that we saw across a lot of our clients was that offer letters that had to go through the district office in order for a sole source award to happen were being held up and or never being processed. “
“So we saw a slowdown in sole source awards,” he said. “I think given what we’ve seen with respect to the SBA audit, given what we’ve seen with respect to the number of 8(a)s being approved, in 2024 there was something like 500 plus 8(a)s approved. In 2025, I think the last count I saw was 66 approved. So given the audits, the slowdown in processing, I think contracting officers are looking over their shoulders. I think in the short term, given the current administration and the current congressional makeup, if you will, we will see a trend away from the 8(a) program.”
As John explains, offer letters that must move through SBA district offices for sole source awards are being delayed or, in some cases, not processed at all. The result has been a noticeable slowdown in 8(a) sole source activity, even as demand remains.
He also points to a sharp decline in new program entrants. In 2024, more than 500 firms were approved into the 8(a) program. In 2025, that number dropped to roughly 66.
Combined with ongoing audits and increased scrutiny, these conditions are creating hesitation among contracting officers and contributing to a broader shift away from the 8(a) program in the near term.
We appreciate Jason Miller at Federal News Network for the thoughtful reporting and for including GCP’s perspective in this important conversation.
If you would like to have a deeper discussion on this issue and better understand how these developments may impact your business, the GovContractPros team is here to help.
For more information or to schedule a conversation, please contact:
John Shoraka at John.Shoraka@govcontractpros.com
Trevor Skelly at Trevor.Skelly@govcontractpros.com
We welcome the opportunity to discuss your specific situation and help you navigate the evolving federal contracting landscape.
