Sponsors
Read twice and referred to the Committee on Small Business and Entrepreneurship.
Places a temporary ban on awarding sole‑source contracts under the Small Business Administration’s 8(a) program until the SBA completes a required audit and transmits the audit findings to the congressional small business committees. Provides a narrowly defined waiver for national security purposes that the SBA Administrator or Deputy Administrator may approve, with written justification and specified submission rules for each waiver request.
The terms "Administration" and "Administrator" mean the Small Business Administration and the Administrator of the Small Business Administration, respectively.
The term "Deputy Administrator" means the Deputy Administrator of the Small Business Administration.
The Administration may not award sole source contracts under section 8(a)(16) of the Small Business Act (15 U.S.C. 637(a)(16)) during the period beginning on the date of enactment of this Act and ending when the Administration (a) completes the audit of the business development program under section 8(a) ordered by the Administrator on June 27, 2025, and (b) submits a report with the audit findings to the Senate Committee on Small Business and Entrepreneurship and the House Committee on Small Business.
The Administration must complete the audit of the business development program under section 8(a) that was ordered by the Administrator on June 27, 2025.
The Administration must submit to the Senate Committee on Small Business and Entrepreneurship and the House Committee on Small Business a report that includes the findings of the audit described above.
Who is affected and how:
8(a) participant firms: Firms eligible for sole‑source 8(a) contracts are directly affected. They may see delays or temporary loss of sole‑source opportunities until the SBA completes and reports its audit. This could reduce near‑term contract awards and revenue for businesses that routinely receive sole‑source 8(a) awards.
Federal contracting agencies and contracting officers: Agencies that rely on 8(a) sole‑source authority must halt such awards or obtain a narrowly approved national security waiver. This will require adjustments to procurement plans, potential re-solicitation as competitive procurements, and additional administrative steps for waiver submissions.
Small business competitors: Some non‑8(a) small businesses may gain opportunities if agencies shift from sole‑source to competitive procurements during the pause.
SBA (Small Business Administration): SBA will have to complete the mandated audit and prepare the report to congressional small business committees; it will also be responsible for processing and deciding waiver requests, increasing agency workload and oversight responsibilities.
Congress / oversight committees: Congressional small business committees gain leverage because the ban lasts until they receive the SBA audit findings, increasing oversight of the 8(a) sole‑source process.
Net effects and risks:
Last progress November 10, 2025 (2 months ago)
Introduced on November 10, 2025 by Joni Ernst