A Sudden Shakeup in 8(a):House Democrat Pushes Back on SBA’s Move to Strip USAID of Contracting Authorityy.
In a move that’s reverberating far beyond one agency, the Small Business Administration (SBA) has pulled the plug on USAID’s 8(a) contracting authority and not everyone in Washington is applauding. Leading the charge in opposition is Rep. Nydia Velázquez (D-N.Y.), the top Democrat on the House Small Business Committee, who says the SBA’s decision risks undermining the very program it’s supposed to protect.
Let’s break it down, The SBA’s decision follows a bribery scandal involving a now-former USAID contracting officer. Four individuals were prosecuted by the Justice Department and all pleaded guilty. The legal system worked swiftly and decisively. But despite those convictions, SBA chose to revoke USAID’s authority to independently issue 8(a) set-aside contracts, a cornerstone of federal support for socially and economically disadvantaged small businesses.
For Velázquez, the punishment doesn’t fit the crime, and worse, it may harm thousands of small businesses that had nothing to do with it. “Instead of helping small businesses compete in the federal marketplace, SBA is stripping away the very tools that enable them to succeed,” she said in a statement. Her concern? That SBA is using a single case of misconduct to cast doubt over the entire 8(a) ecosystem, without offering evidence of systemic failure or broader mismanagement.And there’s another wrinkle: timing.
The announcement dropped in the final quarter of the federal fiscal year, prime time for contract awards. For many small businesses, particularly those that rely on 8(a) pathways, this is the make-or-break season. Disruptions to the process now could reduce participation, lower award totals, and delay much-needed revenue.Even more perplexing to some: SBA made this call before the completion of its own audit of the 8(a) program, which it announced in June. That raises the question: why not wait for the data before making a sweeping policy move?
Velázquez is demanding transparency. “If the agency has legitimate concerns, it should be transparent,” she said. “So far, it has offered only selective and misleading claims.”
Industry watchers are paying close attention, and for good reason. The 8(a) program has long been a critical engine for equity in federal contracting, opening doors for minority-owned, women-owned, and disadvantaged small businesses. While rooting out fraud is essential, stakeholders argue that a broad-brush reaction could chill participation and trust in a program that has, overall, delivered undeniable economic value.
As the audit continues and congressional oversight gears up, all eyes will be on SBA’s next move and whether the backlash prompts a recalibration. In the meantime, the message from Capitol Hill is clear: safeguard integrity, yes, but don’t dismantle opportunity in the process.
📜 COMPLIANCE AND REGULATION UPDATES
There’s no shortage of recycled “wisdom” in the world of proposal compliance, but let’s bust some of the biggest myths making the rounds.
- Myth one: if your excuse sounds reasonable, the agency will let a late proposal slide. Nope unless you’ve got receipts and followed every step, you’re out.
- Myth two: being the incumbent gives you special privileges. Wrong if your proposal’s incomplete, proposal compliance rules still apply.
- Myth three: a vague summary of past performance is enough. False proposal compliance demands specific, documented evidence.
- Myth four: the government might bend deadlines for your protest or RFI. Spoiler alert: it won’t. Timeliness rules are brutally strict for the sake of fairness.
- And myth five: AI can replace expertise. Let’s be real bad citations and hallucinated content only lead to rejections (and maybe sanctions). Mastering proposal compliance isn’t optional, it’s the only way to win. Skip the myths, stick to the facts, and make proposal compliance your secret weapon.
Telecom modernization
MetTel has officially locked down a $54 million Veterans Affairs task order after a nearly year-long protest event. Upgrading 15,000 landlines across 1,875 VA sites by swapping outdated systems with sleek, IP-based telecom modernization solutions. This win under the Enterprise Infrastructure Solutions (EIS) contract highlights the growing importance of telecom modernization in federal infrastructure.
Despite fierce challenges from Granite Telecommunications including technical score gripes and low-price skepticism MetTel’s strong proposal and razor-thin 1.9% price edge carried the day. GAO wasn’t buying Granite’s arguments, especially since price realism wasn’t part of the final solicitation. This drama-packed telecom modernization battle ended in MetTel’s favor, showcasing their commitment to federal clients and excellence in telecom modernization delivery. With no court appeal left, this case is closed and MetTel is leading the charge in VA’s telecom modernization journey. Contractors, take note: pricing smart and knowing the rules matters.
$197 Billion Up for Grabs — Why Most Small Businesses Will Miss Out
“The government’s wallet is open — but only for those who know how to ask.” — USFCR, August 2025
This isn’t a drill. The U.S. government is rolling out ten mega-contracts worth a jaw-dropping $197 billion in 2025. That’s enough to fund every startup in Silicon Valley — twice. But here’s the twist: most small businesses won’t even know these contracts exist.
What’s the Big Deal?
These contracts span defense, healthcare, IT, and infrastructure. Think fighter jets, AI-powered hospitals, and smart highways. If you’re not already in the federal contracting game, you’re not just behind. You’re invisible.
Why Small Businesses Are Losing
Imagine federal contracting like a secret club. The rules are weird. The language is confusing. And the door? It’s locked unless you have the right key — SAM registration, NAICS codes, and proposal writing skills.
Big companies have entire teams for this. Small businesses? They’re often flying solo, guessing their way through.
The New Administration Isn’t Slowing Down
President Trump’s second term is all about speed and efficiency. Red tape is getting cut. AI and automation are streamlining procurement. That means contracts are moving faster — and if you blink, they’re gone.
The Fallout for Small Businesses
If you’re not ready, you’ll watch competitors scoop up million-dollar deals while you’re stuck refreshing your inbox. It’s like showing up to a gold rush with a spoon.
But here’s the good news: you can still catch up.
How to Get in the Game — Fast
- Register in SAM. It’s your ticket to the club.
- Know your NAICS codes. They’re like hashtags for your business.
- Follow the top bids. Sites like GovTribe’s August 2025 list show what’s hot right now.
- Get help. Accelerators, consultants, and online courses can teach you the ropes.
Bottom Line
The government is spending big. But they’re not handing out contracts like candy. You need to be smart, fast, and strategic.
Think of it like a treasure hunt. The map is public, but only a few know how to read it.
Six Construction Giants Win Share of $245M Army Contract for Repairs and Buildouts
In a big win for the construction industry, six powerhouse firms have landed spots on a massive $245 million firm-fixed-price contract with the U.S. Army Corps of Engineers setting the stage for years of general repair and construction work across a range of Army facilities.
The selected firms are B.L. Harbert International LLC, Brasfield & Gorrie LLC, Caddell Construction Co. LLC, Hensel Phelps, Korte Construction Co., and The Whiting-Turner Contracting Co. which will now go head-to-head, competing for individual task orders under the multiple-award contract (MAC). With a ceiling value of $245 million and a performance window through August 3, 2030, this award positions the six contractors at the heart of the Army’s infrastructure and modernization pipeline for the next five years.What’s notable here isn’t just the size of the award though a quarter-billion dollars is nothing to sneeze at but the caliber of firms brought to the table. These are heavyweights in federal construction, and each brings deep experience, national reach, and technical prowess to the mission.
Even more interesting? This wasn’t a small club invite. The Army Contracting Command in Mobile, Alabama, issued the solicitation via the internet and received 19 bids, a strong showing that signals healthy competition and growing industry interest in long-term DoD infrastructure contracts. But ultimately, it was these six that stood out a testament to their proven track records in delivering high-quality, on-time, and cost-effective results for the federal government.The MAC doesn’t list specific locations yet; project sites and funding will be defined on a per-order basis. That means these firms will have to stay agile, ready to mobilize across a range of facilities and mission-critical environments. Whether it’s repairing aging buildings, upgrading barracks, or supporting mission expansions, this contract covers a wide operational footprint.
For now, all six firms can celebrate a significant strategic win, locking in a pipeline of potential work with one of the most respected and active contracting offices in the U.S. Army. But the real work and competition begins with the first task order. Let the building begin.
