SBA Proposes Expanding Small Business Size Standards
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Regulatory Compliance
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Professional Services
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Construction & Infrastructure
The Small Business Administration (SBA) has proposed a comprehensive revision to its small business size standards that would expand federal contracting eligibility to over 110,000 additional firms. This proposal includes shifting many industries from revenue-based to employee-based size criteria, increasing size thresholds across sectors such as construction, professional services, semiconductor manufacturing, shipbuilding, oil exploration, and agriculture, and simplifying NAICS code classifications. The SBA aims to enhance access to federal contracts, capital, and growth opportunities for mid-tier businesses while balancing the competitive landscape for smaller and nascent firms. Public comments on the proposed rule are due between September 19 and October 21, 2026, depending on the specific publication timeline.
Why this matters: Procurement professionals should anticipate a broader pool of eligible small businesses competing for set-aside contracts, potentially increasing competition and altering subcontracting dynamics.
Agencies and contractors in affected NAICS sectors (e.g., construction 236, 237, professional services 541511) should evaluate how revised size standards may impact sourcing strategies and subcontracting plans.
Businesses currently near size thresholds may qualify as small, affecting merger and acquisition valuations and eligibility for SBA loan programs.
Organizations should prepare to submit informed public comments by the specified deadlines to influence final rule provisions and implementation timelines.
This proposal ensures that these job creators have the regulatory certainty to scale, expanding small business eligibility by 0.3%, or over 110,000 firms. By streamlining definitions, the SBA will expand access capital, counseling and contracting opportunities, which in turn create jobs and drive growth.
— Kelly Loeffler, SBA Administrator
The practical impact of what they are proposing would mean more businesses would qualify as small and that would have a cascading effect across the entire market. It would mean small business subcontracting plans would be easier to meet. It would mean mergers and acquisitions would look a lot different as those companies which now qualify as small would be more valuable in some ways and less in other ways.
— Eric Crusius, Procurement Lawyer, Hunton Andrews Kurth
There always are competing interests to increase or decrease any one size standard. It’s a balancing act where you want the size standards to be small enough that nascent firms can be competitive and enter the market, while at the same time you want it large enough that the small companies doesn’t immediately drop off the edge and have to compete with large companies.
— John Shoraka, Chairman, GovConPros
Agencies
Small Business Administration, Department of Defense, Department of Agriculture, Department of Justice, Federal Trade Commission
The Department of Defense Strategic Capabilities Office (SCO) will hold an Industry Day from September 14-16, 2026, in Chantilly, Virginia, to engage government contractors on an upcoming solicitation for next-generation hypersonic weapons concept development. This event focuses on multiple Phase 1 Concept Development Other Transactions (OT) prototype contracts authorized under 10 U.S.C. § 4022, targeting maneuverable and precise hypersonic weapons with diverse capabilities. The Industry Day provides a classified forum for contractors to gain insight into program requirements and engage directly with SCO officials ahead of the solicitation release.
Why this matters: This event signals SCO's intent to advance hypersonic weapons technology through rapid prototyping and innovative contracting mechanisms, offering significant opportunities for defense contractors specializing in advanced weapons systems.
Contractors should prepare for participation by registering via the provided contact email and plan to address classified requirements during the Industry Day.
The use of Other Transaction authority indicates a flexible contracting approach aimed at accelerating development timelines and fostering collaboration with non-traditional defense suppliers.
Organizations with expertise in hypersonic propulsion, guidance systems, and maneuverability technologies may find strategic advantages in engaging early with SCO during this Industry Day.
The Department of Labor's Bureau of Labor Statistics (BLS) is conducting a site visit for vendors interested in providing audiovisual (AV) equipment and maintenance services. This procurement will be awarded under the GSA Schedule Multiple Award Schedule (MAS), specifically SIN 54151S, using a Lowest Price Technically Acceptable (LPTA) evaluation method. Vendors must submit their responses by August 26, 2026, to be considered for this firm-fixed-price contract opportunity.
Why this matters: This site visit offers vendors a direct engagement opportunity to understand BLS requirements and the procurement process under GSA MAS.
The use of LPTA indicates a focus on cost-effectiveness while meeting technical standards, which is critical for vendors to tailor their proposals accordingly.
Procurement professionals should note the August 26, 2026 deadline for proposal submissions to ensure timely participation.
Companies specializing in AV equipment and maintenance services can leverage this opportunity to expand their federal contracting portfolio with a reputable federal agency.
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Digital Infrastructure
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Cloud Services
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Artificial Intelligence
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Cybersecurity
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Information Technology
India is actively advancing its sovereign artificial intelligence infrastructure to reduce reliance on foreign AI technologies and enhance data sovereignty. This initiative includes expanding domestic high-performance computing capabilities and enforcing data residency requirements to ensure jurisdictional control and security for critical sectors. Under its 2026 BRICS chairship, India is also promoting secure, people-centric AI and technology cooperation among BRICS nations, emphasizing cybersecurity, digital infrastructure, and responsible AI innovation. These developments create procurement opportunities for contractors and technology providers specializing in AI infrastructure, cybersecurity, and digital ecosystem resilience.
India’s government is prioritizing investments in sovereign AI infrastructure to support regulated sectors with compliance and data residency mandates.
The BRICS framework under India’s leadership is fostering multilateral collaboration on secure AI and digital infrastructure, expanding market opportunities for technology vendors.
Procurement professionals should evaluate opportunities related to high-performance computing, AI governance, and cybersecurity solutions aligned with India’s sovereignty and security objectives.
Companies engaged in AI infrastructure and digital services can leverage India’s focus on domestic ecosystem development and international cooperation to position for upcoming contracts and partnerships.
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Artificial Intelligence
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Information Technology
The European Union and the Philippine government have jointly advanced their partnership to boost artificial intelligence research, infrastructure, policy, and workforce development through the EU-PH Advancing Research and Innovation on Artificial Intelligence Mission. This initiative includes a 10 million euro funding increase under the EU-Philippines Digital Economy Package aimed at addressing critical challenges such as limited computing resources and talent shortages while promoting trusted AI applications across multiple sectors. Key government agencies involved include the Philippine Department of Science and Technology (DOST) and the European Union, with infrastructure support from facilities like the VITRO Data Center in Sta. Rosa, Laguna, and Aboitiz Data Innovation in Makati, Metro Manila.
Why this matters: Procurement professionals should note the significant funding allocation for AI-related projects, signaling increased opportunities for vendors specializing in AI infrastructure, research, and policy development.
The collaboration emphasizes capacity building and governance frameworks, indicating potential solicitations for consulting, technology deployment, and workforce training services.
Organizations engaged in digital infrastructure and AI technology development can leverage this partnership to align offerings with government priorities in the Philippines and the EU.
The involvement of key agencies such as DOST and PhilSA suggests coordinated procurement efforts that may include Earth observation and disaster monitoring components linked to AI applications.
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Cybersecurity
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Defense & Military
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Information Technology
Isos Federal has attained Cybersecurity Maturity Model Certification (CMMC) Level 2, validated by the Certified Third-Party Assessment Organization (C3PAO) A-LIGN. This certification confirms Isos Federal's compliance with federal cybersecurity standards for protecting Controlled Unclassified Information (CUI), enhancing its ability to support Department of War and defense industrial base contractors. The achievement positions Isos Federal as a qualified prime contractor for cybersecurity-related federal contracts, particularly those requiring adherence to CMMC Level 2 standards.
Why this matters: Federal agencies and defense contractors increasingly require CMMC Level 2 certification to meet cybersecurity mandates, making certified vendors like Isos Federal critical partners.
Procurement professionals should consider engaging with or evaluating vendors holding CMMC Level 2 certification to ensure compliance with evolving cybersecurity requirements.
Contractors aiming to compete for Department of War and related defense contracts must prioritize achieving or partnering with entities that have validated CMMC certifications.
This development signals growing emphasis on cybersecurity maturity in federal procurement, especially within the defense sector, impacting vendor selection and contract eligibility.
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Artificial Intelligence
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Digital Infrastructure
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Information Technology
The Government of Pakistan and Google signed a Memorandum of Understanding in 2026 to accelerate Pakistan's digital transformation and expand its IT export sector to $30 billion by 2030. This partnership includes delivering 150,000 Google Career Certificates in 2026, providing free access to advanced AI tools for students, and establishing an AI Centre of Excellence in Islamabad. These initiatives aim to enhance digital skills, foster innovation, and integrate AI into public services and agriculture, supporting government efficiency and economic growth.
The MoU represents a significant public-private collaboration focused on digital skills development and AI adoption within Pakistan's government and economy.
Procurement professionals should note opportunities related to AI technology deployment, digital training programs, and infrastructure development at the AI Centre of Excellence.
Contractors specializing in AI tools, digital education platforms, and IT services may find new avenues for engagement aligned with Pakistan's IT export growth targets.
This partnership signals increased government prioritization of AI and digital transformation, which may influence future procurement strategies and funding allocations in Pakistan.
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Cybersecurity
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Public Safety
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Information Technology
Fire and EMS agencies are increasingly integrating mobile devices into emergency response operations, which exposes them to heightened cybersecurity risks. To address these challenges, agencies are adopting comprehensive layered cybersecurity strategies that align with standards such as NIST, HIPAA, and CJIS. These strategies emphasize multifactor authentication, secure device lifecycle management, and protection of sensitive data to ensure resilient and secure operations for first responders without adding operational complexity.
Agencies must prioritize procurement of cybersecurity solutions that support compliance with federal and state data protection standards relevant to emergency services.
Vendors offering integrated security frameworks and device management tailored for fire and EMS environments can meet growing market demand.
Procurement professionals should consider solutions that balance robust security with usability to avoid hindering emergency response effectiveness.
This focus on layered defense models indicates an opportunity for technology providers specializing in secure mobile communications and identity management for public safety sectors.
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Cybersecurity
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Artificial Intelligence
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Information Technology
NIST has published a draft guide to support organizations in integrating Artificial Intelligence (AI) tools within their Cybersecurity Framework (CSF) 2.0 assessments. The guide provides practical AI prompts, use cases, and emphasizes the importance of human oversight and data safeguards to enhance cybersecurity governance and risk management. Public comments on the draft are open until October 15, 2026, indicating potential future updates that could influence cybersecurity procurement standards and compliance requirements for government contractors.
Why this matters: Federal agencies and contractors should evaluate how AI-enabled cybersecurity tools can improve risk assessments and reporting aligned with CSF 2.0.
Organizations involved in cybersecurity procurement may need to adapt to evolving NIST guidance that integrates AI capabilities, impacting contract requirements and compliance.
Contractors can leverage this guide to develop or enhance AI-driven cybersecurity solutions that meet anticipated federal standards.
Procurement professionals should consider the implications of AI oversight and data protection mandates when specifying cybersecurity services or products.
Los Angeles County's Department of Economic Opportunity and Film Office released a final 120-day report analyzing the potential economic and workforce impacts of the proposed Paramount Skydance acquisition of Warner Bros. Discovery. The report estimates risks to up to 4,500 direct film and TV jobs and over 10,000 total job years, alongside a potential $4.06 billion loss in business output and tax revenues if the merger proceeds. In response, Los Angeles city leadership, including Mayor Karen Bass, is advocating for a swift resolution prioritizing the stability of local entertainment jobs and productions. The city is supporting industry recovery through tax incentives, streamlined filming processes, and dedicated liaisons to facilitate production activities.
Why this matters: Procurement professionals and contractors in the entertainment sector should anticipate potential shifts in local production demand and workforce availability due to merger-related uncertainties.
The report informs workforce action plans and policy responses that may influence future contracting opportunities and local incentives.
Companies engaged in film and television production services should evaluate how city-led facilitation efforts and tax incentives could affect project timelines and costs.
Stakeholders can leverage the city’s commitment to supporting LA-based productions to advocate for favorable procurement terms and partnerships amid industry consolidation.
The Maryland Department of Health has initiated the Assisted Outpatient Treatment (AOT) program, a court-ordered behavioral health initiative targeting individuals with severe mental illness who have difficulty adhering to voluntary treatment. Initially launched in select regions including Baltimore, Anne Arundel County, and the Eastern Shore, the program is planned for statewide expansion by July 2027. This rollout includes a public awareness campaign and the establishment of multidisciplinary care coordination teams to support implementation.
The program involves coordination between the Maryland Department of Health and the Maryland Judiciary, indicating potential procurement needs for behavioral health services, care coordination, and public outreach.
Procurement professionals should anticipate opportunities related to service contracts for multidisciplinary teams, training programs, and public awareness campaigns as the program scales statewide.
Vendors specializing in behavioral health services, community outreach, and care coordination may find emerging contract opportunities aligned with this initiative.
The program's phased regional rollout provides a timeline for procurement planning, with full statewide implementation expected by mid-2027.
