# GSA Audits Contracts of 689 8(a) Firms

On October 21–22, 2026, the Small Business Administration (SBA) referred 689 firms removed from its 8(a) Business Development Program to the General Services Administration (GSA) for review of federal contracts awarded while they participated in the program. The contracts have a collective ceiling of up to **$5.5 billion**. GSA will examine potential improper awards, inaccurate statements, pass-through arrangements, and financial impropriety; suspected civil or criminal violations may be referred to the Department of Justice. This is an audit and enforcement action, not a new solicitation or award.

- Former 8(a) participants cannot receive new 8(a) awards while inactive in the program. Affected firms should verify eligibility records, financial disclosures, subcontracting arrangements, and documentation supporting prior awards and performance.
- Contracting teams should review files for awards involving the referred firms and ensure the basis for award, eligibility determinations, and performance records are documented.
- The review signals increased scrutiny of 8(a) contracting. Businesses pursuing or administering these awards can use the stated audit focus areas to check their records and subcontracting arrangements.

**Jurisdictions:** federal
**Topics:** Regulatory Compliance
**Published:** October 22, 2026

### Government Entities
- General Services Administration (GSA)
- Small Business Administration (SBA)
- Department of Justice (DOJ)
- Office of Inspector General (OIG)

### Key Quotes
> GSA is partnering with SBA to root out fraud, eliminate abuse, and restore accountability to federal contracting.
> — Edward C. Forst, GSA Administrator

> Every firm we identified will now face deeper scrutiny from GSA over the taxpayer-funded contracts they secured.
> — Kelly Loeffler, SBA Administrator

### Sources
- [GSA Launches Sweeping Fraud Audit of Nearly 700 Federal Contractors in Collaboration with Small Business Administration | GSA](https://www.gsa.gov/about-gsa/newsroom/news-releases/gsa-launches-sweeping-fraud-audit-of-nearly-700-federal-contractors-in-collabora-10212026) - GSA
- [FRAUD UPDATE: Nearly 700 contractors suspended from a disadvantaged small business program by @SBA are now facing contract reviews by GSA.

Under President Trump and the @WHFraudTF, fraud has nowhere to hide.

https://t.co/pffsfoR1pY](https://x.com/USGSA/status/2113018545953243237) - twitter-contract-vehicles
- [SBA Refers Nearly 700 Noncompliant 8(a) Firms to GSA to Conduct Contract Audits – Van Nuys News Press](https://www.vannuysnewspress.com/sba-refers-nearly-700-noncompliant-8a-firms-to-gsa-to-conduct-contract-audits) - Van Nuys News Press