# ATI Sues SBA in D.C. Over Suspension

ATI Government Solutions and six affiliated businesses sued the Small Business Administration in the U.S. District Court for the District of Columbia, challenging their federal contracting suspensions. SBA lifted ATI’s 8(a) suspension on June 4 but maintained the broader contracting suspension and extended it for six months on October 21, 2026. ATI alleges the suspensions cost nearly $130 million in existing contracts and more than $500 million in prospective business; those figures and the underlying allegations remain disputed and have not been adjudicated. Separately, GSA has begun an audit of 689 8(a) firms.

- The case puts SBA suspension procedures, due process, and 8(a) participation under scrutiny. Contractors—particularly those using tribal business structures—can review their eligibility, work-share and subcontracting documentation, and suspension-response procedures in light of the issues raised.
- ATI’s reported losses are company allegations, not established contract damages. Firms assessing exposure should distinguish the lifted 8(a) suspension from the continuing governmentwide contracting suspension.
- The separate GSA audit of 689 8(a) firms may affect contractors beyond ATI; the litigation and audit are relevant to firms planning or participating in 8(a) procurements.

**Jurisdictions:** federal
**Topics:** Regulatory Compliance
**Published:** October 26, 2026

### Government Entities
- Small Business Administration (SBA)
- General Services Administration (GSA)
- U.S. District Court for the District of Columbia

### Vendors
- ATI Government Solutions (Plaintiff and tribally owned federal contractor)

### Key Quotes
> I tell you pass throughs are a great thing!
> — Melayne Cromwell, Contract Manager at ATI Government Solutions

### Sources
- [ATI sues SBA, claims O’Keefe video sidelined the tribally-owned business - Washington Technology](https://www.washingtontechnology.com/companies/2026/10/ati-sues-sba-claims-okeefe-video-sidelined-tribally-owned-business/416769) - Washington Technology
- [A right-wing activist ensnared a federal contractor. Now it’s fighting back. - The Washington Post](https://www.washingtonpost.com/business/2026/10/22/right-wing-activist-ensnared-federal-contractor-now-its-fighting-back) - The Washington Post
- [
        ATI sues SBA to lift suspension from federal contracting - Federal News Network](https://federalnewsnetwork.com/acquisition/2026/10/ati-sues-sba-to-lift-suspension-from-federal-contracting) - Federal News Network