Federal News
ASRC Federal Faces 8(a) Program Scrutiny
March 17, 2026
ASRC Federal, a defense contractor benefiting from minority-owned business preferences under the SBA's 8(a) program, has come under government and watchdog scrutiny for subcontracting significant portions of its awarded contracts to companies owned by the CEO's white husband. This practice raises concerns about potential abuse of the 8(a) program's intent to support disadvantaged indigenous businesses. Key contracts involved include a $16.7 million DHS networking services contract and subcontracts totaling over $3.9 million to related entities. The Department of Homeland Security and Transportation Security Administration are primary agencies involved, with the Small Business Administration overseeing the 8(a) program. ASRC Federal denies improper conduct, citing adherence to corporate ethics and conflict-of-interest policies. Procurement professionals should be aware of increased oversight and potential reforms targeting 8(a) program compliance and subcontracting practices.
- Why this matters: Heightened scrutiny of 8(a) program use may lead to stricter enforcement and revised guidelines affecting minority-owned business certifications and subcontracting rules.
- Agencies and contractors should evaluate subcontracting arrangements to ensure compliance with SBA 8(a) requirements and avoid conflicts of interest.
- This situation signals potential shifts in procurement risk assessments for firms leveraging minority status in federal contracting.
- Organizations may find emerging opportunities in consulting or compliance services as agencies respond to calls for reform and oversight enhancements.
In the Pentagon, $100 million sole-source contracts go out the door to these 8(a) firms almost every day without any competition or opportunity for anyone else to bid.
— Pete Hegseth, Secretary of War
Any characterization or suggestion that ASRC Federal has improperly steered contracts to its leadership’s family members is materially false 3 Leaders including our CEO adhere to a strict corporate code of conduct and a conflict-of-interest policy to ensure proper protocols are followed.
— ASRC Federal (statement)
Agencies
Department of Homeland Security, Transportation Security Administration, Small Business Administration
Vendors
ASRC Federal Data Network Technologies LLC, B&B Consulting Enterprises, Daurem LLC, Intellect Solutions LLC, Agile Decision Sciences
Contracts
$16.7 million, $3.5 million, $480,000
Locations
Sources
- Defense Contractor Used Minority Status To Win Contracts, Subcontracted To CEO’s White Husband · The Daily Wire · Mar 17