Note on recent SBA Updates: Following recent court rulings, the SBA removed the automatic social disadvantage presumption for all groups. Every applicant now qualifies under an individualized narrative standard, leveling the playing field and opening viable doors for non-presumed owners who previously sat on the sidelines.

8(a) Glimmer #1

The DOGE Contract Wipeout

The Diversification Push

Earlier this year, an 8(a) client came to us in a panic after DOGE cutbacks eliminated her firm's primary contract base at USAID. She had delayed getting on a GSA Schedule for years because she was comfortable with one stable agency relationship.

Before (One Agency-USAID) -> The Pivot (GSA MAS Schedule) -> Today (Multi-Agency, including DHS prime work)

Losing that work forced her to adapt: she pivoted to the GSA Multiple Award Schedule (MAS) vehicle to expand her reach and quickly captured new prime work with DHS. Today, her firm has a stronger, multi-agency footprint because the shakeup pushed her past single-agency dependence.

8(a) Glimmer #2

Stricter 8(a) Audits

Clearing the Field

Recent SBA audits have cracked down on firms operating as unvetted pass-through entities. When illegitimate pass-throughs hoard awards, qualified small businesses struggle to win work.

Think of it like grading on a curve when 10% of the class is cheating: removing the rule-breakers levels the playing field.

Better enforcement of the 50% performance-of-work rule clears the runway for real, capable contractors who actually perform the work.

8(a) Glimmer #3

The Application Freeze

The ‘Tiny Herd’ Advantage

When the SBA overhauled its social disadvantage review process, the application portal was paused for months. As a result, only around 400 new firms were admitted over the last two years, leaving the total active 8(a) pool at roughly 3,500 firms nationwide (it was 10,000 about 10–15 years ago).

Active 8(a) Firms Nationwide

10-15 Years Ago ~10,000

Today ~3,500

A small herd means a lot of grass to eat

Federal contracting officers still have mandatory statutory Small Disadvantaged Business (SDB) spending goals, but they now have far fewer certified vendors to choose from.

Could your firm join the tiny herd?

8(a) Total Revenue from the GSA Schedule System

Quarterly 8(a) GSA Sales (in Millions)

Quarter 1, FY2024 $584

Quarter 2, FY2024 ^ $671

Quarter 3, FY2024 ^ $688

Quarter 4, FY2024 ^ $757

Quarter 1, FY2025 - $749

Quarter 2, FY2025 ^ $778

Quarter 3, FY2025 $714

Quarter 4, FY2025 - $714

Quarter 1, FY2026 $677

Quarter 2, FY2026 ^ $703

Quarter 3, FY2026 (est.) ^ $715

Federal spending through GSA 8(a) schedules remains steady at ~$2.8 billion annually, but buyers are competing over a substantially smaller vendor base.

Do you qualify under the updated 8(a) rules?

If you want to evaluate whether your business qualifies under the updated 8(a) rules, and/or how a GSA Schedule fits into your capture strategy, I always recommend contacting an industry expert such as ez8a or Advance GSA to answer these questions and more. Neither charge for an initial consultation.