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Government Contractor’s Blog

The SBA is serving our entrepreneurial veterans

Last Friday, the Small Business Association (SBA) announced that it would invest $3.5 million in grant funding to create veterans business outreach centers (VBOCs) in seven new locations, including Alaska, California, Colorado, Iowa, Nebraska, Nevada, and South Carolina. The purpose of this investment is to expand entrepreneurial training and counseling services for veterans and military spouses who own and operate small businesses. (ExecutiveGov April 24, 2023)

The VBOCs will assist veteran-owned small business in various aspects such as business planning, loan application, marketing and outreach efforts. Additionally, grants will be set up to support Boots to Business classes to help active duty service members transition and determine whether entrepreneurship is a practical transition strategy.(ibid)

Isabella Casillas Guzman, administrator of the SBA, stated that “with this expansion of our veteran-focused network of small business centers, we can help more transitioning service members, veterans, National Guard and Reserve members, and military spouses start and grow their businesses and advance our economy.” (ibid)

Interested in grant funding for your veteran owned small business? Give us a call.

The Door Is Open—But Can Small Businesses Get In?

Dr. Nazeera Dawood believes that if we genuinely want more competition and greater participation from women-owned, minority-owned, and small businesses, we need to rethink what access to government contracting really means. (Federal News Network August 6, 2026)

Years ago, while working in county government, Dr. Dawood managed a request for proposals for a solution her community urgently needed. Like procurement professionals across the country, her team spent months developing the scope of work, meeting with stakeholders, and balancing cost, quality, compliance, and public need. She expected several qualified businesses to compete. (ibid)

Instead, she received only two proposals. One arrived a minute late and faced automatic disqualification. The other failed to meet the minimum requirements. After months of preparation, she had no award, no qualified vendor, and no solution for the residents who depended on the county government. (ibid)

Why weren’t more businesses bidding?

The answers were surprising.

Business owners told Dr. Dawood they did not understand government contracting or know where to begin. Some assumed agencies had already chosen their vendors. Others did not trust the process. Many could not afford to spend weeks preparing a proposal without knowing whether anyone would seriously consider it. (ibid)

That experience was a huge lesson: America does not lack capable small businesses. It lacks accessible pathways into government contracting.

And that problem is becoming more urgent. (ibid)

In March 2025, the Small Business Administration announced plans to reduce its workforce by 43% and close or relocate six regional offices, including its Atlanta office. At the same time, the government-wide goal for small disadvantaged businesses fell from a 15% target to the statutory minimum of 5%. (ibid)

Just as the government needs more competition and a broader supplier base, the support system that helps businesses enter the market is shrinking. (ibid)

This is not simply a procurement issue. It is an economic development issue. (ibid)

The federal government ranks among the world’s largest purchasers. Every contract can create jobs, strengthen a small business, and help that business grow into a larger employer. When fewer businesses compete, taxpayers lose the benefits of competition, agencies lose access to new ideas, and communities lose economic opportunity. (ibid)

The numbers tell the story.

The federal government awarded a record $183 billion to small businesses in fiscal 2024. Yet roughly the same number of small firms won federal contracts in recent years as a decade earlier, even though the number of small businesses nationwide has increased. (ibid)

Women-owned businesses received just 3.4% of federal contract dollars in fiscal 2024, well below the 5% goal Congress established in 1994. The government has reached that goal only twice in three decades. (ibid)

The dollars are growing, but the door is narrowing.

The problem does not lie in a lack of talent or expertise. Instead, we continue to confuse eligibility with accessibility. (ibid)

We tell businesses to register, obtain certifications, and attend webinars. Those steps can help. But once the orientation ends, many entrepreneurs must navigate hundreds of pages of solicitation documents, pricing requirements, compliance rules, past-performance narratives, and subcontracting plans on their own. (ibid)

A missing attachment, an unchecked box, or an incorrect signature can eliminate an exceptional business before anyone evaluates whether it can actually perform the work. (ibid)

Think about how backwards that is. (ibid)

These entrepreneurs already possess valuable expertise in cybersecurity, engineering, healthcare, construction, technology, and countless other fields. Yet we expect them to become procurement experts before we give them a meaningful opportunity to demonstrate what they already do well. (ibid)

Those are two very different skills.

Dr. Dawood spent my career in many different environments, as a physician, public health leader, county executive, and now an entrepreneur. In each setting, she watched capable people lose opportunities not because they lacked the ability to succeed, but because no one showed them how to access the opportunity in the first place. (ibid)

Dr. Dawood acknowledged her own stake in this issue. After leaving public service, she began working in this field. But the problem extends far beyond any one company or consultant. She continues to meet businesses that could successfully perform government contracts but lack a realistic path to compete for them. And experience tells me that simply providing more guidance rarely closes that gap. (ibid)

Some argue that businesses that cannot navigate the procurement process are not ready to perform a government contract. She understands that perspective. But writing a winning proposal and delivering excellent contract performance require different skills. (ibid)

We would not judge a gifted surgeon by her ability to master medical billing software before allowing her to operate. Yet that is essentially what we ask thousands of entrepreneurs to do every year. (ibid)

If we genuinely want more competition and greater participation from women-owned, minority-owned, and small businesses, we need to redefine access. (ibid)

That starts with simplifying solicitations wherever possible. It means measuring success not by how many businesses register, but by how many actually compete and win. And it means investing in hands-on proposal support and stronger partnerships between government and organizations that prepare businesses to compete. (ibid)

Most importantly, we need to reward what a business can actually accomplish, not how well its owners can decode government paperwork. (ibid)

None of this will change until we stop assuming that opportunity exists simply because an application appears online. (ibid)

It doesn’t.

Opportunity exists only when a qualified business has a real and fair chance to compete and win. (ibid)

The next generation of innovators, entrepreneurs, and employers already exists. They are creating jobs, developing new technologies, and solving problems that government agencies need to address. (ibid)

They should not have to prove that they can navigate a maze before they can prove that they can do the work. (ibid)

The real question is whether we are willing to build a procurement system that measures what matters: what a business can do, not how well it can decode the paperwork. (ibid)

Are procurements getting harder for your business to navigate? Could you use some assistance navigating the solicitation process? Give us a call.

Senate Moves to Tear Down the Degree Barrier in Federal Contracting

The Senate Homeland Security and Governmental Affairs Committee advanced legislation last week that would eliminate minimum education requirements in federal contracting jobs, moving the bill closer to a vote by the full Senate.

The Senate Homeland Security and Governmental Affairs Committee approved the Skills-Based Federal Contracting Act (H.R. 5235) by a unanimous 10-0 vote. Rep. Nancy Mace, R-S.C., introduced the legislation, which previously passed the House in February. No senators commented on the bill during the business meeting. (FEDSCOOP August 6, 2026)

Bill Would Prioritize Skills and Experience

The legislation would prohibit federal solicitations from requiring specific educational credentials unless a contracting officer provides a written justification explaining why the agency needs an exemption. (ibid)

Mace has championed the bill for several years. She argues that federal contracting should focus on a candidate’s ability to perform the work rather than automatically requiring a four-year degree. (ibid)

“Washington created the paper ceiling. This bill tears it down,” Mace said in a statement. She added that demonstrated ability should give qualified Americans an opportunity to compete for federal contract work. (ibid)

Mace previously cited testimony from an IBM executive who said federal contractors often cannot place workers without four-year degrees on technology services contracts, even when those workers possess the necessary qualifications. (ibid)

Impact Extends Beyond Technology

Although the federal contracting industry increasingly focuses on information technology, artificial intelligence, cybersecurity, and modernization, Mace has emphasized that the issue reaches well beyond technology and professional services contracts. (ibid)

The bill seeks to encourage agencies to consider skills, experience, and demonstrated ability when evaluating candidates and contractors. (ibid)

“Federal contracting should reward the best person for the job,” Mace said. “Taxpayers are footing the bill; they deserve results. Skills matter. Experience matters. Merit matters. A piece of paper shouldn’t stand in the way.” (ibid)

OMB Would Provide Implementation Guidance

If enacted, the bill would require the Office of Management and Budget to issue implementation guidance to federal agencies within 180 days. The guidance would direct contracting officers to consider alternatives to traditional education requirements. (ibid)

The legislation also has bipartisan support. Democratic Reps. Raja Krishnamoorthi of Illinois and Marie Gluesenkamp Perez of Washington co-sponsored the House bill.

Following the committee’s unanimous vote, Mace called on the full Senate to approve the legislation and send it to the President. (ibid)

“A unanimous vote out of committee speaks for itself,” Mace said. “This is not a Republican issue. This is not a Democrat issue. This is an American issue.” (ibid)

Do you have questions about whether your employees need specific college credentials or whether their experience and skills qualify them for the job? Give us a call.

SBA Launches New Audit of Economically Disadvantaged Women-Owned Small Businesses

The Small Business Administration (SBA) has expanded its review of socio-economic contracting programs to include the Economically Disadvantaged Women-Owned Small Business (EDWOSB) program. (Federal News Network June 12, 2026)

Earlier this week, SBA emailed EDWOSB participants and requested that they complete a survey and submit personal and business tax returns for the past three years by June 30. (ibid)

In the email, SBA explained the purpose of the review:

“Pursuant to 13 C.F.R. § 127.400, SBA is conducting a program examination to verify that your firm continues to meet the requirements of the Economically Disadvantaged Women-Owned Small Business (EDWOSB) program,” wrote the agency’s compliance division within the Office of Government Contracting and Business Development. “Specifically, SBA will be verifying that your firm continues to meet the requirement that the woman or women that own at least 51% of the firm are economically disadvantaged, as set forth in 13 CFR 127.203.” (ibid)

Similarities to the 8(a) Program Audit

This review follows SBA’s recent audit of the 8(a) Business Development Program.

In December, SBA requested information from more than 4,300 8(a) firms, including employee lists, bank statements from the previous three fiscal years, and copies of all 8(a) contracts. As a result of that review, SBA suspended more than 1,100 firms and ultimately terminated 154 companies from the program. (ibid)

SBA Proposes Changes to 8(a) Eligibility Requirements

SBA continues to revise the 8(a) Business Development Program. The agency recently released a proposed rule that would change how individuals qualify for the program.

Under the proposal:

“SBA says ‘individuals will no longer be considered” “socially disadvantaged,” and therefore eligible for the 8(a) program, simply because they are a member of a racial minority group. Likewise, no individual may be barred from the 8(a) program simply because they are white. Instead, all applicants will be required to prove their social disadvantage status by submitting verifiable, fact-based evidence.’” (ibid)

The proposed changes would apply only to individually owned firms. SBA would not change eligibility standards for businesses owned by Indian tribes, Alaska Native Corporations (ANCs), Native Hawaiian Organizations (NHOs), or Community Development Corporations (CDCs). (ibid)

Current individually owned 8(a) participants would not be affected. (ibid)

Comments on the proposed rule are due by July 13.

Reactions to the Proposed Rule

Sen. Ed Markey (D-Mass.), ranking member of the Senate Small Business and Entrepreneurship Committee, criticized the proposal. (ibid)

“The SBA’s proposed rule grossly diminishes the history of systemic racial and ethnic discrimination in the United States. Congress created the 8(a) Business Development Program nearly half a century ago to provide entrepreneurs who have faced historic and present-day discrimination with opportunities to partner with the federal government and support to help grow their businesses,” Markey said. (ibid)

“To be clear, the 8(a) program has always been open to anyone that can prove they’ve experienced prejudice or cultural bias, including in education, employment and entrepreneurship. Now, the SBA proposes to define discrimination based on its political whims and allow applicants to self-certify their eligibility. Instead of fighting to right historic wrongs and enable more job creators to grow and thrive, this administration is once again choosing to distort reality to perpetuate its hateful — and harmful — agenda.” (ibid)

Shane McCall, partner at Koprince McCall Pottroff, noted that SBA’s proposal builds on the 2023 Ultima decision. (ibid)

“However, the proposed rule includes a big change in standards for social disadvantage that mostly stem from racial quotas from government or private entities,” McCall said. (ibid)

“Examples include ‘unlawful diversity, equity, and inclusion programs or policies; unlawful affirmative action programs or policies; race-based quotas, set-asides, or hiring targets; or, any government or private entity policies or programs that favored some groups over others on the basis of race.’ We also need to know how SBA will apply these rules.” (ibid)

Questions About the EDWOSB Audit Process

Industry participants have raised concerns about the audit process.

One executive, who requested anonymity, said the review seemed unexpected because the company had recently renewed its certification and remained certified for another three years. (ibid)

The executive also questioned SBA’s use of SurveyMonkey to collect sensitive financial information, including:

  • Cash balances in savings and checking accounts
  • Retirement account information
  • Stock, bond, and mutual fund holdings
  • Life insurance policies with cash surrender value
  • Home ownership, mortgage balances, and property values (ibid)

The survey also asks:

• Has the Qualifying Owner transferred any assets to any immediate family member for less than fair market value in the last two years?

• Do you have any retirement accounts? And if so, provide a list and how much money is in each account.

• Do you have any stocks, bonds or mutual funds? And if so, provide a list, a corresponding number of shares you own and total dollar value for each.

• Do you have a life insurance policy that has a cash surrender value?

• Do you own your primary residence? If so, what is the mortgage of your residence and what is the current value of your residence? (ibid)

The executive said:

“It makes me wonder how much time and effort has been put into this and makes me question the credibility of whatever results we are provided post-evaluation. Will the SBA feed my data into an algorithm or artificial intelligence to determine program eligibility? Or will a human evaluate? Are they comparing our new information with the information provided at application? Or is this a separate examination completely?” (ibid)

SBA did not respond to requests for comment.

Growth of the Women-Owned Small Business Program

The Women-Owned Small Business (WOSB) program has grown significantly during the last decade.

Federal data shows:

  • 1,410 new WOSB firms entered the federal market in fiscal 2023.
  • 1,183 entered in 2022.
  • 1,276 entered in 2021. (ibid)

Although agencies failed to meet the governmentwide 5% contracting goal between 2020 and 2024, contract dollars awarded to WOSBs increased substantially. (ibid)

According to SBA’s June 2025 procurement scorecard:

  • Agencies awarded a record $31.7 billion to WOSBs in fiscal 2024.
  • Agencies awarded $27.1 billion in fiscal 2020.(ibid)

Leadership Connect reports that contracting activity with EDWOSBs has declined so far in fiscal 2026:

  • 17 awards totaling $2.3 million during the first eight months of FY 2026.
  • 35 awards totaling $8.7 million during the same period in FY 2024.
  • 29 awards totaling $4.7 million during the same period in FY 2025. (ibid)

Certification and Audit Outcomes

Concerns about program abuse prompted SBA to strengthen certification requirements in 2020. The agency now requires firms to obtain certification through SBA’s online platform or an approved third-party certifier and to recertify every three years. (ibid)

SBA identified two possible outcomes for the current audit:

Continued Certification

“If SBA determines that the firm continues to meet program eligibility requirements, SBA will provide a written notice of continued certification in your firm’s record within MySBA Certifications, and the firm will maintain its certified EDWOSB status in SBS.” (ibid)

Proposed Decertification

“If you fail to submit your program examination response within the required timeframe or SBA determines the firm no longer meets program eligibility requirements, SBA will notify you that your firm has been proposed for decertification from the EDWOSB program in accordance with 13 CFR 127.405.”

The notice will explain the reasons for proposed decertification and require a written response within 20 calendar days. SBA may draw adverse conclusions if a firm fails to cooperate or provide requested information. (ibid)

SBA also stated that firms may voluntarily withdraw from the program before the audit concludes.

McCall summarized the significance of the review:

“While I’ve seen nothing official, it appears that SBA is auditing the economic disadvantage for all EDWOSB participants. This means those companies will have to provide backup documentation showing they meet the EDWOSB economic disadvantage requirements. Those rules are basically the same as the 8(a) economic rules. So, this could represent a shift towards more scrutiny on the EDWOSB program, similar to the 8(a) program.” (ibid)

Legislative Efforts to End the Program

The audit comes as some lawmakers seek to eliminate the Women-Owned Small Business program entirely.

In April, Sen. Mike Lee (R-Utah) and Rep. Glenn Grothman (R-Wis.) introduced the Ending Discrimination in Government Contracting Act. The legislation would eliminate contracting preferences for women-owned and socially and economically disadvantaged businesses. (ibid)

Neither bill has advanced beyond committee review. (ibid)

Don’t Miss This Step: FCP Now Requires T&C File Updates for Onboarding

FCP Update: T&C File Now Required in First Steps

Starting April 6, 2026, you must update your Terms & Conditions (T&C) file as part of the FCP First Steps onboarding process. FCP now integrates this long-standing MAS requirement directly into onboarding. (buy.gsa.gov March 31,2026)

You must update your T&C file if you:

  • Are a new contractor (awarded after August 28, 2025) and have not created an initial T&C file in FCP
  • Are a new FCP user and need to establish or update your T&C file
  • Are an existing FCP user adding a new catalog offering that requires a baseline action (e.g., adding services after offering only products) (ibid)

How to check:
Log in to catalog.gsa.gov and look for the “Update T&C” requirement in the First Steps banner on your Catalog Overview page.(ibid)

How to prepare your file:

  • Existing contractors: Download your current file from GSA eLibrary and remove all pricing and catalog details included in your Product File or Services Plus File (ibid)
  • New contractors: Follow I-FSS-600 requirements. Do not include pricing unless specifically required for certain SINs (ibid)

Who is not impacted:

  • Contractors awarded after August 28, 2025 who have already uploaded a T&C file (ibid)
  • Contractors who transitioned to FCP before this requirement (ibid)

Resources:
Terms & Conditions FAQ: https://catalog.gsa.gov/help#tnc
Getting Started Guide: Available in FCP for step-by-step onboarding instructions

Do you have questions or need assistance updating your T&C file? Give us a call.

Time is ticking to get your FAS ID

GSA recently shared that they will transition to FAS ID for login as part of a system update scheduled for April 14, 2026.

Here’s what to expect:
You will receive a separate email from Okta (sent from no*****@**ta.com or MFA-No-Reply+no*****@*sa.gov) during the week of April 6. This email will include instructions to complete your FAS ID registration before the April 14 transition.(assist.gsa.gov April 6 2026) After you click the activation link, you will:

  • Create a password
  • Set up a security question and answer

Once you complete these steps, your FAS ID credentials will be ready to use on April 14.(ibid)

👉 Please note that the registration link expires after 7 days, so please act promptly.

👉 If you do not receive the email, please check your junk or spam folder.

GSA considers this timeline tentative and will notify you by email if anything changes. (ibid)

Should you have any questions, feel free to give us a call.