Both the house and senate versions have been referred to various committees for consideration. In the Senate, it is with the Committee on Homeland Security & Governmental Affairs. In the House, it has been referred to Oversight and Government Reform, Small Business, Transportation and Infrastructure, and Armed Services. They could "die in committee" or be incorporated into larger legislation like the National Defense Authorization Act.
While the main focus has been on WOSBs, the Senate bill (S.4390) explicitly aims to "end all racial, ethnic and sex-based discrimination". The article notes that the bill would also severely impact the 8(a) Program and Small Disadvantaged Business (SDB) self-certifications.
The impact would be total. Specifically, the bills propose to:
Yes, there are currently two companion bills—S.4390 in the Senate and H.R.8511 in the House—titled the “Ending Discrimination in Government Contracting Act”. If passed, these bills would effectively terminate the federal WOSB program by repealing its statutory authority. However, it is important to remember these are currently just bills, not laws, and they must pass through the legislative process before taking effect.
You have a great eye—there is currently a direct conflict between the SBA regulations and the new FAR Overhaul!
The SBA’s regulation explicitly allows prime contractors to accept VOSB self-certification for subcontracting goals. However, the newly published RFO version of FAR 52.219-9 expressly forbids it, stating that VOSBs must be certified by the SBA.
So, which rule wins? Legal experts are advising primes and subs to play it safe and follow the stricter RFO FAR rule. Why? Because the RFO requirement is baked directly into the prime contractor's written contract clause. By signing it, the prime is agreeing to the stricter terms regardless of the SBA's broader rule. Furthermore, insiders expect the SBA to release guidance soon that updates their regulations to align with this new, stricter FAR.
My guidance -> Don't bet your subcontracting revenue on a regulatory loophole that is likely closing soon. Assume formal SBA certification is required moving forward! I can help you if needed...Mark
The short answer is No. If the prime’s contract falls under the new "Revolutionary FAR Overhaul" (RFO). For a while, even after the government cracked down on SDVOSB self-certifications in 2024, standard VOSBs could still self-certify at the subcontracting level (except for VA contracts). However, under the new RFO version of FAR 52.219-9, "other than small" prime contractors can only count formally SBA-certified VOSBs toward their subcontracting goals. If you have been relying on self-certification to make yourself an attractive subcontractor to large primes, those days are ending. You need to complete the official SBA certification process to continue delivering that value to your prime partners. I can help if you need it...Mark
If you're bidding on a federal contract and the solicitation requires "prime contractor" past performance, don't try to submit your subcontractor experience by claiming you "performed like a prime."
A recent GAO bid protest decision (Highland Engineering, Inc.) highlights exactly why this is a terrible idea:
The Takeaway: If a solicitation unfairly restricts past performance to primes only, and you have valid first-tier sub past performance (especially if it qualifies under 13 CFR 125.11(c)), raise the issue with the Contracting Officer or file a pre-award protest. Competing under "prime only" instructions and then filing a protest after the fact will likely be deemed an untimely challenge to the solicitation's terms. And most importantly, never misrepresent your subcontractor experience as prime experience; it can permanently damage your reputation with the agency.
A lot of small businesses think that federal agencies have to consider their past performance as a first-tier subcontractor when they finally bid as a prime contractor. The reality is a bit more complicated, as Steven Koprince pointed out in his recent April 24, 2026, article.
Here is what you need to know about getting your sub's past performance counted:
The Takeaway: Start managing your subcontracting agreements proactively! Add language to your subcontracts that requires the prime to provide a rating upon request for up to 5 years. Also, if an agency issues a solicitation that explicitly says "prime contractor past performance only," and you have valid sub past performance under these rules, politely point out the SBA regulations to the Contracting Officer before the proposal deadline. Do not wait until after award!
I’m seeing a lot of confusion around how JV revenue is classified for BAT purposes, especially on vehicles like STARS III. If your 8(a) JV wins a STARS III task order, the revenue is attributed to you (the 8(a) managing venturer) based on the percentage of work you actually perform, not just your ownership stake in the JV.
However, here is the kicker: because STARS III is exclusively an 8(a) vehicle, all of that attributed revenue will be legally classified as 8(a) revenue.
It does absolutely nothing to help you hit your non-8(a) open-market targets. You cannot rely on JV 8(a) wins to carry you through the transitional stage—you still need to be actively bidding outside of the 8(a) program to hit those required percentages!
If you are getting close to the 8(a) adjusted net worth limits, do not leave your financial reporting to chance this year. In previous years, if there was an appearance that an owner might be bumping up against the limits, the SBA would usually initiate a dialogue, request a remediation plan, or give you time to clarify your accounting.
Now, we are seeing the SBA issue immediate notices to terminate if the data trips their internal wires.
What you need to do: Work with your CPA before you submit your annual review. You must ensure your personal real estate, retirement accounts, and business equity are perfectly classified and documented according to SBA exclusions. Do not give them a reason to flag your file.
Yes, it is a completely different landscape right now. Historically, if your firm was doing under $5M in revenue, your annual review was often a cursory "check-the-box" exercise. You rarely saw deep audits unless you were over $15M.
That has changed dramatically over the last six months. The SBA recently brought on Palantir (a massive data analytics firm) to tighten oversight and flag anomalies. They are catching discrepancies that used to sail right through. More importantly, the SBA’s posture has shifted from cooperative to adversarial. If your numbers look off, they aren't asking for clarification first—they are issuing probation notices and termination notices. You have to be audit-ready on day one of your renewal.
You won't necessarily get kicked out immediately, but the days of the SBA looking the other way are over. In the past, the SBA might have just given you a warning. Today, they are routinely handing out immediate probation for BAT misses.
Your absolute best defense is to submit a "Good Faith Efforts" waiver. Under 13 CFR § 124.509(d)(1)(i)(A), if you can prove you submitted offers for non-8(a) procurements over the last year—and that winning those would have pushed you over your BAT percentage—the SBA can waive the shortfall. Document your open-market pipeline meticulously and present it to your BOS before they have to ask for it.
The short answer is no. Even if a Contracting Officer makes an administrative error and checks "Small Business" on the award document (or in FPDS), STARS III is inherently a 100% 8(a) GWAC. Section B.1.1 of the Master Contract explicitly reserves it exclusively for 8(a) primes. Because the underlying vehicle is 8(a), the SBA will legally classify every single dollar that flows through it as 8(a) revenue. Trying to fight the SBA on an administrative checkbox error is a losing battle that will just invite unwanted scrutiny from your Business Opportunity Specialist (BOS).
The statute is clear: the government's 23% small-business goal is based on the total value of prime contracting dollars, not on the number of contracts awarded. This is a distinction that often gets glossed over but has significant implications.
In practical terms, the government can technically meet its 23% small-business goal by awarding a single large contract to one small business and dozens of smaller contracts to large businesses — as long as the dollar value meets the threshold.
The data backs up the concern. While the total dollar value awarded to small businesses has continued to climb, the number of small business prime contractors has dropped from roughly 119,000 in 2010 to fewer than 61,000 in 2024 — nearly a 50% decline in under 15 years. Fewer small businesses are receiving federal contracts even as the headline goal numbers look strong.
For those of you pursuing 8(a) or other small-business certifications, or advising clients on them, this context matters. Getting certified is the right move, but understanding how the goaling system is measured helps set realistic expectations and sharpen your BD strategy.
Many people assume the government only counts spending toward its small-business goals when a contract is specifically set aside for that category. That's not how the system works.
The SBA counts dollars toward the goals regardless of how a contract was awarded. If a WOSB wins an unrestricted full-and-open competition, those dollars still count toward the WOSB goal. If an 8(a) firm wins a small-business set-aside, that award can count toward both the SDB goal and the small-business goal simultaneously.
The FY 2024 data make this stark: the government counted $31.7 billion toward the WOSB goal, but only $2.2 billion of that came from actual WOSB set-asides. For HUBZone, $17.6 billion counted toward the goal, while only $2.8 billion came from HUBZone set-asides.
This also means the government can count a single contract dollar toward up to five goal categories at once — small business, SDB, WOSB, SDVOSB, and HUBZone — if the awardee holds all the relevant certifications. Senator Joni Ernst proposed a bill in 2023 to cap this at two categories per dollar, but it didn't pass.
For those pursuing 8(a) certification, it's important to understand that your certification has value beyond set-asides, and the goaling system is more complex than many realize.
One of the most repeated statements in federal contracting is that the government is required to award 23% of prime contracts to small businesses. It sounds like a firm obligation, but the law tells a different story.
The Small Business Act (15 U.S.C. 644(g)) uses the word "goal" — not "mandate" or "requirement." The Congressional Research Service confirmed in a 2025 report that agency goal attainment is "an aspirational pursuit without punitive consequences for failure to meet goals." The only consequence of missing a goal is that the agency must submit a report explaining why it missed the goal and how it plans to improve.
In fact, in FY 2024, the government missed both the 5% Women-Owned Small Business goal and the 3% HUBZone goal — and still received an "A" grade on the SBA's annual scorecard.
This doesn't mean the goals are meaningless. Agencies do feel pressure to hit them, and the scorecard creates public accountability. But if you're advising clients that the government must award them contracts because of a legal mandate, that's a misread of the law. Understanding the difference between a goal and a mandate shapes how you position your strategy.