October 21, 2026

GSA Launches Sweeping Fraud Audit of Nearly 700 Federal Contractors in Collaboration with Small Business Administration

U.S. Small Business Administration Refers 689 Firms to GSA for Comprehensive Contract Review Following 8(a) Program Suspensions

WASHINGTON, D.C. — Today, the U.S. General Services Administration (GSA) and the U.S. Small Business Administration (SBA) are announcing that federal contracts with 689 firms are being audited for potential fraud following the firms’ suspension from the 8(a) Business Development Program.

The review follows an SBA assessment finding that hundreds of 8(a) program participants had not demonstrated compliance yet received federal benefits, procurement priority, and contracts with a collective ceiling of $5.5 billion. GSA will examine the noncompliant businesses’ federal contracts and refer suspected fraud to the Office of Inspector General and the Department of Justice.

“Under President Trump and Vice President Vance’s leadership, GSA is partnering with SBA to root out fraud, eliminate abuse, and restore accountability to federal contracting,” said GSA Administrator Edward C. Forst. “Those who manipulate the system, defraud taxpayers, and steal opportunities from legitimate small businesses will be held accountable. We will refer suspected fraud to the Department of Justice and pursue every dollar owed to taxpayers. Federal contracts are a privilege, not a license to defraud the American people.”

“SBA has spent the last 21 months cleaning up the 8(a) Program to clear out the firms that abused set-aside contracts designed to help legitimately economically disadvantaged small businesses to compete for federal contracting opportunities,” said SBA Administrator Kelly Loeffler. “Every firm we identified will now face deeper scrutiny from GSA over the taxpayer-funded contracts they secured. While prior Administrations looked the other way, the Trump SBA will not tolerate bad actors exploiting federal contracting programs at the expense of honest, eligible small businesses.”

The SBA’s 8(a) Business Development Program helps eligible small, disadvantaged businesses to compete for federal contracts. To qualify, a firm generally must be a small business and meet SBA requirements related to personal net worth, adjusted gross income, total assets, good character, potential for success, and other eligibility criteria.

The audits are part of GSA’s unprecedented effort to detect procurement fraud. Since August, the agency has identified more than $13 billion in potential fraud, including $1.2 billion in coordination with the Department of Health and Human Services. The effort also contributed to the placement of Onur Simsek on the FBI’s Most Wanted Fraudsters list.

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About GSA: GSA provides centralized procurement and shared services for the federal government, managing approximately 360 million rentable square feet, overseeing over $126 billion in products and services via federal contracts, and delivering technology services to millions of people across dozens of federal agencies. GSA’s mission is to deliver exceptional customer experience and value in real estate, acquisition, and technology. To address nearly $50 billion in delinquent maintenance, GSA is leading a coalition of every cabinet agency and many federal leaders urgently advocating for full Federal Buildings Fund access and raising the prospectus threshold from $4.109 million to $75 million. For more information, visit GSA.gov and follow @USGSA.