In a memorandum dated January 16, 2026, the Department of Defense (DoD) has directed a department-wide review of every small business set-aside award in excess of $20 million. The Department has also ordered a review of all sole-source and set-side contracts of the same value awarded to any participant in the Small Business Administration’s (SBA) 8(a) business development program. The memorandum is notable for the breadth and speed of the contemplated review and the potentially wide-ranging effects it could have on 8(a) and other small business DoD contractors. The memorandum is the latest initiative reflecting stated concerns within the Administration that 8(a) and other small business contracting programs may involve fraud, race-based favoritism, excessive profiteering, and illegal pass-throughs.
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