SBA sent firms three letters yesterday: a suspension letter; a letter of intent to terminate; and a voluntary withdrawal agreement as part of its ongoing audit.
The Small Business Administration has started the process to get rid of 154 small companies from the 8(a) program.
SBA sent letters to companies based on their answers to the data call the agency initiated in December.
In a release, SBA said the data shows that these 154 companies have “exceeded statutory net worth limits, adjusted gross income caps, or total asset limits.”
“Today, we are taking action to terminate 154 D.C. firms that received $1.3 billion in federal contracts, all of whom were allowed to stay in the 8(a) program even when they were not economically disadvantaged,” said SBA Administrator Kelly Loeffler in a statement. “This administration is enforcing the law — which means we’re ending diversity, equity and inclusion (DEI) discrimination, rooting out abuse and removing big companies that unfairly dominated the federal contracting marketplace to the detriment of eligible, honest small business owners.”