SBA Launches Probe Into Firms Allegedly Using ‘Minority’ Front To Win Multi-Million No-Bid Contracts

The Small Business Administration said Monday it opened an investigation into ATI Government Solutions and the Susanville Indian Rancheria after an undercover video alleged the firms exploited SBA’s 8(a) program to win federal work.

The announcement comes as SBA leadership touts a broader crackdown: in June the agency ordered a full-scale audit of 15 years of 8(a) contracts, and in July it revoked USAID’s independent 8(a) contracting authority following a Justice Department bribery case. (RELATED: James O’Keefe Removed From Project Veritas Board, Stripped As CEO)

“I tell you pass throughs are a great thing … We only do 20% … The rest goes to subs … And remember, there’s no competition,” a woman identified in the video as an ATI contract manager says, according to the footage posted by James O’Keefe.

The Daily Caller has not independently verified the recording.

In an X post announcing the probe, SBA Administrator Kelly Loeffler said a review of the 8(a) program has uncovered “institutionalized abuse” involving shell companies and fraudulent pass-throughs, and that the agency “took immediate action to slash 8(a) contracting goals” earlier this year while the audit proceeds.

SBA’s June 27 audit order directs officials to scrutinize “high-dollar” and “limited-competition” awards across the last decade-plus and to refer findings to the inspector general and the Justice Department — moves outside analysts said signaled a tougher posture on fraud.

Separately, the agency in late July rescinded USAID’s 8(a) authority after prosecutors detailed a years-long bribery scheme tied to that program. SBA said the DOJ case prompted the rare step to ensure integrity in small-business contracting.