The Small Business Administration
(“SBA”) must collect this information to examine participants in
SBA’s program under 15 U.S.C. § 637 (the “8(a) program”) in
response to urgent concerns regarding small business federal
contracting and subcontracting compliance by businesses
participating in the program, as well as other instances of waste,
fraud and abuse in the same program. This information will be used
to determine continued eligibility, program and contract term
compliance, and to identify instances of fraud. SBA is authorized
to collect this information as part of its general investigative
authority under the Small Business Act (codified at 15 U.S.C. §
634(b)(11)).
See attached memo. The
Small Business Administration (“SBA”) requests emergency processing
under 5 CFR 1320.13 for a new Information Collection Request
(“ICR”). SBA seeks approval by November 18, 2025, to enable
immediate collection of business data relating to participants in
SBA’s business development program under 15 U.S.C. § 637 (the “8(a)
program” and such participants “8(a) participants”). This data is
essential to the mission of the SBA in order to examine
participants in the 8(a) program in response to urgent concerns
regarding small business federal contracting and subcontracting
compliance by businesses participating in the program as well as
other documented instances of waste, fraud and abuse within the
same program. 5 CFR 1320.13(a)(1)(ii). Recent government-wide
investigations by the Department of Justice, the Small Business
Administration Office of Inspector General, and the Government
Accountability Office, coupled with recent public allegations of
illegal conduct by an 8(a) participant, have exposed systemic risks
within the 8(a) program that make the program particularly
susceptible to waste, fraud, and abuse. For example, risks of
improper pass-through contracting and noncompliance with FAR
52.219-14, Limitations on Subcontracting, improper control of 8(a)
firms, eligibility fraud, improper disbursements, and improper
transfers of contractual responsibilities across the federal
acquisition landscape have been identified. The absence of
standardized, data-driven reporting on prime versus subcontractor
labor utilization, for example, has been identified as a
vulnerability throughout government. SBA’s request will increase
visibility into the 8(a) program, strengthen internal surveillance
and oversight of 8(a) participants, and reinforce public trust
through proactive corrective measures. The public investigations
and recent widespread reporting of the 8(a) program’s
susceptibility to fraud mentioned above, together with the
Department of Justice’s uncovering of a $550 million scandal
involving 8(a) contracting at USAID, could jeopardize SBA’s efforts
to investigate and counter fraud, waste and abuse in its 8(a)
program, as explained further below. In particular, the recent
publicity given to both fraud within the program and SBA’s efforts
to address it have created a new urgency in requesting potential
data essential to SBA’s mission and the integrity of the 8(a)
program. The increased attention on the 8(a) program means that the
use of normal clearance procedures is extremely likely to prevent
or disrupt the collection of essential information that may be
altered, destroyed or otherwise concealed by those seeking to evade
enforcement. Because of these concerns and the identified systemic
risks discussed above, the information must be collected prior to
the expiration of the ordinary time periods for notice and comment.
5 CFR 1320.13(a)(1)(i). Delaying implementation until completion of
normal Paperwork Reduction Act clearance procedures would undermine
these efforts and perpetuate risk, including evidentiary spoliation
risks, during active oversight investigations. 5 CFR
1320.13(a)(2)(iii). SBA’s ability to document 8(a) participant
eligibility and compliance is essential to ensuring that
small-business set-aside awards meet requirements and maintain
program integrity. The requested emergency clearance will allow SBA
to gather baseline data and support interagency coordination with
OMB, Treasury and other federal agencies utilizing SBA’s 8(a)
participants to inform a permanent, government-wide solution.
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
Supporting Statement 8(a) Audit Final.docx
Review of 8(a) Business Development Program & Relevant Information