The review focuses on the potential misuse of small-business contracting programs.
The Department of the Treasury recently announced a comprehensive audit of preference-based federal contracts totaling about $9 billion, following allegations of misuse within programs designed to assist small businesses. The review will assess whether large companies improperly benefited from small-business set-asides or used pass-through arrangements that avoided procurement rules. This follows the suspension of contracts with ATI Government Solutions after reports of $253 million in alleged fraud.
“President Trump has directed his administration to eliminate fraud and waste wherever it occurs, ensuring that each taxpayer dollar is spent as intended,” said Treasury Secretary Scott Bessent. “Treasury will not tolerate fraudulent misuse of federal contracting programs. These initiatives must benefit legitimate small businesses that deliver measurable value to the government and the public.”
Small Business Administration Administrator Kelly Loeffler said that, under the prior administration, “federal contracting set-aside programs proliferated without scrutiny or oversight – which is why the SBA launched a full audit of the 8(a) Business Development Program earlier this year to examine contracts across every agency. This Administration will not tolerate DEI-based contracting and abuse that compromises opportunity for legitimate and eligible small businesses.”
The department is also requiring new staffing and performance reporting standards to help identify fraud, prevent waste, and promote greater accountability in future contracts.
As the Lord Leads, Pray with Us…
- For Secretary Bessent to be discerning as he oversees the audit of the contracts and task order awards under preference-based contracting.
- For wisdom for Administrator Loeffler as she heads the Small Business Administration and seeks to prevent fraud and abuse of federal programs.
Sources: Department of the Treasury, Townhall
