8(a) Program Under Fire: Treasury Launches Sweeping Contracting Investigation

Updated November 15, 2025

For those following IRS closely, included below is an updated list of recent terminated contracts for this contractor which is reported to have been suspended for alleged fraud.

We now see a new addition as IRS terminates an award to one of their joint ventures. 

Included below is a list of other ATI contract awards that were recently terminated

This latest termination comes on the heels of Treasury announcing a sweeping contract investigation – details below.


Added November 7, 2025

8(a) Program Under Fire: Treasury Launches Sweeping Contracting Investigation

The U.S. Department of the Treasury has launched a department-wide investigation into potential fraud and misuse of preference-based contracting programs following recent allegations tied to the Small Business Administration’s 8(a) Program. The audit will cover approximately $9 billion in contracts and task orders across Treasury and its bureaus, with a focus on uncovering “pass-through” arrangements where firms claim small-business advantages while subcontracting the majority of the work. Read the Treasury announcement here.

According to the Treasury release, this investigation follows the suspension and termination of contracts with ATI Government Solutions, a tribally owned 8(a) company accused of funneling large no-bid awards to other firms while performing minimal work itself. Treasury has directed acquisition officials to tighten oversight by requiring detailed staffing plans and monthly workforce performance reports to ensure contract integrity and prevent abuse of set-aside programs.

Treasury Secretary Scott Bessent emphasized that the department’s goal is to “root out waste, fraud, and abuse” and restore confidence in how taxpayer dollars are spent. The audit represents one of the most significant federal reviews of 8(a) and other preference-based contracting programs in recent years.

The outcome could have far-reaching implications – Government contractors should expect increased scrutiny of their performance levels, subcontracting practices, and documentation supporting compliance with SBA regulations.

Read the full Treasury release here




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