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Friday Flash 08/14/2026

See You Next Week at the Joseph P. Caggiano Memorial Golf Tournament!

We’re just days away from the 13th Annual Joseph P. Caggiano Memorial Charity Golf Tournament! Next Wednesday, August 19, the federal contracting community will come together at Whiskey Creek Golf Club for a day of golf, networking, and giving back.

Each year, the tournament brings together members of the government contracting community in memory of our friend and colleague, Joe Caggiano. We look forward to once again welcoming golfers, sponsors, and friends of the Coalition for a great day on the course while continuing to honor Joe’s legacy.

This year’s tournament will support two important causes benefiting veterans: Paws for Purple Hearts and the Coalition’s Endowed Scholarship Fund at The George Washington University Law School. The scholarship fund supports a veteran concentrating their studies in U.S. government procurement law, while Paws for Purple Hearts helps veterans through its unique approach to service dog training and Canine Assisted Warrior Therapy®.

Attendees will also have the opportunity to meet Waldron, a Paws for Purple Hearts service dog that your generosity is helping train for service! We’re excited to welcome Waldron and representatives from Paws for Purple Hearts to Whiskey Creek and give attendees an opportunity to learn more about the organization and the important work it does to support veterans.

We also want to extend our sincere thanks to all of our 2026 tournament sponsors. Their generosity and support help make the tournament possible and allow us to continue giving back to these two meaningful programs.

We look forward to seeing everyone next week at Whiskey Creek for another memorable tournament. Thank you to all of our sponsors, golfers, and supporters for being part of this special event. If you’re still interested in registering for the tournament, click here. See you on the course!


GSA on the Role of Value-Added Resellers 

Washington Technology reports that the General Services Administration (GSA) continues to see an important role for technology resellers and value-added resellers as the agency reshapes how the government buys commercial technology. During a webinar hosted by George Mason University’s Baroni Center for Government Contracting, Laura Stanton, Acting Commissioner of GSA’s Federal Acquisition Service, said the complexity of technology procurement means resellers will continue to be part of the federal acquisition ecosystem. Roger Waldron, who participated as a speaker later on the same webianr, shared the Coalition’s perspective.

The comments come as GSA advances its OneGov procurement strategy, which establishes direct relationships with original equipment manufacturers (OEMs). Stanton noted that federal technology purchases often combine products with related services, including cloud and licensing support. She said knowledgeable reseller partners can help bridge the gap between the commercial technology marketplace and Federal agencies’ unique requirements. 


OneGov AI Agreements to Expire Sept. 30 

According to FedScoopseveral OneGov agreements for access to artificial intelligence (AI) tools are scheduled to expire on September 30. These include agreements for OpenAI’s ChatGPT, Google’s Gemini, and Anthropic’s Claude. According to the GSA Office of IT Products more than 120 orders have been placed under OneGov’s AI offerings which have served approximately 3.4 million federal users. 

The article highlights concerns about potential dependency on AI tools and the impact that could have on agencies’ negotiating leverage when promotional pricing ends. Furthermore, agencies could face additional costs and operational disruption if they move to different platforms. 


Lawsuit Could Shape AI Use in Procurement Decisions 

According to Federal News Network, a recent lawsuit on the Army’s use of AI could require greater transparency in the use of AI in procurement decisions. TRAX International Corporation’s lawsuit would have the U.S. Court of Federal Claims order the Army to reevaluate the proposals submitted for White Sands Missile Range mission support services and make a new award decision. They are arguing that the technical evaluation was distorted by AI hallucinations that weakened TRAX’s bid.  

Previously, the Government Accountability Office (GAO) denied Trax’s bid protest stating that, while the Army erroneously assigned TRAX a weakness, “this harmless error did not prejudice the protester’s chance of receiving the award.” According to legal experts, this case could guide agency decisions about how to use AI in procurement decisions moving forward. 


SBA Finalizes Changes to 8(a) Social Disadvantage Requirements 

The Small Business Administration (SBA) has issued a final rule removing the rebuttable presumption of social disadvantage for individually owned firms applying to the 8(a) Business Development Program. The changes do not apply to entity-owned firms. 

The final rule also replaces the current “social disadvantage narrative” requirement for individually owned applicants. Instead, applicants will need to provide evidence or self-certify that they experienced discrimination by a government or private entity and demonstrate that the discrimination resulted in a loss of access to, or diminished opportunities for, economic advancement. 

Under the rule, the discrimination must be based on an action, policy, rule, or regulation that discriminated against a racial, ethnic, or cultural group to which the applicant belongs, or favored a group to which the applicant does not belong. 

SBA received 114 comments on the proposed rule, with the majority of commenters opposing the proposal. 

For more analysis on the rule, please view this week’s Legal Corner, authored by Holland & Knight attorneys.  


DoW Seeks Feedback on Contract Accounting Reform 

Federal News Networreports that the Department of War (DoW) is seeking industry input on ways to streamline data and audit requirements for contractor business systems. The goal is to lower compliance costs and make it easier for commercial companies to do business with the Department. 

In an open letter to the defense industrial base, DoW acquisition chief Michael Duffey and Acting Pentagon Comptroller Michael Powers asked stakeholders to recommend “common sense contract accounting changes.” Specifically, DoW is asking industry for practical recommendations on how commercial suppliers manage complex accounting and business system requirements and how those practices could inform future reforms.  The Department plans to develop a framework that better aligns its data and audit requirements with Generally Accepted Accounting Principles (GAAP) and internal controls that companies already maintain under the Sarbanes-Oxley Act. 

The effort is part of DoW’s broader acquisition reform initiative focused on accelerating procurement, increasing competition, and reducing unnecessary regulatory and administrative requirements. 

The request also comes as the federal government works to bring Cost Accounting Standards (CAS) into closer alignment with GAAP. Recent rulemaking has rescinded two standards and significantly revised two others. The CAS Board is considering additional changes like increasing CAS thresholds. 

Stakeholders have until August 15 to submit feedback. 


Bill to Increase Skills Based Competency in Federal Solicitations 

FedScoop reports that the Skills-Based Federal Contracting Act advanced out of the Senate Homeland Security and Governmental Affairs Committee by a 10-0 vote. The bill would require written justification for any use of a minimum education standard within a federal solicitation. The House passed similar legislation in February. The Office of Management and Budget would be responsible for issuing implementation guidance to agencies within 180 days of the bill passing.  


VA Launches ChatEHR to Support Federal EHR Transition 

The Department of Veterans Affairs (VA) announced the launch of VA ChatEHR, an AI-powered chatbot designed to help staff navigate the Federal Electronic Health Record (EHR) system. The tool uses approved VA policies, procedures, and training materials to guide users through EHR tasks and workflows. 

Since April, more than 8,000 users have used VA ChatEHR more than 53,000 times. VA said the tool was used extensively during recent Federal EHR deployments in Michigan and southern Ohio, helping staff adapt to new processes while maintaining Veteran care. 

VA emphasized that ChatEHR does not access Veteran health records or support clinical decision-making. 


Senate Bill to Assess Cybersecurity Support for Small Businesses 

FedScoop reports that a bipartisan Senate bill would require the Government Accountability Office (GAO) to evaluate federal cybersecurity resources and support available to small businesses. The Small Business Cybersecurity Assistance Evaluation Act (S. 5291) is the Senate companion to H.R. 8880, which passed the House in June. 

Under the legislation, GAO would assess existing federal cybersecurity programs, resources, and tools available to small businesses and identify key cybersecurity risks, threats, and vulnerabilities. The review would also examine how small businesses prepare for, mitigate, and recover from cyber incidents. GAO would identify gaps in existing federal cybersecurity assistance and opportunities to improve coordination. The resulting report and recommendations would be submitted to the House and Senate Small Business Committees. 

The legislation comes as the Department of War reviews the Cybersecurity Maturity Model Certification (CMMC) program, including concerns about the cost and burden of its requirements on small businesses. 


Changes to Army Social Media Accounts Raise Concerns for Small Businesses 

Federal News Network reports that the Army’s decision to consolidate its social media presence could make it harder for small and nontraditional contractors to stay informed about contracting opportunities. Earlier this year, the Army’s Office of Small Business Programs announced that it would end its LinkedIn presence. A June Army-wide memo further restricted who can communicate publicly on the service’s behalf, limiting official accounts to senior leaders and select commands, formations, and installations. 

The Army says the changes are intended to reduce communications risks and ensure a consistent public voice, with organizations directed to share information through official websites instead. Industry representatives, however, say social media provides a faster and more accessible way for small businesses to learn about contracting opportunities, including solicitations that can be difficult to find through traditional federal procurement searches. 

Industry representatives have raised concerns that reducing the Army’s small business social media presence could make it more difficult for commercial firms to identify opportunities and engage with the service, potentially creating additional barriers for companies seeking to enter the defense market. 


A First Look at the Coalition’s October 7 Compliance Conference

The Coalition is pleased to announce the first in a new series of Compliance Training Conferences designed to help the government contracting community navigate evolving compliance risks and responsibilities. The inaugural half-day training conference will take place the morning of October 7 and will be hosted by CGI Federal in Arlington, Virginia, bringing together government, industry, and legal experts for timely discussions on some of the most important compliance issues facing federal contractors.

We are excited to offer an early look at several of the sessions already planned for the program.

Procurement in the Age of AI: Ethics & Compliance in a Changing Federal Marketplace

The conference will feature a keynote session, “Procurement in the Age of AI: Ethics & Compliance in a Changing Federal Marketplace,” presented by Jessica Tillipman, Associate Dean for Government Procurement Law Studies at The George Washington University Law School. The session will examine emerging AI-related risks across the procurement lifecycle and supply chain, including organizational conflicts of interest, AI-enabled fraud and False Claims Act exposure, algorithmic collusion, system manipulation, and over-reliance on automated judgment. It will also explore practical compliance considerations for contractors as AI becomes increasingly integrated into their organizations, subcontractors, and federal procurement activities.

Active Bystandership: The Missing Link in Corporate Risk Reduction

Attendees will also hear from Jonathan Aronie, Partner at Sheppard, during “Active Bystandership: The Missing Link in Corporate Risk Reduction.” Active Bystandership is a practical approach that equips employees with the skills and confidence to intervene early when they see a colleague moving toward a potential mistake or compliance problem. Already used in high-stakes environments including aviation, healthcare, law enforcement, and the military, the approach offers contractors another tool for strengthening organizational culture and preventing problems before they result in costly compliance or enforcement issues.

Compliance and the Civil False Claims Act

The conference will also include a panel on “Compliance and the Civil False Claims Act,” featuring Alex Canizares, Partner at Vinson & Elkins; Terra Fulham, Special Counsel at Covington; and Tirzah Lollar, Partner at Arnold & Porter.

Additional speakers from government and industry are being invited to participate, and more program details will be announced in the coming weeks.

Stay tuned to next week’s Friday Flash for the opening of registration and additional details about the Coalition’s October 7 Compliance Conference!


Authored by Robert K. TompkinsJeremy D. Burkhart, Hillary J. Freund, Susannah L. Gilmore, and Emmalyn McCarthy; Holland & Knight

The U.S. Small Business Administration (SBA) on August 11, 2026, published its final rule removing from the 8(a) Business Development Program the “presumption” of social disadvantage for certain enumerated groups. The final rule is substantially the same as the proposed rule discussed in a previous Holland & Knight blog post, with a few key differences – including expressly expanding the new “social disadvantage” test to include prejudice or bias based on sex and disability.

There are two notable limitations to the rule change, both of which were highlighted in the proposed rule. First, the rule change applies only to individually owned firms, not entity-owned firms, i.e., those owned by Alaska Native Corporations, Community Development Corporations, Indian Tribes or Native Hawaiian Organizations. SBA has been explicit about this point from the beginning of the rulemaking process.

Second, SBA confirmed that the new social disadvantage requirements will not apply to firms that are currently in the 8(a) program but rather to new applicants and those who have pending applications to the 8(a) program when the rule takes effect September 10, 2026. The proposed rule stated that “at this time,” the SBA’s intention was to apply the new requirements to applicants only and has confirmed that in the final rule.

Background on Proposed Rule

On June 11, 2026, SBA published a proposed rule amending its 8(a) business development regulations to remove the Rebuttable Presumption of social disadvantage for individuals in the 8(a) business development program. In doing so, SBA sought to realign the regulatory definition of “socially disadvantaged individuals” in 13 C.F.R. § 124.103 with the statutory definition in 15 U.S.C. § 637(a)(5).

The proposed rule established a new test under 13 C.F.R. § 124.103(b) to establish social disadvantage. Under this test, any individual U.S. citizen could establish social disadvantage by demonstrating that 1) the government – including state and local governments, universities and corporations – discriminated against the individual’s own racial, ethnic or cultural group, and 2) the individual suffered material harm as a result of that discrimination.

Notably, SBA intended to allow individuals to self-certify both their membership in the relevant racial, ethnic or cultural group at the time of the government’s action and that the government’s action materially harmed them. SBA also indicated that an individual could self-certify that their lack of access to a particular government program – such as ineligibility under the prior rebuttable presumption standard – constitutes actionable discrimination.

In addition, SBA proposed removing the process for group inclusion on the Rebuttable Presumption list under 13 C.F.R. § 124.103(d), reasoning that this process would be rendered moot once SBA removes the rebuttable presumption altogether. SBA declined to extend the standard 30-day comment period and received 114 comments on the proposed rule in total.

Notable Differences Between the Proposed and Final Rule

The final rule includes two significant changes from the proposed rule. First, SBA clarified that the new “social disadvantage” test is not limited to race-based discrimination – it also encompasses evidence-based cases of prejudice or cultural bias based on sex and disability. Second, SBA expanded the categories of “sufficient evidence” by adding “specific Congressional findings” as documentation that can establish discrimination against an identifiable group and provided a new fallback for applicants who lack traditional documentary sources.1 Each change is discussed below.

Expansion to Sex and Disability

In its analysis of Section 124.103, SBA acknowledged receiving a significant number of comments questioning whether the proposed rule applied only to race-based programs, to the exclusion of sex or disability, given the nature of the examples used in the proposed rule. SBA confirmed that individuals subjected to discrimination based on sex or disability may also qualify. In support, SBA cited Section 8(a)(5) of the Small Business Act, 15 U.S.C. § 637(a)(5), which defines “socially disadvantaged” individuals as “those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.” Accordingly, any individual who can establish that a specific identifiable group suffered racial prejudice or cultural bias may establish social disadvantage, provided the other requirements are met.

SBA provided illustrative examples for both categories. For sex-based discrimination, SBA noted that prior to the enactment of the Equal Credit Opportunity Act of 1974, many banks prohibited women from applying for or obtaining credit cards in their own names. Under SBA’s new test, any woman who can certify that she was materially harmed by this policy would be considered socially disadvantaged. For disability-based discrimination, SBA explained that any individual who can properly certify that 1) he or she has a disability covered under the Americans with Disabilities Act (ADA), 2) he or she was alive prior to the passage of the ADA, and 3) he or she experienced material harm as a result of discrimination against people with disabilities would qualify as socially disadvantaged.

Addition of Congressional Findings as Sufficient Evidence

In the proposed rule, SBA provided a non-exhaustive list of “sufficient evidence” that individuals may use to demonstrate that an identifiable racial, ethnic or cultural group suffered discrimination or bias. This list included materials on government, university and corporate websites; government, university and corporate policies, regulations, guidance, procedures or documents; statements by government, university or corporate officials; government, university and corporate reports, audits or findings; court decisions; and administrative rulings.

The final rule makes two additions to this list. First, SBA added “specific Congressional findings” as an enumerated category of sufficient evidence. Second, SBA provided that where evidence of group discrimination or bias by a specific government, university or private entity is not readily available, an individual may present “other adequate evidence” demonstrating such discrimination or bias – providing additional flexibility for applicants who may lack access to traditional documentary sources.

Though SBA’s analysis does not define the full scope of “specific Congressional findings,” the agency’s discussion of disability discrimination is instructive. SBA noted that in passing the ADA, the U.S. Congress recognized that discrimination against people with disabilities was a serious and pervasive social problem requiring statutory redress. According to SBA, this congressional finding – that discrimination against people with disabilities was a pervasive social problem – would constitute sufficient evidence to demonstrate that people with disabilities were subject to discrimination in a manner that diminished their opportunity for economic advancement. This example suggests that congressional findings in other major legislation may similarly serve as sufficient evidence for applicants from those protected groups.

Other Implications

The Backlog of 8(a) Applications

Many commenters expressed frustration about the backlog of 8(a) program applications. As highlighted in a recent U.S. House of Representatives Committee on Oversight hearing with SBA Administrator Kelly Loeffler, SBA has not approved an 8(a) application since August 15, 2025. SBA officials have cited to the need to resolve the legal issues surrounding the social disadvantage presumption as a basis to place a hold on 8(a) applications and promised to resume application processing “within the next couple of months” following publication of the final rule. The final rule’s preamble states that the new test will allow SBA to approve applications “more rapidly,” but SBA declined to respond to the approximately 10 percent of commenters who expressed concern about the 8(a) application backlog for both individually owned and entity-owned firms. The publication of this final rule may allow new and pending applications from entity-owned firms to move forward, but individually owned firms will likely need to provide updated evidence of social disadvantage consistent with the final rule.

Declining 8(a) Participant Numbers

Looking at the bigger picture, the number of 8(a) firms has fallen substantially over the past several years. The program once included more than 9,000 participants, but by late 2025, that number had declined to approximately 4,300. In addition to the halt in application processing, much of this decline reflects a wave of new enforcement actions by SBA. In December 2025, SBA ordered all 4,300 firms to produce three years of financial documents as part of a program-wide audit. After many firms were unable to submit this documentation on time, SBA suspended them in January 2026. Soon after, SBA initiated termination proceedings against other firms who allegedly failed to meet the program’s economic disadvantage eligibility requirements. In total, termination proceedings have been initiated against nearly 800 firms, accounting for roughly 20 percent of the program’s total participants.

Impact on Pending Litigation

SBA’s publication of the final rule should nullify pending litigation challenging the presumption of social disadvantage. In July 2023, the U.S. District Court for the Eastern District of Tennessee held in Ultima Services Corp. v. U.S. Department of Agriculture, 683 F. Supp. 3d 745, 774 (E.D. Tenn. 2023), that the rebuttable presumption of social disadvantage violated the Fifth Amendment’s equal protection clause and enjoined SBA from using it. The Ultima case is still pending a final decision, but SBA’s final rule will likely warrant dismissal of the case entirely. Relatedly, in November 2025, Revier Technologies Inc. and Young America’s Foundation filed Revier Technologies Inc. v. U.S. Small Business Administration, No. 2:25-cv-02328 (E.D. La.), challenging the same rebuttable presumption and its use in other programs that incorporate SBA’s definition of social disadvantage, including the State Small Business Credit Initiative program and the U.S. Department of Homeland Security’s cybersecurity fellowship. Now that SBA is formally removing the presumption from its regulations through this final rule, Revier could be dismissed because the challenged regulatory provision will soon no longer exist.

For more information or questions, please contact the authors.


Virtual VA FSS Industry Day, August 26 

The Coalition is pleased to announce that we are hosting a virtual VA Federal Supply Schedule (FSS) industry day on August 26 from 10 AM to 12:30 PM (ET).   

The opening session will feature remarks from Sharon Chang, Director of the FSS program at the U.S. Department of Veterans Affairs on the program’s current organizational structure, initiatives and priorities. The industry day will also feature a session on updates to the FSS solicitation and breakout sessions on the specific Schedules for Medical/Surgical Equipment and Pharmaceuticals.   

To register, click here. For any assistance with registration, please contact Mady Whiting at mady.whiting@thecgp.org    

Note: This is a members-only event. If you see a message that says “Registration Not Available” please log in using your member account. 


Proposed Changes for Small Businesses in the FY 2027 NDAA, August 27 

Moshe Schwartz, President of Etherton and Associates, Inc., and the Coalition’s Defense Fellow, will speak during a webinar on the proposed small business provisions in the pending National Defense Authorization Act (NDAA) of 2027.  

The webinar will take place on August 27 from 12:00 – 1:00 PM (ET).    

To register, click here. For any assistance with registration, please contact Mady Whiting at mady.whiting@thecgp.org 


GWAC/MAC Committee Meeting with GSA AAS, September 10 

The Coalition’s GWAC/MAC Committee will host a meeting on September 10, at 10:00 AM (ET). Pete Burr, Assistant Commissioner of GSA’s Office of Assisted Acquisition Services (AAS) will provide an update on AAS and its current priorities, followed by an opportunity for dialogue and discussion. 

The meeting will be held in person in the DMV area (location TBA). Virtual attendance will also be supported. 

To register, click here. For any assistance with registration, please contact Mady Whiting at mady.whiting@thecgp.org 

Note: This is a members-only event. If you see a message that says “Registration Not Available” please log in using your member account. 

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