The US Treasury has ordered a full audit of all contracts and task orders awarded under preference-based contracting programs, covering about $9 billion in total contract value across Treasury and its bureaus. The review will focus on potential misuse of the Small Business Administration’s 8(a) Business Development Program and other initiatives designed to support eligible small businesses. 

The announcement follows Treasury’s earlier suspension of contracts with ATI Government Solutions, which had received more than $253 million in awards now under investigation for fraud. Treasury said the audit aims to uncover cases where larger firms may have used small business set-asides as pass-throughs, with minimal participation by the designated small business. 

“Treasury will not tolerate fraudulent misuse of federal contracting programs,” said Treasury Secretary Scott Bessent. “These initiatives must benefit legitimate small businesses that deliver measurable value to the government and the public.” 

SBA Administrator Kelly Loeffler said the review would complement an ongoing audit of 8(a) contracts across all federal agencies. “This administration will not tolerate DEI-based contracting and abuse that compromises opportunity for legitimate and eligible small businesses,” Loeffler said. 

Treasury has directed acquisition officials to require detailed staffing plans and monthly workforce reports for all service contracts to detect non-performance and prevent future misuse.