S. 3173 — Stop 8(a) Contracting Fraud Act

This section establishes a moratorium prohibiting the Small Business Administration (SBA) from awarding sole source contracts under the section 8(a) Business Development Program (i.e., a program aiding small businesses owned by socially and economically disadvantaged individuals, 15 U.S.C. 637(a)(16)) beginning on the date of enactment until SBA completes an audit of the program—ordered by the SBA Administrator on June 27, 2025—and submits a report on the audit findings to the Senate Committee on Small Business and Entrepreneurship and the House Committee on Small Business. The section authorizes waivers of the moratorium for national security needs, requiring a contracting officer to submit a written request with justification—via the agency's head acquisition officer—to the SBA Administrator or Deputy Administrator (non-delegable), explaining why the contract is imperative for national security and cannot be performed by another small business concern.