Army Implements Competitive Preference in SBA 8(a) Program Acquisition
The Army has mandated competitive procedures over sole-source awards in the SBA 8(a) program, effective April 7, 2026. This policy shift could influence contracting behaviors and strategic planning for Alaska Native Corporations, Indian tribes, and Native Hawaiian Organizations.
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On April 7, 2026, the Army's Office of the Assistant Secretary issued a directive prioritizing competitive procedures in the SBA 8(a) Business Development Program. This policy modifies the previous 'once 8(a), always 8(a)' principle, allowing follow-on contracts to be set aside for other small business initiatives.
The memorandum states that sole-source procurements remain permissible under emergency circumstances. Additionally, all contracts exceeding $20 million will need senior-level review to ensure alignment with warfighting priorities. This change may significantly affect procurement strategies for ANCs, tribes, and NHOs, as it introduces competition into an area traditionally dominated by sole-source contracts.
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