New opportunities in Government Contracting arena, - "where your success is our business"

New Small Business Administration rules set to take effect on January 2026, have introduced a world of hurt to the clients I help every day: the owners of small business set-aside companies. As the Office of Management and Budget’s Jason Miller recently explained, “each year, tens of thousands of small businesses serve as contractors for the federal government, providing a variety of goods and services.” These owners run the gamut from women to service-disabled veterans, from husband and wife teams to immigrants bringing a new technology or service offering.

During the DOGE audits all contractors found with frictions with FAR, not only losing the contracts but also being slap with a debarment notices.

Now their world has been turned upside down because the SBA has put in motion a set of rules that will significantly decrease the value of many of these small business companies who hold set-aside contracts.

Under the new regulations, if a small business owner in the federal space wants to sell their company, and the new entity, post-acquisition, no longer meets the size or program status requirements under which the previous owner was awarded contracts, the buyer may be precluded from exercising option years on that contract (while still being allowed to perform that contract for its current period of performance.)

Owners of small businesses who work in government contracting strengthen our nation’s ability to get the goods and services our government needs, contribute to a more resilient supply chain, boost job creation in local communities, and strengthen the nation’s defense industrial base. Penalizing them at the end of their business journey by suddenly decreasing the value of their companies isn’t fair.

Good News is that this change creates additional opportunities for new comers in the space

Now is the time get inline with FAR requirements a new entity v/s purchasing existing firms or subcontracting.