Matt Schoonover and I got together this afternoon to discuss what SBA told the Office of Management and Budget about the 8(a) data call. Below is an auto-generated summary of our conversation. You can find the topic of our conversation, SBA’s submission to OMB, on reginfo.gov.
In this episode of GovCon Intelligence, Sam sits down with Matt Schoonover, a leading attorney in government contracting, to unpack the SBA 8(a) data call.
The conversation focuses on the data call issued by the SBA in December, which requires 4,500 firms in the 8(a) program to submit extensive operational and financial records by January 19th—a federal holiday. Bypassing standard public notice procedures under the Paperwork Reduction Act, the agency cited urgent concerns over “waste, fraud, and abuse” and the potential for evidence destruction as justification for the emergency measure.
Together, Sam and Matt analyze the regulatory filings that reveal the SBA’s rationale, the estimated $32 million compliance cost to small businesses, and a surprising statement regarding the confidentiality of the data collected.
Topics
Emergency Authorization: The SBA used emergency clearance procedures to fast-track the data collection, bypassing the standard notice-and-comment period. The agency argued that a public process could allow bad actors to “alter, destroy, or otherwise conceal” evidence.
The Cost of Compliance: The SBA estimates the total burden on the 4,500 respondents will be approximately $32 million—roughly $7,000 per participant. However, the hosts note that for less sophisticated firms or those with complex contracts, the actual costs could be significantly higher.
“No Assurance of Confidentiality”: Perhaps the most concerning discovery in the SBA’s supporting documents is a statement explicitly declaring, “There is no assurance of confidentiality.” This raises questions for contractors asked to hand over sensitive “secret sauce” data, including complete accounting ledgers, employee lists, and vendor details.
Fraud Narrative: The data call appears rooted in the SBA’s belief that the 8(a) program is riddled with waste, fraud, and abuse. Matt argues this premise undermines a program that has successfully fostered economic development for decades.
Social disadvantage focus?: Sam and Matt discussed SBA’s investigation into program compliance, focusing on potential issues with social disadvantage narratives and truthful representation in admissions. They speculated that SBA may be reviewing data to verify the accuracy of companies’ social disadvantage claims. Sam suggested that a permanent government-wide solution could involve implementing a system for companies to report their compliance with subcontracting limitations, as required by statute.
Format changes: Sam and Matt discussed changes between SBA’s initial data call draft and the final version, focusing on format requirements and data collection methods. They noted that SBA switched from requesting Excel files to CSV files, which Matt suggested could be intended to be more inclusive of non-Microsoft users or to facilitate easier analysis.
About the Guest
Matt Schoonover is the lead partner at Schoonover & Moriarty, a Kansas-based law firm specializing in federal government contracting for small businesses. He serves as a co-chair on the American Bar Association’s Small Business Committee.
Relevant Links
Schoonover & Moriarty: schoonoverlawfirm.com
With 20 years of Federal legal experience, Sam Le counsels small businesses through government contracting matters, including bid protests, contract compliance, small business certifications, and procurement disputes. Sam obtained his law degree from the University of Virginia and formerly served as SBA’s director of procurement policy. His website is www.samlelaw.com.
This video is for informational purposes only and does not constitute legal advice.
