SBA Investigates ATI Government Solutions Over Alleged Misconduct
The Small Business Administration (SBA) has initiated an investigation into ATI Government Solutions and the Susanville Indian Rancheria following allegations in an undercover video. The video claims these entities misused the SBA’s 8(a) program to secure federal contracts unlawfully.
This announcement aligns with the SBA’s recent emphasis on addressing issues within its programs. Back in June, the agency ordered a comprehensive audit of the 8(a) program but later canceled USAID’s contracting authority amid a bribery scandal linked to the Justice Department.
In the video shared by James O’Keefe, a woman who is purportedly a contracts manager at ATI can be heard stating, “They say pass-through is great, but… we can only do 20%… the rest goes to subs… and remember, there’s no competition.” The authenticity of these recordings has not been independently verified by The Daily Caller.
$100 Billion Federal Contract Fraud Exposed: An 8(a) company admitted that it violated federal law by using its minority-owned status to win more than $100 million in no-bid government contracts while outsourcing 80% of its work.
Melayne Cromwell, ATI Government Solutions Contracts Manager, confirms… pic.twitter.com/o7EQ6mKZtY
— James O’Keefe (@JamesOKeefeIII) October 20, 2025
In a post on X, SBA Administrator Kelly Loeffler announced the investigation and stated that a review of the 8(a) program had uncovered “systemic misconduct,” including the use of shell companies and fraudulent pass-throughs. She noted that the SBA had already taken steps to diminish 8(a) contracting targets earlier this year while the audit was in progress.
The SBA has launched an investigation into ATI Government Solutions and Susanville Indian Rancheria.
That’s why we’re overhauling the 8(a) program, ostensibly designed to help “socially and economically disadvantaged” small businesses participate in federal competition. https://t.co/ndSBDJFXtN
— Kelly Loeffler (@SBA_Kelly) October 20, 2025
The SBA’s audit order from June 27 tasks the agency with examining “high-value” and “limited competition” contracts over the last decade, directing any findings to the inspector general and the Department of Justice. Analysts believe this indicates a more rigorous approach to addressing misconduct.
Additionally, in July, the SBA revoked USAID’s 8(a) authority after charges were presented concerning a long-running bribery scheme affecting USAID’s operations. The SBA emphasized that the Justice Department’s legal actions prompted these necessary moves to ensure the integrity of small business contracts.
