On April 7, 2026, the Office of the Assistant Secretary of the Army (Acquisition, Logistics and Technology) issued a memorandum directing Army contracting activities to use competitive procedures as the preference over sole source procedures in the Small Business Administration (SBA) 8(a) Business Development Program. This directive was not previously publicly known.  The memorandum, signed by Deputy Assistant Secretary of the Army (Procurement) Kimberly D. Buehler, also references the recent modification of the long-standing “once 8(a), always 8(a)” principle to permit follow-on procurements to be released from the 8(a) program and set aside for other small business programs.

For Alaska Native Corporations (ANCs), Indian tribes, and Native Hawaiian Organizations (NHOs), the memorandum represents a significant shift in Army acquisition policy. While the directive cannot override Congress’s statutory authorization for unlimited ANC, tribal, and NHO sole source awards, it may affect contracting officer behavior, deal timing, and pipeline strategy.

What the Memorandum Directs

1. Competitive procedures as the preference

Effective immediately, the memo states that Army contracting activities using the SBA 8(a) program “will use competitive procedures as the preference over sole source procedures to the maximum extent practicable.” The directive expressly does not prohibit sole-source procurements undertaken under emergency acquisition authorities (FAR Part 18).

2. Modification of the “once 8(a), always 8(a)” principle

The memorandum states that the Revolutionary Federal Acquisition Regulation Overhaul (RFO) Part 19, dated February 20, 2026, modifies the longstanding rule requiring follow-on procurements of 8(a) contracts to remain within the 8(a) program. Under the revised framework (citing FAR 19.108-11), the memo asserts that follow-on procurements may now be released from the 8(a) program and set aside for other small business programs (e.g., HUBZone, SDVOSB, WOSB, or general small business set-aside).

3. SECWAR-level review of high-value sole source and set-aside awards

All new contract awards and option exercises must comply with the Secretary of War (SECWAR) memorandum dated January 16, 2026, which subjects all small business sole source and set-aside awards above $20 million in contract value to senior-level review. Awards must be consistent with the Department of War’s warfighting priorities, and the small business must comply with the limitations on subcontracting (FAR 19.108-8).

4. Class deviation in effect

The memorandum cites the DPCAP class deviation memorandum dated January 21, 2026, which implements the RFO Part 19 and DFARS Part 219 changes for DoD contracting activities. The combined effect is that the new framework is operative now—contracting officers are not waiting for further guidance.

Why This Matters for ANCs, Tribes, and NHOs

Congress has granted ANC, tribal, and NHO 8(a) participants the ability to receive sole-source awards above the competitive thresholds applicable to individually owned 8(a) firms. The Army memorandum does not eliminate that statutory authority, and as a matter of law, it cannot. An agency policy memorandum expressing a “preference” for competition does not override Congress’s clear authorization. That said, the practical effects may be material:

• • • Contracting officer behavior. Senior-level direction to favor competition “to the maximum extent practicable” will shape day-to-day decisions on individual procurements, even where statutory sole-source authority remains available. Expect more justifications, more documentation requirements, and longer award timelines for sole source actions.
    • Erosion of follow-on protection. The modification of “once 8(a), always 8(a)” is the most consequential structural change. Follow-on procurements of an 8(a) award were required to remain in the 8(a) program absent SBA release under SBA regulations (13 C.F.R. § 124.504(d)). The revised FAR 19.108-11 purports to give contracting agencies meaningful latitude to direct follow-ons to other small business categories. While SBA regulations should control over the FARs, this is an area where agencies may move work out of the 8(a) Program, absent objections from the 8(a) companies performing the work.
    • Continued LOS focus. The memorandum’s express invocation of the limitations on subcontracting at FAR 19.108-8 reinforces the continued focus on limitations on subcontracting compliance.

The memorandum is policy guidance, not regulation, and its implementation will surface several legal questions worth tracking:

• • Tension with the SBA’s release framework. 13 C.F.R. § 124.504(d) requires SBA concurrence to release a follow-on procurement from the 8(a) program. The interplay between SBA’s release authority and the agency-driven release contemplated by FAR 19.108-11 has not yet been fully tested.
  • Application to existing IDIQs. The memorandum does not expressly address whether the new preference applies to task and delivery orders under existing 8(a) IDIQ vehicles, or only to new contract awards and option exercises.

This article summarizes aspects of the law and opinions that are solely those of the authors. This article does not constitute legal advice. For legal advice regarding your situation, you should contact an attorney.