The episode explains the Department of Defense's two‑stage review of small‑business and 8(a) contracts over $20 million, aimed at identifying non‑essential awards, excessive pass‑through arrangements, and above‑market pricing. It outlines the tight timeline—stage one due by Jan 31, 2026 and stage two by Feb 28, 2026—and the likely use of AI to analyze contract data. Practical advice is offered for contractors, including gathering documentation, validating subcontracting limits, proving market‑rate pricing, and preparing for rapid agency requests or potential terminations. The host emphasizes that thorough compliance records and clear mission justification are key to protecting awards.
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