FEDCON Identifies Strategic Upside for Alternative Set-Asides Amid 8(a) Program Contraction

FEDCON has conducted an analysis indicating that the trend of scaling back admissions into the 8(a) Business Development program is creating growth opportunity

TAMPA, FL, UNITED STATES, February 24, 2026 /EINPresswire.com/ -- FEDCON (FederalGovernment.info) has conducted a comprehensive analysis indicating that the recent trend of scaling back admissions into the 8(a) Business Development program is inadvertently creating a significant growth opportunity for other federal socioeconomic set-aside categories.

A Shift in the Federal Procurement Landscape:
According to the findings from FEDCON, the tightening of 8(a) eligibility and the overall reduction in new participants are forcing federal agencies to reevaluate how they meet their mandatory small business prime contracting goals. FEDCON suggests that while the 8(a) program has long been the preferred vehicle for direct-source and set-aside contracts, its current contraction is acting as a catalyst for the diversification of federal spending.

The analysis posits that procurement officers, still tasked with hitting aggressive socioeconomic targets, are increasingly pivoting toward three primary designations:

-Women-Owned Small Businesses (WOSB)
-Service-Disabled Veteran-Owned Small Businesses (SDVOSB)
-HUBZone-certified firms

Competitive Advantages for Non-8(a) Firms:
FEDCON highlights that as the pool of active 8(a) participants narrows, the competitive pressure within other categories remains high but is now accompanied by increased agency interest. The data suggests that agencies that previously relied heavily on 8(a) firms to satisfy their "Socially and Economically Disadvantaged" requirements are now forced to broaden their scope to ensure they remain compliant with the Small Business Act.

The organization further explains that this shift provides a unique window for firms in the WOSB and SDVOSB communities to capture market share that was previously dominated by 8(a) incumbents. FEDCON believes that this redistribution of opportunity could lead to a more balanced and resilient federal industrial base.

Marina Nicola
Federal Endowment Directing Consultants, LLC
+1 855-233-3266
email us here
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