ATI Seeks Court Order to Lift SBA Contracting Suspension

ATI Government Solutions has asked the U.S. District Court for the District of Columbia to temporarily lift its government-wide contracting suspension and remove its exclusion from SAM.gov while the company’s lawsuit against the Small Business Administration (SBA) proceeds. In a motion filed October 30, ATI requested a 14-day temporary restraining order followed by a preliminary injunction through the remainder of the case. It also asked Judge Ana Reyes to hold an evidentiary hearing and require SBA officials to explain under oath why the suspension was imposed. The court had not ruled on ATI’s emergency request in the available reporting, so the company remains subject to the existing exclusion unless and until relief is granted.

The dispute traces to October 2025, when SBA suspended ATI from the 8(a) program and from contracting under the Federal Acquisition Regulation (FAR). The suspension came a day after conservative activist James O’Keefe released a YouTube video that he said showed an ATI employee describing the firm as a pass-through for other contractors. ATI says the video was heavily edited and that the person presented as an executive was instead a short-term, part-time data-entry employee. ATI’s motion argues that SBA relied on the video without adequately assessing its reliability, seeking the company’s response, or conducting an independent investigation. The motion describes the allegations as “without merit, false, and entirely unsupported by evidence.” Those are ATI’s claims, not a judicial finding on the merits.

SBA lifted ATI’s 8(a) suspension in June after an SBA administrative judge found that the agency had made no effort to substantiate the video’s claims. However, the broader FAR-based suspension remained in effect, and SBA extended it for another six months on October 21, according to the reporting. ATI argues that the agency’s actions violated due-process requirements and the Administrative Procedure Act, alleging it received neither notice nor a hearing before the suspension and has not had a meaningful opportunity to respond. The company’s September lawsuit and its latest request therefore raise questions about the agency’s process as well as the practical effects of a government-wide exclusion. No final court ruling on those allegations is reported.

For federal buyers, prime contractors, and other firms in ATI’s delivery chain, the immediate procurement issue is eligibility and continuity. ATI says nearly its entire workforce has been affected, close to $130 million in previously awarded work has been lost since the suspension began, and about $500 million in prospective business across ATI and sister companies is at risk. These are company-reported impacts; the prospective figure is pipeline exposure, not the value of awarded contracts. A separate, unidentified tribally owned contractor is also seeking a temporary halt to an SBA suspension, contending that the allegations against it relied on a deceptive video. Available reporting does not identify that contractor or say whether its request has been decided, so its case should not be conflated with ATI’s. Together, the matters underscore why procurement teams should verify current exclusion status, distinguish awarded work from forecast opportunities, and plan for possible performance disruptions without treating requested judicial relief as granted.

• ATI Government Solutions filed its emergency motion on October 30, seeking a 14-day temporary restraining order and a preliminary injunction through the rest of its lawsuit.
• ATI asks the court to lift the FAR-based suspension, remove its SAM.gov exclusion, and bar SBA actions that would amount to de facto debarment; it also requests an evidentiary hearing with SBA officials.
• SBA suspended ATI from the 8(a) program and FAR-based contracting in October 2025, after the release of a video by activist James O’Keefe.
• SBA lifted the 8(a) suspension in June after an administrative judge found the agency had made no effort to substantiate the video’s claims, but the broader suspension remained in place.
• SBA extended the FAR suspension for another six months on October 21, according to the source reporting; the court had not ruled on ATI’s emergency request.
• ATI reports nearly $130 million in previously awarded work lost since the suspension began and workforce effects reaching nearly its entire workforce.
• ATI says about $500 million in prospective business across ATI and sister companies is at risk. Treat this as asserted pipeline exposure, not confirmed awarded contract value.
• Buyers and prime contractors should check current SAM.gov exclusion status and assess affected work, subcontract dependencies, and delivery continuity before making eligibility or transition decisions.
• A separate, unidentified tribally owned contractor is seeking a temporary halt to an SBA suspension based on allegations it says relied on a deceptive video; the available information does not establish whether its request has been decided.