ATI Government Solutions Contract Manager Melayne Cromwell caught on hidden camera by O’Keefe Media Group admitting to a “pass-through” scheme exploiting federal minority-preference contracts

Following the explosive O’Keefe Media Group (OMG) undercover investigation, Small Business Administration (SBA) Administrator Kelly Loeffler announced that ATI Government Solutions and three of its top executives have been officially suspended from conducting any new business with the federal government.

The bombshell announcement comes just days after OMG released footage exposing ATI’s alleged exploitation of the SBA’s 8(a) minority contracting program, a system meant to help socially and economically disadvantaged small businesses compete for federal contracts.

As The Gateway Pundit previously reported, James O’Keefe’s team captured ATI Government Solutions Contract Manager Melayne Cromwell on a hidden camera admitting that the company routinely violates federal contracting laws.

“We only do 20%… the rest goes to subs,” Cromwell said in the shocking footage, referring to ATI subcontracting out roughly 80% of its work — a direct violation of Federal Acquisition Regulation 52.219-14, which requires prime contractors to complete at least half of the labor themselves.

“Because we’re Native American-owned, we’re heavily favored for government contracts… there’s no bidding war.”

SBA Administrator Kelly Loeffler announced Monday that her agency has launched a full investigation into ATI Government Solutions and the Susanville Indian Rancheria.

“SBA has launched an investigation into ATI Government Solutions and Susanville Indian Rancheria,” Loeffler declared.

“This is why we have been conducting a full review of the 8(a) Program, ostensibly designed to help ‘socially and economically disadvantaged’ small businesses compete in the federal marketplace. Yet, what we’ve discovered so far has been institutionalized abuse — potentially amounting to billions of dollars in federal contracts run through shell companies, fraudulent pass-throughs, and other schemes.”

Loeffler detailed the agency’s recent efforts to overhaul the system:

“That’s why in February, the SBA took immediate action to slash 8(a) contracting goals across the federal government. In June, we launched an audit of the program to review every 8(a) contract for the last 15 years. And in July, we rescinded the contracting authority of USAID, which was involved in a massive bribery scandal.”

In the official Wednesday update, Loeffler confirmed decisive disciplinary action:

“As of today, the SBA has officially suspended ATI Government Solutions, which is majority-owned by Susanville Indian Rancheria, as well as three of its executives, from conducting any new business with the federal government.

While we continue our investigation, ATI and its referenced executives will not be permitted to bid for federal contracts, subcontracts, or set-asides, and will not be able to receive any federal assistance.”

The SBA confirmed it has been in contact with the Department of Justice and will provide updates as the investigation continues.

Loeffler reiterated the call for whistleblowers to come forward:

“Whistleblowers with any information about these companies — or any suspected contracting abuse — may submit a tip at: https://sbax.sba.gov/oigcss/.”



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