These “minority” contracts really do need to be terminated. My experience is only in the transportation industry. Very often - in fact most of the time - the contracts will be given to a minority owned “business” that promptly farms them out as a sub to some non-minority owned business who was barred from bidding on the contracts. The minority owned “business” takes a healthy cut off the top, of course, while doing zero work. It is quite a lucrative scam.
Forgot to mention that the non-minority owned businesses who get the sub-contracts have no problem with this because the minority owned ones charge such a premium on the contracts (due to limited competition) that there is plenty of premium to spread around...
Federal contracts require that the minority firm do the majority of the work. Getting “8(a)” status is an involved process. And most sham outfits won’t pass muster. SBA guarnettees the performance of the 8(a) firm and has to pay back the Federal agency for the 8(a) contract cost if it turns out real bad. Emphasis on “real bad”.