Oh, I hear you, LC.
No doubt, they're gaming the system and they're doing so with the NAICS Code system recognized by the Small Business Administration and overseen by the OMB and cross-referenced to the federal System for Award Management (SAM) and the IRS.
And it's all perfectly legal.
Just keep in mind, when some headline or reporter uses the term "Large Business," there actually is no such thing under the NAICS system. It's "Other Than Small Business." :)