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The Weekly Update recaps recent legislative and regulatory updates affecting government contractors and commercial businesses. If you have questions concerning this content, please email marketing@pilieromazza.com. |
SBA Orders Full-Scale Audit of 8(a) Program: What You Should Do to Prepare, PilieroMazza Client Alert, Jon Williams, Meghan F. Leemon
The U.S. Small Business Administration (SBA) recently announced an “immediate and full-scale audit” of its 8(a) business development program. The announcement stems from a “years-long fraud and bribery scheme involving a former federal contracting officer and two 8(a) contractors,” as detailed in a Department of Justice (DOJ) press release. This scheme involving two 8(a) contractors appears to be isolated to a few bad actors rather than broader issues with the social and economic disadvantage requirements of the 8(a) program. Nevertheless, SBA is treating this reason to reassess the integrity of the entire 8(a) program. We know from working with many solid 8(a) contractors that this is not the case. In this client alert, we highlight the importance for 8(a) contractors to understand what may happen in SBA’s investigation and what you should do to be prepared. Read more here.
Let Your Voice be Heard: Congress Wants to Hear from Small Business Government Contractors, PilieroMazza Client Alert, Antonio R. Franco, Isaias “Cy” Alba, IV, Jacqueline K. Unger, Kristine “Krissy” Crallé
On July 8, 2025, the House Small Business Subcommittee on Contracting and Infrastructure (Subcommittee) will hold a hearing titled “Leveling the Playing Field: Fostering Opportunities for Small Business Contractors.” The Montgomery County Chamber of Commerce (MCCC) is coordinating the submission of letters of support to ensure small business voices are heard by the Subcommittee. Read more here.
GOP Reps. Want Probe of RI Judge Blocking Funding Freeze, Law360
Two Republican U.S. House members have asked the First Circuit to investigate a Rhode Island federal judge who blocked a Trump administration spending freeze, claiming the judge’s link to a funding recipient constitutes a conflict of interest, one of those congressmen’s offices confirmed to Law360 Pulse on Wednesday. Read more here (subscription required).
Upcoming Government Contract Presentations
CONFERENCE: The Ins and Outs of the New Recertifications Rule for Government Contractors, July 24, 2025, Samuel S. Finnerty
CONFERENCE: Latest Developments at SBA’s Office of Hearings and Appeals, July 24, 2025, Meghan F. Leemon
PM WEBINAR: The Rise of OTAs in Defense Contracting: Opportunities, Risks, and What Contractors Need to Know, July 30, 2025 / 2:00 pm ET
TRAINING: Navigating the FAR/DFARS: The Most Confusing and Little-Known Clauses, August 13, 2025, Eric Valle, Kristine “Krissy” Crallé
Department of Labor (DOL) Proposed Rule: Application of the Fair Labor Standards Act (FLSA) to Domestic Service
On July 2, DOL published a proposed rule and request for comments about returning to DOL’s 1975 regulations permitting third-party employers to claim exemptions for employees who provide “companionship services” from the minimum wage and overtime requirements and also exempted live-in domestic service employees from overtime. The rule is available here. Comments close September 2, 2025.
DOL Reopens Contractor Bias Cases From Disabled, Veteran Workers, Bloomberg Government
The Department of Labor’s federal contractor watchdog will resume action on complaints under regulations prohibiting bias against veterans and disabled workers. Read more here (subscription required).
OPM to Host an Industry Event on Modernizing Federal HR Systems, Government Executive
The Office of Personnel Management, Office of Management and Budget, and General Services Administration are all involved in this discussion on how to get a new human resources system in place by the end of 2028. Read more here.
Upcoming Labor & Employment Presentations
CONFERENCE: New Employment Issues in Government Contracting, July 24, 2025, Nichole D. Atallah, Sarah L. Nash
PM WEBINAR: Multijurisdictional Employers, Part 3: Best Practices for Paid Sick Leave and Family Leave, August 7, 2025, Nichole D. Atallah, Sara N. Strosser
The Unusual Case of Obtaining a “Pause” on Performance After Missing the Filing Deadlines, PilieroMazza Blog, Katherine B. Burrows, Eric Valle, Daniel Figuenick, III
One of the primary benefits of filing a protest with the Government Accountability Office (GAO) is that it automatically puts the awarded contracts on hold, stopping the agency from proceeding with performance. To reap the benefits of the automatic stay, however, the law requires protesters—in a post-award posture—to file their protests within ten days of contract award or five days after the close of a requested and required debriefing, as applicable. The time limits are tight, but the reward can be substantial, especially for incumbent contractors who often receive bridge contracts during the time it takes GAO to resolve the protest. Read more here.
LITIGATION & DISPUTE RESOLUTION
SVOG Grant Recipients Face Renewed Scrutiny: Understanding Your Appeal Rights When SBA Rescinds Prior Grant Approval, PilieroMazza Blog, Matthew E. Feinberg
Recently, the Small Business Administration (SBA) began issuing letters to recipients of grant funds under the $16.25 Billion COVID-era Shuttered Venue Operators Grant (SVOG) program, rescinding grant recipients’ eligibility for the program and demanding full or partial repayment of the grants. In many cases, the notices were a shock to grant recipients who went through multiple rounds of the grant approval process and received audit approval for their use of grant funds. Now, they face a daunting 30-day deadline for repayment of hundreds of thousands or even millions of dollars the company no longer has. Companies that received grants under the SVOG program should be prepared to timely appeal and, if necessary, litigate SBA rescission letters in order to preserve the companies’ rights to the funds and the companies’ financial bottom line. Read more here.
Lawmakers Sound Alarm Over VA’s AI-Driven Contract Terminations: What to Do If You’re Terminated, PilieroMazza Blog, Lauren Brier, Kristine “Krissy” Crallé
The Department of Veterans Affairs (VA) is facing growing scrutiny from Congress after it abruptly canceled hundreds of contracts—many of which support critical services for veterans—based in part on recommendations from a hastily developed artificial intelligence (AI) tool. On June 13, 2025, Senators Richard Blumenthal (D-CT) and Angus King (I-ME), members of the Senate Committee on Veterans’ Affairs (Committee), sent a letter to Acting VA Inspector General David Case urging a formal investigation into the VA’s contract termination process. If your business was impacted by these terminations, it’s critical to understand your rights and next steps. Read more here.
Upcoming Construction Presentations
WEBINAR: How Do I Get Paid When They Stop Paying? Strategies for Construction Contractors, August 1, 2025, Jessica A. duHoffmann, Tracey L. Pruiett
DHS Terminates Two Contracts, Moving Work to GSA, Federal News Network
The Department of Homeland Security pulled the plug on two major acquisition programs, and to several observers, it may be just the beginning. After small businesses spent hundreds of hours and tens of thousands of dollars on FirstSource III and PACTS III bids, DHS decided to cancel them. Read more here.