News, Publications, The Weekly Update 07.17.25

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.

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GOVERNMENT CONTRACTS

UPDATE: 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
The House Small Business Subcommittee on Contracting and Infrastructure hearing titled “Leveling the Playing Field: Fostering Opportunities for Small Business Contractors,” originally scheduled for July 8 to address key issues impacting small business government contractors, was postponed. A new date has not been confirmed. It is anticipated that the hearing may be rescheduled for some time in September. Please visit this link for our original client alert. Read more here.

Federal Acquisition Regulation (FAR) Overhaul Adoption:

  • Federal Election Commission (FEC) Memorandum: FAR Class Deviation (CD) No. 2025-03 in Support of Executive Order (EO) 14275, “Restoring Common Sense to Federal Procurement;” Deviation to FAR Parts 1 Federal Acquisition Regulations System, Part 10 Market Research, Part 34 Major System Acquisition, and Contract Clauses. On June 15, CPSC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Parts 1, 10, and 34. This CD is effective immediately and applies to all FEC procurements. Read more here.
  • Commodity Futures Trading Commission (CFTC) Memorandum: FAR CD for FAR Part 6 in Support of EO on Restoring Common Sense to Federal Procurement. On July 9, CFTC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 6. This CD is effective immediately and applies to all CFTC procurements. Read more here.
  • Nuclear Regulatory Commission (NRC) Memorandum: FAR CD for FAR Part 18 in Support of EO 14275 on Restoring Common Sense to Federal Procurement. On June 27, NRC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 18. This CD is effective immediately and applies to all NRC solicitations and new contracts as of June 27, 2025. The CD does not apply to contracts signed and executed on or before June 27, 2025. Read more here.
  • Department of Transportation (DOT) Memorandum: CD No. 2025-06 from the FAR for FAR Part 18 in Support of EO 14275 on Restoring Common Sense to Federal Procurement. On July 2, DOT issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 18. This CD is effective immediately and applies to all DOT Operating Administrations, Office of the Secretary of Transportation, and the Office of the Inspector General, and excludes the Federal Aviation Administration per the Transportation Acquisition Regulation (TAR) 1201.104(d). Read more here.
      
  • Department of the Treasury (Treasury) Memoranda:
    • CD No. 2025-00003 — Implementing the CD from the FAR Part 1, in accordance with EO 14275, “Restoring Common Sense to Federal Procurement.” On July 7, the Treasury issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 1. This CD is effective immediately. The Treasury allows specific Bureaus to deviate from the Department of the Treasury Acquisition Regulations that conflict with the model deviation. Read more here.
    • CD No. 2025-00010 — Implementing the CD from the FAR Part 6, in accordance with EO 14275, “Restoring Common Sense to Federal Procurement.” On July 8, the Treasury issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 6. This CD is effective immediately. Read more here.
    • CD No. 2025-00004 — Implementing the CD from the FAR Part 10, in accordance with EO 14275, “Restoring Common Sense to Federal Procurement.” On July 7, the Treasury issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 10. This CD is effective immediately. The Treasury allows specific Bureaus to deviate from the Department of the Treasury Acquisition Regulations that conflict with the model deviation. Read more here.
    • CD No. 2025-00009 — Implementing the CD from the FAR Part 11, in accordance with EO 14275, “Restoring Common Sense to Federal Procurement.” On July 7, the Treasury issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 11. This CD is effective immediately. Read more here.
    • CD No. 2025-00006 — Implementing the CD from the FAR Part 18, in accordance with EO 14275, “Restoring Common Sense to Federal Procurement.” On July 7, the Treasury issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 18. This CD is effective immediately. The Treasury allows specific Bureaus to deviate from the Department of the Treasury Acquisition Regulations that conflict with the model deviation. Read more here.
    • CD No. 2025-00005 — Implementing the CD from the FAR Part 34, in accordance with EO 14275, “Restoring Common Sense to Federal Procurement.” On July 7, the Treasury issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 34. This CD is effective immediately. The Treasury allows specific Bureaus to deviate from the Department of the Treasury Acquisition Regulations that conflict with the model deviation. Read more here.
    • CD No. 2025-00007 — Implementing the CD from the FAR Part 39, in accordance with EO 14275, “Restoring Common Sense to Federal Procurement.” On July 7, the Treasury issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 39. This CD is effective immediately. Read more here.
    • CD No. 2025-00008 — Implementing the CD from the FAR Part 43, in accordance with EO 14275, “Restoring Common Sense to Federal Procurement.” On July 7, the Treasury issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 43. This CD is effective immediately. Read more here.

  • Department of Education (ED) Memoranda:
    • FAR CD for FAR Part 11 in Support of EO on Restoring Common Sense to Federal Procurement. On July 7, ED issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 11. This CD is effective immediately. The ED Acquisition Regulation (EDAR) does not cover FAR Part 11 and is not impacted by this CD. Read more here.
    • FAR CD for FAR Part 18 in Support of EO on Restoring Common Sense to Federal Procurement. On July 7, ED issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 18. This CD is effective immediately. The EDAR does not cover FAR Part 18 and is not impacted by this CD. Read more here.
    • FAR CD for FAR Part 39 in Support of EO on Restoring Common Sense to Federal Procurement. On July 7, ED issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 39. This CD is effective immediately and applies to all relevant FAR and EDAR parts. Read more here.
    • FAR CD for FAR Part 43 in Support of EO on Restoring Common Sense to Federal Procurement. On July 7, ED issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 43. This CD is effective immediately and applies to all relevant FAR and EDAR parts. Read more here.
  • Consumer Product Safety Commission (CPSC) Memoranda:
    • FAR Class Deviation (CD) for FAR Part 6 in Support of Executive Order (EO) 14275, Restoring Common Sense to Federal Procurement. On June 30, CPSC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 6. This CD is effective immediately and applies to all CPSC procurements. Read more here.
    • FAR CD for FAR Part 11 in Support of EO 14275, Restoring Common Sense to Federal Procurement. On June 25, CPSC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 11. This CD is effective immediately and applies to all CPSC procurements. Read more here. 
  • Millennium Challenge Corporation (MCC) Memoranda:
    • CD to Implement the FAR Revisions Part 6 Competition Requirements Issued on June 27, 2025. On June 30, MCC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 6. This CD is effective as of June 27, 2025, and applies to all MCC solicitations and new contracts as of June 27, 2025, but does not apply to contracts signed on or before June 27, 2025. Read more here.
    • CD to Implement the FAR Revisions Parts 11 Describing Agency Needs and 52 Solicitation Provisions and Contract Clauses Issued on June 18, 2025. On June 30, MCC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Parts 11 and 52. This CD is effective as of June 18, 2025, and applies to all MCC solicitations and new contracts as of June 18, 2025, but does not apply to contracts signed on or before June 18, 2025. Read more here. 
    • Class Deviation to Implement the FAR Revisions Part 18 Emergency Acquisitions Issued on June 12, 2025. On June 16, MCC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 18. This CD is effective as of June 12, 2025, and applies to all MCC solicitations and new contracts as of June 12, 2025, but does not apply to contracts signed on or before June 12, 2025. Read more here. 
  • Department of Homeland Security (DHS) Memoranda:
    • FAR CD (Number 25-10) for FAR Part 11 in Support of EO on Restoring Common Sense to Federal Procurement. On July 1, DHS issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 11. This CD is effective immediately and applies to all DHS procurements. Read more here.
    • FAR CD (Number 25-07) for FAR Part 18 in Support of EO on Restoring Common Sense to Federal Procurement. On June 25, DHS issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 18. This CD is effective immediately and applies to all DHS procurements. Read more here.
  • Department of Commerce (DOC) Memoranda:
    • FAR CD for FAR Part 6 in Support of EO on Restoring Common Sense to Federal Procurement. On July 6, DOC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 6. This CD is effective immediately. Read more here.
    • FAR CD for FAR Part 11 in Support of EO on Restoring Common Sense to Federal Procurement. On July 3, DOC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 11. This CD is effective immediately. Read more here.
    • FAR CD for FAR Part 18 in Support of EO on Restoring Common Sense to Federal Procurement. On July 3, DOC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 18. This CD is effective immediately. Read more here.
  • Udall Foundation Memoranda:
    • CDs for FAR Part 11 in support of EO 14275, Restoring Common Sense to Federal Procurement. On June 27, the Udall Foundation issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 11. This CD is effective immediately and applies to all Udall Foundation procurements. Read more here.
    • CDs for FAR Part 18 in support of EO 14275, Restoring Common Sense to Federal Procurement. On June 27, the Udall Foundation issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 18. This CD is effective immediately and applies to all Udall Foundation procurements. Read more here.
  • Department of Agriculture (USDA) Memoranda:
    • FAR CD for FAR Part 6 in Support of EO 14275 on Restoring Common Sense to Federal Procurement. On July 8, USDA issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 6. This CD is effective immediately and applies to all USDA procurements. Read more here.
    • FAR CD for FAR Part 11 in Support of EO 14275 on Restoring Common Sense to Federal Procurement. On June 26, USDA issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 11. This CD is effective immediately and applies to all USDA procurements. Read more here.
    • FAR CD for FAR Part 18 in Support of EO 14275 on Restoring Common Sense to Federal Procurement. On June 26, USDA issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 18. This CD is effective immediately and applies to all USDA procurements. Read more here.

Department of Defense (DOD) News Release: New USDA Program Ties Food Security to National Defense
On July 8, DOD issued a news release reporting that the Department of Agriculture announced a new government-wide, multiprong effort focused on ensuring America’s ability to secure its own food supply, in part by eliminating interference from adversarial nations. Read more here.

Department of Homeland Security (DHS) Press Release: Secretary Noem Protects American Taxpayers Against Wasteful Contracts While Revolutionizing Coast Guard for the 21st Century
On July 11, DHS Secretary Kristi Noem announced the partial termination of a wasteful shipbuilding contract intended to protect American taxpayer dollars and revolutionize the United States Coast Guard. Read more here.

Defense Acquisition University (DAU) Defense Acquisition Research Journal (ARJ): On July 8, DAU released its summer 2025 issue of the ARJ.

  • One Small Step for Space Acquisition Doctrine. Included in the ARJ is a qualitative research study that surveyed 45 DOD professionals to identify best practices for a future Space Force acquisition doctrine. The results of the study will inform the development of a Space Force acquisition doctrine. Read more here.
  • The “Shrinking” Defense Industrial Base (DIB): A Survey of Former DOD Prime Contractors. Included in the ARJ was a study investigating the types of contractors that are leaving DIB and why they are doing so. Three-quarters of the respondents were smaller businesses, reporting less than $5 million a year in revenue and employing less than 50 employees. Among other results, roughly one-third of all contractors confirmed exits cited an unfavorable characteristic of working with DoD as the main reason for leaving the DIB. Read more here. 

DOD Gets Millions for Cyber Capabilities Under GOP Reconciliation Package, NextGov/FCW
The Republican domestic policy law, signed over the weekend, includes significant boosts for U.S. military cyber spending, including new investments in cyber defense, offensive operations, and workforce development. Read more here.

FAR Overhaul Targets Risk-Averse Acquisition Culture, NextGov/FCW
The federal government’s most ambitious acquisition reform in more than three decades requires fundamental changes to how contracting officers think about risk and is not just about rewriting regulations. Larry Allen, the General Services Administration’s chief acquisition officer, says regulatory changes must be paired with leadership support for innovation. Read more here.

Senate to Take Up Trump DOGE Cuts, The Hill
The GOP’s bill to claw back billions of dollars in federal funding is set to hit the Senate floor this week despite serious — and vocal — concerns among some Republicans over the cuts targeting public broadcasting and foreign aid. Read more here.

GOP Lawmakers Dismayed by Lack of Progress on Trade Deals, The Hill
Republicans on Capitol Hill are dismayed that the Trump administration hasn’t made more progress in negotiating trade deals and fear the country is heading for another bout of economic turbulence after President Trump announced a new round of steep tariffs on 14 countries. Read more here.

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, Isaias “Cy” Alba, IV, Josie Farinelli

PM WEBINAR: Joint Venture Eligibility: Refresher on Requirements for Government Contractors, August 13, 2025, Meghan F. Leemon

TRAINING: Navigating the FAR/DFARS: The Most Confusing and Little-Known Clauses, August 13, 2025, Eric Valle, Kristine “Krissy” Crallé

PM WEBINAR: Key Insights for GSA Schedule Contracting, August 26, 2025, Jon Williams, Lauren Brier

PM WEBINAR: How the Boards of Contract Appeals Work—And Why It Matters for Your Bottom Line, September 9, 2025, Lauren Brier, Josie Farinelli

TRAINING: Unlocking the Secrets of Debriefings, Government Evaluation of Proposals and Protests, September 11, 2025, Katherine B. Burrows, Eric Valle

PM WEBINAR: The Buy American Act and Trade Agreements Act: What Government Contractors Need to Know, September 17, 2025, Jacqueline K. Unger, Abigail “Abby” Finan

 

FALSE CLAIMS ACT / AUDITS & INVESTIGATIONS

DOJ Uses FCA to Target DEI Policies and Antisemitism: The Impact on Government Contractors, PilieroMazza Webinar Replay, Matthew E. Feinberg, Sarah L. Nash
In the wake of Executive Order 14173, federal contractors face heightened scrutiny of their Diversity, Equity, and Inclusion (DEI) initiatives. The EO requires contractors to certify that DEI programs comply with federal anti-discrimination laws. Now, the Justice Department has announced it will use the False Claims Act (FCA) as an enforcement tool to target companies that maintain DEI programs in violation of the EO and current Administration policies. The announcement may substantially impact the federal contracting space, materially increasing risks for government contractors across all industries. Click here to view the recorded session.

DOJ Antitrust Unit Launches Program to Pay Whistleblowers, Law360
The U.S. Department of Justice launched a new program on Tuesday to provide rewards for people who report antitrust crimes related to the postal service, giving whistleblowers the opportunity to receive 30% of any criminal fines recovered for violations. Read more here (subscription required).

 

REAs, CLAIMS, AND APPEALS

The CPAR Trap: What SLSCO Teaches Contractors About Challenging Performance Ratings, PilieroMazza Blog, Samuel S. Finnerty, Lauren Brier, Eric Valle
Contractor Performance Assessment Reports (CPARs) are a critical currency in the world of government contracting—shaping future awards, past‐performance evaluations, and a contractor’s reputation. Positive assessments can help contractors secure future work with the government, while even a single marginal or unsatisfactory rating can ripple across future procurements, damaging a contractor’s competitive standing for years. When a contractor receives a negative CPAR, it must act quickly to correct issues with the ratings and recommendations before government customers rely on the negative CPAR to the contractor’s detriment. That’s why the recent decision in SLSCO, Ltd. v. United States, No. 24-447C (Fed. Cl. June 24, 2025), is so important. The Court of Federal Claims (COFC) tackled the boundaries of CPAR challenges and clarified when procedural flaws, government discretion, and agency obligations rise to the level of a legal claim. In this blog, we help you understand what happened, what the contractor argued, and what this case means for your business when faced with a negative CPAR. Read more here.

 

LABOR & EMPLOYMENT

2025 Newly Increased Health and Welfare Rates on SCA Government Contracts, PilieroMazza Client Alert, Nichole D. Atallah, Sarah L. Nash
The Department of Labor’s (DOL) Wage and Hour Division (WHD) has again issued new Service Contract Act (SCA) health and welfare (H&W) rates. Effective July 7, 2025, WHD increased the prevailing H&W fringe benefits from a rate of $5.36 per hour to $5.55 per hour. Where a contractor is obligated to comply with Executive Order (EO) 13706 sick leave obligations, the rates increased from $4.93 per hour to $5.09 per hour. Updated rates of $2.42 per hour (without the EO) and $1.96 (with the EO) also apply to employees in Hawaii covered by the Hawaii Prepaid Health Act. For government contractors with an existing SCA contract, obtaining a new SCA contract, renewing options, or modifying existing contracts with a new wage determination, PilieroMazza covers what you need to know below. Read more here.

Federal Labor Relations Authority (FLRA) Proposed Rule: Implementation of the Administrative False Claims Act (AFCA)
On July 8, FLRA published a proposed rule and request for comments regarding the implementation of the AFCA as required by the Servicemember Quality of Life Improvement and National Defense Authorization Act (NDAA) of 2025. This rule is intended to provide agencies with an administrative remedy for false claims and statements and establish due process for parties involved. The rule is available here. Comments close September 8, 2025.

Department of Labor (DOL) News Release: US DOL Updates Penalty Guidelines to Support Small Businesses and Eliminate Workplace Hazards
On July 14, DOL announced that it has updated its guidance on penalty and debt collection procedures in the Occupational Safety and Health Administration’s Field Operations Manual to minimize the burden on small businesses and increase prompt hazard abatement. Read more here.

Calif. Agency Rolls Out Guidance For Violence Survivor Leave, Law360
The California Civil Rights Department rolled out its latest guidance and model notice for employees who are victims of violence or abuse and wish to take time off under a law that went into effect in the state in January. Read more here (subscription required).

State Department Lays Off 1,350 Employees, Government Executive
The department says the cuts, part of a reorganization that will see 3,000 total personnel reductions, will slash redundancy and walk back growth over the last 25 years. Read more here.

Supreme Court Allows Trump to Resume Mass Layoffs; Jackson Dissents from ‘Senseless’ Decision, The Hill
The Supreme Court on Tuesday lifted a judge’s order preventing the Trump administration from conducting mass layoffs across the federal bureaucracy, for now. The court in its unsigned ruling said Trump’s February executive order directing federal agencies to prepare for reductions in force (RIFs) is likely lawful.  Read more here.

Upcoming Labor & Employment Presentations

WEBINAR: FUN with the FAR 2025: FAR 22 & 23, July 23, 2025, Nichole D. Atallah

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

CONFERENCE: Impact of the Trump Administration on Government Contracts, September 12, 2025, Nichole D. Atallah

 

CONSTRUCTION

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

 

GSA FEDERAL SUPPLY SCHEDULES

GSA MAS Refresh #27: Mandatory Transactional Data Reporting and Other Key Changes, PilieroMazza Blog, Jacqueline K. Unger, Kristine “Krissy” Crallé
On June 26, 2025, the General Services Administration (GSA) released MAS Refresh #27—the latest GSA Multiple Award Schedule (MAS) solicitation update and mass modification. Among other changes, Refresh #27 significantly expands the use of Transactional Data Reporting (TDR), making it mandatory for contracts containing one of the 177 TDR-eligible Special Item Numbers (SINs). Further, GSA intends to make TDR mandatory for all MAS contracts in an upcoming refresh anticipated in Fiscal Year (FY) 2026. This move marks a major expansion of GSA’s data-driven procurement approach and will require contractors to adapt quickly. If you hold an MAS contract and have not yet opted into TDR, now is the time to prepare for new compliance obligations and evaluate how TDR will affect your reporting, pricing, and business strategy. Read more here.

General Services Administration (GSA) Notice: Join GSA for July MAS Office Hours: Instructions for New TDR Participants
Under the Multiple Award Schedule (MAS) Solicitation 47QSMD20R0001 Refresh 27, Transactional Data Reporting (TDR) is mandatory for all contract holders of SINs that are currently TDR eligible. A full list of TDR SINs can be found on GSA’s Transactional Data Reporting requirements page. Join GSA for our MAS Office Hours on Thursday, July 17, from 2 to 3 p.m. EDT to learn more about GSA’s TDR program. Register here. The full notice is available here.