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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PilieroMazza’s Josie Farinelli Honored with Meritorious Civilian Service Award from the U.S. Air Force, PilieroMazza News, Josie Farinelli
PilieroMazza is proud to announce that Josie Farinelli, a valued member of our Government Contracts team, was awarded the Meritorious Civilian Service Award by the Department of the Air Force—one of the highest honors bestowed upon civilian personnel. It is granted for noteworthy service that is of major significance to the Air Force and demonstrates exemplary achievement and dedication. The award also recognizes Josie’s exceptional leadership and technical expertise in support of mission-critical Air Force programs, having a lasting and meaningful impact on national defense. Read more here.
The Rise of OTAs in Defense Contracting: Opportunities, Risks, and What Contractors Need to Know, PilieroMazza Webinar Replay, Isaias “Cy” Alba, IV, Josie Farinelli
As the Defense Department increasingly turns to Other Transaction Authority (OTA) agreements to streamline innovation and speed up procurement, contractors—especially those in the defense sector—must adapt to this rapidly evolving development. Whether you’re a seasoned government contractor or a commercial firm entering the defense space, this session offers strategic insights to help you capitalize on OTA opportunities while managing associated risks. Click here to view the recorded session.
FAR Part 6 Rewrite: What It Means for Small Business Set-Asides, Socioeconomic Programs, and the Rule of Two, PilieroMazza Blog, Isaias “Cy” Alba, IV, Kristine “Krissy” Crallé
The recent rewrite of the Federal Acquisition Regulation (FAR) Part 6—governing “Competition Requirements”—is prompting questions about whether the changes may signal a shift in federal small business contracting policy. In particular, the removal of explicit references to certain socioeconomic program provisions raises concerns in the small business community. In this blog, PilieroMazza dissects the FAR Part 6 rewrite, concluding that most revisions appear to be structural rather than substantive. However, the unresolved status of the “Rule of Two” continues to raise concerns regarding the protection of small business set-aside opportunities. Read more here.
Federal Acquisition Regulation (FAR) Model Deviation Text for FAR Parts 35 and 36
On July 24, the FAR Council released the model deviation text for FAR Part 35, Research and Development Contracting, and FAR Part 36, Construction and Architect-Engineer Contracts. FAR Part 35’s deviation was revised to streamline the structure to make the Research and Development environment more attractive to innovative commercial firms. FAR Part 36 went through a comprehensive revision, which includes reorganization to align with the acquisition lifecycle, increase clarity, and consolidation. The General Services Administration’s (GSA) memorandum and class deviation fully incorporating the same into all GSA procurements are available here: FAR Part 35; FAR Part 36. Informal feedback is due September 8, 2025.
Federal Acquisition Regulatory Council Proposed Rule: Ending Procurement and Forced Use of Paper Straws
On July 21, the FAR Council published a proposed rule and request for comments regarding amending the FAR to ensure agencies procure straws with the strength and durability of plastic in accordance with the National Strategy to End the Use of Paper Straws. The proposed rule is available here. Comments close September 19, 2025.
Government Accountability Office (GAO) Report: Artificial Intelligence (AI), Generative AI Use and Management at Federal Agencies
On July 29, GAO issued a report describing federal agencies’ efforts to pursue generative AI. GAO’s objectives included describing selected agencies’ ongoing and planned uses of generative AI and resulting potential benefits, as well as describing agencies’ challenges in using and managing generative AI and efforts to address these challenges. Agencies are beginning to take steps to address challenges by, among other things, (1) leveraging available AI frameworks and guidance to inform their policies and (2) engaging in collaborative efforts with other agencies. During this time, executive branch AI guidance was significantly revised in early 2025. Accordingly, in conjunction with efforts to address challenges, agencies are incorporating these revisions into their management of generative AI. Read more here.
Government Accountability Office (GAO) Report: DOD Financial Management: Greater Accountability Needed over Contractor-Acquired Property (CAP)
On July 28, GAO published a report regarding the DOD’s reported $4.1 trillion in assets in fiscal year 2024. DOD’s assets include those in its physical custody as well as those in the possession of contractors. GAO found that for five of nine selected major defense acquisition program contracts, DOD officials did not perform all required contractor oversight procedures. In addition, GAO found that the Navy’s written procedures lacked a sufficient level of contractor oversight. GAO also found CAP asset records had errors in the data recorded in the contractors’ property management systems. Additionally, GAO found that DOD did not consistently follow its policy for managing specialized and high-dollar CAP assets at the Air Force and Navy. Developing written procedures to ensure sufficient contractor oversight and clarifying policy for the management of specialized, high-dollar CAP could help DOD address its long-standing control issues related to property in the possession of contractors. The full report is available here.
Government Accountability Office (GAO) Report: Department of Energy, Inspector General’s Budget Estimates for Audits of Certain Contractors’ Costs Need Improvement
On July 24, GAO released a report that examines the extent to which (1) the Office of Inspector General (OIG) assessed the resources needed to effectively implement incurred cost audits of M&O contracts and (2) the OIG’s process for planning and implementing incurred cost audits of M&O contracts is consistent with applicable auditing standards. GAO reviewed OIG documentation and interviewed DOE and OIG officials about the OIG’s initial estimate and assumptions. GAO used its Cost Guide to identify the type of assessments that the OIG developed. GAO also assessed the OIG’s controls to perform incurred cost audits for consistency with applicable audit standards. Read more here.
Government Accountability Office (GAO) Report: Defense Industrial Base (DIB), Actions Needed to Address Risks Posed by Dependence on Foreign Suppliers
On July 24, GAO released a report regarding the Department of Defense’s (DOD) reliance on a global network of over 200,000 suppliers to produce weapons and non-combat goods like batteries and manufacturing equipment. DOD sees certain foreign suppliers as a national security risk because, for example, they could cut off access to critical materials. DOD has made progress gathering supplier information and improving supply chain transparency. However, its efforts are uncoordinated and have provided little insight into the vast majority of suppliers. GAO made recommendations to help DOD address this challenge. Read more here.
Department of Defense (DOD) Notice: Privacy Act of 1974; System of Records
On July 28, DOD published a notice and request for comments regarding a new system of records titled “Suspension and Debarment Records.” This system of records notice (SORN) is being established to collect and document decisions regarding suspension, debarment, or other administrative remedy under the Federal Acquisition Regulation, or the Non-procurement Common Rule. The notice is available here. Comments close August 27, 2025.
Department of Defense (DOD) Memorandum: Approval of Section 890 Pilot Program for All Munitions Contract Actions
On July 23, DOD issued a memorandum, effective immediately, approving all qualifying contract actions for critical munitions for participation in the Section 890 Pilot Program (“TINA Lite” Pilot Program). Section 890 authorizes DOD to conduct a Pilot Program for contract actions exceeding $50 million, allow price reasonableness determinations to be based on actual cost and pricing data for purchases of the same or similar products for DOD, and minimize the cost and pricing data to be submitted. Read more here.
VA Launches a Departmentwide ‘Review of Its Mission’ As It Seeks Changes to Its Operations, Government Executive
While the Veterans Affairs Department has called off mass layoffs of its workforce, senior leaders are telling employees that major changes are still coming. VA plans to have cut 30,000 employees by the end of September, down from its original plan of chopping 80,000 workers and eliminating the need for “large-scale” reductions in force. The department is now launching a “VA-wide review of its mission” and structure, Christopher Syrek, the department’s chief of staff, said in a memorandum last week, with the aim of improving operational efficiency. Read more here.
Upcoming Government Contract Presentations
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
Cy Alba Co-Hosts “The Real Deal” Podcast Series Highlighting Winning, Growing, and Exiting in Government Contracting, PilieroMazza Blog, Isaias “Cy” Alba, IV
Powered by OrangeSlices’ “The Peel” podcast, “The Real Deal” is a new series created by PilieroMazza partner Cy Alba and Sarah Djamshidi of Speedshift Ventures. Episodes explore the fast-evolving world of M&A in the government contracting space. This series dives deep into the realities facing buyers, sellers, advisors, and operators—unpacking the trends, risks, and decisions behind successful (and sometimes failed) deals. Read more here.
CYBERSECURITY & DATA PRIVACY / INTELLECTUAL PROPERTY & TECHNOLOGY RIGHTS
Cybersecurity, AI, and EO 14306: What Government Contractors Must Do to Stay Compliant, PilieroMazza Blog, Jacqueline K. Unger, Joseph P. Loman, Ryan Boonstra
In June 2025, President Trump signed Executive Order 14306 (EO), titled “Sustaining Select Efforts to Strengthen the Nation’s Cybersecurity and Amending Executive Order 13694 and Executive Order 14144,” which amends and supersedes portions of President Biden’s[1] and President Obama’s[2] executive orders on cybersecurity. The EO was accompanied by a Fact Sheet, which provides further reasoning for the revisions. Although the EO amends and supersedes portions of President Biden’s and President Obama’s executive orders, it generally leaves the framework established by these orders in place. PilieroMazza outlines key takeaways from the EO that government contractors must be aware of to stay compliant with changes to the federal government’s AI and cybersecurity policy. Read more here.
Employee Benefits Security Administration, Department of Labor (DOL) Guidance and Request for Information (RFI): Pooled Employer Plans: Big Plans for Small Businesses
On July 29, DOL published Guidance and an RFI regarding interpretive guidance to help small employers select high-quality, low-cost “pooled employer plans” or “PEPs.” The RFI solicits information about prevailing pooled employer plan market practices. The DOL will consider the responses as part of a process aimed at developing a potential regulatory safe harbor or safe harbors that comprehensively encourage market participants to offer and employers to join such plans. These efforts, taken pursuant to President Trump’s January 20, 2025, Memorandum titled “Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis,” are designed to reduce investment costs for workers saving for their retirement, thereby improving their lives. These efforts will also help small employers provide more attractive benefits to potential hires, drawing discouraged workers into the labor force. The guidance and RFI are available here. Comments close September 27, 2025.
Office of Personnel Management (OPM) Memorandum: Protecting Religious Expression in the Federal Workplace
On July 28, OPM issued a memorandum intended to provide guidance to agencies on Federal employees’ rights in religious expression in the Federal workplace. OPM notes that this memorandum should be read in conjunction with OPM’s Reasonable Accommodations for Religious Purposes memorandum, issued on July 16, 2025. This memorandum emphasizes that religious expression—including prayer, religious discussions, and the display of religious items—is protected in the workplace, provided it does not interfere with official duties or impose undue hardship on agency operations. The memorandum outlines permissible conduct, urges agencies to review and revise internal policies to ensure compliance, and includes examples to help agencies and employees understand allowable religious expression in the Federal workplace. Read more here.
Court Filing Reveals Which Offices at 17 Agencies the Trump Administration Had Slated for Layoffs, Government Executive
The Trump administration revealed to a federal court on Thursday the specific offices at which widespread layoffs were planned as of earlier this year, providing rare insight into the scale of its proposed reductions in force. Some plans have changed, but the document shows new details on RIF plans. Read more here.
Another Judge Has Dismissed the Trump Administration’s Effort to Pre-Clear Anti-Union EO, Government Executive
Both of the White House’s efforts to secure declaratory judgments in advance of formally stripping more than 1 million federal workers of their collective bargaining rights have now failed. Read more here.
Lawmakers Pursue Parallel Paths Toward Blocking Trump’s Anti-Union Order, Government Executive
While House Democrats and unions are working over the August recess to secure signatures on a discharge petition to force the chamber to consider a bill overturning the president’s edict stripping two-thirds of federal employees of their collective bargaining rights, the House NDAA includes language blocking its implementation at the Pentagon. Read more here.
Upcoming Labor & Employment Presentations
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
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 Announces Centralized Travel Service ‘GO.Gov’, Government Executive
The General Services Administration on Tuesday announced a rebrand for its new centralized travel service program that will soon be used by all federal civilian agencies for travel booking, expenses and reporting when it goes live later this year: GO.Gov. Read more here.
OMB Memo Lays out GSA’s Plan to Consolidate Contracts, Government Executive
A new memo from the Office of Management and Budget describes how the General Services Administration will take over much of the government’s buying of what it calls “common goods and services.” New rules that are coming will require agencies to use existing government-wide vehicles and best-in-class contracts before creating new ones. Read more here.
FALSE CLAIMS ACT / AUDITS & INVESTIGATIONS
Whistleblower Bill for Contractors Gains Bipartisan Support with Grassley’s Backing, Government Executive
Sen. Chuck Grassley, R-Iowa, has signed on as a cosponsor of a bill to expand whistleblower protections for government contractors, giving the legislation bipartisan support. Supporters say the legislation would close “loopholes” in existing whistleblower protections for federal contractors. Read more here.
Small Business Administration (SBA) Office of Inspector General (OIG) Report: SBA’s Oversight of Shuttered Venue Operators Grant (SVOG) Recipients
On July 22, OIG issued a report about the results of its audit of SBA’s Oversight of SVOG Recipients. As of October 2024, the SBA identified $544 million in potential improper payments that need to be recovered. SBA established performance goals, measured progress, and reported that the SVOG program met all three performance goals. However, it found that one of those goals, the number of SVOG recipients that continued or reopened operations, was not measured with representative data. SBA should establish and implement timeframes for each closeout activity. Without prompt action to close out these awards, SBA has no assurance that taxpayer funds were used for the intended purpose. OIG made six recommendations for SBA to improve recovery of SVOG funds where needed, expedite the award closeout process, better monitor the use of SVOG funds, and report on the limitations of data used for SVOG performance results. Read more here.