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 Attorneys Achieve National Recognition in 2026 Best Lawyers in America®, PilieroMazza News, Nichole D. Atallah, Jessica A. duHoffmann
PilieroMazza is proud to share that The Best Lawyers in America® 2026 edition recognized partners Nichole Atallah and Jessica duHoffmann for their exemplary work in the legal field. Nichole is honored for her practice in Litigation: Labor and Employment, while Jessica is recognized for her work in Construction Law. This marks the third year of recognition for Nichole and the eighth year for Jessica. Read more here.
How the Boards of Contract Appeals Work—And Why It Matters for Your Bottom Line, Part 4, PilieroMazza Blog, Lauren Brier, Josie Farinelli, Kelly A. Kirchgasser
Government contractors, particularly small business contractors, often share that their experience with Alternative Dispute Resolution (ADR) is costly and inefficient. This may be true of traditional ADR involving paid neutrals or mediation services, as often found in binding arbitration clauses within subcontracts. However, the stated goals of ADR before the Boards of Contract Appeals (BCA) are informality, expedience, and inexpensiveness. Where settlement negotiations fail but both the government and the contractor are still interested in resolving the dispute before a BCA decision, ADR may be the most cost-effective and speediest route to resolution. In this final installation of PilieroMazza’s BCA blog series, we discuss the typical Board-led ADR process, as well as considerations contractors will want to keep in mind. Visit this link for Parts 1-3 in our series to catch up on other tips for navigating the BCAs and the Contract Disputes Act (CDA), and visit this link to register for our webinar covering this important topic. Read more here.
Joint Venture Eligibility: Refresher on Requirements for Government Contractors, PilieroMazza Webinar Replay, Meghan F. Leemon
Knowing and understanding the specific requirements around joint venture eligibility can make or break your ability to compete and be eligible for certain government contracts. PilieroMazza’s Meghan Leemon examines key elements of joint venture eligibility you need to understand to maintain your competitive edge and defend a contract award. This is a can’t-miss webinar for any contractor considering or currently pursuing work through a joint venture. Click here to view the recorded session.
Department of Defense (DOD) Rules
On August 25, DOD published the following final rules (Technical Amendments are available here) and proposed rule:
- Defense Federal Acquisition Regulation Supplement (DFARS) Final Rule: Inflation Adjustment of Acquisition-Related Thresholds: This final rule amends the DFARS to implement the inflation adjustment of acquisition-related thresholds. The adjustment uses the Consumer Price Index for all urban consumers and does not apply to the Construction Wage Rate Requirements statute (Davis-Bacon Act), Service Contract Labor Standards statute, performance and payment bonds, and trade agreements thresholds. DOD also used the same methodology to adjust some non-statutory DFARS acquisition-related thresholds in 2025. The rule is available here and will be effective October 1, 2025.
- DFARS Final Rule: Limitation on Certain Institutes of Higher Education: This final rule amends the DFARS to implement the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2024, requiring the limitation of funds, authorized to be appropriated or otherwise made available for any fiscal year for DoD, to be provided to an institution of higher education that hosts a Confucius Institute. The rule requires offerors to represent, by submission of an offer, that they are not an entity that hosts a Confucius Institute or that they have obtained a waiver approved by the Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E)). The rule is available here and is effective as of August 25, 2025.
- DFARS Final Rule: Preventing Conflicts of Interest for Certain Consulting Services: This final rule amends the DFARS to implement the NDAA for FY 2024, prohibiting contracting officers from awarding contracts assigned North American Industry Classification System (NAICS) codes beginning with 5416 to offerors holding contracts that involve consulting services with certain covered foreign entities. The rule is available here and will be effective October 24, 2025.
- DFARS Proposed Rule: Disclosure of DOD Funding in Technical Publications: This proposed rule seeks comments on DOD’s proposal to implement the William M. Thornberry NDAA for FY 2021, requiring DOD to disclose its funds in public documents resulting from research and development (R&D). The rule is available here. Comments close October 24, 2025.
Federal Acquisition Regulation (FAR) Final Rule: Inflation Adjustment of Acquisition-Related Thresholds
On August 27, the Department of Defense, General Services Administration, National Aeronautics and Space Administration, and Office of Federal Procurement Policy published a final rule amending the FAR to implement statutory requirements to increase acquisition-related thresholds for inflation. The adjustment uses the Consumer Price Index for all urban consumers and does not apply to the Construction Wage Rate Requirements, Service Contract Labor Standards, performance and payment bonds, and trade agreements. Adjustments are also made to non-statutory FAR acquisition-related thresholds. The rule is available here and will be effective October 1, 2025. The Small Entity Compliance Guide is available here, and the Federal Acquisition Circular Introduction is available here.
Small Business Administration (SBA) Proposed Rule: Small Business Size Standards, Monetary-Based Industry Size Standards
On August 22, the SBA published a proposed rule and request for comments regarding increases to its monetary-based small business size definitions. SBA seeks comments on its proposed changes to size standards and data sources it evaluated to develop the proposed size standards. SBA also invites comments on its proposed policy of not lowering any size standards, except for excluding dominant firms from qualifying as small. The proposed rule is available here. Comments will close October 21, 2025.
Department of Defense (DOD) Memorandum
- Duty Free Entry Under the Harmonized Tariff Schedule of the U.S.: On August 25, DOD issued a memorandum, effective immediately, emphasizing existing authority in the Defense Federal Acquisition Supplement allowing duty-free entry of critical end products, components, or materials imported into the customs territory of the U.S. This memorandum highlights the role of the Defense Contract Management Agency (DCMA) to ensure that DOD federal and allied government supplies and services are timely delivered within the U.S. Customs territory. The Duty-Free Entry clause is available to help reduce the potentially significant cost impacts of tariffs applied to defense articles under the Harmonized Tariff Schedule. Read more here.
- Revision 1, Pilot Program for Anything-as-a-Service Contracts or Agreements: On August 21, DOD issued a memorandum clarifying that Space-as-a-Service refers exclusively to coworking space and does not include leasing office space under the pilot program. The revised memorandum removes the lease of rental office buildings, conference space, and other administrative facilities and service buildings from “Space-as-a-Service.” DOD encourages DOD Components to use competitive lease acquisition procedures and real property lease provisions that are applicable to federal leasehold for acquiring office space or leasing office space. Read more here.
House Plans Vote on Annual Defense Policy Bill in September, Bloomberg Government
The House is poised to vote on the annual defense authorization bill in the second week of September, putting the chamber on a similar timeline with the Senate. Read more here (subscription required).
EU, US Agree to Eliminate Industrial Tariffs, Law360
The European Union and the U.S. have agreed on new terms to the trade agreement to eliminate EU tariffs on U.S. industrial products and implement a 15% U.S. tariff cap for most other sectors, according to a joint statement issued Thursday. Read more here (subscription required).
Congress Chases Stopgap Deal to Avoid Stumbling Into a Shutdown, Bloomberg Government
Lawmakers will have less than a month upon returning to Washington to avert a government shutdown before federal funding expires at the end of September. With both chambers passing just a few appropriations bills before their summer recess, a stopgap funding measure is the best bet to keep the lights on, though, given escalating partisan clashes, shuttering government services can’t be ruled out. Read more here (subscription required).
OMB Restores Public Spending Database After Losing Court Cases, Federal News Network
The Office of Management and Budget restored a public website designed to track federal spending several months after it abruptly took the transparency database offline in what courts found was a violation of federal law. OMB took the apportionments database offline earlier this year, claiming it contained “predecisional” information and hampered executive branch deliberations. Read more here.
Upcoming Government Contract Presentations
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: Overcoming the Compliance Minefield of Cost-Reimbursement Contracts, Part 1: Preparing for a Surge in DCAA Audit Activity, September 16, 2025, Isaias “Cy” Alba, IV
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
TRAINING: Joint Venture and Mentor-Protege Bidding Strategies, October 2, 2025, Peter B. Ford, Meghan F. Leemon
PM WEBINAR: Managing the Financial Impact of Tariffs on Your Government Contract, October 7, 2025, Jacqueline K. Unger, Ryan Boonstra
PM WEBINAR: Overcoming the Compliance Minefield of Cost-Reimbursement Contracts, Part 2: Mastering DCAA Audits in Cost-Plus-Fixed-Fee Contracts, October 14, 2025, Isaias “Cy” Alba, IV
PM WEBINAR: Avoiding Common Teaming and Subcontracting Pitfalls, October 16, 2025, Jon Williams
TRAINING: Past Performance: How to Use Yours, Benefit from Others’, and Defend It from Attacks, October 28, 2025, Daniel Figuenick, III, Abigail “Abby” Finan
Key Insights for GSA Schedule Contracting, PilieroMazza Webinar Replay, Jon Williams, Lauren Brier
The General Services Administration’s (GSA) Schedule contracts are key tools for many contractors doing business with the federal government. With procurement consolidation expected to lead to a surge in GSA Schedule contracting on the horizon, current and prospective GSA Schedule contractors need to understand the ins and outs of Schedule contracting to be best positioned to capitalize on new opportunities. This webinar, which is the first in a series PilieroMazza will host in the coming months on GSA Schedule contracting, focuses on two key aspects of being a Schedule contractor: (1) labor category (LCAT) mapping and (2) navigating GSA audits. Click here to view the recorded session.
General Services Administration (GSA) News Release
- GSA and FedRAMP Announce Major Initiative, Prioritizing 20x Authorizations for AI Cloud Solutions: On August 25, GSA and the Federal Risk and Authorization Management Program (FedRAMP) announced that FedRAMP will begin prioritizing the authorization of AI-based cloud services that provide access to conversational AI engines designed for routine and repeated use by federal workers. This full announcement is here.
- GSA’s Login.gov Launches Passport-Based Identity Verification: On August 20, GSA announced that its sign-in service, Login.gov, will begin allowing individuals to verify their identity using a U.S. passport, marking a first-of-its-kind partnership between federal agencies to use authoritative government records as a source for identity verification. Read more here.
- Revolutionizing Federal Contracting, GSA Calls on Industry for Expertise: On August 18, GSA issued a Request for Information for input from suppliers and industry associations regarding the creation of a new single, end-to-end integrated, and highly-efficient procurement ecosystem — that effectively incorporates Artificial Intelligence (AI) — to drive transparent collaboration and greatly enhance the federal acquisition lifecycle. Read more here.
- GSA to Host Webinar about Deviations to FAR Parts 4, 8, 12, & 40: On August 25, GSA announced a webinar on the posted Deviations to FAR Parts 4, 8, 12, and 40 on Wednesday, September 10, 2025, from 1:00 through 3:30 p.m. EDT. Register here. This full announcement is here.
Upcoming GSA Federal Supply Schedules Presentations
PM WEBINAR: Key Changes in GSA Schedule Contracting: What You Need to Know, October 2, 2025, Jon Williams
Federal Acquisition Regulation (FAR) Model Deviation Text for FAR Parts 9, 33, 46, & 49
On August 21, the FAR Council released the model deviation text for the following FAR Parts:
- FAR Part 9, Contractor Qualifications: FAR Part 9 was revised to remove duplicative or redundant content and reworded in plain language. Notably, subpart 9.6, Contractor Team Arrangements, and subpart 9.7, Defense Production Pools and Research and Development Pools, were removed, but GSA notes that they may be moved to non-regulatory content. The General Services Administration’s (GSA) memorandum and class deviation fully incorporating the same into all GSA procurements are available here and will be effective November 3, 2025. Informal feedback is due October 6, 2025.
- FAR Part 33, Protests, Disputes, and Appeals: FAR Part 33 was revised to reduce the frequency of protests and encourage resolution at the agency level. FAR Part 33 now includes a purpose statement for the bid protest system setting forth the objectives of the bid protest process system, clearer distinctions between preaward and postaward protest procedures, and enhanced transparency requirements for agency-level protests. Procedural sections have been consolidated for clarity, and clauses have been retained with plain language updates. The section regarding the contracting officer’s duties upon appeal has been removed. The General Services Administration’s (GSA) memorandum and class deviation fully incorporating the same into all GSA procurements are available here and will be effective November 3, 2025. Informal feedback is due October 6, 2025.
- FAR Part 46, Quality Assurance: FAR Part 46 was revised to remove redundant language and improve readability. Sections related to value engineering, commercial product preferences, and counterfeit part detection were retained. Sections 46.105, Contractor Responsibilities, and 46.704, Authority for Use of Warranties, were removed as redundant or unnecessary. The General Services Administration’s (GSA) memorandum and class deviation fully incorporating the same into all GSA procurements are available here and will be effective November 3, 2025. Informal feedback is due October 6, 2025.
- FAR Part 49, Termination of Contracts: FAR Part 49 retains statutory requirements such as the False Claims Act and Contract Disputes Act with plain language revisions. Subsection 49.108-7, Government assistance in settling subcontracts, subsection 49.111, Cost principles, and subsection 49.405, Competition by another contractor, were removed, but they may be moved to non-regulatory content. The General Services Administration’s (GSA) memorandum and class deviation fully incorporating the same into all GSA procurements are available here and will be effective November 3, 2025. Informal feedback is due October 6, 2025.
Upcoming Labor & Employment Presentations
PM WEBINAR: Multijurisdictional Employers, Part 3: Best Practices for Paid Sick Leave and Family Leave, September 4, 2025, Nichole D. Atallah, Sara N. Strosser
CONFERENCE: Impact of the Trump Administration on Government Contracts, September 12, 2025, Nichole D. Atallah
TRAINING: Labor Rules & Regulations: Federal Market Compliance, October 22, 2025, Nichole D. Atallah
Department of Homeland Security (DHS) Notice: 2025 Minimum Elements for a Software Bill of Materials (SBOM)
On August 22, DHS published a notice and request for comments regarding draft guidance for the revised elements of SBOM. Although statutes, regulations, and binding government-wide policies currently do not require that agencies obtain SBOMs from their software vendors, stakeholder experience with consuming and comparing data highlights the benefits of clarity and precise specifications. By updating the 2021 NTIA SBOM Minimum Elements and adding new minimum elements, CISA aims to promote SBOMs to provide data to software users to illuminate their software supply chains, better inform their risk management processes, and drive their software security decisions. The notice is available here. Comments will close October 3, 2025.