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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U.S. Trade Representative (USTR) Notice: Procurement Thresholds for Implementation of the Trade Agreements Act of 1979
On February 3, USTR published a notice providing the U.S. dollar procurement thresholds to implement certain U.S. trade agreement obligations for calendar years 2026 and 2027. The notice is available here.
Department of War (DOW) Memorandum: Class Deviation—Contract Obligations in Advance of Fiscal Year (FY) 2026 Funds
On February 2, DOW issued a memorandum, effective immediately, requiring contracting officers to insert a contract clause allowing DOW to enter contracts and obligate the government in advance of appropriations. Read more here.
Department of War (DOW) News Release: DOW Launches LYNX to Help Businesses Enter and Compete in Defense Markets
On January 30, DOW Office of Office of Small Business Programs announced the launch of LYNX, a new digital platform designed to strengthen supplier readiness, improve visibility into business capabilities, and expand participation across the defense industrial base. Registration is now open here for businesses seeking to connect with mission-aligned partners and opportunities. Businesses begin by creating a company profile and completing an initial assessment to establish a readiness baseline and identify next steps. Read more here.
Data-Driven Reforms Speed up Surplus Equipment Turnaround at DLA, Federal News Network
From old office furniture to entire warships, when the military services have a piece of equipment they no longer need, it heads to the Disposition Services experts at the Defense Logistics Agency. Quite often, DLA can find a new home for those items. However, the agency is attempting to significantly increase the frequency of such occurrences, including by maintaining digital “want lists” from the military services, which will enable them to track demand signals. Read more here.
Lack of Centralized Authority, Service Coordination Sank DoD’s Travel Modernization Effort, Federal News Network
The Pentagon scrapped the $374 million program it worked on for years to replace its antiquated Defense Travel System (DTS) after discovering the new platform could not reliably produce the financial data needed to support a clean audit, a failure a government watchdog says stemmed from poor coordination with the military services and lack of centralized authority. Read more here.
NIH to Axe $50 Billion IT Procurement, Extend Bridge Contracts, Bloomberg Government
The US National Institutes of Health is planning to cancel a $50 billion IT services procurement called Chief Information Officer–Solutions and Partners 4 in its entirety and extend bridge awards under a current contract. Read more here (subscription required).
Army Surveys Existing Contracts to Expand Right to Repair Access, Federal News Network
The Army is conducting a service-wide survey of all existing contracts to determine where limited access to technical data is hindering soldiers’ ability to maintain and repair their own equipment. The service began collecting initial feedback from the field last summer following Defense Secretary Pete Hegseth’s directive to “identify and propose contract modifications for right to repair provisions where intellectual property constraints limit the Army’s ability to conduct maintenance and access the appropriate maintenance tools, software, and technical data.” Read more here.
Facing Mounting Energy Threats, the Pentagon Is Betting on Industry Partnerships to Build Resilience Fast, Federal News Network
Executive orders on energy dominance are reshaping defense priorities. This article explores how public-private partnerships, federal land leasing, and emerging tech like microgrids can strengthen military energy resilience. Read more here.
The Drone Economy Is about to Take Off Fast: A $355B Market and New Rule Could Make Drones-as-a-Service the Next Big Thing, Federal News Network
The economics of drone operations are about to change. One operator supervising ten autonomous aircraft could redefine cost and margin for delivery and inspection. That future hinges on Part 108, a proposed FAA/TSA rule that moves what are currently waiver-only experiments to a national standard. Read more here.
A Sweeping Vision for the Navy Is Colliding with Harsh Shipbuilding Realities, Federal News Network
Since long before any talk of a “Golden Fleet,” the starting point always matters, and today’s shipbuilding base is running well below the level political rhetoric would imply. Capacity is strained, delivery timelines keep slipping, and shifting requirements make it even harder for industry to plan or invest. We’re charting the gap between ambition and reality for U.S. shipbuilding. Read more here.
Upcoming Presentations
PM WEBINAR: DCAA’s Annual Update, February 24, 2026, Isaias “Cy” Alba, IV
CONFERENCE: Build Your Dream Advisory Team, February 25, 2026, Isaias “Cy” Alba, IV
CONFERENCE: Managing the Financial Impact of Tariffs on Your Government Contracts, March 4, 2026, Jacqueline K. Unger, Ryan Boonstra
SEMINAR: Government Contractors and Tariff Challenges: Strategies for Success, March 11, 2026, Jacqueline K. Unger
CONFERENCE: Federal Small Business Update — Threats and Opportunities in the Current Environment, March 12, 2026, Lauren Brier
PilieroMazza Annual Review: Workforce Updates for Multijurisdictional Employers—What to Watch in 2026, PilieroMazza Webinar Replay, Nichole D. Atallah, Sarah L. Nash
In this webinar, PilieroMazza’s Nichole Atallah and Sarah Nash examine upcoming developments and provide practical guidance to help companies remain compliant, competitive, and prepared for what’s ahead. Click here to view the recorded session.
DOL’s Got Opinions—Lots of Them: Important FLSA and FMLA Guidance for Employers, PilieroMazza Blog, Sarah L. Nash, Sara N. Strosser
On January 5, 2026, the DOL’s Wage and Hour Division (WHD) issued six new opinion letters related to various topics under the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA). Below, PilieroMazza provides a brief overview of the three most relevant opinion letters, along with key takeaways for employers. For a full list of all of the opinion letters issued by DOL to date, please visit the DOL’s website. Read more here.
Department of Labor (DOL) Notice: Minimum Wage for Federal Contracts, Notice of Rate Change in Effect
On February 9, DOL’s Wage and Hour Division (WHD) published a notice announcing the applicable minimum wage rates for workers performing work on covered federal contracts pursuant to Executive Order 13658. The minimum wage rate will increase to $13.65 per hour and $9.55 for tipped employees. The notice is available here and will be effective May 11, 2026.
Department of Health and Human Services (HHS) Proposed Rule: Nondiscrimination on the Basis of Disability in Programs or Activities Receiving Federal Financial Assistance
On February 2, HHS published a proposed rule and request for comments regarding its December 19, 2025, notice of proposed rulemaking (NPRM), which limits ambiguity by clarifying that the statutory exclusion of “gender identity disorders not resulting from physical impairments” from the scope of what constitutes discrimination includes “gender dysphoria not resulting from a physical impairment.” HHS is reopening the public comment period due to administrative technical issues. The NPRM is available here. The proposed rule is available here. Comments close February 20, 2026.
Upcoming Presentations
TRAINING: Labor Rules & Regulations: Federal Market Compliance, March 18, 2026, Sarah L. Nash
CONFERENCE: Ins and Outs of the Service Contract Act, March 23, 2026, Nichole D. Atallah
CONFERENCE: DMV Legal Compliance Toolkit: Practical Insights for Multi-Jurisdictional Employers, March 24, 2026, Sarah L. Nash
CONFERENCE: You’re Fired! Legal Risks of Personnel Management for Tribally Owned Entities, March 25, 2026, Nichole D. Atallah
Upcoming Presentations
CONFERENCE: Plan Your Exit Strategy and Adjust Along the Way, February 25, 2026, Isaias “Cy” Alba, IV
WEBINAR: Buying or Selling: Navigating the New Landscape of 8(a) M&A Transactions, February 26, 2026, Isaias “Cy” Alba, IV
FALSE CLAIMS ACT / AUDITS & INVESTIGATIONS
PilieroMazza Annual Review: DOJ’s FY2025 False Claims Act Results and Compliance Considerations for Government Contractors in FY2026, PilieroMazza Blog, Jacqueline K. Unger, Todd M. Reinecker, Matthew E. Feinberg
The Department of Justice (DOJ) released its Fiscal Year (FY) 2025 False Claims Act (FCA) results, and the message for government contractors is clear: FCA enforcement is accelerating, and procurement fraud, cybersecurity non-compliance, pandemic program fraud, and tariff/custom duty evasion remain key priorities. DOJ reported total FCA settlements and judgments of more than $6.8 Billion for FY2025, the largest annual recovery in FCA history. Below are key takeaways from DOJ’s annual fraud statistics report, our outlook for FY2026, and important compliance considerations for government contractors. For more information on this topic, visit this link to register for our webinar, “PilieroMazza Annual Review: FCA Enforcement and Compliance Updates for Government Contractors—What to Watch in 2026.” Read more here.
Small Business Administration (SBA) News Release: SBA Suspends 111,620 California Borrowers Suspected of Committing $8.6 Billion in Pandemic-Era Fraud
On February 6, following a visit to San Diego, SBA Administrator Kelly Loeffler announced that the agency suspended 111,620 California borrowers amid suspected fraudulent activity across SBA pandemic-era loan programs. In total, these borrowers received 118,489 Paycheck Protection Program and Economic Injury Disaster Loans totaling over $8.6 billion. Read more here.
As Trump Administration Cries ‘Fraud,’ Experts Worry It Does More Harm Than Good, Government Executive
“It’s dismaying,” one longtime anti-fraud expert told Nextgov/FCW of how the administration is using fraud as a rationale but firing the watchdogs that are tasked with finding it. Read more here.
Upcoming Presentations
PM WEBINAR: PilieroMazza Annual Review: FCA Enforcement and Compliance Updates for Government Contractors—What to Watch in 2026, March 3, 2026, Jacqueline K. Unger, Todd M. Reinecker
Five updates on the Trump Admin’s Cybersecurity Agenda, Federal News Network
A new national cybersecurity strategy, an update on landmark cyber incident-reporting rules, and the development of a new artificial intelligence security collaboration group are all in the pipeline for the coming weeks and months. Trump administration officials discussed a range of cyber policy updates at the Information Technology Industry Council’s Intersect Summit in Washington on Tuesday. Read more here.
New Bill Aims to Drive States Toward NIST Digital ID Standards, Federal News Network
A bipartisan House bill would establish a Treasury Department grant program to help states adopt mobile driver’s licenses and other digital identity credentials that align with the National Institute of Standards and Technology’s digital ID guidelines. Read more here.
Upcoming Presentations
PM WEBINAR: CMMC Mission Readiness: Navigating Growth, Costs, and Competition for Defense Contractors, March 11, 2026, Isaias “Cy” Alba, IV
General Services Administration (GSA) Memorandum: GSA Acquisition Regulation (GSAR) Class Deviations in Response to Executive Order (EO) 14275
On January 15, GSA issued a class deviation incorporating the Federal Acquisition Regulation (FAR) Overhaul. More information is available here.
FedRAMP Putting Final Pieces in Place for Major Modernization Effort, Federal News Network
After a year of talks with industry on how to improve the program, FedRAMP is turning inward. Leaders of the government’s cloud security assessment program say they’re increasing their engagements with federal agencies and the Office of Management and Budget as they continue to work toward a faster, less costly version of the program, called “FedRAMP 20x,” but they’ve already made significant improvements. Read more here.
Vendors See GSA Reseller RFI as a Positive Sign, Federal News Network
Industry experts say GSA’s request for information about value-added resellers is a move to diffuse an increasingly controversial issue. Read more here.
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