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 Strengthens Litigation Bench with Newly Launched White Collar Defense Group Led by Former Military Judge Mark Rosenow, PilieroMazza News, Mark F. Rosenow, Todd M. Reinecker
PilieroMazza is proud to announce the launch of its White Collar Defense Group, a strategic expansion of the firm’s litigation capabilities designed to protect businesses and individuals facing high-stakes criminal, civil, and regulatory exposure. Led by Mark Rosenow, a former U.S. Air Force trial judge, prosecutor, and defense counsel, the Group brings a rare combination of criminal and civil courtroom experience, judicial insight, and strategic judgment to matters where reputations, operations, livelihoods, and liberty are on the line. Read more here.
GSA MAS Refresh #31: Key Changes and Updates Every Contractor Should Know, PilieroMazza Client Alert, Isaias “Cy” Alba, IV, Adel Mansour
The General Services Administration (GSA) announced back in January that Multiple Award Schedule (MAS) Solicitation 47QSMD20R0001 – Refresh # 31 is expected to be issued in March/April 2026. Refresh #31 will introduce significant changes, including new Artificial Intelligence (AI) requirements alongside the expansion of the Transactional Data Reporting (TDR) pilot program. Government contractors should review the proposed updates (summarized below) and submit comments to GSA on Refresh #31 by March 20, 2026, to stay ahead of compliance obligations and prepare for future offers, new AI requirements, and the expanded TDR program. Read more here.
U.S. General Services Administration (GSA) News Release: GSA Stands with President Trump on National Security AI Directive
On February 27, in support of President Trump’s directive “to IMMEDIATELY CEASE all use of Anthropic’s technology,” GSA removed Anthropic from USAi.gov and its Multiple Award Schedule (MAS). This decision reflects GSA’s responsibility under the President’s AI Action Plan for the American people. Read more here.
GSA to be Designated as QSMO for Acquisition, Federal News Network
GSA will spearhead a new “quality service management office” focused on acquisition, a top Office of Management and Budget official announced on March 5. Eric Ueland, deputy director for management at OMB, announced the new QSMO–the fifth so far–during a conference organized by the Shared Services Leadership Coalition in Washington on March 5. Read more here.
GSA’s CMMC-Like Rules Raise Concerns in Industry, Federal News Network
Even for those who closely follow cybersecurity compliance issues, the General Services Administration’s new requirements for protecting controlled unclassified information came as a surprise. GSA’s new guide is raising concerns about an increasing patchwork of contractor cybersecurity rules across the government. GSA released the new requirements, with little fanfare, in a January update to an “IT security procedural guide” for protecting CUI in nonfederal systems and organizations. When applied, the guide would have to be followed by contractors that handle CUI as part of doing business with the agency. Read more here.
GSA Head Questioned about Agency’s Involvement in Acquiring Space for Detaining Migrants, Government Executive
During a Wednesday hearing, a Democratic lawmaker grilled General Services Administration head Ed Forst about his agency’s involvement — or lack thereof — in the Homeland Security Department’s buying of warehouses across the country to serve as immigration detention centers. The administrator also addressed an agreement with Pakistan to redevelop a New York City hotel, as well as the maintenance backlog for federal buildings. Read more here.
DHS Funding Fight At Home And Conflicts Abroad Are Pushing Congress Into Another Week Of High‑Stakes Maneuvering, Federal News Network
Leadership changes sparked by DHS Secretary Noem’s departure and Oklahoma Senator Mullin’s potential role have stirred new political drama but provided no path forward on the Department of Homeland Security’s funding freeze. Add to that a Congress increasingly split over war‑powers resolutions and the path to any Middle East supplemental, and the next few months look anything but predictable. Read more here.
Department of Energy (DOE) Direct Final Rules
On March 6, DOE published 4 direct final rules, further delaying the effective dates for the final rules by 120 days until July 6, 2026. The following rules are subject to the delay:
- Rescinding New Construction Requirements Related to Nondiscrimination in Federally Assisted Programs or Activities
- Rescinding Regulations for Loans for Minority Business Enterprises Seeking DOE Contracts and Assistance
- Rescinding Regulations Related to Nondiscrimination in Federally Assisted Programs or Activities (General Provisions)
- Rescinding Regulations Related to Nondiscrimination on the Basis of Sex in Education Programs or Activities Receiving Federal Financial Assistance
Government Accountability Office (GAO) Reports:
- Military Readiness: DOD Should Take Further Actions to Address Challenges Across the Air, Sea, Ground, and Space Domains. On March 4, GAO released a report detailing its testimony regarding military readiness before the Senate Armed Services Committee’s Subcommittee on Readiness and Management Support. DOD has taken steps to address persistent readiness challenges, but significant work remains to make a range of needed improvements that GAO has identified. This statement provides information on readiness challenges across the air, sea, ground, and space warfighting domains and is primarily based on published GAO reports since 2022 that have examined aspects of military readiness, operations, and sustainment in the air, sea, ground, and space domains. Across the reports summarized in this statement, GAO has made nearly 200 recommendations, with which DOD generally agreed, to help improve readiness across and in each of the domains. DOD needs to take additional actions to implement more than 150 of these recommendations. Read more here.
- Nuclear Waste Cleanup: DOE Needs to Improve the Accuracy of Cost and Schedule Information for Major Projects and Activities. On March 2, GAO released a report detailing its review of major projects of the Department of Energy’s (DOE) Office of Environmental Management (EM). This report (1) describes the status of EM’s largest capital asset projects and operations activities, including changes since GAO’s 2022 report; and (2) examines challenges and opportunities to improve the performance of EM’s largest capital asset projects and operations activities. GAO is making two recommendations to EM to improve the agency’s oversight of its most expensive capital asset projects and operational activities. These include that EM (1) ensure the completeness of cost and schedule information relevant to its capital asset projects and (2) coordinate with site officials and contractors to improve the accuracy of current and historical cost and schedule data for operations activities. GAO has identified DOE’s project management and environmental liability—or expected cleanup costs—as High-Risk areas. The department’s management and oversight record has left DOE vulnerable to fraud, waste, abuse, and mismanagement, and its expected future cleanup costs have ballooned over the last several decades. Read more here.
Senate Passes Bill to Renew Small Business Research Programs, Bloomberg Government
The Senate unanimously passed legislation on Tuesday night that would reauthorize key small business innovation programs that provide seed money for research and development of new technology. Read more here (subscription required).
The Army Just Launched an Open Call for Industry Ideas, Defense One
The Army is looking to stretch its limited research and development dollars by teaming up with private industry to develop projects that can be used by the service as well as commercial customers. A request for information invites potential partners to pitch the service on new ways to jointly fund and execute needed programs. Read more here.
When DOGE Unleashed ChatGPT on the Humanities, Bloomberg Government
Documents reveal how artificial intelligence (AI) was used to cancel most previously approved grants by the National Endowment for the Humanities as the agency embraced President Trump’s “America First” agenda. When the Trump administration went looking last spring for National Endowment for the Humanities grants to cut, it turned to a familiar scourge of professors: ChatGPT. Read more here (subscription required).
Travel Industry Rallies Support for TSA Staff Working without Pay Amid Concern of Delays During Shutdown, Government Executive
The screeners and more than 100,000 additional DHS staff are on the verge of missing their first full paychecks. The travel industry is imploring lawmakers to ensure on-time pay for TSA employees, launching a campaign on Thursday to pressure Congress into passing legislation to that effect while the partial government shutdown remains in effect. Read more here.
How NAVWAR is Keeping the Small Business Light Burning, Federal News Network
Kim Reidy, the director of the Office of Small Business Programs for NAVWAR, said the command is doing more to attract non-traditional small firms. It’s been a tough last 12 months for small business government contractors, to say the least. There is increased scrutiny on not just the 8(a) program, but all small business set-aside contracts. On March 4, the Small Business Administration began termination proceedings for 628 firms in the 8(a) program. The SBA has now begun kicking out 782 firms, or about 20% of all companies, from the 8(a) program. At the same time, the Small Business Innovation Research and Small Business Technology Transfer program has been on pause since October. Read more here.
US Offers $20 Billion Reinsurance Plan to Spur Gulf Oil Flow, Bloomberg Government
The Trump administration announced a $20 billion reinsurance program aimed at reviving shipping in the Strait of Hormuz, where traffic has all but stopped amid the US and Israeli attacks on Iran. The US International Development Finance Corp. said Friday it is deploying maritime reinsurance, including war risk, in the Persian Gulf region to stabilize commerce. The facility will insure losses up to about $20 billion “on a rolling basis” and will apply only to vessels for now, according to a statement. Read more here (subscription required).
Why the US Went to War without a Plan to Evacuate DOD Civilians, Contractors, and Others, Government Executive
As the U.S. and Israel launched strikes on Iran, American citizens living in or visiting the Middle East found themselves stranded in countries facing bombing attacks by Iran. The State Department on March 2, 2026, urged Americans in 14 Middle Eastern countries to leave via “available commercial transportation, due to serious safety risks.” But commercial air travel and airports were shut down in many of those places, and the U.S. wasn’t offering to evacuate its citizens. Media reports featuring frustrated and frightened Americans stuck in places where danger was mounting, as well as growing criticism that the U.S. hadn’t handled the situation well or according to normal procedure, led the State Department to scramble and send charter flights to evacuate U.S. nationals from a handful of countries. Read more here.
Kristi Noem Misled Congress about Top Aide’s Role in DHS Contracts, Government Executive
Homeland Security Secretary Kristi Noem misled Congress about the powers of her controversial top aide Corey Lewandowski, according to records reviewed by ProPublica and four current and former DHS officials. Testifying before the Senate Judiciary Committee, Noem denied that Corey Lewandowski had any role in approving contracts. But internal DHS records and interviews with current and former agency staffers contradict her testimony. Read more here.
New Bill Would Push Agencies Toward Shared Services for Federal Lending Programs, Federal News Network
The federal government would need to start consolidating at least some aspects of the administration of its trillions of dollars’ worth of loan programs into a single technology platform under bipartisan legislation introduced on Wednesday. Legislation introduced in both houses of Congress on Wednesday would require the government to create a new front door for loans at Lending.gov. Read more here.
AI Risks Creating a ‘Demand Machine’ for Governments, Report Warns, Route Fifty
For several years, state and local leaders have argued that artificial intelligence will make work smoother for their government employees by taking away the menial jobs and allowing them to focus on more rewarding tasks. But a recent report from nonprofit New America argued that, in fact, AI will increase demand for government services by making it easier for residents to interact with their governments, ramping up their service requests and overwhelming existing systems and processes with those requests. Instead of making public-sector employees’ lives easier, the tech could create even more work, unless leaders rethink agency processes and workflows, researchers at New America said. Read more here.
Upcoming Presentations
SEMINAR: Legislative & Regulatory Year In Review and Advisory Forum, March 17, 2026, Jon Williams
CONFERENCE: Essential Legal Updates for Businesses Entering the GovCon Industry, March 17, 2026, Josie Farinelli
TRAINING: Small Business Contracting & Subcontracting, April 15, 2026, Eric Valle
WEBINAR: Tariffs in Government Contracting, April 23, 2026, Jacqueline K. Unger
WEBINAR: The Buy American Act and Trade Agreements Act, May 28, 2026, Jacqueline K. Unger
CMMC Mission Readiness: Navigating Growth, Costs, and Competition for Defense Contractors, PilieroMazza Webinar Replay, Isaias “Cy” Alba, IV
This webinar examines the finalized CMMC framework through a legal and compliance lens, while focusing on how smart planning can reduce implementation costs, avoid enforcement risk, and preserve eligibility for future DOD opportunities. PilieroMazza’s Cy Alba and Forvis Mazars’ Tom Tollerton will walk through the phased CMMC rollout, the new and revised DFARS clauses, and the practical implications of maintaining a “current” CMMC status in the Supplier Performance Risk System (SPRS). Click here to view the recorded session.
Trump Signs Order to Bolster Efforts to Combat Cybercrime, Bloomberg Government
On March 6, President Donald Trump signed an executive order aimed at fighting cybercrime—including fraud and extortion—directing officials to identify robust tools to combat transnational criminal organizations preying on American families, businesses, and infrastructure. The Order is available here. Read more here (subscription required).
Government Accountability Office (GAO) Report: Cybersecurity Regulations: Additional Industry Perspectives on the Impact, Progress, Challenges, and Opportunities of Harmonization
On March 5, GAO released a report detailing its review of federal efforts to use more consistent cybersecurity regulations. In this report, some participants noted redundant work because of overlapping regulations. GAO was asked to gather perspectives of industry participants on the progress that federal agencies are making to harmonize cybersecurity regulations. This report summarizes the perspectives that selected industry participants shared on the impact of federal cybersecurity regulations and federal agencies’ progress, challenges, and opportunities in harmonizing them. Read more here.
When Speed Becomes a Vulnerability: Rethinking Third-Party Risk in Federal Decision Making, Federal News Network
Third-party exposure remains one of the most persistent points of failure across government programs. According to SecurityScorecard, 58% of breaches involving the top 100 U.S. federal contractors originated through third-party attack vectors. This reflects a reality many already recognize: The most consequential risks no longer sit entirely inside organizational boundaries. Read more here.
Fake DOD Memo about ‘Compromised’ Apps Shows Swift Spread of Deceptive Messaging, Government Executive
A purported U.S. Cyber Command memo claiming that multiple apps were “compromised” and could be revealing servicemembers’ locations is fake, a DOD official confirmed to Defense One. The message, widely circulated as the U.S. bombed Iran, shows how quickly unverified information can reach troops. Read more here.
Office of Personnel Management (OPM) Proposed Rule: Reduction in Force (RIF)
On March 5, OPM published a proposed rule and request for comments revising RIF regulations to make them more streamlined, efficient, and merit-based by prioritizing performance over tenure and length of service when determining which employees will be retained in a RIF and modifying the types of employees who are excluded from RIF competition. OPM also proposes to revise its regulations regarding the reemployment priority list (RPL), career transition assistance program (CTAP), the interagency career transition assistance program (ICTAP), transfers of function, and furloughs. The rule is available here. Comments close May 4, 2026.
Federal Labor Relations Authority (FLRA) Withdrawal: Miscellaneous and General Requirements
On March 5, FLRA published a withdrawal of a proposed rule and a withdrawal of a proposed rescission of a general statement of policy or guidance issued on December 21, 2022. FLRA has determined not to revise or rescind its existing regulation concerning the intervals at which federal employees may revoke their written assignments of payroll deductions for the payment of regular and periodic dues allotted to their exclusive representative. In addition, the Authority has decided not to rescind its general statement of policy or guidance in Office of Personnel Management (OPM), 71 FLRA 571 (2020) (Member Abbott concurring; Member DuBester dissenting). The withdrawal is available here and is withdrawn as of March 5, 2026.
Virginia Passes Bill to Limit Noncompetes for Laid-Off Workers, Bloomberg Government
Virginia would void employee noncompetes for workers who are laid off without severance or other compensation, under a bill headed to Gov. Abigail Spanberger (D) for her signature. Read more here (subscription required).
Fed Agencies Told to Track AI’s Impact on the Workforce, Government Executive
A bipartisan group of senators is asking the Labor Department, the Bureau of Labor Statistics, and the Census Bureau to update their national surveys to better understand artificial intelligence’s impacts on the culture and workforce. Read more here.
Continuing to Shed Federal Workers Remains ‘Priority Number One,’ White House Official Says, Government Executive
The Trump administration will continue working to shrink the size of the federal workforce after already shedding more than 300,000 employees, a White House official said, who suggested a leaner civil service will be more effective as a result of its reduced stability. OMB deputy suggests that making it easier to fire feds will ‘liberate’ them to do their jobs better. Read more here.
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
TRAINING: Labor Rules & Regulations: Federal Market Compliance, April 15, 2026, Sarah L. Nas
Upcoming Presentations
TRAINING: Legal Considerations: How Best to Structure Your Company as a Federal Contractor, April 14, 2026, Isaias “Cy” Alba, IV
Upcoming Presentations
WEBINAR: Don’t Leave Money on the Table: Unlocking Federal Contract Disputes to Increase Cost Recovery, April 3, 2026, Lauren Brier, Jonathan “Jon” R. Neri
New Rules Implementing the Administrative False Claims Act Could Expand How Federal Agencies Pursue Smaller Fraud Cases, Federal News Network
The Civilian Board of Contract Appeals has issued new procedural rules to implement the Administrative False Claims Act, a revamped law that gives federal agencies greater ability to pursue smaller fraud cases involving government contracts. The changes could expand enforcement tools and raise new compliance considerations for contractors doing business with the federal government. Read more here. Please visit this link for PilieroMazza’s coverage on this topic.
Government Accountability Office (GAO) Report: Protections for Whistleblowers and Others: Selected Agency Actions Regarding Reports of Potential Wrongdoing
On March 3, GAO released a report detailing issues related to the effects of non-disclosure agreements on disclosures to the FTC and other federal agencies. This report describes (1) employment practices that provide incentives or disincentives to employees who disclose potential wrongdoing; (2) mechanisms used to enforce private sector whistleblower protections; and (3) challenges selected federal agencies say they face in receiving tips and disclosures, as well as the benefits of enforcing whistleblower protections. GAO analyzed documents and collected testimonial information from four agencies and six organizations. GAO used this to describe incentives and disincentives to disclosures, protections for disclosers, enforcement mechanisms used to protect disclosers, as well as challenges and benefits experienced by these agencies. Read more here.
DHS Accused of Blocking Oversight as Noem Returns to Hill, Bloomberg Government
A Department of Homeland Security watchdog told congressional appropriators the agency has been blocking access to records needed for oversight investigations, according to a letter sent to lawmakers and reviewed by Bloomberg Law. The department has denied investigators access to records and data systems tied to multiple audits, inspections, and criminal probes involving immigration enforcement and national security matters, the letter said. Read more here (subscription required).
US Trade Probes Will Conclude Within Five Months, Greer Says, Bloomberg Government
The US plans to complete several trade investigations that will allow President Donald Trump to impose new tariffs within five months to replace the levies struck down by the Supreme Court, US Trade Representative Jamieson Greer said. Read more here (subscription required).
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