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.
_____________________________________________
Executive Order (EO): Promoting Efficiency, Accountability, and Performance in Federal Contracting
On April 30, the President issued an EO establishing the Administration’s policy that fixed-price contracts with performance-based considerations serve as the default and preferred method of procurement to advance cost predictability and budget discipline, appropriate contractor incentives and accountability, and streamlined procurement and contract administration. A contracting officer who seeks to use any other non-fixed-price type of contract must justify such to the applicable agency head. Written approval is required for certain thresholds. The EO also instructs each agency to review its top 10 non-fixed-price contracts to facilitate the use of fixed prices and performance-based incentives for contract deliverables to the maximum extent practicable. The Office of Management and Budget is instructed to issue guidance to agencies by June 14, and proposed amendments to the FAR must be completed by August 28. The full EO is available here.
Department of War (DOW) Memorandum: Class Deviation—Revolutionary Federal Acquisition Regulation (FAR) Overhaul Part 22, Defense FAR Supplement (DFARS) Part 222
On April 24, DOW issued a class deviation, effective immediately, revising its former class deviation to incorporate FAR Clause 52.222-90, Addressing DEI Discrimination by Federal Contractors. Read more here.
Small Business Administration (SBA) Request for Information
- Scaling Critical Suppliers in Domestic Supply Chains: On May 1, SBA requested public input to inform the design of near-term initiatives intended to strengthen domestic manufacturing capacity for critical components, subcomponents, materials, tooling, and specialized capabilities essential to economic resilience and national security. The request focuses on identifying opportunities to rapidly scale existing domestic supplier capacity in areas characterized by supply chain constraints or choke points. SBA is particularly interested in gaps where qualifying domestic small businesses have a demonstrated operating history but are unable to reach a specific near-term milestone due to a capital shortfall. The request is available here. Comments must be submitted on or before May 18, 2026.
- Supply Chain Gaps and Entrepreneur Assistance: On May 1, SBA sought public comment on questions related to supply chain gaps in critical industries and how entrepreneur technical assistance could be aligned to increase business growth and technology development in needed industries. The request is available here. Comments must be submitted on or before May 18, 2026.
Battlefield Contractors Confront Risks After High Court Ruling, Bloomberg Government
Defense contractors are poised to reconsider their approaches to risk and contract pricing, in light of the US Supreme Court’s decision to reinstate a soldier’s suit accusing Fluor Corp. of failing to stop an Afghanistan bombing. Read more here (subscription required).
Cutting Contracts Can Promise Quick Savings, the Harder Question Is Where the Cost Actually Lands, Federal News Network
A recent review of IRS contract cancellations found hundreds of millions of dollars in potential savings, but far less clarity about how those decisions shifted impact on service delivery and workloads. The findings raise questions about how agencies assess who absorbs the risk when decisions are made quickly. Read more here.
GOP Lawmakers Voice Fresh Concern Over Defense Budget Request, Bloomberg Government
Two top Republican lawmakers voiced fresh concern about the fate of President Donald Trump’s $1.5 trillion defense budget request, acknowledging the tough task they’ll face in passing the full amount, given the lack of Democratic support and push back within their own party. Read more here (subscription required).
Senate Advances GOP Budget Blueprint to Boost ICE and Border Patrol Funding, Government Executive
Senate Republicans approved a budget resolution early Thursday intended to speed the way for billions for immigration enforcement, sending the measure to the House, where GOP lawmakers in that chamber need to adopt it to unlock the reconciliation process. Read more here.
Confronted with ‘Eye-Opening’ Costs, SecNav Vows to Root Out Waste, Defense One
Two weeks into the Navy’s top job, John Phelan is wrestling with eye-popping program costs and “unacceptable” shipbuilding delays. Read more here.
Department of Defense News: Classified Networks AI Agreements
The War Department has entered into agreements with seven of the world’s leading frontier artificial intelligence companies, SpaceX, OpenAI, Google, NVIDIA, Reflection, Microsoft, and Amazon Web Services, to deploy their advanced AI capabilities on the Department’s classified networks for lawful operational use. These agreements accelerate the transformation toward establishing the United States military as an AI-first fighting force and will strengthen our warfighters’ ability to maintain decision superiority across all domains of warfare. Read more here.
Navy Scientists Seek Tech Breakthroughs In Areas That Companies Ignore, Defense One
As private-sector investment in defense-technology research rises, the Navy’s chief science office is refocusing its efforts on areas that companies are ignoring, but that will be relevant 15 years into the future, the head of the Office of Naval Research says. Read more here.
Trump Signs Legislation Ending Shutdown at Homeland Security, Bloomberg Government
The longest partial shutdown in US history ended Thursday after the House passed funding for most of the Homeland Security Department, just days ahead of missed paychecks for Transportation Security Administration workers that threatened to throw airports into chaos for a second time this year. The Senate unanimously passed the funding package weeks ago, and President Donald Trump quickly signed it into law. Read more here (subscription required).
Upcoming Presentations
CONFERENCE: Small Business Panel: Navigating Today’s Marketplace Together, May 12, 2026, Isaias “Cy” Alba, IV
CONFERENCE: Public Sector Legal Briefing: Contracts, Compliance & What’s New, May 13, 2026, Jon Williams
TRAINING: SBA Regulatory Updates, May 19, 2026, Eric A. Valle
WEBINAR: The Buy American Act and Trade Agreements Act, May 28, 2026, Jacqueline K. Unger
CONFERENCE: Biggest Shifts in GovCon Law, June 10, 2026, Eric A. Valle
SEMINAR: AI Clauses in Federal Contracts: Managing Procurement Risk, Compliance, and Competitive Advantages, June 10, 2026, Ryan Boonstra
NJ Turnpike Racial, Union Requirements Challenged by Contractor, Bloomberg Government
New Jersey’s minority construction hiring and project labor agreement regulations violate the US Constitution, a road construction company claims in a federal lawsuit filed Thursday. Requiring contractors to meet or demonstrate an effort toward achieving diversity hiring targets violates 14th Amendment equal protection rights, builder Earle Asphalt Co. said in a complaint filed in the US District Court for the District of New Jersey. Read more here (subscription required).
Fed Employee Appeals System Independence At Stake In New Supreme Court Brief, Government Executive
A group of Senate Democrats on Thursday asked the Supreme Court to reverse a lower court decision that enabled President Donald Trump to fire a member of their party from the agency that adjudicates federal employees’ appeals of adverse personnel actions. In 2025, the president removed Merit Systems Protection Board member Cathy Harris as well as several other Democratic leaders of independent agencies. Read more here.
House GOP on Trump’s 2027 Pay Freeze: ‘That’s Politics’, Government Executive
Republican appropriators in the House last week thwarted efforts by their Democratic colleagues to override President Trump’s apparent plan to freeze civilian federal employees’ pay next year and restore civil service and workplace protections currently on the chopping block. Read more here.
Improper Payments Rose to $183B in 2025, But It’s Not All Bad News, Federal News Network
The Labor Department’s unemployment insurance program made about $5.6 billion in improper payments in fiscal 2025. Its improper payment rate of 14.9% ranks ninth among the 19 federal programs with a rate of over 10%. Read more here.
FEMA Is Reversing Job Cuts Made Under Kristi Noem, Bloomberg Government
The agency said staff members who had been let go or placed on administrative leave were now needed to prepare for hurricanes and the World Cup. The Federal Emergency Management Agency is reversing job cuts that Kristi Noem, the former homeland security secretary, had overseen before she was fired last month. Read more here (subscription required).
Department of Labor (DOL) News Release:
- DOL Launches Website to Build Artificial Intelligence Skills, Expand AI-Focused Registered Apprenticeship Programs: DOL today announced the launch of its AI in Registered Apprenticeship Innovation Portal, a one-stop resource for organizations looking to build artificial intelligence literacy and develop AI-focused Registered Apprenticeship programs. Read more here.
- Court Orders Health Plan Administrator, Owner to Pay More Than $1.3M to Restore Losses to Health Plans in Multiple Employer Welfare Arrangement: A federal court has ordered a company that administered a multiple employer welfare arrangement and one of its owners to pay at least $1.3 million to restore losses to more than 700 employer health plans after DOL found the company violated federal employee benefits law. Read more here.
Upcoming Presentations
SEMINAR: SCA Unlocked, May 12, 2026, Sarah L. Nash
TRAINING: Labor Rules & Regulations: Federal Market Compliance, June 24, 2026, Nichole D. Atallah
Upcoming Presentations
CONFERENCE: Buying or Selling: Keys to Successful SDVOSB M&A Transactions, June 2, 2026, Isaias “Cy” Alba, IV
General Services Administration (GSA) Press Release: OneGov Saves Taxpayers $1.1 Billion in First Year
On April 29, GSA announced that OneGov saved taxpayers $1.1 billion in its first year by revolutionizing how the federal government buys technology. The initiative consolidated fragmented IT purchasing across agencies into 20 unified agreements with major vendors. Read more here.
General Services Administration (GSA) Multiple Award Schedule (MAS) Activity Feed: Vendor Guidance – Economic Price Adjustment (EPA) Requests Related to DRAM/Microchip Market Volatility
GSA has received feedback from industry regarding the challenges posed by ongoing volatility in Dynamic Random-Access Memory (DRAM) and related microchip markets, including significant price increases and supply chain constraints. In response, GSA is taking steps to ensure EPA requests tied to these conditions are evaluated consistently and efficiently while minimizing disruption to contractors’ ability to meet customer agency requirements. As part of this effort, GSA is providing updated instructions to MAS contractors. For additional details, contractors should refer to the MAS Modification guidance on GSA.gov, specifically the “Economic Price Adjustment (EPA) request based on Unforeseeable Significant Changes in market conditions” pricing modification section. Read more here.
Fed to Hold Interest Rates as Political Drama Overshadows Policy Debate, Bloomberg Government
Federal Reserve officials are expected to leave interest rates unchanged this week at a gathering that’s being overshadowed by the latest twists in a political drama surrounding the leadership handover at the US central bank. Read more here (subscription required).
Consumer Financial Protection Bureau (CFPB) Final Rule: Small Business Lending Under the Equal Credit Opportunity Act (Regulation B)
On May 1, CFPB published a final rule revising certain provisions of Regulation B, subpart B, which implements changes to the Equal Credit Opportunity Act made by section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. CFPD is amending coverage of certain credit transactions and financial institutions; the small business definition; inclusion of certain data points and how others are collected; and the compliance date. CFPB believes these changes will streamline the rule, reduce complexity for lenders, improve data quality, and advance the purposes of section 1071. The rule is available here and will be effective June 30, 2026, with a compliance date set for January 1, 2028.
Rev. 3 Is Coming – Start Preparing for the Next CMMC Requirement, Federal News Network
Compliance with the Defense Department’s Cybersecurity Maturity Model Certification (CMMC) program is now mandatory for any defense industrial base organization that wants to maintain or win DoD contracts. CMMC is based on the 110 security controls documented in the National Institute of Standards and Technology’s Special Publication 800-171, Revision 2. Even while many DIB companies are still hurrying to get their businesses compliant with this standard, the DoD is preparing to update requirements to align with the next version of SP 800-171: Revision 3. Read more here.
The CMMC Readiness Gap: Why Many Small Manufacturers Are Unprepared, Federal News Network
As the Cybersecurity Maturity Model Certification (CMMC) program advances through its phased rollout, a substantial portion of the Defense Department’s supply chain is approaching a pivotal moment. Small businesses account for more than 70% of all DoD suppliers, yet many remain far less prepared for formal cybersecurity assessments than they realize. Read more here.
GAO Flags Hundreds of Classified Contractor Security Violations, Federal News Network
The Defense Counterintelligence and Security Agency documented hundreds of data spills, improper storage incidents and other security violations by cleared defense contractors last year, according to the Government Accountability Office. Read more here.
BGOV Bill Analysis: House, Bloomberg Government
- Amended S. 1318, 3-Year FISA Extension: The federal government’s authority to monitor foreign nationals’ electronic communications would be extended through April 30, 2029, under a House amendment to S. 1318, which would establish new civil liberties review requirements to search Americans’ data collected under the program. The measure would reauthorize for three years Title VII of the Foreign Intelligence Surveillance Act, which governs how US intelligence agencies can collect and search through phone calls, emails, text messages, and other electronic communications to or from agents of foreign governments and suspected terrorists located outside of the country. These authorities are set to expire on April 30. Read more here(subscription required).
- 4465, 6-Week FISA Extension: The federal government’s authority to monitor foreign nationals’ electronic communications without a warrant would be extended through June 12 under S. 4465, giving lawmakers more time to reach an agreement on a longer reauthorization. The measure would extend for about six weeks Title VII of the Foreign Intelligence Surveillance Act, which governs how US intelligence agencies can collect and search through phone calls, emails, text messages, and other electronic communications to or from agents of foreign governments and suspected terrorists located outside of the country. Read more here (subscription required).
EMPLOYEE INCENTIVE AND BONUS PLANS
Trump’s Retirement Expansion Rests on Treasury, Congress Actions, Bloomberg Government
President Donald Trump’s push to expand retirement plan access for workers without employer-sponsored accounts shifts the spotlight onto the Treasury Department and lawmakers to turn the concept into reality and make it a long-term success. Trump on Thursday signed an order that directed the Treasury to create a website by January 1, 2027, that offers workers without access to an employer-sponsored retirement plan a portal featuring information about low-cost individual retirement accounts. Certain low-income individuals who opt to contribute to an IRA would be eligible for a government match of up to $1,000. Read more here (subscription required). The Executive Order, Promoting Retirement-Savings Access for American Workers by Establishing TrumpIRA.gov, is available here.
Department of Justice (DOJ) Press Release: Civil Division Announces FOCUS Initiative for Data Miners Filing Qui Tam Complaints
On April 30, DOJ announced an anti-fraud initiative welcoming the contributions of data miners and prioritizing working with data miners that demonstrate an insightful application of sophisticated technological capabilities to regulatory frameworks to help identify potential fraud that would otherwise go undetected. To support the Civil Division’s capacity to identify and partner with the best data miners, the Civil Division is launching the Fraud Oversight through Careful Use of Statistics (FOCUS) initiative. Read more here.
Army Contractor’s Executive Liable in Government Fraud Lawsuit, Bloomberg Government
The US government established that the vice president of an Army housekeeping contractor violated the False Claims Act by engaging in a fraudulent scheme to secure two contracts, a federal district court said. The government showed that Chris Flores improperly billed the Army for cleaning supplies, because the payments at issue actually involved gratuity payments to Army officials that unlawfully guided contracts to companies his family operated, Judge Jason Pulliam of the US District Court for the Western District of Texas said in an order partially granting summary judgment. Read more here (subscription required).
Small Business Administration (SBA) News Release: SBA Sends 562,000 Suspected Fraudulent Loans to Treasury for Collections Totaling $22 Billion
On Friday, in coordination with the White House Task Force to Eliminate Fraud, the SBA announced that it has referred 562,000 suspected fraudulent loans to the U.S. Department of the Treasury for collection, marking the SBA’s largest referral package on record. The borrowers are tied to $22.2 billion in delinquent Paycheck Protection Program and COVID Economic Injury Disaster loans that were previously flagged for suspected fraud during the Biden Administration but never sent to Treasury for collection nor referred to the DOJ for investigation. Read more here.
IRS Whistleblower Program Set for Possible Overhaul After Bipartisan House Vote, Government Executive
The measure would reshape how claims move through the system, how court reviews are handled and how payments are ultimately made. Over its history, the program has recovered about $7.5 billion. Read more here.
###