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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House Committee to Consider Legislation Codifying the Rule of Two for Small Business Set-Asides, PilieroMazza Client Alert, Antonio R. Franco, Jacqueline K. Unger
On Wednesday, May 20, the House Committee on Small Business is scheduled to consider legislation that would codify the Rule of Two into federal law. Stakeholders have a near-term opportunity to show support by filling out this form to sign onto an industry letter urging the Committee to advance H.R. 2804, the Protecting Small Business Competitions Act of 2025, ahead of the Full Committee Markup. Read more here.
Fixed-Price Contracts EO: What It Means for Government Contractors, PilieroMazza Blog, Isaias “Cy” Alba, IV, Kristine “Krissy” Crallé
On April 30, 2026, President Trump issued an Executive Order (EO) establishing that the default contracting method for federal agencies is fixed-price contracts with performance-based considerations; and, for certain large contracts, the EO adds a justification and approval requirement for any other contracting method. The EO is the Administration’s most recent effort to overhaul the federal contracting framework and came just two days before the anniversary of the Federal Acquisition Regulation (FAR) Council’s first round of Revolutionary FAR Overhaul (RFO) model deviation guidance. The Administration’s goal is reflected in the EO’s title: Promoting Efficiency, Accountability, and Performance in Federal Contracting. The EO signals 3 action items for government contractors: (1) reassess pricing models, (2) strengthen cost controls, and (3) sharpen your ability to define and deliver measurable outcomes. Read more here.
Department of Defense (DOD) Final Rule: Disclosure of Greenhouse Gas Emissions
On May 6, DOD published a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement the National Defense Authorization Act for Fiscal Year 2024 to prohibit DOD contracting officers from requiring, as a condition of contract award, nontraditional defense contractors to disclose a greenhouse gas inventory or any other report on greenhouse gas emissions. The rule is available here and is effective as of May 7, 2026.
Department of Defense (DOD) Proposed Rule: Mitigating Risks Related to Foreign Ownership, Control, or Influence
On May 6, DOD published a proposed rule and request for comments amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement sections of the National Defense Authorization Act for Fiscal Years 2020 and 2021 to mitigate risks related to beneficial ownership or foreign ownership, control, or influence. The rule is available here. Comments will close July 6, 2026.
Legislative Proposal Would Eliminate Contracting Preferences for Minority, Women-Owned Businesses, Washington Technology
A bill introduced in the House and Senate in late April would effectively wipe out many of the contracting preferences for minority- and women-owned businesses. The Ending Discrimination in Government Contracting Act was introduced by Sen. Mike Lee (R-Utah) and Rep. Glenn Grothman (R-Wisconsin). It would codify and expand on provisions in President Trump’s March 26 executive order on diversity, equity, and inclusion provisions in federal contracts. Read more here.
Government Accountability Office (GAO) Report: Artificial Intelligence (AI): Uses and Risks for Small Business Contracting and Innovation Research
On May 4, GAO released a report to review issues related to federal use of AI in small business contracting and innovation grants. This report discusses the potential use of AI by SBA, Offices of Small and Disadvantaged Business Utilization, Small Business Innovation Research and Technology Transfer programs, and SBA’s public reporting of its AI use. GAO recommends that SBA establish policies and procedures for meeting applicable reporting requirements for AI use case inventories, including defining roles and responsibilities, and documenting the implementation of policies, procedures, and key decisions. Read more here.
Small Business Administration (SBA) News Release: SBA Announces New $50 Million Grant Opportunity to Support Made in America Manufacturing, Workforce Training
On May 6, SBA announced a new funding opportunity offering up to $50 million in grant awards to as many as 10 eligible applicant organizations who will provide training and technical assistance to support small manufacturers in the SBA’s Empower to Grow (E2G) Program. The Manufacturing in America E2G Grant Initiative will empower qualified awardees to deliver regional support to small manufacturers in critical industries, in support of the agency’s ongoing effort to rebuild domestic supply chains, bring back American jobs, and promote industrial dominance. Read more here.
DCAA to Close Additional Offices Amid Agency Reorganization, Federal News Network
After shutting down 40 smaller audit suboffices around the country, the Defense Contract Audit Agency announced additional office closures as it continues its sweeping effort to reorganize the structure of the agency and shrink its physical footprint. Read more here.
GAO Finds Issues With VA’s Equipment Maintenance Process, Law360
The U.S. Government Accountability Office said the U.S. Department of Veterans Affairs should do more to ensure that its facilities are getting the best price for the maintenance of its high-tech medical equipment, finding “ineffective” department guidance. Read more here (subscription required).
White House Weighs Reining in Contractors’ Control over How Agencies Use AI, Government Executive
The federal government is circulating draft policy documents that contain language clarifying the government’s ability to use private sector technology without outside stipulations for how they do so, two sources familiar with their development told Nextgov/FCW. Read more here.
GSA Procurement Chief Leads FAR Overhaul, Government Executive
Jeffrey Koses has spent decades inside GSA’s acquisition system, moving from entry-level furniture purchasing to policy leadership and now overseeing a sweeping rewrite of the Federal Acquisition Regulation aimed at simplifying procurement and increasing flexibility for contracting officers. Read more here.
Contracting Association Warns It Could Take DHS Until the End of the Year to ‘Get Back on Track’ Following Record-Breaking Shutdown, Government Executive
While the funding lapse for most Homeland Security Department agencies ended on Thursday, a trade association for government contractors warned that it will take time for federal operations to return to normal and for some contracting companies to experience financial relief from missed reimbursements due to the shutdown. Read more here.
Federal Contractors Must Consider What Crosses Pay-to-Play Line, Bloomberg Government
Federal contractors and investors who operate in the government‑facing space frequently ask if their company can make political contributions. If the answer is no, the next question is how, then, are some of the largest government contractors and their executives frequently identified as major political donors? We increasingly live in a political landscape shaped by corporate contributions. Major companies spend considerable sums to shape the regulatory landscape, and many executives who have become household names are commonly found on donor lists. Read more here (subscription required).
Upcoming Presentations
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
WEBINAR: GovCon 101: Small Business Programs, July 13, 2026, Meghan Leemon
Department of Labor (DOL) News Release: Trump Administration Proposes Rule to Expand Access to Fertility Benefits with New Legal Pathway for Employers to Offer Benefits Directly to Employees
The DOL, Department of Health and Human Services, and the Department of the Treasury announced a proposed rule that would create a new category of limited excepted benefits to further expand the ability of employers to offer meaningful fertility benefits to their employees. Read more here.
OPM Touts New AI Tool That Can Generate Federal Position Descriptions, Federal News Network
Federal hiring managers have a new tech resource at their disposal, designed to streamline one early step in the government’s often burdensome and lengthy recruitment process. Read more here.
DEI Programs Are Dwindling But the Trump Administration Isn’t Done, Bloomberg Government
After a remarkably successful effort to extinguish diversity, equity, and inclusion programs among US employers, federal officials are stepping up their push against corporate America’s remaining DEI initiatives. Last week, it was a review of Walt Disney Co. television station licenses over the company’s discrimination policies, following a Jimmy Kimmel joke that drew ire from the president. Before that, it was a $17 million settlement with IBM regarding its DEI practices, and a lawsuit against Nike Inc. for allegedly not cooperating with an investigation into bias against White workers. In February, the Equal Employment Opportunity Commission sent a letter to Fortune 500 CEOs and their boards reaffirming its mission to root out discrimination. Read more here (subscription required).
Contract Claims 101: Common Theories, Part 4, PilieroMazza Blog, Lauren Brier, Jonathan “Jon” R. Neri, Ryan Boonstra
Contractors working with federal agencies are governed by the Federal Acquisition Regulation (“FAR”), which has its own body of case law that controls recovery for legal disputes separate from traditional theories. When projects shift, delays mount, or directives change, the claims process becomes critical to protecting a contractor’s rights and entitlement to additional costs. This post provides a practical overview of common government contract claims, how they arise, and how to position your company for successful resolution. While every contract and agency has its nuances, the core concepts below will help you recognize issues early and build a clean, well-supported record. Read more here.
Upcoming Presentations
CONFERENCE: Buying or Selling: Keys to Successful SDVOSB M&A Transactions, June 2, 2026, Isaias “Cy” Alba, IV
BUSINESS & TRANSACTIONS / CORPORATE & ORGANIZATIONAL GOVERNANCE
Contract Basics for Entrepreneurs: The Contracts You Need in Your Legal Toolkit as You Scale Your Business, PilieroMazza Webinar Replay, Kristen Centre
Contracts are the foundation of every successful business relationship—but for many entrepreneurs, they can feel overwhelming, confusing, or easy to overlook. This webinar breaks down the essential elements of strong, effective contracts so you can confidently protect your business and avoid costly mistakes. Click here to view the recorded session.
Department of Transportation, Federal Highway Administration (FHWA) Final Rule: Rescinding Requirements Regarding Required Contract Provisions for Federal-Aid Construction Contracts (Other Than Appalachian Contracts)
On May 11, FHWA published a final rule rescinding the rule and certain regulations issued on October 2, 1987, Required Contract Provisions, because they are no longer necessary. The rule is available here and will be effective June 10, 2026.
NATIVE AMERICAN LAW & TRIBAL ADVOCACY
Tribal-Owned Firms Want Answers about State of 8(a) Program, Federal News Network
The number of contract awards to 8(a) small businesses is down across the government. But Native American, Alaskan Native, and Native Hawaiian-owned companies are feeling the brunt of the downturn. Through April, awards to companies in Indian country have dropped by 26%, or $800 million, compared to 2025. Read more here.
California Agency Girds for Fight Over Federal Data Privacy Bill, Bloomberg Government
Facing the federal government’s threats to override state data protection, AI, and privacy laws and strip its enforcement powers, the California Privacy Protection Agency is dispatching key personnel to lobby members of Congress and coordinating with like-minded states. Recently unveiled federal privacy bills bring renewed preemption possibilities against state laws, including the California Consumer Privacy Act and Delete Act, and risk stifling the agency’s rights as it aims to grow, add rulemaking, and ramp up enforcement. Read more here (subscription required).
CISA Tells Critical Organizations to Prepare for Cyber Outages, Federal News Network
The Cybersecurity and Infrastructure Security Agency – fresh out of the longest shutdown in government history and ready to begin hiring again after shedding staff for the past year – is out with new cybersecurity crisis planning guidance for critical infrastructure organizations. Read more here.
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