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 Names Nichole Atallah and Matt Feinberg Co-Managing Partners, PilieroMazza News, Nichole D. Atallah, Matthew E. Feinberg, Antonio R. Franco, Jon Williams, Isaias “Cy” Alba, IV
PilieroMazza announces that, effective July 1, 2026, Nichole Atallah and Matt Feinberg have been named Co-Managing Partners. They succeed Tony Franco, under whose leadership the firm expanded from more than 20 attorneys to nearly 50 attorneys, broadened its service offerings, and strengthened its reputation as a trusted legal advisor to clients nationwide and abroad. Read more here.
GSA’s Revised AI Clause: Narrower Scope, Broader Compliance Demands on Government Contractors, PilieroMazza Client Alert, Jacqueline K. Unger, Ryan Boonstra, Melinda “Mel” R. Lewis, Daniel Figuenick, III
On June 17, 2026, the General Services Administration (GSA) released a revised version of proposed General Services Administration Regulation (GSAR) clause 552.239–7001 on safeguarding Artificial Intelligence (AI) for public comment, responding to industry concerns regarding scope, applicability, and operational feasibility. The revised clause narrows its applicability to contractors using Large Language Model Artificial Intelligence Systems (LLMs) to process Government Data—but for contractors within its scope, compliance obligations are now far more detailed and enforceable. Read more here.
Federal Acquisition Overhaul Moves from Plan to Proposed Rules, Government Executive
The long-awaited rewrite effort is entering its next phase, with changes affecting everything from contract protests to security requirements. Read more here.
General Services Administration, the Federal Procurement Policy Office, the Defense Department, and the National Aeronautics and Space Administration (FAR Council) Proposed Rules
On June 23, the FAR Council published four proposed rules and requests for comments amending the Federal Acquisition Regulation (FAR) to implement Executive Order 14275, Restoring Common Sense to Federal Procurement. Comments for each proposed rule close July 23, 2026. The Revolutionary FAR Overhaul (RFO) Parts and Class Deviations are available here.
- RFO Parts 1, 2, 4, 33, 39, 40, and 53: This rule proposes revisions to FAR parts 1, 2, 4, 33, 39, 40, 52, and 53. The rule is available here.
- RFO Parts 6, 7, 10, 18, 26, 37, and 41: This rule proposes revisions to FAR parts 6, 7, 10, 18, 26, 37, 41, and 52. The rule is available here.
- RFO Parts 5, 24, and 29: This rule proposes revisions to FAR parts 5, 24, 29, and 52. The rule is available here.
- RFO Parts 3 and 49: This rule proposes revisions to FAR parts 3 and 49. The rule is available here.
House Panel Advances $1.1 Trillion Defense Spending Bill with Department of War Name Change, The Hill
The House Appropriations Committee has advanced its $1.1 trillion defense spending bill for fiscal 2027, legislation that includes a provision to rename the Defense Department as the Department of War. The bill advanced out of committee Wednesday on a 34-27 party-line vote, handing President Trump a third win in his bid to officially rename the department. The House and Senate Armed Services committees also included language in their defense authorization bills to rebrand the building that has held the same title for nearly 80 years. Read more here.
Senators Brace for Another Government Shutdown After Spending Talks Stall, The Hill
Senate Republicans and some Democrats fear another government shutdown is looming this fall after bipartisan spending talks sputtered this week, forcing Republicans to cancel the markup of four appropriations bills scheduled for Thursday. Read more here.
Key Senator Expects Stopgap Spending Bill Amid Defense Impasse, Bloomberg Government
The top Republican on the Senate panel that oversees spending expects Congress won’t complete all of its work on government funding by the Sept. 30 fiscal year deadline. Read more here (subscription required).
Department of Defense (DOD) Proposed Rules:
On June 25, DOD published two proposed rules and requests for comments. Comments close August 24, 2026.
- Certification Requirement for Military Recruitment Advertising. This rule proposes to implement sections of the National Defense Authorization Acts for Fiscal Years 2024, 2025, and 2026. These sections require a certification for certain DOD contracts related to military recruitment advertising and provide a sunset date for that requirement. The rule is available here.
- Small Purchase Exception for the Acquisition of U.S. Flags. This rule proposes to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement sections of the National Defense Authorization Acts for Fiscal Years 2024, 2025, and 2026. These sections provide a requirement for full domestic production of flags of the United States acquired by DOD, amend an exception to the requirement to buy certain articles from American sources, and expand the domestic sourcing requirement for seafood acquired for commissary resale. The rule is available here.
Department of Veterans Affairs (VA) Proposed Rule: Nondiscrimination in Federally-Assisted Programs of the VA
On June 26, VA published a proposed rule and request for comments regarding amending its regulations implementing Title VI of the Civil Rights Act of 1964 (Title VI) to eliminate disparate-impact liability. These amendments would align VA’s regulations with Title VI’s original public meaning, avoid constitutional concerns, reduce compliance costs, serve the public interest, and implement changes directed in Executive Order (E.O.) 14281. This is a deregulatory action in furtherance of E.O. 14219, which requires that Federal regulations reflect the best reading of the underlying statutory authority. The rule is available here. Comments close July 27, 2026.
Small Business Contract Programs Reporting Bill Passed by House, Bloomberg Government
The House passed a bill Tuesday that would require the Small Business Administration to report on businesses’ participation and certification in certain federal contracting assistance programs. Read more here (subscription required).
DOJ Says USDA’s ‘Socially Disadvantaged’ Waivers Unlawful, Law360
The U.S. Department of Justice has determined that some of the U.S. Department of Agriculture’s programs that waive fees for “socially disadvantaged” farmers unconstitutionally discriminate based on race and sex, according to an opinion released Monday. Read more here (subscription required).
As Opposition Mounts, House Cancels Vote on VA Overhaul Bill, Government Executive
House Republicans on Thursday gaveled floor activity for the week, effectively cancelling a planned vote on a controversial Veterans Affairs Department overhaul bill that packages bipartisan benefits increases with cuts to others and increased privatization of health services. Read more here.
China Restricts Exports to US Defense Firms, The Hill
China added 10 companies to its export control list on Monday, blocking its exporters from selling any dual-use items to U.S. defense firms. The items range from drones to robotic hardware and swarm software used primarily for defense and national security operations in addition to some nonmilitary functions. Read more here.
Senator Plans to Propose Quantum Initiative Reauthorization as Part of NDAA, NextGov/FCW
Upper chamber lawmakers are angling to fit reauthorization for one of the government’s biggest quantum efforts into the FY27 National Defense Authorization Act. Both the House and Senate are currently considering versions of the bill that would reauthorize and expand upon efforts to invest in U.S. quantum development. Read more here.
Pentagon Seeks $80 Billion from Congress for Iran War, The Hill
The Pentagon has told senators it needs roughly $80 billion, mostly to cover the cost of the U.S. war against Iran, adding to what is already a sizable military spending boost being sought by President Donald Trump. Read more here.
Hegseth to Give Classified Briefing to GOP Lawmakers on Military Funding Goals, The Hill
Defense Secretary Pete Hegseth will give a classified briefing to a group of House Republicans on military funding goals on Wednesday, as President Trump is pushing Congress to pass a $350 billion reconciliation package for the Pentagon. Read more here.
Upcoming Presentations
PM WEBINAR: Joint Venture Eligibility: Refresher and Updates on Requirements for Government Contractors, July 9, 2026, Meghan Leemon
WEBINAR: GovCon 101: Small Business Programs, July 13, 2026, Meghan Leemon
PM WEBINAR: DCAA Presents: Elements of an Adequate Proposal, July 14, 2026, Isaias “Cy” Alba, IV; Peggy Galindo, Defense Contract Audit Agency (DCAA); Paul Calabrese, GRF CPAs & Advisors
WEBINAR: Legal Strategies & Capture Planning, July 17, 2026, Isaias “Cy” Alba, IV
CONFERENCE: Using JVs to Win Work with GSA & Beyond, July 22, 2026, Meghan F. Leemon
Virginia’s New Pay Transparency Law: What Employers With Virginia Employees Need to Know Now, PilieroMazza Client Alert, Sarah L. Nash, Sara Ryan, Corey Bohn
Effective July 1, 2026, Virginia has enacted a new pay transparency law requiring employers with Virginia employees to disclose compensation ranges and follow new restrictions on salary history. The law applies broadly and creates both enforcement risk and private litigation exposure. Employers with employees in Virginia should act now to ensure compliance with the new pay transparency law. Read more here.
Unsolicited Podcast Features Nichole Atallah on How Contractors Can Regain Negotiating Leverage, PilieroMazza News, Nichole Atallah
Many government contractors find themselves accepting unfavorable contract terms because they believe they have little room to negotiate. In a recent conversation with Hope Skibitsky on Unsolicited, a Namauu Technological & Industrial podcast, PilieroMazza’s Nichole Atallah discusses why contractors often lose bargaining power during negotiations—and, more importantly, how they can regain it. Read more here.
Democrats Seek Reversal of Labor Department Joint Employer Rule, Bloomberg Government
House Democrats are urging acting Labor Secretary Keith Sonderling to withdraw his department’s proposed alterations to regulations for joint employer status. Rep. Bobby Scott (D-Va.), chair of the House Education and the Workforce Committee, and Rep. Ilhan Omar (D-Minn.) said in a letter to Sonderling that the proposal conflicts would leave some workers without protections under the law. Read more here (subscription required).
A New Bill Calls for $25 Minimum Wage. Here’s Where That Isn’t ‘Sufficient,’ The Hill
There’s a new effort in Congress to take the federal minimum wage to a level it has never been before: $25 an hour. If it were to pass, it would be the first time the federal rate has changed since 2009. Read more here.
New Federal Rule Exposes Rift Between Unions and Their Members, The Hill
Unions have long sought to blur the distinctions between their interests as organizations and those of the workers they represent. Progressive politicians engage in the same rhetorical sleight-of-hand, touting their working-class bona fides by advocating for policies designed to boost the interests and clout of the unions that back their campaigns. Read more here.
Upcoming Presentations
TRAINING: FUN with the FAR 2026: FAR 22 & 23, July 8, 2026, Nichole D. Atallah
CONFERENCE: DEI Crackdown: What Small Business Contractors Must Do Now, July 21, 2026, Sarah L. Nash, Matthew E. Feinberg
PM WEBINAR: Employee Organizing 101: What Employers Need to Know Before, During, and After Employees Organize, July 29, 2026, Sarah L. Nash, Georgianne “Georgi” Kokenis
Upcoming Presentations
PM WEBINAR: Contract Claims 101: Common and Uncommon Claims and Appeals, July 15, 2026, Lauren Brier, Caitlin Trevillyan, Jonathan “Jon” R. Neri, Ryan Boonstra
Upcoming Presentations
CONFERENCE: GovCon Mergers and Acquisitions: Plan Today for a Stronger Tomorrow, July 21, 2026, Isaias “Cy” Alba, IV
Government Accountability Office (GAO) Report: Cybersecurity: Selected Agencies Need to Better Protect Cloud Data
On June 25, GAO released a report reviewing how some agencies protect data in the cloud. Agencies GAO reviewed varied in implementing key cloud computing security practices. For example, some agencies didn’t fully and continuously monitor security controls. Also, some agencies didn’t document how to respond to or recover from cybersecurity incidents. GAO is making 12 recommendations to the State, VA, and the SBA to fully implement key cloud security practices. Read more here.
Policymakers Struggle to Factor Cybersecurity Into Federal Funding Programs, Federal News Network
A new policy report urges Congress and the Trump administration to better incorporate cybersecurity into grants and other federally funded projects, as power grids, water utilities, and other critical systems face growing hacking threats. Read more here.
Top House Cyber Lawmaker Plans to Introduce DHS Overhaul Bill by Next Year, NextGov/FCW
The top Democrat on the House Homeland Security Committee’s cybersecurity panel says she has engaged fellow lawmakers about a sweeping legislative plan to dismantle the Department of Homeland Security that would involve sectioning out key components into their own standalone entities, including the Cybersecurity and Infrastructure Security Agency. In an interview, Rep. Delia Ramirez, D-Ill., also said she plans to ask officials about how export control measures would affect government agencies’ access to advanced AI models. Read more here.
Expansion of SEWP Contract Opens Door to More Vendors, Spending, Bloomberg Government
Expansion into 56 markets worth $219.8 billion in governmentwide purchases last year could lead to increased significance in federal procurement for a key NASA-managed IT contract. What ultimately happens to Solutions for Enterprise-Wide Procurement VI, or SEWP VI, contracts and vendors if the popular vehicle is consolidated under the General Services Administration remains a big unanswered question. Read more here (subscription required).
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