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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SBA Commends DoW CMMC Suspension, PilieroMazza Client Alert, Isaias “Cy” Alba, IV, Kelly A. Kirchgasser
On July 13, 2026, the U.S. Small Business Administration (SBA) Office of Advocacy announced that working with industry partners, including PilieroMazza, the SBA had worked to convince the U.S. Department of War (DoW) to suspend the Cybersecurity Maturity Model Certification (CMMC) program’s Phase II requirements and conduct a comprehensive review of the costs and regulatory requirements associated therewith. The suspension and investigation of CMMC Phase II marks a pivotal moment for small business contractors with concerns about the costly red tape associated with the program. Read more here.
Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA), Other Big Cyber Rules Expected to Get Finalized This Fall, Federal News Network
September will be an exciting month for fans of federal cybersecurity rules, if the latest preview of government regulatory actions is to be believed. That’s because at least three major cybersecurity regulations are expected to be finalized in September, according to the 2026 “Unified Agenda of Federal Regulatory and Deregulatory Actions.” The preview was just updated last week. It shows that the Cybersecurity and Infrastructure Security Agency (CISA) expects to issue a final rule for the CIRCIA in September 2026. Earlier this summer, CISA held a series of townhalls to get some final feedback on the regulations. Read more here.
Hackers Breached Department of Homeland Security (DHS) Information-Sharing Network, People Familiar Say, Government Executive
A key DHS information-sharing database was accessed by an unknown threat actor in recent weeks, potentially exposing sensitive data exchanged between federal, state, local and industry partners, according to two people familiar with the matter. DHS investigators are probing the intrusion of the Homeland Security Information Network, said both people, who spoke on the condition of anonymity because the incident is sensitive. The hackers’ affiliation and whether any documentation was pilfered from the system are both unclear. Read more here.
General Services Administration (GSA) Praised for Initial Changes to AI Draft Regs, but More Work Needed, Federal News Network
In the three weeks since GSA updated its proposed regulations for the basic safeguarding of data within large language model artificial intelligence systems, vendors and other interested parties have only officially submitted six comments. But that is not because there isn’t a lack of interest or questions about the new proposed rule that GSA would apply to all schedule and governmentwide acquisition contracts under their purview. The comments likely will start pouring in after GSA holds a listening session on July 14 in Washington, D.C. Registration closed on July 3. Vendors and other AI experts say GSA did a good job updating the proposal from the previous version released in March. GSA reissued the updated draft regulations on June 17 with a request for comments that closes on Aug. 3. Read more here.
Joint Venture Eligibility: Refresher and Updates on Requirements for Government Contractors, PilieroMazza Webinar Replay, Meghan F. Leemon
Knowing and understanding the specific requirements around joint venture eligibility can make or break your ability to compete and be eligible for certain government contracts. PilieroMazza’s Meghan Leemon examines key elements of joint venture eligibility you need to understand to maintain your competitive edge and defend a contract award. This is a can’t-miss webinar for any contractor considering or currently pursuing work through a joint venture. Click here to view the recorded session.
DOD Issues Guidance as Ban on Chinese Companies Takes Effect, Federal News Network
The first phase of the Pentagon’s effort to eliminate Chinese military-linked companies from the defense industrial base supply chain takes effect this week, barring defense contractors from working directly with companies on the department’s blacklist. Section 805 of the fiscal 2024 defense authorization bill prohibits the Defense Department from entering into, renewing or extending a contract for the procurement of goods, services or technology with firms designated by the Pentagon as Chinese military companies under its Section 1260H list. This “direct” ban went into effect June 30. Read more here.
DOD News Release: Department of War Launches New Website to Help Industry Partners Navigate Section 805 Supply Chain Requirements
On June 30, DOD announced the launch of a new website to provide guidance and resources for industry partners on the implementation of Section 805 of the Fiscal Year 2024 National Defense Authorization Act. This provision restricts future DOD procurement from entities identified on the Section 1260H list of Chinese military companies. The new website, linked here, is managed by the Office of the Assistant Secretary of War for Industrial Base Policy and serves as a central hub for information regarding the upcoming prohibitions. It details the timeline for both the Entity Provision or “direct” ban, effective June 30, 2026, and the Goods and Services Prohibition or “indirect ban,” effective June 30, 2027, which applies to supply chains. Read more here.
Office of Federal Procurement Policy (OFPP) Final Rule: Conformance of Cost Accounting Standards (CAS) to Generally Accepted Accounting Principles (GAAP) for CAS 404, 408, 409, and 411
On July 8, OFPP published a final rule wholly rescinding CAS 408 and 411 and rescinding most provisions of CAS 404 and 409 to conform to GAAP. The remaining content from CAS 404 and 409 is transferred to a different location within the Code of Federal Regulations. The final rule is available here and effective August 7, 2026.
The FAR Rewrite Is More Than Just Updated Rules, Federal News Network
We are now starting to see some of the changes to the FAR being implemented in real time. There are of course still many questions to be answered during such a large transition phase. Read more here.
Department of War (DOW) Memorandum: TINA Lite Policy & Implementation Guide—Version 1.0 Preview
On July 8, DOW issued a memorandum previewing the DOW’s Version 1.0 “TINA Lite” Guide to support the acquisition workforce in preparing for the forthcoming authority: Section 812(c) of the Fiscal Year 2026 National Defense Authorization Act codified as a standing authority at 10 U.S.C. § 3709 Program to Accelerate Contracting and Pricing Processes. This authority will become effective for the DOW upon regulatory implementation, at which point an updated version 1.1 of the guide will be issued. Read more here.
Civilian Spending Forecast to Hit $315 Billion, BGOV Contracting
Contract spending by civilian agencies could hit a record of $315 billion, as a rebound from last year’s dip heads into the expected fourth-quarter procurement surge, Maika Ito writes. Total civilian agency obligations were $224.1 billion through nine months of fiscal 2026, up 27% from the same period last year. Rapid DHS spending topped $50 billion through the third fiscal quarter, or 62% more than total fiscal 2025 spending levels. A big portion of that figure comes from ICE procurement, which reached $5 billion, almost $1 billion more than full-year fiscal 2025 obligations. Read more here (subscription required).
Iran War Supplemental Deepens FY27 Budget Uncertainty, Government Executive
A recent $87.6 billion supplemental funding request from the White House to pay for the Iran war and other expenses complicates an already tense budget process in Washington. The supplemental follows the release of a record $1.5 trillion defense budget request in April, putting additional pressure on Congress to sort out what has become a complex three-part defense budget comprising a $1.1 trillion base budget request, a $350 billion reconciliation request, and the new supplemental request. Read more here.
Defense Bills Likely to Miss August Deadline, BGOV Defense
The clock is ticking for lawmakers to wrap up work on the defense policy and spending bills, including a $67 billion Iran war supplemental. The House is scheduled for only two more legislative weeks, throwing into doubt whether defense legislation can pass before the August recess. Read more here (subscription required).
Senate Lawmaker Presses DoD, Tech Firms to Disclose AI Contract Terms, Federal News Network
A Senate lawmaker is demanding that the Defense Department and seven technology companies deploying their artificial intelligence capabilities on the department’s classified networks disclose the terms of their agreements in order to better understand what guardrails DoD is putting in place around AI use in the military. Read more here.
DOD’s CIO Says It’s Time to Rethink the Pentagon’s Technology Playbook, Government Executive
Federal officials are increasingly seeking to adopt new technologies to enhance agency operations. At the Pentagon, the Office of the Chief Information Officer is looking beyond IT transformation to ways it can more effectively get digital capabilities into the hands of warfighters. Kirsten Davies said her office is shifting away from its traditional role as a backend policy shop to become a forward-leaning strategic unit. Read more here.
Central Intelligence Agency (CIA) will Take ‘Smart Risks’ and ‘Course Correct’ As It Adopts AI, Director Says, Government Executive
The CIA is moving aggressively to adopt advanced artificial intelligence (AI) tools, with Director John Ratcliffe saying Tuesday that the spy agency cannot afford to wait for a “risk-free approach” as emerging technologies reshape national security. The CIA is “going to take smart risks, experiment and course-correct as we go” as it works to embed AI and other evolving technologies into its operations, Ratcliffe said at the AWS Summit held in Washington, D.C. Read more here.
Lawmakers Press Tech Agenda Before August Recess, BGOV Tech
Congress has a short window to make progress on key tech priorities in Washington before a month-long recess, Oma Seddiq reports. A national framework on AI and youth online safety legislation will top the agenda when both chambers return on July 13. Competing proposals await action on Capitol Hill and members have yet to reach consensus on any of them. Congress is also confronting other major issues, complicating immediate action on tech policy. Read more here (subscription required).
Presidential Proclamation: Adjusting Imports of Commercial Aircraft, Jet Engines, and Aircraft and Engine Parts Into the U.S.
On July 9, President Trump issued a Proclamation concurring with the Secretary of Commerce’s (Secretary) finding that commercial aircraft, jet engines, and their associated parts are being imported into the U.S. in such quantities and under such circumstances as to threaten to impair the national security of the U.S. The Proclamation requires the Secretary and the U.S. Trade Representative (Trade Representative) to jointly pursue negotiation of agreements or continue any current negotiations of agreements to address the threatened impairment of the national security with respect to such imports with any foreign trading partner the Secretary and the Trade Representative deem appropriate, and to update the President on the progress of such negotiations within 180 days. Read more here.
Bureau of the Fiscal Service Notice: Prompt Payment Interest Rate; Contract Disputes Act
On July 9, the Bureau of the Fiscal Service, Treasury will publish a notice announcing the prompt payment interest rate for July 1, 2026, through December 31, 2026, as 4-3/4 per centum per annum. The published notice is available here.
Small Business Administration (SBA)
- News Release 26-65: SBA, National Aeronautics and Space Administration (NASA) Sign Memorandum of Agreement to Strengthen Investment in America’s Space Exploration Supply Chain: On June 29, SBA and NASA signed a Memorandum of Agreement establishing a strategic partnership to strengthen America’s commercial supply chain by expanding private investment in innovative small businesses. Read more here.
- News Release 26-67: Registration Now Open for America’s Seed Fund Summit: On July 1, SBA announced that registration is now open for America’s Seed Fund Summit, which will take place from July 1 to July 31. The month-long summit will feature a national series of virtual webinars and in-person events designed to connect entrepreneurs, innovators, and researchers with America’s Seed Fund — the nation’s largest source of early-stage, non-dilutive funding for technology startups. The programming will help stakeholders learn how the Small Business Innovation Research and Small Business Technology Transfer programs support the journey from research and development to commercialization. Registration is required. Read more here.
- News Release 26-67: SBA, U.S. Department of Agriculture (USDA) Sign Memorandum of Understanding to Combat Lawfare Against Farmers, Ranchers, and Small Businesses: On July 1, SBA and USDA signed a Memorandum of Understanding to combat lawfare targeting farmers, ranchers, rural communities, and small businesses. The agreement gives America’s producers a direct line to report the regulations and rules driving up costs and impacting productivity, while helping SBA and USDA identify broader patterns of regulatory abuse to advance lasting deregulatory reform. Read more here.
- News Release: SBA Office of Inspector General (OIG) Marks Freedom 250 with Commitment to Protect Small Business Programs for the Next 250 Years: As the nation moves into the “after the fireworks” phase of America’s 250th anniversary year, SBA OIG, on July 7, reaffirmed its commitment to safeguarding SBA programs that support America’s entrepreneurs, main street businesses, and local communities. Over the July 4 weekend, millions of Americans reflected on the country’s founding ideals and the role of small businesses in powering economic opportunity. SBA OIG is marking this milestone by highlighting its law enforcement role and work to combat fraud, waste, and abuse in SBA programs and to promote efficiency, effectiveness, and integrity for the next generation of American small business owners. Read more here.
Upcoming Presentations
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
Department of Labor (DOL) News Release: DOL Seeks Input from West Virginia Highway Construction Industry to Establish Prevailing Wage Rates
DOL’s Wage and Hour Division is asking the highway construction industry of West Virginia to participate in a survey to help the agency establish prevailing wage rates, as required under the Davis-Bacon Act and Related Acts, for the payment of construction workers on federally funded and federally assisted construction projects. The survey requests information about wages paid to workers on highway construction projects in West Virginia where construction occurred between Aug. 3, 2025, and Nov. 2, 2026. This is a statewide survey and is not limited to only federally funded construction projects. The data collection period will begin Aug. 3, 2026, and will conclude on Nov. 2, 2026. Read more here.
Unions Sue to Restore DOD Collective Bargaining Rights, Asserting ‘Chaos,’ Government Executive
A pair of federal employee unions last week sued Defense Secretary Pete Hegseth over his April directive that the department terminate most of its collective bargaining agreements, alleging he violated the Administrative Procedure Act and exceeded his statutory authority when he sought formal implementation of President Trump’s anti-union executive order. Read more here.
Virginia Enacts Wave of New Employment Laws, Bloomberg Government
Virginia stepped into the spotlight in 2026, enacting a number of noteworthy employment laws in the first half of the year under a new governor and a new Democratic trifecta. Bloomberg Government provides a highlight reel for private employers. Read more here (subscription required).
Equal Employment Opportunity Commission (EEOC) Final Interpretive Rule: Rescission of Guidelines on Affirmative Action Appropriate Under Title VII of the Civil Rights Act of 1964, as Amended
On July 6, EEOC published a final interpretive rule rescinding its regulations regarding Affirmative Action Appropriate Under Title VII of the Civil Rights Act of 1964 (“Guidelines”), and removing it from the Code of Federal Regulations. The Commission is rescinding the Guidelines and removing them from the Code of Federal Regulations because the Guidelines are inconsistent with the statutory language and were not supported by Supreme Court precedent when issued; they are obsolete; they only apply to affirmative action to benefit women or minorities; and they do not take into account multiple relevant Supreme Court cases and numerous developments in the lower courts, over the past four decades since their issuance in 1979. The rule is available here, effective on July 6, 2026, and applicable as of June 29, 2026.
NASA Final Rule: Nondiscrimination in Federally Assisted Programs of NASA-Effectuation of Title VI of the Civil Rights Act of 1964
On July 6, NASA published a final rule amending its regulation implementing Title VI of the Civil Rights Act of 1964 (Title VI) for federally assisted programs to conform more closely to the statutory text and recent revisions by the Department of Justice (DOJ). This action removes provisions establishing disparate-impact liability. The rule also clarifies that Title VI reaches employment practices under this part only where employment is a primary objective of the Federal financial assistance or where intentional discrimination is shown. These changes align NASA’s regulation with Title VI and promote consistency across Federal agencies. The final rule is available here and effective on July 6, 2026.
Upcoming Presentations
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
WEBINAR: Federal Contractors, DEI, and Employment: Executive Order Defining Illegal Actions; New Obligations; Compliance Issues, August 5, 2026, Sarah L. Nash
Upcoming Presentations
CONFERENCE: GovCon Mergers and Acquisitions: Plan Today for a Stronger Tomorrow, July 21, 2026, Isaias “Cy” Alba, IV
WEBINAR: Mergers & Acquisitions in Government Contracting: Novations and Recertification, August 11, 2026, Samuel S. Finnerty, Daniel Figuenick, III
GSA Taps White House Design Team to Revamp Login.Gov, Government Executive
Login.gov, the government’s identity-proofing platform housed within the General Services Administration, is collaborating with the National Design Studio to enhance the user experience of millions of Americans who regularly use the shared service. The collaboration is aimed at making the government’s identity platform easier to use while leaving decisions about what changes get implemented to GSA. Read more here.
Federal Acquisition Service (FAS) Industry Day: New Transparency, Focus Follow a Major Reorganization, Federal News Network
In a tour de force of transparency, and just a few short weeks after announcing a major reorganization, the General Services Administration’s (GSA) FAS’s day-long industry day outlined several dominant themes such as procurement consolidation, commercial-first acquisition, schedule flexibility, reduced regulatory burden, stronger pricing discipline, supply-chain risk controls, and expanded transactional data reporting. Read more here.
Small Business Administration (SBA) News Release: SBA Suspends 7,800 Wisconsin Borrowers Connected to $375 Million in Suspected Fraudulent Pandemic-Era Loans
On July 8, in collaboration with the White House Task Force to Eliminate Fraud, SBA announced the suspension of 7,800 Wisconsin borrowers tied to $375 million in suspected fraudulent Paycheck Protection Program (PPP) and COVID Economic Injury Disaster Loan (EIDL) activity. The announcement comes as part of SBA’s ongoing state-by-state investigations. Read more here.
Department of War (DOW) Memorandum: Class Deviation—Revolutionary Federal Acquisition Regulation (FAR) Overhaul (RFO) Part 25, Defense FAR Supplement (DFARS) Part 225
On July 1, DOW issued a class deviation, effective immediately, revising the class deviation issued on February 3, 2026. This revision implements section 848 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2026; removes 225.7021, the associated provision and clause at 252.225-7057 and 252.225-7058, and PGI 225.7021; updates trade agreement thresholds; and makes minor corrections and updates to part 225 and PGI 225. Read more here.
Small Business Administration (SBA) News Release: Small Businesses Now Eligible for $10 Million in SBA Financing
On July 7, Kelly Loeffler, Administrator of the SBA, announced that SBA borrowers may now combine their 7(a) and 504 loans for up to $10 million in SBA-backed financing, an increase from the previous cumulative loan limit of $5 million. The policy change, which went into effect on July 4, expands the capital available to small businesses across all industries by raising the SBA’s maximum financing offering to the highest level in agency history. Read more here.
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