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 to Propose Massive Changes to Its Small Business Size Standards, PilieroMazza Client Alert, Jon Williams, Meghan Leemon
Today SBA published stunning proposed changes to its size standards, replacing the August 2025 proposed rule, which we discussed here, as well as revised size standards methodology. From time to time, SBA reviews and proposes changes to its size standards and those changes are typically incremental and to adjust for inflation. Today’s proposed changes are massive and will dramatically reshape how small businesses are determined for federal contracting if finalized. Read more here.
Loser Pays: GSA Seeks to Extend New DoD Bid Protest Rules to Civilian Agencies, Katherine Burrows, Eric Valle, Abigail “Abby” Finan
On July 17, 2026, the U.S. General Services Administration (GSA) submitted legislative proposals to Congress—two of which have important implications for government contractors and the bid protest system. First, GSA is requesting Congress enact a “loser pays” bid protest rule for civilian agencies that is similar to the “loser pays” rule established for Department of Defense (DoD) bid protests to GAO in the Fiscal Year 2026 National Defense Authorization Act (FY26 NDAA). Second, GSA is seeking to raise the minimum threshold to protest the issuance of a civilian agency task or delivery order at GAO from $10 million to $35 million while also asking Congress to apply this threshold to orders issued under GSA’s Multiple Award Schedule (MAS) program. In this blog, we explain why GSA’s proposed legislation could have significant impacts on the bid protest landscape and government contractors’ ability to file a bid protest. Read more here.
SBA Transforms 8(a) Program to be Race-Neutral, But Did It Go Too Far?, Federal News Network
SBA finalized new rules for the 8(a) business development program in record time. In 60 days, SBA went from proposal to reviewing more than 100 comments to final regulation that will transform the 73-year-old program. The fast timeline is one of several concerns experts have about the new 8(a) regulations and why it adds to their questions about the program’s long-term viability. Read more here.
Committee for Purchase From People Who Are Blind or Severely Disabled (Committee): Procurement List; Proposed Deletions
On August 13, the Committee published proposed deletions of product(s) and service(s) from the Procurement List that were furnished by nonprofit agencies employing persons who are blind or have other severe disabilities. The proposed list is available here and comments must be received on or before September 12, 2026.
DoD Eyes Accounting Reforms to Lower Barriers for Commercial Firms, Federal News Network
DoD is looking for ideas on how to streamline data and audit requirements for business systems as it seeks to lower compliance costs and make it easier for commercial firms to do business with the department. In an open letter to DoD stakeholders, Michael Duffey, the department’s top acquisition official, and Michael Powers, acting Pentagon comptroller, asked industry to recommend “common sense contract accounting changes.” Read more here.
Semiannual Regulatory Agendas
On August 14, the Federal Procurement Policy Office (FAR Council), Department of Defense (DoD), Department of Labor (DOL), GSA, and the SBA published their Semiannual Regulatory Agendas. The agendas are available here: FAR Council, DoD, DOL, GSA, SBA.
Presidential Memoranda: Rebuilding the United States Navy and America’s Shipbuilding Industrial Base
On August 13, President Trump issued a Memoranda setting forth additional actions to further strengthen the United States Navy and America’s Shipbuilding Industrial Base following Executive Order 14269, issued April 9, 2025 (Restoring America’s Maritime Dominance). The memo determines that it is in the national security interest of the U.S. to increase domestic shipbuilding capacity using the Memorandum of Understanding of October 9, 2025, between the United States and Finland with regard to medium icebreaker construction as a model (the “Finland Model”). The memo requires the submission of multiple plans: (i) on the required measures to replace the Electromagnetic Aircraft Launch System and Advanced Weapons Elevators with steam and hydraulic systems for the construction of CVN-81, including timelines and resourcing requirements; (ii) that includes timelines and resourcing requirements, for a new competitive acquisition approach for surface combatants with sufficient inherent capabilities to perform anti-submarine warfare, surface warfare, and convoy escort duties, allowing for proposals based on the Finland Model; (iii) to direct the use of financial resources pledged in various trade deals led by the Secretary of Commerce and the United States Trade Representative on behalf of the President on investments in the United States maritime industrial base; (iv) to increase nuclear-powered submarine and aircraft carrier readiness that will include the use of private sector capabilities and the establishment of a fifth public Navy Yard; (v) to establish a Component Repair Center to receive new and refurbish old components and parts as required by the submarine repair industrial base. The memo also requires a review of Naval Sea Systems Command (NAVSEA), including recommendations for implementing personnel, organizational, and structural reforms. Read more here.
Small Business Administration (SBA) News Release 26-82: SBA Announces 90% Loan Guarantee for Energy Sector
On August 14, SBA announced that small businesses across the energy production supply chain are now eligible for a new 90% Energy Guarantee through the SBA International Trade Loan (ITL) Program. Established as part of SOP 50 10 8.1, the enhanced guarantee encourages participating lenders to unleash private investment in energy production, distribution, grid modernization, and equipment manufacturing to increase energy output and support lower costs for households and small businesses. Read more here.
General Services Administration (GSA) News Release: GSA Calls On AbilityOne to Verify Country-of-Origin Labeling Following Discovery of Chinese Products on Federal Buying Platforms
On August 14, GSA issued a release calling on the U.S. AbilityOne Commission to verify the country-of-origin of products it sells to the federal government after discovering Chinese-made products among its offerings. The comprehensive review comes in response to President Trump’s recent Executive Orders, “Ensuring Truthful Advertising of Products Claiming to be Made in America” and “Establishing the Task Force to Eliminate Fraud.” AbilityOne is a U.S. federal program that creates jobs for people who are blind or have other severe disabilities. The program is intended to harness the potential of citizens who are blind or face severe disabilities by providing agencies with critical goods and services through meaningful career paths. However, AbilityOne has faced heavy criticism for straying from its original mission, leading blind and disabled American workers to repackage and relabel foreign-made goods rather than genuinely manufacture products in the USA. Read more here.
GSA News Release: GSA Now Accepting Bids for Next Generation Leasing Support Services Contract
On August 13, GSA hosted an Industry Day and Pre Proposal Conference for vendors interested in the solicitation for GLS Max, the next generation of the GSA Leasing Support Services contract. GLS Max will leverage the knowledge of commercial brokers to address a large volume of expiring leases at no additional cost to the government. Read more here.
OneGov Savings Balloon to Over $1.6B as Agencies Weigh Future of AI in Contracting, Government Executive
GSA has already agreed to extend some OneGov deals and is working on brokering new ones, according to an official. The OneGov program has saved the federal government about $1.62 billion—including about $1.4 billion through limited-time discounts on artificial intelligence—since its inception, a GSA official said Thursday. “That number may not capture the full impact because some agencies might have used the OneGov pricing to negotiate pricing on their own contracts outside of GSA’s [involvement],” Birgit Smeltzer, director of the agency’s Office of IT Products, said at the GovCIO Federal AI Forum. Read more here.
TRAINING: Past Performance: How to Use Yours, Benefit from Others’, and Defend It from Attacks, August 26, 2026, Josie Farinelli, Abigail “Abby” Finan
2026 Newly Increased Health and Welfare Rates on SCA Government Contracts, PilieroMazza Client Alert, Nichole Atallah, Sarah Nash
The Department of Labor’s (DOL) Wage and Hour Division (WHD) has again issued new Service Contract Act (SCA) health and welfare (H&W) rates. Effective August 10, 2026, WHD increased the prevailing H&W fringe benefits from a rate of $5.55 per hour to $5.92 per hour. Where a contractor is obligated to comply with Executive Order (EO) 13706 sick leave obligations, the rates increased from $5.09 per hour to $5.42 per hour. Updated rates of $2.51 per hour (without the EO) and $2.01 (with the EO) also apply to employees in Hawaii covered by the Hawaii Prepaid Health Act. For government contractors with an existing SCA contract, obtaining a new SCA contract, renewing options, or modifying existing contracts with a new wage determination, PilieroMazza covers what you need to know. Read more here.
WEBINAR: GovCon 101: Service Contract Act, August 24, 2026, Nichole D. Atallah
PM WEBINAR: AI, Privacy, and Employees: Understanding Legal Risks and Liabilities for Employers, August 26, 2026, Nichole D. Atallah, Corey Bohn
LITIGATION & DISPUTE RESOLUTION
Department of Justice (DOJ) Final Rule: Establishing the National Fraud Enforcement Division
On August 18, DOJ published a final rule amending DOJ’s organizational regulations to establish the National Fraud Enforcement Division (“Fraud Division”) and set forth its authorities. DOJ has established the Fraud Division as part of a revamped, comprehensive approach to investigating and prosecuting fraud. The Fraud Division’s mission is to investigate and prosecute those who commit fraud. The rule is available here and will be effective August 24, 2026.
PM WEBINAR: Buying and Selling a Business: M&A Processes and Procedures, August 27, 2026, Kristen Centre
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