Navigating the DOW 8(a)/Set-Aside Audit and Termination Threat
On January 16, 2026, Secretary Hegseth announced in a video posted on X that the DOW would undertake an audit of all 8(a) sole-source awards over $20 Million to redirect defense spending to programs that enhance lethality while curbing fraud, waste, and abuse. Since that announcement, a DOW memorandum was made public revealing the scope is broader than anticipated. Rather than just 8(a) sole-source awards, DOW is auditing any active 8(a) sole-source contract, 8(a) set-aside contract, or small business set-aside contract over $20 Million. . . . Read More
SCOTUS Limits Presidential Tariff Powers: Key Takeaways for Government Contractors
On February 20, 2026, the Supreme Court of the United States (SCOTUS or the Court) issued a major decision in Learning Resources, Inc. v. Trump limiting the Trump Administration’s ability to impose tariffs under the International Emergency Economic Powers Act (IEEPA). The decision narrows the executive’s emergency economic powers and reinforces congressional control over tariffs. This ruling carries significant implications for government contractors who have spent the past year navigating rapidly shifting tariff regimes. Below, we break down the Court’s . . . Read More
Sending Out An SOS for the LOS
The limitations on subcontracting, or LOS, is a fundamental requirement of set-aside contracting. Historically, however, the LOS has not received as much attention as other set-aside compliance obligations that are more regularly the focus of audits, enforcement actions, and protests. But that changed with recent high-profile audits by the Small Business Administration (SBA) and Department of War (DOW) that are putting a spotlight on LOS compliance. In particular, a DOW memorandum issued in January 2026 shows it is investigating LOS compliance . . . Read More
January 2026: Partial Government Shutdown Imminent—Key Considerations for Federal Contractors
Last fall, the longest government shutdown in U.S. history—at 43 days—had lasting and widespread negative impacts across the country. The shutdown ended when Congress eventually agreed on an appropriations bill, but that bill funded the government only through January 30, 2026, with full-year appropriations only for Agriculture, the Legislative Branch, Military Construction, and Veterans Affairs. Since then, full-year appropriations were passed and signed into law for Commerce, Justice, Science, Energy and Water Development, and Interior and Environment. However, six of . . . Read More
Request for Comment: GSA Seeks Input on Value-Added Reseller Market
The U.S. General Services Administration (GSA) recently requested information to explore “potential improvements” to the acquisition of Information Technology (IT) hardware and software through Value Added Resellers (VARs), commonly known as ITVARs. Federal Acquisition Service Commissioner Josh Gruenbaum wants to “learn directly from Value Added Resellers about the value they add to the government within the supply chain.” This request coincides with the first phase of the GSA’s OneGov Strategy, which seeks to provide agencies with standardized terms and pricing for easier access to . . . Read More
SBA Issues Suspension Notices to 8(a) Firms Following Data Call
On December 5, 2025, the Small Business Administration (SBA) issued a program-wide data call (Data Call) to all 8(a) Business Development Program (8(a) Program) participants seeking three years of financial and contractual records. The Data Call was designed to identify fraud, waste, and abuse in the 8(a) Program. Further to that stated goal, following the response deadline of January 19, 2026, SBA swiftly moved to take adverse action against 8(a) firms it deems non-compliant with the Data Call obligations. 8(a) . . . Read More
GovCon M&A and Recertification: What Small Business Contractors, Investors, and Private Equity Firms Need to Know
The Small Business Administration’s (SBA) size and recertification rules have always been central to government contracting. But recent regulatory changes , and where we now stand in mid-January 2026, mark a meaningful shift in the GovCon M&A landscape, particularly for private equity firms and other investors. The “grandfathering” era is over. Successful GovCon M&A transactions now require buyers and sellers to identify, price, and actively manage size-status risk early in the deal process. Those that treat recertification as a post-close compliance exercise risk . . . Read More
Fiscal Year 2026 NDAA Signed into Law: 6 Key Takeaways for Defense Contractors
On Thursday, December 18, 2025, President Trump signed into law the National Defense Authorization Act for Fiscal Year 2026 (2026 NDAA), which authorizes over $900 billion in funding for the Department of Defense (DOD) and other national security programs. The 2026 NDAA contains many acquisition reform provisions and other critical provisions impacting defense contractors. This client alert provides six key takeaways from these provisions. Efforts to Increase Competition by Small Businesses and Nontraditional Defense Contractors Several provisions of the 2026 . . . Read More
SBA Data Call: Deadline Extended Until January 19, 2026
SBA announced today, as part of a broader release of FAQs, that the deadline to respond to the December 5, 2025, data call, which we discussed here , has been extended until January 19, 2026. Over and beyond the welcomed extension, SBA has clarified certain of the data call requests. Of note, SBA confirmed that the “last three (3) closed fiscal years of each respective participant” is required. Takeaways from this are: (1) it is the participant’s, not the government’s, fiscal year, . . . Read More
SBA’s 8(a) Program Audit Starts—PilieroMazza Launches “8(a) Audit Response Task Force” to Help Clients Handle the Holiday Gift No One Asked For
On December 5, 2025, the Small Business Administration (SBA) issued formal data and document requests (linked here ) to certified 8(a) Business Development Program participants. This follows SBA’s June 2025 announcement that it would implement an “immediate and full-scale audit” of the 8(a) Program. The requests, issued by the SBA Office of General Counsel via email, justified the audit as follows: “Recent reports by journalists and independent investigators have raised questions about widespread misconduct within the 8(a) Businesses [sic] Development Program, . . . Read More