Protect Small Business Opportunities: The “Rule of Two” Faces Potential Elimination
The federal government is actively trying to reduce its size and deregulate agencies across the Executive Branch. As noted in a previous Client Alert by Sam Finnerty, the Federal Acquisition Regulation (FAR) has not been exempt from these initiatives. On May 6, 2025, the FAR Council issued its first formal deregulation measure, signaling that any regulations not explicitly codified by statute may be subject to removal from the FAR and the Small Business Administration’s (SBA) regulations. As a result, the “Rule of . . . Read More
DBE Program in Peril: Recent Legal Challenges and What They Mean for Women- and Minority-Owned Contractors
Recent legal challenges jeopardize the future of the Department of Transportation’s (DOT) Disadvantaged Business Enterprise (DBE) program, a long-standing initiative designed to support minority- and women-owned businesses in federally funded state and local transportation infrastructure projects. In litigation against the DOT filed in October 2023, two non-DBE firms challenged the constitutionality of the program’s use of race- and sex-based presumptions of social and economic disadvantage to determine DBE eligibility. In the latest setback for the program, on May 28, 2025, . . . Read More
The Revolutionary FAR Overhaul: What Government Contractors Need to Know
On May 6, 2025, the Federal Acquisition Regulatory Council (FAR Council) published draft revisions to the Federal Acquisition Regulation (FAR) as part of a sweeping, phased update known as the Revolutionary FAR Overhaul (RFO). The initial draft revisions—covering FAR Parts 1, 34, and 52—are now open for public comment through September 30, 2025, at 12:00 PM EST. However, in a major break from traditional practice, federal agencies are being directed to begin immediate adoption of the draft text through FAR deviations. This . . . Read More
Corporate Transparency Act, Part 10: Interim Final Rule, U.S. Companies and U.S. Persons Exempt From Reporting
On March 26, 2025, FinCEN issued an interim final rule and request for comments, removing the requirement under the Corporate Transparency Act (CTA) for both U.S. companies and U.S. persons to report beneficial ownership information to FinCEN. The rule is effective March 26, 2025. Thus, subject to additional rule changes, U.S. companies and U.S. individuals no longer have to file an initial Beneficial Ownership Information Report (BOIR) or otherwise update or correct a previously filed BOIR. Please visit this link to access Parts 1-9 . . . Read More
President Trump’s DEI Executive Orders Are Back On: What Contractors Need To Know
On March 14, the Fourth Circuit stayed a preliminary injunction that had prohibited President Trump’s administration and federal agencies from implementing Executive Orders 14151 and 14173 (“DEI Executive Orders”). This means the Trump administration can proceed with implementing the DEI Executive Orders pending ongoing litigation. In this blog, we discuss what federal contractors should take away from the Fourth Circuit’s order. Executive Orders 14173 and 14151 are the primary mechanisms President Trump has used to wind down certain Diversity, Equity, . . . Read More
GSA to Oversee Federal Purchasing: A Step Toward Efficiency or a Challenge for Agencies and Contractors?
On March 20, 2025, President Trump signed an executive order to consolidate federal procurement under the General Services Administration (GSA). Framed as an effort to eliminate waste and save taxpayer dollars, the order mandates that federal agencies shift their purchasing of common goods and services to the GSA. While this move is being touted as a step toward efficiency, the reality may be far more complex for government contractors. What Does the Executive Order Require? The order mandates several major changes to . . . Read More
No More Minimum Wage Obligations Shifts Pricing Strategies for Service and Construction Contractors
On Friday, March 14, 2025, President Trump revoked Executive Order 14026, Increasing the Minimum Wage for Federal Contractors (EO). Government contractors in the service and construction sectors should evaluate how Trump’s decision to cancel the EO will impact their pricing strategies and outstanding price adjustment requests. Effective immediately, contractors are no longer bound by EO 14026’s minimum wage requirements. This means that most service and construction contractors may revert employee pay to the applicable wage determination rates under their contracts. . . . Read More
March 2025: Reducing the Negative Impacts of a Government Shutdown for Federal Contractors
On top of the uncertainty introduced through the Trump administration’s shifting priorities and rapid-fire executive orders, government contractors are now confronted with an impending shutdown as the federal government is set to run out of funding on March 14. Although the House of Representatives passed a six-month continuing resolution that would keep funding at current levels through the rest of the fiscal year (i.e., September 30), it remains to be seen whether the Senate has the votes to pass the . . . Read More
Court Blocks Suspension and Termination of Foreign Aid Contracts: Key Takeaways for Government Contractors
In a landmark decision, Judge Ali has issued a preliminary injunction (PI) preventing the U.S. government from enforcing suspensions, stop-work orders, and terminations for foreign aid contracts issued between January 20 and February 13, 2025—the date on which Judge Ali issued a temporary restraining order in this case. The ruling is a major rebuke of the executive branch’s attempt to halt congressionally appropriated funds, reaffirming Congress’s constitutional spending authority. This ruling requires the government to resume payments and allow drawdowns for . . . Read More
Corporate Transparency Act, Part 9: Reporting Due March 21, 2025, No Penalties for Not Reporting (For Now)
On February 18, 2025, the final court order [1] blocking reporting under the Corporate Transparency Act (CTA) was lifted. Thus, the CTA’s reporting requirements are back in effect, and the new reporting deadline for most reporting companies is March 21, 2025; however, FinCEN has announced that no penalties or fines will currently be enforced for not reporting. Please visit this link to access Parts 1-8 in this series. Although reporting requirements are back in effect, penalties and fines will not be enforced for . . . Read More