OMB Issues Memoranda on Use and Acquisition of AI by Federal Agencies, Part 1: What It Means for Government Contractors
On April 3, 2025, the Office of Management and Budget (OMB) issued two memoranda addressing the accelerated use and efficient acquisition of Artificial Intelligence (AI) by federal agencies: M-25-21 and M-25-22 . The memos implement Executive Order 14179, “Removing Barriers to American Leadership in Artificial Intelligence,” issued by President Trump on January 23, 2025. [1] This blog is the first in a two-part series discussing the first memo, M-25-21, which focuses on the use of AI by federal agencies, signaling a significant shift . . . Read More
The Rise of OTA in Defense Contracting, Part 3: Best Practices for OTA Negotiations
In this Part 3 of PilieroMazza’s blog series, “The Rise of OTA in Defense Contracting,” we discuss tactics and best practices defense contractors should deploy when negotiating terms once selected for an OT award. This is essential guidance to strengthen your position and protect your interests throughout the contract’s lifecycle. Visit this link to access Parts 1 and 2 in this blog series. Flexibility = Negotiation As discussed in the previous blog, the flexibility of DOD’s OTA is key to achieving . . . Read More
Managing Litigation Risk During the Business Lifecycle, Part 2: Business Acquisition and Post-Closing Disputes
There’s a tongue-in-cheek joke within the legal industry that transactional lawyers create the problems, and the litigators get paid to clean them up. It’s a cautionary reminder to transactional lawyers: if the dealmaking process is not precise (or well-documented), then the risk of post-closing litigation is increased. In this second installment of PilieroMazza’s blog series, “Managing Litigation Risk During the Business Lifecycle,” we explore how a company acquiring another company can minimize litigation risk by taking a methodical and thoughtful . . . Read More
Top 10 Killer Construction Contract Clauses, Part 1: No Damages for Delay
Those familiar with the construction industry know that construction projects are seldom, if ever, completed within the time originally anticipated at the project’s outset. Fortunately, prime contractors and lower-tier subcontractors are often permitted to seek additional costs stemming from owner-caused delays—commonly referred to as compensable delays. However, the presence of a no damages for delay clause in a contract can significantly impede a contractor’s and subcontractor’s ability to pursue claims for compensable delay. Because delays increase construction costs, construction contractors . . . Read More
The Rise of OTA in Defense Contracting, Part 2: What Is It, Who’s Eligible, and Where to Find Opportunities
In Part 1 of PilieroMazza’s blog series (linked here ), we looked at how Other Transactions Authority (OTA) has emerged as a key acquisition tool for government contractors eager to work with the Department of Defense (DOD). In Part 2, we’ll unpack what OTA is, who can participate in these agreements, and where to look for OTA-related opportunities. What is an “Other Transaction”? OT generally refers to the statutory authorities allowing the federal government to enter transactions other than a typical . . . Read More
Managing the Financial Impact of Tariffs on Your Government Contract
PilieroMazza recently published a client alert regarding executive orders imposing additional tariffs on goods from Canada, Mexico, and China. Since then, the Trump administration has imposed a series of worldwide and targeted tariffs, which are likely to have a significant impact on supply chains and costs incurred by government contractors. This blog provides contractors with (1) an update on these tariffs and (2) advice on insulating your government contract from the cost and delay impacts. Tariffs on Steel, Aluminum, and Automobiles On . . . Read More
The Rise of OTA in Defense Contracting, Part 1: Defense Acquisition Reform
President Trump’s April 9, 2025, Executive Order Modernizing Defense Acquisitions and Spurring Innovation In the Defense Industrial Base (EO) is likely to have major implications for federal defense contractors. This blog, the first in a three-part series about Other Transactions Authority (OTA), discusses the EO and the Department of Defense’s (DOD) use of OTA in reforming defense acquisition. For government contractors eager to work with DOD under OTA—particularly small businesses and non-traditional defense contractors with an interest in research, development, and prototyping—the EO’s preference for OTs may present a significant opportunity. . . . Read More
6 Effective Tactics to Help Government Contractors Overcome Unfavorable CPARS Evaluations
In federal contracting, your reputation is currency, and few tools can shape that reputation more than the Contractor Performance Assessment Reporting System (CPARS). CPARS evaluations don’t just sit in a file, they’re pulled directly into award decisions and can make or break your ability to win future work. How you respond and engage during the CPARS process can directly impact your pipeline of new business. Here are 6 effective tactics every government contractor needs to know—and should consider—when facing a . . . Read More
Keeping Your Defense Contract: Combating Recent Government Contract Cuts
The Department of Defense (DOD) cut another batch of government contracts and grants on March 20th. The DOD is just one of many executive agencies advancing the policies of President Trump and the Department of Government Efficiency (DOGE) focusing on mass cuts to contracts and grants in the name of improving government efficiency. The latest DOD cuts come a day after the deadline for DOD heads to conduct a comprehensive review and validation of existing General Services Administration (GSA) contract . . . Read More
OHA Confirms: SBA Must Consider Operating Agreements in Joint Venture Size Determinations
A recent Small Business Administration (SBA) Office of Hearings and Appeals (OHA) decision in the Size Appeal of DecisionPoint-Agile Defense JV, LLC , SIZ-6336 (Feb. 12, 2025) highlights the critical role of a thorough SBA review in small business size determinations. OHA overturned an adverse size determination after finding the SBA Area Office improperly refused to consider the mentor protégé joint venture’s (JV) operating agreement (OA) simply because it was not expressly incorporated into the joint venture agreement (JVA). This decision reinforces that a well-drafted operating agreement . . . Read More