The Department of Veterans Affairs (VA) is facing growing scrutiny from Congress after it abruptly canceled hundreds of contracts—many of which support critical services for veterans—based in part on recommendations from a hastily developed artificial intelligence (AI) tool. On June 13, 2025, Senators Richard Blumenthal (D-CT) and Angus King (I-ME), members of the Senate Committee on Veterans’ Affairs (Committee), sent a letter to Acting VA Inspector General David Case urging a formal investigation into the VA’s contract termination process. If . . . Read More
The U.S. Small Business Administration (SBA) recently announced an “immediate and full-scale audit” of its 8(a) business development program. The announcement stems from a “years-long fraud and bribery scheme involving a former federal contracting officer and two 8(a) contractors,” as detailed in a Department of Justice (DOJ) press release . This scheme involving two 8(a) contractors appears to be isolated to a few bad actors rather than broader issues with the social and economic disadvantage requirements of the 8(a) program. Nevertheless, SBA is . . . Read More
On July 8, 2025, the House Small Business Subcommittee on Contracting and Infrastructure (Subcommittee) will hold a hearing titled “Leveling the Playing Field: Fostering Opportunities for Small Business Contractors.” The Montgomery County Chamber of Commerce (MCCC) is coordinating the submission of letters of support to ensure small business voices are heard by the Subcommittee. Why Your Letter Matters—and How to Submit It Letters of support will be accepted through Tuesday, July 15. This is a crucial opportunity for small business . . . Read More
On May 19, 2025, the Department of Justice (DOJ) issued a memorandum launching a new enforcement program known as the Civil Rights Fraud Initiative (the Initiative). Furthering the Trump Administration’s direct targeting of diversity, equity, and inclusion ((DEI) policies and alleged antisemitism among corporations and institutions receiving government funds, the Initiative will utilize the False Claims Act (FCA) to “investigate and . . . pursue claims against any recipient of federal funds that knowingly violates federal civil rights laws.” As part of the Initiative, . . . Read More
The U.S. Small Business Administration’s (SBA) Historically Underutilized Business Zone (HUBZone) program underwent a major rule change in January 2025, as we wrote about here . In this blog, PilieroMazza examines new developments that clarify our understanding of the HUBZone rules and how the HUBZone Program is positioned to help the Trump Administration meet its objective to grow domestic small business manufacturing. SBA’s Made in America Manufacturing Initiative At a recent event, an SBA official explained that one of the agency’s key . . . Read More
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
Government contractors regularly handle sensitive federal data, and cybersecurity compliance is no longer optional—it’s mandatory. A recent settlement between the Department of Justice (DOJ) and defense contractor Raytheon Company (Raytheon) highlights the critical importance of strict adherence to federal cybersecurity standards and the severe consequences of falling short. DOD contractors that neglect compliance or inaccurately represent their cybersecurity posture may find themselves facing costly False Claims Act (FCA) litigation. The Raytheon Settlement: Key Facts and Allegations On April 4, 2025, . . . Read More
The Department of Defense (DoD) has issued a significant policy memorandum “to promote fiscal responsibility, streamline operations, and maximize [DoD] readiness and lethality.” The May 27 Memo, Implementation of Executive Order 14222 – Department of Government Efficiency Cost Efficiency Initiative Memorandum , identifies four distinct policies aimed at in-sourcing expertise, reducing reliance on external support, and harnessing the talent of existing DoD experts. This latest reform is consistent with the DoD’s ongoing efforts to phase out and eliminate reliance on consulting service contracts. Tightened Restrictions on Information Technology (IT) Consulting and Management Services The . . . Read More
The FAR Council’s “Revolutionary FAR Overhaul” has streamlined FAR Part 10, shifting from a prescriptive, statute-heavy approach to a leaner set of minimum requirements. While this promises faster procurements and greater agency flexibility, it also raises critical questions for small businesses and government contractors accustomed to predictable market-research triggers. In this blog, we break down what you need to know about the new FAR Part 10, which GSA has already adopted via a class deviation , effective May 22, 2025. Background FAR . . . Read More
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
