A new policy directs all Defense Department components not to include Equal Employment Opportunity provisions and clauses in new contracts and solicitations. In a memo released on March 4, John Tenaglia, the defense pricing, contracting and acquisition policy principal director, instructed DoD contracting officers not to enforce President Lyndon B. Johnson’s executive order signed in 1965 that mandated all federal contractors to promote equal employment opportunities and prevent discrimination. . . . “It is a shift — it’s been around since . . . Read More
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
Government contractors are facing a host of legal and compliance challenges following President Trump’s recent executive orders. These orders have prompted government-wide contract reviews, funding issues, increased scrutiny on foreign assistance agreements, and the mass issuance of stop work orders and terminations for convenience. If you are a government contractor, here are some key questions you should be asking to ensure your business is protected. If any of these FAQs apply to your business, consulting legal counsel promptly can help . . . Read More
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
A second federal judge indefinitely blocked the Trump administration’s blanket freeze on appropriated and obligated federal funds for government contractors, reinforcing Congress’s authority over government spending. This decision directly impacts government contractors who rely on federal funding for projects and operations. Key Takeaways for Government Contractors Funding Pause Declared Unlawful The court ruled that the executive branch cannot impose a blanket freeze on congressionally appropriated funds. Judge McConnell wrote, “[t]he Executive put itself above Congress. It imposed a categorical mandate on . . . Read More
On March 5, 2025, the United States Supreme Court (SCOTUS) upheld a federal judge’s order directing the government to pay nearly $2 Billion to federal contractors for completed foreign aid work. [1] This client alert identifies key takeaways from the SCOTUS denial and provides important considerations for government contractors whose payments were subject to executive freezes on foreign aid spending. Background As previously reported by PilieroMazza , President Trump issued Executive Order 14169, “ Reevaluating and Realigning United States Foreign Aid ,” which ordered agencies with foreign development assistance programs . . . Read More
