The Weekly Update recaps recent legislative and regulatory updates affecting
government contractors and commercial businesses.
If you have questions concerning this content, please email marketing@pilieromazza.com.
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The New DEI Crackdown: What Federal Contractors Must Do Now, PilieroMazza Webinar Replay, Sarah L. Nash, Matthew E. Feinberg, Lauren Brier
On March 26, 2026, the Trump Administration issued a sweeping Executive Order targeting DEI policies, alongside DOJ’s plan to use the False Claims Act (FCA) to challenge such practices. The result: heightened scrutiny, required policy and subcontract changes, and real exposure to penalties—including contract termination. webinar to learn what this means for your business and the practical steps you should take now to stay compliant and protect your contracts. Click here to view the recorded session.
Office of Personnel Management (OPM) Memorandum: Federal Workforce Competency Initiative (FWCI) – General and Technical Competencies and Competency Frameworks for Information Technology (IT) Management
On April 13, OPM issued a memorandum issuing the FWCI competency frameworks for IT management. These frameworks provide updated general and technical competencies to support skills-based hiring, workforce planning, employee development, and performance management across the Federal Government. Read more here.
Department of Labor (DOL) News Release: DOL Updates National Emphasis Program to Protect Workers from Indoor, Outdoor Heat Hazards
On April 10, DOL’s Occupational Safety and Health Administration updated its National Emphasis Program that protects workers from outdoor and indoor heat-related hazards to direct agency resources where they can make the biggest impact – focusing inspections and outreach in industries and workplaces where heat stress risks are most likely to occur. Read more here.
Defense Department Nixes Union Contracts for 300,000 Workers, Bloomberg Government
The Department of Defense canceled its collective bargaining agreements with the union representing around 300,000 agency employees, the latest in a series of contract cancellations as the Trump administration seeks to reshape the federal workforce. Read more here (subscription required).
Virginia Paid Leave Bills Hinge on Governor’s Proposed Tweaks, Bloomberg Government
Virginia proposals to guarantee workers paid sick time and establish a paid family and medical leave program will depend on the legislature’s approval of revisions proposed by Gov. Abigail Spanberger (D). Read more here (subscription required).
Upcoming Presentations
TRAINING: ABCs of the SCA: Critical Path Service Contract Act Training for Government Contractors, April 28-30, 2026, Nichole D. Atallah, Sarah L. Nash
SEMINAR: SCA Unlocked, May 12, 2026, Sarah L. Nash
BID PROTESTS
Protesting an Award? What the Latest CICA Stay Decision Means for Government Contractors, PilieroMazza Blog, Katherine B. Burrows, Eric A. Valle, Abigail “Abby” Finan
The U.S. Court of Appeals for the Federal Circuit (Federal Circuit) recently rejected the argument that a plaintiff challenging an agency’s override of an automatic stay of a contract—commonly referred to as the Competition in Contracting Act (CICA) stay—should be required to succeed under the four-factor test for preliminary injunctions. Life Science Logistics, LLC v. United States.1 The Federal Circuit panel agreed with the U.S. Court of Federal Claims (COFC) decision—that a bid protester seeking to challenge an agency’s override of a CICA stay need only show that the agency’s override decision was arbitrary and capricious. In this blog, PilieroMazza explains why the Federal Circuit’s decision is positive news for government contractors who want to enforce a CICA stay and protect their position when protesting an award. Read more here.
GAO Decision Highlights the Power of Protests in Protecting Fair Competition, PilieroMazza Blog, Katherine B. Burrows, Eric A. Valle, Josie Farinelli
The Government Accountability Office’s (GAO) recent decision in Effective Communication Strategies, LLC, B-422289 (Mar. 18, 2025), offers an important reminder for federal contractors: when an agency repeatedly changes requirements and demands near-immediate proposal revisions, contractors are not required to race against the agency’s arbitrary clock. Agencies must provide a reasonable opportunity to respond. In this blog, we break down GAO’s decision and explain how a timely protest is often necessary to protect your competitive position when the agency’s requirements or deadlines are unreasonable. Read more here.
Government Accountability Office (GAO) Reports
- Navy Contracting: Sea Systems Command Actively Manages Labor Cost Increases for Professional Support Services. On April 14, GAO released a report detailing its review of Naval Sea Systems Command (NAVSEA) task orders from fiscal years 2019 through 2024. GAO’s report describes how NAVSEA (1) awards task orders for professional support services, and (2) manages increases in labor rates for professional support services. GAO found that the Command had processes in place to manage cost increases. For example, it uses a system to monitor changes in labor rates. When the rate the Command is actually charged is more than 15% of its estimated rate, it takes action to control costs. Read more here.
- DOD Financial Management: Navy Needs to Fully Address Strategic Planning and Systems Migration Leading Practices. On April 14, GAO released a report detailing the extent to which the Navy’s consolidation and modernization of its financial management systems (1) are consistent with strategic planning leading practices and (2) align with migration planning leading practices. GAO found that the Navy has made progress, but hasn’t fully followed leading strategic and system migration planning practices. For example, it didn’t have a complete approach for executives to monitor issues that contribute to delays, which could make it harder to modernize systems on time. Read more here.
- Artificial Intelligence (AI) Acquisitions: Agencies Should Collect and Apply Lessons Learned to Improve Future Procurements. Federal agencies use AI for facial recognition at airports, analyzing veterans’ benefit claims, and more. They often work with private sector companies to acquire and support AI. GAO talked with many agency officials about challenges acquiring AI. For example, some said there was difficulty accessing AI technical experts, like data scientists, to evaluate contractor proposals. Officials also said it was hard to understand AI-related costs. But the agencies GAO spoke with didn’t regularly collect and share lessons learned from acquiring AI. Doing so could help them better prepare for using AI in the future. Read more here. The full report is available here.
Small Business Administration (SBA) News Release: Administrator Loeffler Applauds SBIR-STTR Reauthorization
On April 13, SBA announced its support of President Trump’s signing of S. 3971, the Small Business Innovation and Economic Security Act, into law. This bill reauthorizes and reforms the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. Read more here.
House Releases $157 Billion Military Construction-VA Measure, Bloomberg Government
House Republicans released the text of a bill on April 16 to fund military construction and the Department of Veterans Affairs as they start work on their fiscal 2027 spending bills. Read more here (subscription required).
Trump’s $1.5 Trillion Pentagon Budget Raises Some GOP Eyebrows, Bloomberg Government
Some House Republicans pushed back on President Donald Trump’s request to supercharge the military’s annual budget at a meeting with Pentagon officials, spelling trouble for a cornerstone of his fiscal policy. Read more here (subscription required).
Congress Urged to Pass Stricter AI Export Controls Against China, Bloomberg Government
The US must pursue a robust strategy to maintain its lead in artificial intelligence against China, which includes restricting powerful technology and countering chip smuggling efforts, policy experts are urging Congress. Read more here (subscription required).
DHS Vehicles, Contracts Stalled as Shutdown Impacts Linger, Bloomberg Government
Immigration enforcement agencies are grounding equipment and facing gaps in investigative work as the ongoing Department of Homeland Security funding lapse prevents them from paying contractors who maintain critical assets, top officials told lawmakers. Read more here (subscription required).
Space Force’s STARCOM to Hire More Than 400 Civilians Amid Push to Expand the Force, Federal News Network
The Space Force’s Space Training and Readiness Command plans to hire more than 400 civilians nationwide in the coming months as service leaders push to expand the force. Read more here.
A Year After DOGE, Trump Administration Is Quietly Hiring Again, Bloomberg Government
During the first year of his second presidency, President Donald Trump dispatched a chainsaw-wielding billionaire to loudly eliminate more than 300,000 federal jobs in an unsparing attempt to shrink the government. Now, the Trump administration is quietly hiring again. Job announcements posted to the federal government’s main hiring portal were up 23% in March from the previous month. The government has launched new recruiting drives targeted at tech staffers, attorneys, and project managers. Read more here (subscription required).
Agencies Report over 3,000 AI Use Cases in 2025, NextGov/FCW
The Office of Management and Budget unveiled the completed 2025 Federal Agency Artificial Intelligence Use Case Inventory, documenting 3,611 individual use cases across 56 submitting agencies. The number of reported use cases more than doubled from 2024, revealing the federal government’s continued appetite to acquire advanced artificial intelligence for its workflows. Read more here.
Small Businesses Are Navigating One of the Most Turbulent Contracting Environments in Decades, Federal News Network
The Small Business Administration Office of Advocacy has released its first-year report examining how small businesses are responding to rapid shifts in federal contracting and regulatory policy. The findings highlight both strain and adaptation as firms adjust to changing rules and agency practices. Read more here.
Upcoming Presentations
WEBINAR: Using JVs to Win Work with GSA and Beyond, April 30, 2026, Meghan F. Leemon
CONFERENCE: Small Business Panel: Navigating Today’s Marketplace Together, May 12, 2026, Isaias “Cy” Alba, IV
CONFERENCE: Public Sector Legal Briefing: Contracts, Compliance & What’s New, May 13, 2026, Jon Williams
TRAINING: SBA Regulatory Updates, May 19, 2026, Eric A. Valle
WEBINAR: The Buy American Act and Trade Agreements Act, May 28, 2026, Jacqueline K. Unger
Upcoming Presentations
PM WEBINAR: Contract Basics for Entrepreneurs: The Contracts You Need in Your Legal Toolkit as You Scale Your Business, May 7, 2026, Kristen Centre
Contract Claims 101: The Fundamentals of Contract Administration Disputes, PilieroMazza Webinar Replay, Josie Farinelli, Abigail “Abby” Finan, Kelly A. Kirchgasser
The Contract Disputes Act (CDA) provides the framework governing contract disputes between contractors and the government. Understanding the claims process is vital to better position contractors before moving forward into potential traps for the unwary. Join PilieroMazza’s Josie Farinelli, Abby Finan, and Kelly Kirchgasser as they break down the essentials of REAs, claims, and appeals, walking through the most common sources of disputes and the financial fundamentals every government contractor should understand. This webinar is designed to help contractors gain practical insights to navigate contract administration disputes with confidence. Click here to view the recorded session.
Widening Supply Chain Scrutiny: Latest on the Proposed Semiconductor Ban, PilieroMazza Blog, Isaias “Cy” Alba, IV, Daniel Figuenick, III
More supply chain scrutiny is coming. Nearly two years ago, we blogged about an advanced notice of proposed rulemaking (ANPR) involving a potential proposed rule on covered semiconductors. The wait is finally over. In February, the Federal Acquisition Regulatory Council (FAR Council) released its proposed rule (Proposed Rule) identifying and explaining some potential changes coming to the Federal Acquisition Regulation (FAR). The impact on contractors in every industry will be expensive and time-consuming, especially for small businesses. Below, PilieroMazza highlights the Proposed Rule’s changes, some differences from the ANPR, and what impact it will have on contractors. Read more here.
Senate Panel Passes Bipartisan Satellite Cybersecurity Bills, Law360
A key U.S. Senate committee passed a pair of bills Tuesday aimed at improving satellite network security, in part by restricting market access in the U.S. to prevent authorizations for foreign actors deemed as risky. Read more here (subscription required).
New OMB IT Policy Memo Rings Familiar, but Signals Major Shifts, Federal News Network
OMB memo M-26-10 revisits familiar themes around CIO authority and IT governance, but with sharper expectations for transparency, reporting, and shared responsibility. The question now is what agencies are expected to do differently and how this guidance changes day-to-day decision-making for federal IT leaders. Here, we’re walking through the key points of the memo. Read more here.
GSA Looks to Automate a Million Work Hours, After Losing Nearly 40% of Its Workforce, Federal News Network
The General Services Administration is planning to use artificial intelligence to automate a significant portion of its internal work, after losing nearly 40% of its total workforce under the Trump administration. Read more here.
After Nearly a Decade, GSA on Track to Fully Implement TDR, Federal News Network
In his first 100 days at the helm of the GSA, Ed Forst oversaw an important step to bring a 10-year effort across the finish line. Forst, the GSA administrator since late December, prioritized the implementation of TDR across all of the multiple award schedule contracts. Read more here.
Government Accountability Office (GAO) Report: Combating Fraud: Challenges in Managing Fraud Risks in Federally Funded, State-Administered Programs
On April 15, GAO released its testimony before the House Committee on Oversight and Government Reform’s Subcommittee on Government Operations. The testimony outlines GAO’s selected reports regarding fraud in federally funded, state-administered programs by (1) outlining the scope of the problem and fraud risk landscape, (2) examining challenges facing federal and state agencies in combating fraud, and (3) examining fraud threats the government faces and why it is difficult to combat them. Read more here.
Inspectors General Targeted for Funding Cuts in Trump’s FY27 Budget, Government Executive
In 2025, Donald Trump fired nearly 20 inspectors general and replaced acting IGs at five agencies. The Partnership for Public Service, a nonpartisan nonprofit that has been critical of the president’s federal workforce reforms, in an analysis published on April 14, argued that the administration is seeking to further weaken the oversight offices through the budget process. Oversight groups warn that slashing budgets spent on rooting out fraud and waste will “fundamentally hamper” accountability and operations. Read more here.
Treasury is Creating a Database with Pandemic Aid Recipients’ Sensitive Information, Government Executive
The Treasury Department is pooling information about people who received benefits from pandemic-era relief programs in a new, central database it says will be used to conduct program audits. It’s the latest front in the Trump Administration’s efforts to centralize government data, including information typically held by states about people who receive nutrition benefits and jobless aid. Many of the administration’s previous attempts have been subject to lawsuits. Read more here.
INTELLECTUAL PROPERTY & TECHNOLOGY RIGHTS
Government Accountability Office (GAO) Report: Technology Transfer: Funding Recipients Keep Most Federally Funded Inventions, but Some Cited Reporting Challenges
On April 13, GAO released a report detailing its review of the federal invention disclosure process. This report examines (1) the percentage of disclosed inventions for which funding recipients elected to retain title and the reasons for not doing so, (2) challenges funding recipients face in complying with reporting requirements, and (3) how selected agencies are managing the transition to a single federal disclosure system. Recipients took ownership most of the time. GAO found that reporting can be challenging for recipients and agencies. However, greater use of web-based reporting could help with some of the issues they face. Read more here.
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