The Weekly Update recaps recent legislative and regulatory updates affecting
government contractors and commercial businesses.
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Federal Acquisition Regulation (FAR) Overhaul Class Deviations
On April 20, class deviations for FAR Parts 9 (Contractor Qualifications), 12 (Acquisition of Commercial Products and Commercial Services), 22 (Application of Labor Laws to Government Acquisitions), and 52 (Solicitation Provisions and Contract Clauses) were updated based on the Trump Administration’s Executive Order banning diversity, equity, and inclusion programs in federal contracts. More information is available here. On April 24, the Department of War (DOW) issued a class deviation incorporating FAR Part 22 into the Defense Federal Acquisition Regulation Supplement (DFARS). Read more here.
House Panel Releases $47.3 Billion National Security Bill, Bloomberg Government
The House Appropriations Committee released a $47.3 billion to fund national security programs and the State Department, as House lawmakers look to move quickly on their fiscal 2027 funding bills. Read more here (subscription required).
Government Accountability Office (GAO) Report:
- Navy and Coast Guard Shipbuilding: A Disciplined, Strategy-Driven Approach Is Needed to Achieve Ambitious Goals. On April 22, GAO released a report detailing its testimony before Congress regarding Navy and Coast Guard shipbuilding challenges. GAO shared preliminary observations from its ongoing work about the timeliness and cost of Navy and Coast Guard shipbuilding efforts, and the shipbuilding trades workforce. Further, GAO reviewed Department of Defense and Navy investments in strengthening the submarine-building industry and recommended that DOD address issues GAO found. GAO also reported on the Navy and Coast Guard’s progress in addressing GAO’s prior shipbuilding recommendations. Read more here.
- Industrial Security: Improved Risk Management and Stakeholder Engagement Needed to Help DOD Address Mission Gaps. On April 24, GAO released a report detailing its review of the Department of Defense’s (DOD) administration of the National Industrial Security Program (NISP). The report addresses (1) the funding, personnel, and training DCSA dedicates to perform its industrial security mission, and the extent to which the Defense Counterintelligence and Security Agency (DCSA) (2) has managed risks within the NISP’s core operational activities, and (3) is addressing challenges with the National Industrial Security System. GAO is making four recommendations to DOD, including that the department provide enhanced analytic tools for regional operators; assess the risk response effort; and ensure ongoing stakeholder feedback during the development of its new system of record. Read more here.
- Weapon System Sustainment: DOD Identified Critical Cost Growth, and the Army Should Take Action to Yield Cost Savings. On April 23, GAO released a report detailing its review of the Department of Defense’s (DOD) annual sustainment reviews and operating and support (O&S) cost estimates through 2025. The report evaluates the extent to which DOD (1) identified critical O&S cost growth in its fiscal years 2023 and 2024 weapon system sustainment reviews and the causes of that growth, (2) has taken actions to address the critical O&S cost growth identified in the fiscal years 2021 and 2022 sustainment reviews, and (3) has taken steps to identify challenges and improve the sustainment review process. GAO analyzed DOD guidance and weapon system sustainment reviews DOD conducted in fiscal years 2023 and 2024, and cost savings initiatives identified in the fiscal years 2021 and 2022 reviews. GAO is making one recommendation to the Army to ensure that its units implement the software update identified in the Common Remotely Operated Weapons Station remediation plan on a timely basis. Read more here.
DOD News Release: Reauthorization of Small Business Innovation Research and Technology Transfer Programs
Following President Donald J. Trump signing into law the Small Business Innovation and Economic Security Act (S. 3971), the War Department is immediately advancing with a redesigned and more focused initiative to accelerate the delivery of advanced capabilities to the warfighter. The act reauthorizes the vital Small Business Innovation Research and Small Business Technology Transfer programs, strengthening America’s lethal Arsenal of Freedom. Read more here.
Is SBA Moving the Small Business Contracting Goal Posts? Federal News Network
Nearly seven months into the fiscal year, the Small Business Administration is considering moving the small business contracting goal posts for agencies. In a document sent to agencies in March, SBA detailed new factors it will consider as it grades agency efforts to contract with small businesses. The Small Business Administration wants to put a bigger focus on contracting with veteran-owned firms and efforts to root out fraud. Read more here.
Department of Justice (DOJ) Press Release: Antitrust Division Approves Department of Energy (DOE) Defense Production Act Consortium’s Updated Voluntary Agreement and Plans of Action
On April 23, DOJ announced that the DOJ’s Antitrust Division, after consulting with the Federal Trade Commission (FTC), published approvals for the U.S. Department of Energy (DOE) Defense Production Act (DPA) Consortium’s updated Voluntary Agreement and related Plans of Action. Read more here.
White House News Release: White House CEQ Unveils Program to Partner with Private Sector on Modernizing Permitting Technology
On April 15, under the leadership of President Trump, the Council on Environmental Quality’s Permitting Innovation Center, in collaboration with NASA’s Center of Excellence for Collaborative Innovation, announced Permitting Innovators, a new program to accelerate and modernize federal environmental reviews and permitting. The launch marks one year since the presidential memorandum, Updating Permitting Technology for the 21st Century, and signals a new phase in delivering on its goals. In that memorandum, President Trump created the Permitting Innovation Center to solve longstanding problems identified in the field. Read more here.
House GOP Prepares First 2027 Spending Bill Markups: BGOV Budget, Bloomberg Government
House Republicans will send their first funding bills for the next fiscal year to the floor this week, while the Senate GOP plots a blueprint for patching up missing money for the current one. Read more here (subscription required).
Calendar Crunch Creates Chaos for Senate: Congress Tracker, Bloomberg Government
Father Time is undefeated. That’s the lesson the Senate is learning as lawmakers appear to have more on their agenda than there are hours in the typical congressional work week. Majority Leader John Thune said that “there are a number of things we can do and I hope we will be able to do,” but the list of wants and musts is growing, Lillianna Byington reports. When the House spent Thursday night—and Friday morning—fighting about an extension for FISA, it wound up putting yet another must-pass piece of legislation on Thune’s plate. Read more here (subscription required).
Navy Secretary’s Removal Points to Trump’s Anxiety Over Shipbuilding, The Hill
The abrupt firing of Navy Secretary John Phelan, the latest head to roll in Defense Secretary Pete Hegseth’s turbulent Pentagon, points to President Trump’s anxiety over his ambitious and divisive vision for U.S. shipbuilding. Read more here.
Lackluster US Shipbuilding Efforts Get House Panel’s Attention, Bloomberg Government
A House panel on April 29 examined US progress in expanding domestic shipbuilding one year after President Donald Trump vowed to expand the nation’s maritime industrial base. Read more here (subscription required).
Scoop: NSA Using Anthropic’s Mythos Despite Blacklist, Bloomberg Government
The National Security Agency is using Anthropic’s most powerful model yet, Mythos Preview, despite top officials at the Department of Defense — which oversees the NSA — insisting the company is a “supply chain risk,” two sources tell Axios. Why it matters: The government’s cybersecurity needs appear to be outweighing the Pentagon’s feud with Anthropic. Read more here (subscription required).
Upcoming Presentations
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
Federal Acquisition Institute (FAI) Webinar: FAR Forward Office Hours, May 11: Featuring Judge Marian Blank Horn of the U.S. Court of Federal Claims (COFC)
On April 23, FAI announced that it will be offering a webinar on May 11 at 1 pm EST. The webinar will be moderated by COFC Judge Marian Blank Horn. The goal of this FAR Forward Office Hours is to educate the workforce to apply sound judgment and navigate the evolving acquisition environment by both understanding the policy framework guiding federal procurement and understanding the judicial perspective on decision-making. Registration is available here.
Department of Defense (DOD) Notice: U.S. Court of Appeals for the Armed Forces Proposed Rules Changes
On April 21, DOD published a notice proposing to redraft the Rules of Practice and Procedure, United States Court of Appeals for the Armed Forces. Although these rules of practice and procedure fall within the Administrative Procedure Act’s exemptions for notice and comment, the Department, as a matter of policy, has decided to make these changes available for public review and comment before they are implemented. Read more here. Comments close May 21, 2026.
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
Contractors Sue to Block Trump’s Federal DEI Executive Order, Government Executive
A coalition that includes the National Association of Minority Contractors and several higher education groups on Monday filed a lawsuit to block a recent Trump executive order targeting diversity, equity and inclusion programs at federal contracting companies. The lawsuit alleges minority-owned businesses are being forced to trade their First Amendment rights for federal contracts. Read more here.
DOL Unveils Joint Employer Rule Proposal, Law360
The U.S. Department of Labor on Wednesday announced its proposed rule for clarifying when multiple employers are jointly liable for wage and hour violations. Read more here (subscription required). The proposed rule is available here.
Labor Groups Sue to Block FLRA’s Political Seizure of Union Elections, Government Executive
A coalition of labor groups on Thursday sued the Federal Labor Relations Authority in an effort to block new regulations granting the agency’s political appointees control over union elections at federal agencies, arguing both that the agency robbed stakeholders of the opportunity to weigh in on the changes and that the measure would have the opposite effect from its stated aim. Read more here.
Trump’s AI Plan Leaves Labor Groups Wanting More Tech Guardrails, Bloomberg Government
Lax federal oversight over the use of artificial intelligence in the workforce is pushing unions to negotiate safeguards in bargaining contracts, particularly when it comes to job protections and name, image, and likeness concerns. An AI framework unveiled by President Donald Trump last month has the potential to influence federal action on the issue. But parts of the proposal were criticized by union leaders who said that provisions calling on Congress to overturn state AI regulations and speeding up permitting for data centers were detrimental to workers. Read more here.
Department of Labor (DOL) News Releases:
- DOL Announces 2026 Virtual Seminars for Current, Prospective Federal Contractors on Prevailing Wage Requirements. On April 21, DOL’s Wage and Hour Division announced that it will offer webinars on prevailing wage requirements for contractors, contracting agencies, unions, workers, and other stakeholders involved in federally funded projects and service contracts. The webinars are scheduled for May 20 to 21 and September 23 to 24. Read more here.
- DOL Recovers $30K After Employer Violates Worker’s Family and Medical Leave Act Rights. DOL has recovered $30,442 in back wages for a former university auditor whose employer violated their rights to protected leave. Investigators with the department’s Wage and Hour Division found the University of Tennessee forced an auditor to resign after they requested to use protected leave for a qualifying health condition under the Family and Medical Leave Act. While the employee was on approved intermittent leave, the university told the employee they needed to resign or they would be fired. Read more here.
Retirement Plan AI Spurs Evolving Risks for Employer Sponsors, Bloomberg Government
The growing use of artificial intelligence tools in retirement investing is creating new pitfalls for employers that sponsor plans and the fiduciaries that manage those assets, requiring them to meet their legal duties while navigating the changing technological landscape. AI is increasingly being integrated into retirement benefits operations, including record-keeping, investment advice, and communication with workers who participate in the plans. Read more here (subscription required).
Viriginia Paid Family Leave Wins Final Approval With 2028 Start, Bloomberg Government
Virginia will launch a state-run paid family and medical leave program allowing workers to take off up to 12 weeks annually, after state lawmakers agreed with Gov. Abigail Spanberger’s (D) changes to the legislation. Read more here (subscription required).
House Appropriators Omit Civilian Federal Pay Raise from 2027 Spending Bill, Federal News Network
The prospects of a civilian federal pay raise next year are continuing to diminish, after House appropriators made no mention of a pay increase in their 2027 spending legislation. Though not yet final, the lack of a federal pay raise in a House committee bill increases the chances federal employees will miss out on a 2027 salary bump. Read more here.
Upcoming Presentations
SEMINAR: SCA Unlocked, May 12, 2026, Sarah L. Nash
General Services Administration (GSA) Blog: GSA Sharpens Focus on Small Business with New Office Designation
Moving forward, GSA’s Office of Small and Disadvantaged Business Utilization will operate under the name Office of Small Business (OSB) — a designation that better reflects our shift toward a more holistic, consultative approach to our support for America’s small businesses. The office’s statutory authorities under the Small Business Act remain unchanged. Read more here.
The Myth of the CMMC Easy Button: Why Shortcuts Usually Collapse Under Scrutiny From A Third-Party Assessor, Federal News Network
As CMMC requirements move into active Defense Department contracts, what was once a planning exercise is now a contractual requirement, putting pressure on defense contractors to demonstrate readiness on compressed timelines, all while juggling ongoing program delivery with resource constraints. Read more here.
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