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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SBA Finalizes Rule Regarding Social Disadvantage Requirements for Individually-Owned 8(a) Applicants PilieroMazza Client Alert, Meghan Leemon
On August 11, just shy of 30 days after comments on the proposed rule closed, SBA issued a final rule entitled “Reforms to 13 CFR 124.103 to remove SBA’s 8(a) Program’s rebuttable presumption of social disadvantage for individually owned firms only. Reforms do not impact entity-owned firms.” This client alert covers key aspects of the final rule and how it will impact your pending or future 8(a) application. Notably, this final rule does not impact current individually-owned participants in the U.S. Small Business Administration’s (SBA) 8(a) business development program (8(a) program) or entity-owned firms. The final rule will take effect on September 10, 2026. Read more here.
The LOI Problem: How the Present Effect Rule Creates Affiliation Risk Investors and PE Buyers Aren’t Pricing In – The GovCon M&A Playbook, Part 2, PilieroMazza Blog, Sam Finnerty
Private equity investors and strategic acquirers pursuing small business government contractors have largely absorbed one lesson from SBA’s 2025 recertification reforms. If a target has outstanding proposals for set-aside work, timing the close matters. Under SBA’s 180-day recertification rule, closing a transaction within 180 days of proposal submission can render a target ineligible for award if it cannot recertify as small. Close after day 180, and the target may remain eligible, but only for certain contracts. Single award set-aside contracts may still be within reach. Multiple award contracts generally are not. But the 180-day rule is only part of the analysis and treating it as the complete answer to the regulatory risk of acquiring a small business target during an active procurement may leave a significant gap unaddressed. The 180-day rule addresses recertification. It does not eliminate SBA’s affiliation rules. And conflating those two regimes could cost you the award. Read more here.
Army’s social media exit could hurt small contractors, Federal News Network
The Army’s forcewide consolidation of social media accounts has spurred concerns that key portions of the service’s industrial base could be left in the dark even as leaders encourage new entrants and innovation. Those worries flared earlier this year when the Army’s Office of Small Business Programs announced it would stop posting on LinkedIn, where it has amassed more than 25,000 followers. Some viewed the decision as a slap in the face to nontraditional contractors, suggesting they aren’t important enough to speak to directly, one former defense industrial base official said. Read more here.
GAO Protest of Intelligence Consulting Enterprise Solutions, Inc. (ICES)
On August 11, GAO sustained a pre-award bid protest of ICES under an RFP issued by the Department of the Army for a variety of professional services. GAO found that the solicitation’s prohibition on small business offerors forming teaming arrangements violates applicable small business requirements where the prohibition is inconsistent with both the purpose and plain language of the Small Business Act. The full decision is available here.
Lawsuit over Army’s use of AI in contract award could increase transparency around proposal evaluations, Federal News Network
A lawsuit alleging that the Army misused artificial intelligence in bid evaluation before awarding a $450 million contract could shape how federal agencies document and disclose AI’s role in procurement decisions. TRAX International Corporation is asking the U.S. Court of Federal Claims to order the Army to reevaluate the proposals submitted for the White Sands Missile Range mission support services and make a new award decision, arguing the technical evaluation was distorted by AI hallucinations that weakened TRAX’s bid. The lawsuit comes after GAO denied TRAX’s bid protest challenging the Army’s contract award. Read more here.
Pentagon pushing defense contractors to speed up weapons production, The Hill
The Pentagon is pushing defense contractors to speed up their production and delivery of weapons amid concerns about the U.S. military’s dwindling munition stockpiles, which have deepened since the start of the war with Iran. Read more here.
CMMC Pause Is a Moment for GovCon Leaders to Prioritize Readiness, GovConWire
Few cybersecurity initiatives have generated as much discussion across the government contracting community as the Cybersecurity Maturity Model Certification, or CMMC, which is why the July 2026 announcement from the Department of War suspending Phase 2 implementation caught so many organizations by surprise. After years of preparing for assessments, strengthening internal controls and investing significant time and resources into compliance, many contractors are now asking the same question: What does this mean for us now? Read more here.
Department of Defense (DoD) New Release: Department of War Launches the ‘Golden Dome for America Hub’ To Accelerate Industry Engagement, Revolutionize Homeland Missile Defense Partnerships
At the annual Space and Missile Defense Symposium yesterday, Gen. Mike Guetlein, Director of Golden Dome for America, announced the official launch of the “Golden Dome for America Ecosystem Hub” (the Hub), a groundbreaking digital platform designed to streamline collaboration between the Department of War (DoW) and the commercial technology sector. Accessible immediately at hub.goldendome.mil, the Hub represents a fundamental shift in how the United States builds its next-generation, multi-layered homeland missile defense shield. By removing legacy organizational barriers, the Hub serves as a unified entry point for traditional defense contractors, commercial tech companies, venture capitalists, academic institutions, research laboratories, and nontraditional entrepreneurs to deliver innovative capabilities at the speed of the market. Read more here.
Pentagon wants to spend millions on Palantir with few details, Federal News Network
The Pentagon wants to steer hundreds of millions of dollars to Palantir — with the prospect of more in the coming years — without specifying how the money will be used, according to a draft Defense Department memo obtained by Federal News Network. Deputy Defense Secretary Steve Feinberg on Aug. 4 instructed the Pentagon’s acquisition boss and comptroller to spend up to $244 million on Palantir’s services until the end of March 2027. The memo also tells the armed forces to find ways to fund the data analytics giant’s work as needed from April 2027 to December 2028. Read more here.
How Congress is reshaping the administration’s FY27 defense budget, Government Executive
The start of the 2027 fiscal year is less than two months away, and in typical fashion, the annual defense budget is in limbo. Three out of Congress’ four defense committees have released markups that adhere to the Trump administration’s $1.1 trillion topline request. None has addressed the White House’s proposal to spend another $350 billion through the unusual use of reconciliation funding, though discussions are underway for a smaller reconciliation package that could include money sought in a supplemental request for operations in Iran and other priorities. Read more here.
CONFERENCE: Mission Critical: Compliance and Preparing Contractors for SBA’s Latest Rules, August 18, 2026, Meghan F. Leemon
CONFERENCE: Work Stoppage: Maximize Recovery from Delays, Terminations in Federal Contracting, August 18, 2026, Lauren Brier
CONFERENCE: Warfighting at Warp Speed: Why Defense Contractors Must Track the DOW’s Acquisition Overhaul, August 19, 2026, Lauren Brier
TRAINING: Past Performance: How to Use Yours, Benefit from Others’, and Defend It from Attacks, August 26, 2026, Josie Farinelli, Abigail “Abby” Finan
Judge orders VA again to maintain collective bargaining with AFGE, Federal News Network
The Department of Veterans Affairs has been ordered to reinstate its collective bargaining agreement with the American Federation of Government Employees, after VA officials made a third attempt to terminate the union contract. Read more here.
WEBINAR: GovCon 101: Service Contract Act, August 24, 2026, Nichole D. Atallah
PM WEBINAR: AI, Privacy, and Employees: Understanding Legal Risks and Liabilities for Employers, August 26, 2026, Nichole D. Atallah, Corey Bohn
CONFERENCE: Buying or Selling: Keys to Successful GovCon M&A Transactions, August 18, 2026, Abigail “Abby” L. Baker, Kristen Centre, Meghan F. Leemon
PM WEBINAR: Buying and Selling a Business: M&A Processes and Procedures, August 27, 2026, Kristen Centre
VA’s cloud security memo more mythbuster than new policy, Federal News Network
The VA’s recent memo on cloud security isn’t breaking new ground. It’s not even changing policy. The best comparison for the memo from Zack Schwartz, VA’s principal deputy chief information officer, reminding VA contracting officers and program managers that vendors do not have to have their FedRAMP certification before responding to or submitting proposals for solicitations or requests for information is it’s mythbusting. Read more here.
Senate Democrats unveil cybersecurity bill after attacks on water infrastructure, The Hill
Democratic Sens. Adam Schiff (Calif.) and Amy Klobuchar (Minn.) unveiled a new cybersecurity bill dubbed the Water Cyber Shield Act on Monday in an effort to prevent attacks on water infrastructure. Read more here.
LITIGATION & DISPUTE RESOLUTION
Department of State (DOS) Final Rule: Implementation of the Administrative False Claims Act
On August 10, DOS published a final rule establishing updated, procedural regulations to implement the Administrative False Claims Act. The rule is available here and is effective as of August 10.
GSA Activity Feed Announcement, MAS-TDR User Guide Now Available
On August 3, GSA announced that it published the first edition of the MAS-TDR User Guide. The document provides MAS-TDR contractors with a comprehensive resource for navigating the MAS-TDR program and fulfilling reporting requirements across several different reporting scenarios. The guide is available here. Read more here.
Government Accountability Office (GAO) Report GAO-26-108991: Priority Open Recommendations: Office of Management and Budget (OMB)
On August 11, GAO released a report detailing the priority open recommendations for the OMB. In August 2024, GAO identified 37 priority recommendations for OMB. Since then, OMB has implemented 11 of those recommendations. In August 2026, GAO identified an additional seven priority recommendations, removed the priority designation from five, and closed eight others as no longer valid, bringing the total number to 20. GAO highlights the following three areas that warrant timely and focused attention: combatting federal fraud, reducing improper payments, and fully developing a federal program inventory. Read more here.
Government Accountability Office (GAO) Report: Department of Government Efficiency (DOGE) Wall of Receipts: More Transparency Needed on How Savings Are Derived from Contract, Grant, and Lease Terminations (GAO-26-108615)
On August 6, GAO released a report recommending that DOGE’s “Wall of Receipts” prominently display its data limitations. The President established DOGE to transform federal spending. DOGE instructed agencies to review federal contracts, grants, and real estate leases to see if they could be terminated or modified. DOGE posted its claimed savings from this effort on a webpage known as the “Wall of Receipts,” but some savings estimates are incorrect or lack supporting evidence across contracts, grants, and leases. For example, 108 leases it reported that it cut were already being phased out when DOGE was established. The full report is available here.
DOGE took credit for savings that never happened, watchdog finds, Government Executive
The Trump administration should prominently display data quality issues and limitations on DOGE’s website listing estimated savings, GAO recommended in a new report, finding the public tally heralding billions of dollars in estimated savings was rife with errors. Read more here.
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