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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Trump Signs Order Pressing Defense Firms to Cut Buybacks, Bloomberg Government
President Donald Trump signed an executive order pressing defense contractors to spend less on stock buybacks and dividends while boosting investment in infrastructure and weapons production, according to a person familiar with the matter. Read more here (subscription required).
Office of the Inspector General (OIG) Report: Government Accountability Office (GAO) OIG Fall 2025 Semiannual Report to Congress
On December 30, GAO OIG issued a report detailing its efforts to strengthen oversight, improve independence, and support accountability across GAO operations. OIG notes activities such as issuing its 2026–2030 Strategic Plan and conducting audits and evaluations. During the reporting period, the OIG closed 17 investigations, opened 13 new ones, and processed 58 substantive hotline complaints, while monitoring management challenges and undertaking audits on scheduling accuracy, cost recovery, and IT modernization. The report highlights ongoing initiatives to secure a budget floor to ensure independent funding, expand nonmonetary performance metrics, enhance workforce integrity, and sustain collaboration through peer reviews, employee training, committees, and records‑access processes. Read more here.
House Passes Treasury, State Spending Measure as Deadline Nears, Bloomberg Government
House lawmakers ticked another set of bills off their to-do list to fund the government long-term by the Jan. 30 deadline. The House passed the measure (H.R. 7006) to fund Financial Services and National Security-State programs through Sept. 30 by a vote of 341-79. The Senate is expected to take it up near the end of the month after its scheduled recess next week. The bill’s smooth sailing augurs well for Congress to get all government funding bills passed by Jan. 30, but there’s much more work to be done. The Senate still needs to vote on a set of spending bills passed last week (H.R. 6938), as well as this package, while four other bills have yet to be introduced. Read more here (subscription required).
Defense Contracts’ 9% Rise in FY25 Fueled New Government Record, Bloomberg Government
A new analysis of year-end procurement data by Bloomberg Government shows federal agencies renewed an upward spending trajectory in fiscal 2025, with 4.8% year-over-year growth in total unclassified contract obligations to a record topping $808 billion. Read more here (subscription required).
Bipartisan Bill Seeks to Create Joint DoD–VA Credentialing System, Federal News Network
A bipartisan group of lawmakers wants the Defense Department and the Department of Veterans Affairs to use a single credentialing and privileging system for medical providers, which would allow clinicians to move between DoD and VA facilities without having to go through months-long approval processes. Read more here.
Reckless Breaches of Contract Will Not Make America Great, The Hill
We have long been told that government should be run more like a business. Government, of course, is not literally a business: it has responsibilities to the nation as a whole rather than just some stockholders. Still, we all gain if sound management practices from the business world can allow the government to better serve the people. Read more here.
NDAA Scales Back Ambitious Acquisition Reforms, Offers Little on Workforce, Federal News Network
Lawmakers said the fiscal 2026 defense policy bill that became law earlier this month would deliver “the most significant acquisition reforms in a generation.” But some of the more sweeping proposals introduced in the House and Senate versions of the bill were ultimately scaled back or dropped entirely from the final version of the legislation. Read more here.
AI May Not Be the Federal Buzzword for 2026, Federal News Network
Let’s start with the good news: artificial intelligence may NOT be the buzzword for 2026. What will be the most talked-about federal IT and/or acquisition topic for this year remains up for debate. While AI will definitely be part of the conversation, at least some experts believe other topics will emerge over the next 12 months. These range from the Defense Department’s push for “speed to capability” to resilient innovation to workforce transformation. Read more here.
Upcoming Presentations
WEBINAR: From Partner to Powerhouse: Building High-Impact Teams in the OTA Ecosystem, January 20, 2026, Isaias “Cy” Alba, IV
CONFERENCE: Warfighting at Warp Speed: Why Defense Contractors Must Track the DOW’s Acquisition Overhaul, January 20, 2026, Josie Farinelli
PM WEBINAR: Warfighting at Warp Speed: Why Defense Contractors Must Track the DOW’s Acquisition Overhaul, January 28, 2026, Lauren Brier, Josie Farinelli
PM WEBINAR: PilieroMazza Annual Review: 2025 GovCon Year in Review, January 29, 2026, Jon Williams, Lauren Brier, Meghan F. Leemon, Eric Valle
WEBINAR: 2025 Small Business Regulatory Year in Review, February 4, 2026, Jon Williams
PM WEBINAR: DCAA’s Annual Update, February 24, 2026, Isaias “Cy” Alba, IV
Department of Labor (DOL) News Releases:
- DOL Awards $13.8M in Funding to Revitalize, Train Next Generation of America’s Shipbuilding Workforce. On January 8, DOL announced the award of nearly $14 million in funding to support the development of programs aimed at reinvigorating and rebuilding the U.S. maritime industry and workforce. DOL awarded $8 million to Delaware County Community College and $5.8 million to the Massachusetts Maritime Academy to advance the next generation of American shipbuilders through hands-on, cutting-edge training programs developed in conjunction with international partners. Read more here.
- DOL Recovers More Than $259M in Back Wages for Workers in 2025. On January 8, DOL announced it has recovered more than $259 million in back wages for nearly 177,000 employees nationwide – an average of $1,465 per worker – in fiscal year 2025. Read more here.
- DOL Issues 6 Opinion Letters Addressing Employee Classification, Bonuses, Overtime Exemptions, Family Medical Leave. On January 5, DOL announced that it issued six opinion letters regarding the application of federal labor standards under the Fair Labor Standards Act and Family and Medical Leave Act. The opinion letters provide official written interpretations that address questions and explain how laws apply to specific factual circumstances presented by individuals or organizations. Read more here.
Office of Personnel Management (OPM) Memoranda:
- Guide to Telework and Remote Work in the Federal Government. On December 31, OPM issued a memorandum revising the guidance requiring federal agencies to terminate remote work arrangements and return employees to in-person full-time. This memorandum provides agencies with a uniform framework for telework and remote work arrangements. Exemptions may only be granted for disability, qualifying medical conditions, or other compelling reasons. Read more here.
- Implementation of OPMʼs Project Management Position Description Templates and Skills-Based Hiring Guidance. On December 31, OPM issued a memorandum providing a template for position descriptions for project manager roles. The description templates prioritize temporary, outcome-driven work over ongoing program operations. Guidance includes standardized templates, guidance, FAQs, and tips for adaptation. Read more here.
Government Accountability Office (GAO) Report: Civilian Telework And Remote Work: DOD Should Evaluate Programs in Relation to Department Goals
On January 8, GAO released a report recommending that DOD (1) develop formal processes to ensure data on civilian employee eligibility for telework and remote work are accurate, timely, and complete; and (2) establish clear and specific requirements for evaluating the effects of telework and remote work in relation to the department’s goals. Read more here.
EEOC Experienced Security Incident Involving Contractor’s ‘Unauthorized’ Access, Email Says, Government Executive
The Equal Employment Opportunity Commission was impacted in an internal data security incident that occurred around a year ago and involved a contractor’s employees mishandling sensitive information in one of the agency’s systems, according to a notification email obtained by Nextgov/FCW. The agency at the center of the Trump administration’s efforts to overhaul U.S. anti-discrimination regulations in workplaces is reviewing the matter with law enforcement. Read more here.
Bipartisan Bill Advances Urging DOL to Spot Human Trafficking, Bloomberg Government
The US Labor Department would train staff to recognize signs of human trafficking and refer cases to law enforcement, under legislation advancing through the House. Read more here (subscription required).
Upcoming Presentations
CONFERENCE: 2026 Employment Law Rescue Guide for Contractors, January 28, 2026, Nichole D. Atallah
PM WEBINAR: You’re Hired! Restrictions on Hiring Former Government Employees for Government Contractors, February 3, 2026, Sara Ryan, Abigail “Abby” Finan
PM WEBINAR: PilieroMazza Annual Review: Workforce Updates for Multijurisdictional Employers—What to Watch in 2026, February 11, 2026, Nichole D. Atallah, Sarah L. Nash
Upcoming Presentations
TRAINING: Insights on the Regulations Pertaining to Novations and How It Impacts Company Value, February 11, 2026, Isaias “Cy” Alba, IV, Abigail “Abby” L. Baker
Top 10 Killer Construction Contract Clauses, Part 3: Are the Indemnification Provisions in Your Construction Contract Enforceable? PilieroMazza Blog, Jessica A. duHoffmann
Construction projects involve high risk. Multiple contractors and subcontractors working on a project site—often with heavy equipment and hazardous conditions—creates the potential for significant injuries, property damages, and delays. To allocate that risk, indemnification provisions are standard in construction contracts. Whether you are a project owner, general contractor, subcontractor, or supplier, chances are your contracts have indemnification provisions that require you, or the party with which you are contracting, to provide indemnification for and a duty to defend against claims and losses arising from any negligence, breach, or other wrongdoing on the project. These clauses are often very broadly written to push down risk to lower tiers requiring indemnification for any type of loss or claim, regardless of fault. In this blog, we cover how construction contractors can identify and manage contract indemnification provisions to better protect their business from unnecessary risk and liability. Read more here.
Government Accountability Office (GAO) Report: Federal Awards: Selected Programs Did Not Fully Include Identified Practices to Enhance Oversight and Fraud Prevention
On January 6, GAO released a report detailing its review of agencies’ oversight of federal awards to prevent fraud, waste, and abuse. This report examines (1) what requirements and leading practices agencies can use to prevent fraud, waste, and abuse of federal awards and (2) the extent to which selected programs had policies and procedures that included these to oversee federal awards to help address financial payment and fraud risks. Read more here.
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