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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Baltimore Magazine Recognizes PilieroMazza’s Jessica duHoffmann and Todd Reinecker for Excellence in Construction Law and Business Litigation, PilieroMazza News, Jessica A. duHoffmann, Todd M. Reinecker
When commercial businesses and government contractors face complex construction challenges or high-stakes disputes, experience and strategy matter. PilieroMazza is proud to announce that Baltimore Magazine recognizes partners Jessica duHoffmann and Todd Reinecker among its Top Lawyers—highlighting the firm’s depth of talent and commitment to delivering results for business clients. Read more here.
January 2026: Partial Government Shutdown Imminent—Key Considerations for Federal Contractors, PilieroMazza Client Alert, Jacqueline K. Unger, Nichole D. Atallah, Lauren Brier, Adel Mansour
Last fall, the longest government shutdown in U.S. history—at 43 days—had lasting and widespread negative impacts across the country. As we have done in advance of prior looming shutdowns, PilieroMazza reminds government contractors of key considerations to aid them in preparing for and mitigating the potential impacts on their operations. Read more here.
Request for Comment: GSA Seeks Input on Value-Added Reseller Market, PilieroMazza Client Alert, Jon Williams, Isaias “Cy” Alba, IV, Daniel Figuenick, III
The U.S. General Services Administration (GSA) recently requested information to explore “potential improvements” to the acquisition of Information Technology (IT) hardware and software through Value Added Resellers (VARs), commonly known as ITVARs. Federal Acquisition Service Commissioner Josh Gruenbaum wants to “learn directly from Value Added Resellers about the value they add to the government within the supply chain.” This request coincides with the first phase of the GSA’s OneGov Strategy, which seeks to provide agencies with standardized terms and pricing for easier access to IT tools, and likely expanding to other commercial items and services in the future. Thus, this may be a model for what is to come across various industries, not only ITVARs. In this client alert, PilieroMazza highlights why it is important for VARs to have their voice heard by responding to GSA’s request. Read more here.
Warfighting at Warp Speed: Why Defense Contractors Must Track the DOW’s Acquisition Overhaul, PilieroMazza Webinar Replay, Lauren Brier, Josie Farinelli
In November 2025, the Department of War (DOW) released a game-changing memo: “Transforming the Warfighting Acquisition System to Accelerate Fielding of Capabilities.” This bold blueprint reimagines how defense capabilities are delivered—placing speed, agility, and results at the forefront. But with rapid transformation comes turbulence. While the newly branded Warfighting Acquisition System promises contract opportunities, it also introduces uncertainty. Don’t miss PilieroMazza’s Lauren Brier and Josie Farnielli as they address why defense contractors should stay informed and how understanding the DOW’s plans to fast-track contract delivery will be key to thriving in this evolving landscape. Click here to view the recorded session.
Small Business Administration (SBA) News Releases:
- SBA Releases 2025 Annual Report. On January 20, SBA announced the publication of its 2025 Annual Report. The report documents the SBA’s return to its statutory mission of strengthening small businesses and driving economic growth, and a reversal in course following the Biden Administration. Read more here.
- SBA Issues Clarifying Guidance That Race-Based Discrimination is Not Tolerated in the 8(a) Program. On January 22, SBA announced that it issued formal guidance to SBA program officials that race-based “discrimination” within the 8(a) Business Development Program is unconstitutional and unlawful. SBA does not consider any business owner to be socially disadvantaged – and therefore eligible to participate in the program – because they are a member of a minority group. SBA will not approve admissions to the program based solely on racial discrimination or provide guidance to applicants to write narratives in support of claims of racial discrimination. Read more here.
Government Accountability Office (GAO) Report: Defense Budget: Effects of Continuing Resolutions (CRs) on Selected Activities and Programs Critical to DOD’s National Security Mission
On January 21, GAO released a report detailing its review of operation and maintenance activities and acquisition programs regarding how DOD was impacted by CRs in meeting its critical national security mission since fiscal year 2022. GAO found that DOD acquisition programs reported experiencing delays, increased costs because of the delays, availability of resources and services, and uneven spending. Read more here.
House Hearings Highlight AI Divides, Route Fifty
Two separate hearings last week shed light on lingering issues over preempting state and local AI regulations and the role of Congress in finally forming a national standard. Read more here.
Consultants Hurt as Civilian Agencies Lower Annual Spending, Bloomberg Government
Most of the top federal consulting firms experienced a decline in their annual contracting dollars in fiscal 2025, as federal agencies were advised to reduce procurement spending. Total governmentwide contract obligations in the management advisory services market dipped by 19% to its lowest level in the last five fiscal years. That drop was a result of a year-over-year one-third decline to $26 billion in market spending with consultants by civilian agencies and a 1% decrease, to $24 billion, at the Defense Department. Read more here (subscription required).
Trump’s ‘Battleship’ Could Be Most Expensive US Warship in History, Defense One
The first Trump-class “battleship” ordered up by the White House could cost as much as $22 billion and could cut into the Navy’s plans for next-generation destroyers, Congressional researchers said Thursday. Read more here.
Upcoming Presentations
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
Matt Feinberg Comments on SBA’s Sweeping 8(a) Suspensions, PilieroMazza News, Matthew E. Feinberg
The Small Business Administration (SBA) confirmed it suspended more than 1,000 contractors this month from the 8(a) Business Development Program, a cornerstone of federal contracting for many small businesses and Native-owned enterprises. The agency said the action followed firms’ failure to submit required records during a program-wide audit. Read more here.
SBA Suspends 1,000 8(a) Firms for Not Submitting Data—Federal News Network Quotes PilieroMazza’s Meghan Leemon and Matt Feinberg, PilieroMazza News, Meghan F. Leemon, Matthew E. Feinberg
The Small Business Administration suspended more than 1,000 companies in the 8(a) program. SBA made the decision after it deemed those small businesses non-compliant with its financial data request from December. . . . Lawyers who represent small businesses say SBA issued the suspensions on Wednesday based on the fact that the 8(a) firms either failed to submit their responses on or before the January 19 deadline or submitted incomplete responses. Read more here.
SBA Issues Suspension Notices to 8(a) Firms Following Data Call, PilieroMazza Client Alert, Meghan F. Leemon, Matthew E. Feinberg
On December 5, 2025, the Small Business Administration (SBA) issued a program-wide data call (Data Call) to all 8(a) Business Development Program (8(a) Program) participants seeking three years of financial and contractual records. The Data Call was designed to identify fraud, waste, and abuse in the 8(a) Program. Further to that stated goal, following the response deadline of January 19, 2026, SBA swiftly moved to take adverse action against 8(a) firms it deems non-compliant with the Data Call obligations. 8(a) firms that received a Notice of Suspension or believe they may be affected should act quickly to address compliance issues and, if necessary, submit informal or formal appeals to protect their program participation. Read more here.
Approve First, Ask Questions Later: SBA Targets Planned Parenthood’s PPP Loans, PilieroMazza Blog, Isaias “Cy” Alba, IV, Daniel Figuenick, III
As of May 2024, the U.S. Small Business Administration (SBA) had flagged nearly 38,000 already-forgiven Paycheck Protection Program (PPP) loans that it suspected borrowers were ineligible for. The SBA has and will continue to exercise its authority to claw-back funds from borrowers who it believes were ineligible. This is highlighted by its latest target, Planned Parenthood Federation of America, Inc. (PPFA), who is now under the gun to respond to thirty-eight different requests for information regarding its affiliates’ PPP loan eligibility. In this blog, PilieroMazza highlights steps borrowers should take when they receive an SBA request for information regarding a PPP loan. Read more here.
8(a) Program Pushed Further to the Edge by DoD Audit, Federal News Network
The 8(a) small business contracting program is coming under the microscope of its biggest user. The Defense Department is joining a growing list of agencies auditing the use of sole-source contracts through the 8(a) program. Experts warn that the DoD’s decision to launch this new audit signals that this 40-year-old small business development program is teetering further on the edge. Read more here.
DOJ Plans Fraud Division Lacking Direct White House Supervision, Bloomberg Government
The Justice Department is carrying out the Trump administration’s fraud division initiative with existing personnel who’d be supervised by the deputy attorney general—a departure from the White House’s assertion that it would run the operation. Read more here (subscription required).
New Senate Bill Would Bar Administration Officials from Serving as an Inspector General, Government Executive
Senator Tammy Duckworth, D-Ill., on January 15 sponsored legislation that would prohibit the president from installing one of their administration officials as an agency inspector general. Read more here.
Contract Claims 101: REAs vs. Claims vs. Appeals, PilieroMazza Blog, Lauren Brier, Kelly A. Kirchgasser, Josie Farinelli, Abigail “Abby” Finan
In the coming months, PilieroMazza’s REAs, Claims, and Appeals Group will publish a series of blogs entitled “Contract Claims 101” to help educate businesses on the ins-and-outs of equitable adjustments, claims, and appeals in the federal contracting space. Contractors will learn the claims and appeals processes, tools to prevent disputes from spiraling into costly litigation, and tips to maximize recovery. In this first blog, we introduce federal contractors to the basics of a request for equitable adjustment (REA), claim, and appeal, as well as procedural options. Read more here.
INTELLECTUAL PROPERTY & DATA RIGHTS
DOD Releases Intellectual Property Guidebook: Key Insights for Defense Contractors, Part 2, PilieroMazza Blog, Isaias “Cy” Alba, IV, Jacqueline K. Unger, Daniel Figuenick, III, Abigail “Abby” Finan
When doing business with the Department of Defense (DOD), it is imperative that contractors protect their intellectual property (IP) and understand DOD’s data rights regime under the Defense Federal Acquisition Regulation Supplement (DFARS). Fortunately, the DOD released its Intellectual Property Guidebook (Guidebook) in May 2025, which gives contractors critical insight into how DOD handles IP and data rights in government contracts. This blog, the second in PilieroMazza’s series, takes a closer look at the Guidebook’s fundamental IP and data rights concepts, such as the standard data rights under the DFARS and how the funding source for the development of the IP affects data rights. Read more here.
Upcoming Presentations
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
General Services Administration (GSA) News Release: GSA Seeks Industry Ideas to Enhance Reseller Market Oversight and Value
On January 22, GSA announced that it issued a Request for Information to explore potential improvements to the federal procurement process, specifically concerning the acquisition of Information Technology hardware and software through Value Added Resellers. Read more here.
Department of Justice (DOJ) Press Release: False Claims Act (FCA) Settlements and Judgments Exceed $6.8B in Fiscal Year 2025
Settlements and judgments under the False Claims Act exceeded $6.8 billion in the fiscal year ending September 30, 2025, Deputy Attorney General Todd Blanche and Assistant Attorney General Brett A. Shumate, head of the Justice Department’s Civil Division, announced today. That amount is the highest in a single year in the history of the False Claims Act. This year, whistleblowers filed 1,297 qui tam lawsuits, the highest number in a single year, and the government opened 401 investigations, including matters announced as Administration policy objectives. Settlements and judgments since 1986, when Congress substantially strengthened the civil False Claims Act, now total more than $85 billion. Read more here.
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