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.

______________________________________________

GOVERNMENT CONTRACTS

A True Path to Making America Great: Supporting Small Businesses and the Rule of Two, PilieroMazza Client Alert, Isaias “Cy” Alba, IV
Recently, there has been a good deal of speculation about whether the so-called “Rule of Two” will continue to exist after the Federal Acquisition Regulation (FAR) overhaul that is currently ongoing. Specifically, whether FAR Part 19 will continue to have such a rule, given it is not expressly stated in the Small Business Act (the Act) (but it is certainly intimated that such a rule is the best way to ensure that the statutory small business goals are met). However, I believe that if we, as a nation, are truly looking to put America first, it is critical that the Rule of Two be included in any FAR Part 19 overhaul and that it be immortalized in the Act as some in Congress intend to do this year or next. Read more here.

How the Boards of Contract Appeals Work—And Why It Matters for Your Bottom Line, Part 3, PilieroMazza Blog, Lauren BrierJosie FarinelliKelly A. Kirchgasser
Generally, government contractors proceeding towards a Board of Contract Appeals (BCA) decision are wise to take the safe, traditional route. While it can be a long and winding road—engaging in pleadings, discovery, a hearing, and a decision—this process presents the least risk of getting lost. For risk-averse contractors whose priority is having their legal issues fully investigated, considered, and addressed by the BCAs, this is often the best strategy. However, in certain situations—e.g., when the parties urgently need the BCA’s contract interpretation to proceed with performance, when a contractor needs immediate access to claimed damages to meet its business obligations, or when the parties have a purely legal dispute, etc.—contractors may find shortcuts and backroads suit their travel plans much better. In this third installation of PilieroMazza’s BCA blog series, we discuss the typical timeframe for a decision before the BCAs, as well as considerations contractors will need to make to ensure their shortcut doesn’t become a dead end. Read more here.

Department of Defense (DOD) Defense Federal Acquisition Regulation Supplement (DFARS) Proposed Rule Withdrawals
On July 18, DOD withdrew two proposed rules: 8(a) Program, published on October 10, 2024; and Public Access to Results of Federally Funded Research, published on September 26, 2024. These withdrawals are made in response to the FAR Council’s new Revolutionary FAR Overhaul initiative.

Federal Acquisition Regulation (FAR) Model Deviation Text for FAR Parts 29 and 31
On July 17, the FAR Council released the model deviation text for FAR Part 29, Taxes, and FAR Part 31, Contract Cost Principles and Procedures. FAR Part 29’s deviation was revised to be more direct, active, and accessible, with the main objective being to rewrite the complex tax requirements in plain language. FAR Part 29’s deviation was revised to provide only the essential requirements for the pricing of contracts, subcontracts, and modifications whenever cost analysis is performed. The General Services Administration’s (GSA) memorandum and class deviation fully incorporating the same into all GSA procurements are available here: FAR Part 29; FAR Part 31. Informal feedback is due September 1, 2025.

House Passes Defense Funding Bill, Advancing Top GOP Priority, Bloomberg Government
House Republicans backed President Donald Trump’s national security priorities in a $831.5 billion annual funding bill for the Defense Department on Friday that would largely keep military spending flat. Read more here (subscription required).

Upcoming Government Contract Presentations

PM WEBINAR: The Rise of OTAs in Defense Contracting: Opportunities, Risks, and What Contractors Need to Know, July 30, 2025, Isaias “Cy” Alba, IVJosie Farinelli

PM WEBINAR: Joint Venture Eligibility: Refresher on Requirements for Government Contractors, August 13, 2025, Meghan F. Leemon

TRAINING: Navigating the FAR/DFARS: The Most Confusing and Little-Known Clauses, August 13, 2025, Eric Valle, Kristine “Krissy” Crallé 

PM WEBINAR: Key Insights for GSA Schedule Contracting, August 26, 2025, Jon WilliamsLauren Brier

PM WEBINAR: How the Boards of Contract Appeals Work—And Why It Matters for Your Bottom Line, September 9, 2025, Lauren BrierJosie Farinelli

TRAINING: Unlocking the Secrets of Debriefings, Government Evaluation of Proposals and Protests, September 11, 2025, Katherine B. BurrowsEric Valle

PM WEBINAR: The Buy American Act and Trade Agreements Act: What Government Contractors Need to Know, September 17, 2025, Jacqueline K. UngerAbigail “Abby” Finan

LABOR & EMPLOYMENT

Clocking in with PilieroMazza: OFCCP Targets Illegal DEI: What Contractors Need to Know, PilieroMazza Podcast, Sarah L. NashNichole D. Atallah. Click here to access the podcast.

Upcoming Labor & Employment Presentations

PM WEBINAR: Multijurisdictional Employers, Part 3: Best Practices for Paid Sick Leave and Family Leave, September 4, 2025, Nichole D. AtallahSara N. Strosser

CONFERENCE: Impact of the Trump Administration on Government Contracts, September 12, 2025, Nichole D. Atallah

CONSTRUCTION

Upcoming Construction Presentations

WEBINAR: How Do I Get Paid When They Stop Paying? Strategies for Construction Contractors, August 1, 2025, Jessica A. duHoffmannTracey L. Pruiett

FEDERAL ACQUISITION REGULATION (FAR) OVERHAUL ADOPTION

  • On June 18, the Department of Housing and Urban Development (HUD) adopted the model FAR deviation for FAR Part 10.
  • On July 2, the Social Security Administration adopted the model FAR Deviation for FAR Parts 6, 11, 18, 39, and 43.
  • On July 7, the Department of State (DOS) adopted the model FAR deviation for FAR Part 18.
  • On July 8, the Department of Homeland Security adopted the model FAR Deviation for FAR Part 6.
  • On July 10, the Merit Systems Protection Board (MSPB) adopted the model FAR Deviation for FAR Part 6.
  • On July 10, the Department of Justice adopted the model FAR deviation for FAR Parts 10, and the MSPB adopted the model FAR deviation for FAR Parts 11 and 18.
  • On July 11, HUD and the Department of Education (ED) adopted the model FAR Deviation for FAR Part 6, and the Department of Veterans Affairs adopted the model FAR deviation for FAR Part 11. ED incorporated the model deviation for FAR Part 6 into its ED Acquisition Regulation (EDAR). The National Aeronautics and Space Administration (NASA) adopted the model FAR deviation for FAR Part 18 and incorporated the same into its NASA FAR Supplement (NFS) Part 1818.
  • On July 14, HUD adopted the model FAR deviation for FAR Parts 11 and 18.
  • On July 15, the DOS adopted the model FAR deviation for FAR Part 11 and incorporated the same into its DOS Acquisition Regulation (DOSAR) and DOSAM.   
  • On July 16, the Department of Labor adopted the model FAR deviation for FAR Parts 11 and 18.
  • On July 18, NASA adopted the model FAR deviation for FAR Part 11 and incorporated the same into its NFS Part 1811.