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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. |
PilieroMazza Promotes Former Air Force Litigator Mark Rosenow to Partner, PilieroMazza News, Mark F. Rosenow
PilieroMazza is proud to announce the promotion of Mark Rosenow to Partner, effective July 1, 2025. “Mark’s promotion is a testament to his outstanding litigation skills and leadership,” said Todd Reinecker, Chair of the Firm’s Litigation & Dispute Resolution Group. “His ability to combine trial experience with sharp legal strategy makes him an indispensable asset to our clients and our practice. He exemplifies the commitment and excellence PilieroMazza values in our partners.” The Firm’s Managing Partner, Tony Franco, echoed Todd’s observations: “Mark has given us confidence that he shares our firm’s values, leading us to trust that Mark’s leadership and commitment to excellence and service will help us build on the firm’s hard-earned reputation.” Read more here.
DOD Releases Intellectual Property Guidebook: Key Insights for Defense Contractors, Part 1, PilieroMazza Blog, Isaias “Cy” Alba, IV, Jacqueline K. Unger, Joseph P. Loman, Daniel Figuenick, III, Abigail “Abby” Finan
On May 1, 2025, the Department of Defense (DOD) released its much-anticipated Intellectual Property (IP) Guidebook (Guidebook). The Guidebook is a must-read for defense contractors who are looking to protect their IP when doing business with DOD, and who want to better understand the ins-and-outs of IP and data rights in government contracts. We agree with DOD that this Guidebook will “aid the Department’s acquisition professionals in development, execution, and management of effective IP Strategies that support all functional areas’ requirements and objectives across program life cycle.” This blog is the first in a series where PilieroMazza breaks down some of the Guidebook’s fundamental concepts and provides key insights and practical advice for defense contractors.
New Developments for SBA’s HUBZone Program, PilieroMazza Blog, Jon Williams, Daniel Figuenick, III
The U.S. Small Business Administration’s (SBA) Historically Underutilized Business Zone (HUBZone) program underwent a major rule change in January 2025, as we wrote about here. In this blog, PilieroMazza examines new developments that clarify our understanding of the HUBZone rules and how the HUBZone Program is positioned to help the Trump Administration meet its objective to grow domestic small business manufacturing. Read more here.
Federal Acquisition Regulation (FAR) Model Deviation Text for FAR Part 6
On June 12, the FAR Council released the model deviation text for FAR Part 6, Competition Requirements. FAR Part 6 was revised to streamline Competition Requirements to strengthen clarity and focus, ensuring procedures that support full and open competition are easier to understand and apply. FAR Part 6 retains contracting officer’s discretion to set aside solicitations to allow only small business concerns to compete. The prescriptions around socioeconomic concerns have been removed. The General Services Administration’s (GSA) class deviation fully incorporating the same into all GSA procurements are available here. Informal feedback is due August 11, 2025.
Federal Acquisition Regulation (FAR) Overhaul Adoption:
- Department of Transportation (DOT) Memorandum: Class Deviation (CD) No. 2025-05 from the FAR for FAR Part 10 in Support of Executive Order (EO) 14275 on Restoring Common Sense to Federal Procurement. On June 12, DOT issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 10. This CD is effective immediately and applies to the Transportation Acquisition Regulation (TAR) Part 1201, all Operating Administrations, Office of the Secretary of Transportation, and the Office of the Inspector General. This CD does not apply to the Federal Aviation Administration. Read more here.
- National Aeronautics and Space Administration (NASA) Memorandum: Procurement Class Deviation (CD): CD from FAR Part 10 and NASA FAR Supplement (NFS) Parts 1810 to Implement the Revolutionary FAR Overhaul. On June 17, NASA issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 10. This CD is effective immediately and applies to NFS 1810 and new contract actions issued on or after the effective date. Read more here.
- Department of Education (ED) Memorandum: FAR CD for FAR Part 10 in Support of EO 14275 on Restoring Common Sense to Federal Procurement. On June 17, ED issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 10. This CD is effective immediately and applies to all ED acquisitions. The ED Acquisition Regulation (EDAR) does not cover FAR Part 10 and is not impacted by this CD. Read more here.
- Department of Labor (DOL) Memorandum: CD for FAR Part 10 in Support of EO, Restoring Common Sense to Federal Procurement. On June 20, DOL issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 10. This CD is effective immediately and applies to all DOL procurements. Read more here.
- Department of Energy (DOE)/National Nuclear Security Administration (NNSA) Memorandum: CD, Findings and Determination, FAR Part 34 – Major System Acquisition. On June 20, DOE and NNSA issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 34. This CD is effective immediately and applies to the Department of Energy Acquisition Regulation (DEAR) and all DOE and NNSA procurements. Read more here.
- Securities and Exchange Commission (SEC) Memoranda:
- CD for FAR Part 11 in Support of EO on Restoring Common Sense to Federal Procurement. On June 20, SEC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 11. This CD is effective immediately and applies to all SEC procurements. Read more here.
- CD for FAR Part 18 in Support of EO on Restoring Common Sense to Federal Procurement. On June 20, SEC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 18. This CD is effective immediately and applies to all SEC procurements. Read more here.
- CD for FAR Part 39 in Support of EO on Restoring Common Sense to Federal Procurement. On June 20, SEC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 39. This CD is effective immediately and applies to all SEC procurements. Read more here.
- CD for FAR Part 43 in Support of EO on Restoring Common Sense to Federal Procurement. On June 20, SEC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 43. This CD is effective immediately and applies to all SEC procurements. Read more here.
- Commodity Futures Trading Commission (CFTC) Memoranda:
- FAR CD for FAR Part 11 in Support of EO, Restoring Common Sense to Federal Procurement. On June 24, CFTC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 11. This CD is effective immediately and applies to all CFTC procurements. Read more here.
- FAR CD for FAR Part 18 in Support of EO, Restoring Common Sense to Federal Procurement. On June 24, CFTC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 18. This CD is effective immediately and applies to all CFTC procurements. Read more here.
- FAR CD for FAR Part 39 in Support of EO, Restoring Common Sense to Federal Procurement. On June 24, CFTC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 39. This CD is effective immediately and applies to all CFTC procurements. Read more here.
- FAR CD for FAR Part 43 in Support of EO, Restoring Common Sense to Federal Procurement. On June 24, CFTC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 43. This CD is effective immediately and applies to all CFTC procurements. Read more here.
Vance Breaks 50-50 Tie as Senate Passes GOP Megabill After Voting Around the Clock, The Hill
Vice President Vance cast the tie-breaking vote as Senate Republicans on Tuesday delivered a huge legislative victory for President Trump by passing his One Big, Beautiful Bill Act after hours of tense negotiations that lasted through the night. Read more here.
New DOD Memo Outlines Review Process for IT Consulting Contracts, Federal News Network
The Defense Department’s new memo expands on how contracts for IT consulting, management services, and advisory support will be reviewed, establishing a formal approval process in line with Defense Secretary Pete Hegseth’s recent directive. Read more here.
Third Quarter Weighs on Annual Federal Procurement Prospects, Bloomberg Government
Government contractors are entering the last fiscal quarter with an estimated $250 billion on the table following an underwhelming third quarter. Total procurement for fiscal 2025 is forecast to dip for the second consecutive year at an estimated $745.5 billion, according to Bloomberg Government analysis of data available through June 27. Read more here (subscription required).
Senate Overwhelmingly Passes Amendment Removing State AI Moratorium, NextGov/FCW
After attempting to negotiate a shorter moratorium timeframe, a bipartisan team of senators succeeded in striking the provision that would have prevented states from enforcing AI regulations from the Big Beautiful Bill. The controversial moratorium on state artificial intelligence regulation enforcement included in the pending reconciliation bill before Congress, which President Donald Trump has referred to as his “big, beautiful bill,” was struck from legislation early Tuesday morning, following extensive lawmaker and tech advocacy pushback. Read more here.
Lawmakers Demand Review of VA’s AI-Driven Contract Cuts, NextGov/FCW
Two senators on the panel overseeing the Department of Veterans Affairs are pressing the agency’s inspector general to probe VA’s mass contract cancellations and the role that artificial intelligence played in determining the agreements that would be terminated. Sens. Richard Blumenthal, D-Conn., and Angus King, I-Maine, said the use of AI to identify agency contracts for termination “adds an entire new level of unease connected to the decision-making, security, governance, and quality control of the entire process.” Read more here.
Upcoming Government Contract Presentations
WEBINAR: SBA’s 2025 Rule Updates to Small Business Programs, and Key Small Business Impacts, July 10, 2025, Isaias “Cy” Alba, IV
WEBINAR: GovCon 101: Small Business Programs, July 10, 2025, Meghan F. Leemon, Josie Farinelli
CONFERENCE: The Ins and Outs of the New Recertifications Rule for Government Contractors, July 24, 2025, Samuel S. Finnerty
CONFERENCE: Latest Developments at SBA’s Office of Hearings and Appeals, July 24, 2025, Meghan F. Leemon
PM WEBINAR: The Rise of OTAs in Defense Contracting: Opportunities, Risks, and What Contractors Need to Know, July 30, 2025 / 2:00 pm ET
TRAINING: Navigating the FAR/DFARS: The Most Confusing and Little-Known Clauses, August 13, 2025, Eric Valle, Kristine “Krissy” Crallé
New False Claims Act Threats: 5 Key Takeaways from DOJ’s Initiative Targeting DEI and Antisemitism, PilieroMazza Blog, Matthew E. Feinberg, Sarah L. Nash, Abigail “Abby” Finan
On May 19, 2025, the Department of Justice (DOJ) issued a memorandum launching a new enforcement program known as the Civil Rights Fraud Initiative (the Initiative). Furthering the Trump Administration’s direct targeting of diversity, equity, and inclusion ((DEI) policies and alleged antisemitism among corporations and institutions receiving government funds, the Initiative will utilize the False Claims Act (FCA) to “investigate and . . . pursue claims against any recipient of federal funds that knowingly violates federal civil rights laws.” As part of the Initiative, DOJ is “strongly encouraging” whistleblowers to file lawsuits asserting complaints of alleged civil rights violations. Given the potential stiff monetary penalties for FCA violations, government contractors, universities, and other entities receiving federal government funding face heightened risk. Government contractors and other entities doing business with the government must be aware of the increased scrutiny the government and whistleblowers are directing at DEI programs, review both internal and public-facing policies to ensure compliance, and enhance internal protocols to mitigate risk. Read more here.
Upcoming False Claims Act Presentations
PM WEBINAR: DOJ Uses FCA to Target DEI Policies and Antisemitism: The Impact on Government Contractors, July 10, 2025, Matthew E. Feinberg, Sarah L. Nash
Small Business Administration (SBA) News Release: SBA Administrator Loeffler Orders Full-Scale Audit of 8(a) Contracting Program
On June 27, SBA announced it has directed SBA’s Office of General Contracting and Business Development to launch an immediate and full-scale audit of the agency’s 8(a) Business Development Program after a U.S. Department of Justice (DOJ) investigation uncovered a years-long fraud and bribery scheme involving a former federal contracting officer and two 8(a) contractors. Read more here.
Multijurisdictional Employers, Part 2: 2025 State-by-State Updates on Non-Compete and Non-Solicitation Agreements, PilieroMazza Webinar Replay, Sarah L. Nash, Zachary S. Stinson
As the legal landscape around restrictive covenants continues to evolve, staying ahead of changes in non-compete and non-solicitation laws is critical for employers, their HR professionals, and in-house counsel. Don’t miss Part 2 in PilieroMazza’s “Multijurisdictional Employer” webinar series, where Sarah Nash and Zach Stinson offer a breakdown of the most recent legislative and judicial developments impacting the enforceability and drafting of non-compete and non-solicitation agreements across the U.S. Click here to access the webinar replay.
Department of Labor (DOL) Rules:
On July 1, DOL published a final rule, two direct final rules, and one proposed rule in the Federal Register.
- Direct Final Rule: Obsolete Grant and Contract Regulations. DOL published a direct final rule and request for comments regarding the removal of obsolete grant and contract regulations in DOL’s regulations. These grant and contract regulations were superseded by the Office of Management and Budget’s Guidance for Grants and Agreements, which the DOL adopted and was effective in 2014. The rule is available here. The direct final rule is effective August 30, 2025, unless significant adverse comments are received by July 31, 2025.
- Final Rule: Rescinding Unnecessary Notice and Comment Procedures. DOL published a final rule rescinding the Secretary’s policy to engage in notice and comment rulemaking, even where the Administrative Procedure Act (APA) does not require notice and comment rulemaking. The result of this final rule is that the DOL will generally follow the default requirements of the APA. The rule is available here. The final rule is effective July 31, 2025.
- Direct Final Rule: Rescission of Nondiscrimination and Equal-Opportunity Provisions of the Workforce Investment Act. DOL published a direct final rule and request for comments regarding rescinding its regulations implementing the Workforce Investment Act of 1998 (WIA), containing the nondiscrimination and equal-opportunity provisions. In 2014, Congress passed the Workforce Innovation and Opportunity Act (WIOA), repealing WIA and requiring the Secretary of Labor to transition any authority under WIA to the system created by WIOA. Therefore, this rule removes regulations for a program that is no longer operative. The rule is available here. The direct final rule is effective August 30, 2025, unless significant adverse comments are received July 31, 2025.
- Proposed Rule: Rescission of Coordinated Enforcement Regulations. DOL published a proposed rule and request for comments regarding the removal of the regulations for DOL procedures for the coordination of enforcement activities by the Wage and Hour Division, the Occupational Safety and Health Administration, and the Employment and Training Administration relating to migrant farmworkers. DOL proposes this removal because these regulations limit its discretion, impose unnecessary and duplicative internal procedures, and prevent the DOL and its agencies from coordinating in efficient, effective ways. The rule is available here. Comments close August 30, 2025.
DOL Wants to Hear How Federal Contractors Cut Affirmative Action, Bloomberg Government
The Labor Department’s contractor watchdog asked companies that do business with the government to provide information about their efforts to stop running their previously required affirmative action plans. Read more here (subscription required).
Trump’s Probationary Period Reforms Cemented in OPM Final Rule, Federal News Network
Agencies officially have more leeway to fire federal employees in their probationary period, according to a new final rule from the Office of Personnel Management. With OPM’s final rule, agencies can decide to fire feds in their probationary period based broadly on agency needs, interests, and “organizational goals.” Read more here.
All Provisions Targeting Federal Worker Benefits, Unions Stricken from Senate Reconciliation Package, Government Executive
The Senate parliamentarian previously ruled that most of the proposals aimed at cutting federal employees’ retirement benefits and civil service protections violated a rule to ensure reconciliation bills are budgetary in nature. Read more here.
Upcoming Labor & Employment Presentations
CONFERENCE: New Employment Issues in Government Contracting, July 24, 2025, Nichole D. Atallah, Sarah L. Nash
PM WEBINAR: Multijurisdictional Employers, Part 3: Best Practices for Paid Sick Leave and Family Leave, August 7, 2025, Nichole D. Atallah, Sara N. Strosser
LITIGATION & DISPUTE RESOLUTION / BUSINESS & TRANSACTIONS / CORPORATE & ORGANIZATIONAL GOVERNANCE
Managing Litigation Risk During the Business Lifecycle, Part 5: Fiduciary Duties, PilieroMazza Blog, Todd M. Reinecker, Abigail “Abby” L. Baker, Kaavya Ramesh, Kirby Rousseau, Akinyi Orinda
Litigation risk is an unavoidable aspect of running a business, but with thoughtful planning, exposure can be significantly reduced. From contractual disputes to employment disputes, potential legal challenges can arise at every stage of a company’s growth. Among these challenges, disputes involving fiduciary duties pose a particularly serious risk, potentially exposing both the business and its leaders to substantial liability and reputational harm. In this fifth installment of PilieroMazza’s blog series, “Managing Litigation Risk During the Business Lifecycle,” we explore fiduciary duties—what they are, how breaches occur, and how businesses can proactively limit exposure. Visit this link to access Parts 1-4 in this blog series. Read more here.
Upcoming Construction Presentations
WEBINAR: How Do I Get Paid When They Stop Paying? Strategies for Construction Contractors, August 1, 2025, Jessica A. duHoffmann, Tracey L. Pruiett
General Services Administration (GSA) Office of Inspector General (OIG) Alert Memorandum: Federal Acquisition Service (FAS) Is Expanding the Transactional Data Reporting (TDR) Rule Despite a Failed Pilot Program
The GSA OIG released an Alert Memorandum regarding the FSA’s expansion of the TDR rule, making it mandatory across the entire Multiple Award Schedule program despite persistent data quality issues, lack of data usage for pricing decisions, lack of price competition, and failure to support the OneGov Strategy. The full report is available here.
General Services Administration (GSA) Notice: Multiple Award Schedule (MAS) Refresh 27 Update
On June 18, GSA updated its GSA MAS Solicitation 47QSMD20R0001 – Refresh # 27 notice. The notice was updated to include, among other things, the Webinar Q&A slides and recording. The update notice is available here. It is also attached. The webinar recording is available here.
House Appropriators Soften CISA Cuts, Call for DHS ‘Contractor Cyber Readiness Pilot’, Government Executive
House appropriators have advanced a homeland security spending bill that endorses many of the Trump administration’s budget proposals, while rejecting steep cuts to cybersecurity and artificial intelligence personnel. The House Appropriations Committee also wants to save DHS’s AI Corps and prioritize funding for critical infrastructure cybersecurity. Read more here.