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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Contract Claims 101: Claim Sponsorship, Part 7, PilieroMazza Blog, Lauren Brier, Adel Mansour
Claim sponsorship is one of the most important and frequently overlooked aspects of federal subcontracting. Because subcontractors generally lack privity of contract with the Government, their ability to pursue recovery for government-caused impacts often depends entirely on the prime contractor’s ability and willingness to sponsor a Contract Disputes Act (CDA) claim on the subcontractor’s behalf. As a result, the subcontract’s claim and dispute provisions can significantly affect whether a subcontractor can obtain meaningful relief and whether a prime contractor can effectively prosecute the claim. This blog discusses several key considerations that can help both prime contractors and subcontractors preserve, sponsor, and successfully pursue CDA claims. Read more here.
Executive Order: Securing America’s Defense Supply Chains and Ensuring Domestic Acquisition of Critical Materials
On July 20, the President issued an Executive Order (EO) aimed at ensuring the statutory requirements of 10 U.S.C. 4872 are strictly observed and result in resilient domestic and allied supply chains. Starting in 2027, the EO restricts waivers under 10 U.S.C. 4872(c)(1) and (e) unless the contractor submits a formal mitigation plan meeting certain criteria. The EO requires DOD to develop policy and implementation guidance to require all prime contractors and subcontractors at any tier to map and illuminate critical supply chains for all DOD acquisitions that support, implicate, or relate to United States national security within 180 days. Within 180 days, DOD shall initiate regulatory action to: (i) identify all existing DOD acquisitions that support, implicate, or relate to United States national security; and (ii) require contractors who, in delivering the identified acquisitions, rely on supply chains that include material or components supplied by an unreliable foreign supplier, to, as soon as possible, consistent with law, safety, mission requirements, and existing contract requirements, qualify and utilize an alternative source for the material or components supplied by the unreliable foreign supplier, except in cases where no such alternative source is available. Read more here.
Department of Defense (DOD) Final Rule: Nondiscrimination in Federally Assisted Programs of the House Narrowly Passes Massive Annual Defense Policy Bill, The Hill
House lawmakers on Wednesday narrowly passed a nearly $1.15 trillion annual defense policy bill, advancing the measure amid increasing tension over military spending and the war in Iran. The tally was 216-212, with six Democrats voting for the bill and seven Republicans voting against it. Read more here.
Dems Push Back Against SBA’s Plan to Overhaul 8(a) Eligibility Determinations, Federal News Network
Two Democrats on the Senate Small Business and Entrepreneurship Committee raised objections this week to a proposed Trump administration rule that would make significant revisions to the federal government’s 8(a) contracting program, including by formally removing the presumption that members of socially and economically disadvantaged racial and ethnic groups are eligible for the program. Read more here.
House Democrats Not Supportive Of ‘Bad’ Continuing Resolution, The Hill
Multiple House Democrats emerged from their caucus’s weekly meeting on Tuesday without anything positive to say about the latest continuing resolution (CR) House GOP leaders are racing to pass this week. Read more here.
Presidential Proclamation: Further Strengthening Actions Taken to Adjust Imports of Aluminum Into the United States
On July 20, the President issued a proclamation instructing the Secretary of Commerce to establish a program to incentivize new investment in U.S. production facilities to produce primary aluminum. Read more here.
As the U.S. Ramps Up Infrastructure Investment, Imported Cement Raises National Security Concerns, Federal News Network
Supply-chain discussions usually focus on advanced technologies. A retired brigadier general of the Air Force says policymakers should pay more attention to a far more basic input: cement. He argues that growing reliance on imports could create risks for military and critical infrastructure projects. Read more here.
Small Business Administration (SBA):
- News Release: SBA Announces $9 Million in Grant Funding for the Supply Chain Acceleration and Logistics Enablement (SCALE) Program: On July 23, SBA announced it is seeking proposals for a new funding competition as part of the SCALE Program, which will award 20 grants of up to $500,000 each over a two-year period of performance. The program, which will provide a total of $9 million in funding, is designed to help small businesses address supply chain constraints, increase production, and expand participation in strategically important supply chains. The deadline for proposal submissions is August 7, 2026, at 4:00 p.m. ET. Read more here.
- News Release: SBA Announces $6 Million Competition for Women’s Business Center Modernization: On July 21, SBA announced a national competition for $6 million in grant funding as part of a new Women’s Business Center (WBC) Modernization Initiative. The competition will be funded by statutorily obligated funds and is limited to applicants in states and territories where existing WBC funding has not kept pace with the number of women entrepreneurs: Florida, Louisiana, Pennsylvania, Tennessee, Texas, the U.S. Virgin Islands, West Virginia, and Wyoming. The deadline for proposal submissions is August 10, 2026, at 11:59 p.m. ET. Read more here.
- Notice: Small Business Investment Company (SBIC) Program: SBA Model Form of Agreement for Limited Partnership SBICs: On July 21, SBA issued a notice and request for comments where it intends to update the SBA Model Form of Limited Partnership Agreement (the “Model”) to more closely align with customary provisions generally outlined in private funds, while maintaining those regulatory and policy provisions within the Model that are necessary to minimize the risk of loss in the SBIC program and ensure consistency with SBA’s updated regulations and policies. The notice is available here and comments close September 21.
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
Employee Organizing 101: What Employers Need to Know Before, During, and After Employees Organize, PilieroMazza Webinar Replay, Sarah L. Nash, Georgianne “Georgi” Kokenis
Join PilieroMazza’s Labor & Employment Group for this introductory webinar, the first in a 3-part series, which provides employers with a clear, practical overview of the legal landscape surrounding employee organizing efforts. Participants will learn what constitutes protected activity, how to respond lawfully during an organizing campaign, and what obligations arise if employees choose union representation. This webinar walks through each stage—before, during, and after organizing—highlighting common pitfalls, compliance requirements, and strategies for maintaining positive employee relations while reducing legal risk. Click here to view the recorded session.
OPM Shrinks Its Workforce By A Third, Seeks Further Staffing Cuts, Government Executive
The agency is giving employees in its healthcare and insurance division another shot at opting into the deferred resignation program. The federal government’s human resources office shed more than a third of its total workforce so far under the second Trump administration and is seeking further staffing cuts through another round of voluntary separation incentives. The Office of Personnel Management shrank its total headcount by 35% between December 2024 and March 2026, according to a report from the Government Accountability Office. Read more here.
States Seek Win Over Trump Admin In DEI Contracts Dispute, Law360
Nineteen states and the District of Columbia are urging a Maryland federal judge to vacate federal agencies’ implementation of President Donald Trump’s executive order requiring government contractors to agree that they won’t engage in “racially discriminatory” diversity, equity and inclusion activities. Read more here (subscription required).
WEBINAR: Federal Contractors, DEI, and Employment: Executive Order Defining Illegal Actions; New Obligations; Compliance Issues, August 5, 2026, Sarah L. Nash
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
WEBINAR: Mergers & Acquisitions in Government Contracting: Novations and Recertification, August 11, 2026, Samuel S. Finnerty, Daniel Figuenick, III
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
DoD Plans CMMC Listening Sessions As Questions Swirl Around Review, Federal News Network
The Pentagon wants to move quickly with its review of the Cybersecurity Maturity Model Certification (CMMC) program, but plenty of questions swirl around what defense officials can do differently this time to balance compliance concerns for small businesses with the need to enforce cybersecurity requirements. The CMMC review team met for the first time on Thursday, July 16, Defense Department Chief Information Officer Kirsten Davies told reporters that same day following a tour of the factory floor at Kform, a small defense manufacturer based in Sterling, Va. Read more here.
DOL News Release: Federal Investigators Cite Florida Roofing Contractor for Willfully, Repeatedly Ignoring Fall Protection Standards, Propose $349K in Fines
DOL has cited a Florida roofing company for willfully putting workers at risk of falling at residential construction sites. Investigators with the department’s Occupational Safety and Health Administration (OSHA) found that on Jan. 21, 2026, Orchids Builders LLC exposed workers to a 10-foot fall hazard when it failed to provide them with fall protection while they installed sheathing on a sloped roof at a Rockledge worksite. On March 10, 2026, OSHA investigators found the employer exposed a worker to a 9-foot fall hazard while installing metal hurricane clips at another Rockledge worksite. Read more here.
General Services Administration (GSA) Wants Other Agencies to Borrow What’s Working on Tech, Government Executive
After testing successful approaches internally, the agency is inviting federal employees across government to see how they can apply them in their own organizations. As GSA closes in on achieving its 2026 moonshot goal to save and automate 1 million hours of work for its employees, the agency will showcase and share those internal efforts — and a host of other proven tech efforts — with a governmentwide audience on July 30. Read more here.
Government Accountability Office (GAO):
- Report: National Transportation Safety Board (NTSB): Use of Competitive and Noncompetitive Contract Awards to Acquire Products and Services (GAO-26-108506): On July 21, GAO released a report in which it describes NTSB’s policies and procedures for competitively and noncompetitively awarded contracts and provides information on NTSB’s obligations on awarded contracts for fiscal year 2020 through fiscal year 2024. GAO also reviewed statutes, regulations, an executive order, and guidance documents governing NTSB’s contracting activities and interviewed NTSB officials about (1) contracting policies and procedures and (2) the reasons for obligation changes over time. Read more here.
- Project News Release: House Passes Strong Whistleblower Protections for Government Contractors: On July 20, the Government Accountability Project announced that the U.S. House of Representatives voted unanimously to pass the Expanding Whistleblower Protections for Contractors Act H.R.5578—legislation introduced by Representatives James Comer (R-KY) and Robert Garcia (D-CA). The bill also passed unanimously in the Senate for analogous legislation, S.4631, co-sponsored by Senators Gary Peters (D-MI), Rand Paul (R-KY), and Charles Grassley (R-IA). Differences between the two chambers about the scope of protection must be resolved, as the House bill does not cover Intelligence Community contractors. Read more here.
General Services Administration (GSA) Office of Inspector General (OIG) Report A230065: Implementation Review of Corrective Action Plan: FAS’s Office of Assisted Acquisition Services Should Improve Its Oversight and Administration of Classified Contracts
On July 20, GSA OIG released an implementation review of the management actions taken in response to the recommendations contained in its September 16, 2024, audit report, FAS’s Office of Assisted Acquisition Services Should Improve Its Oversight and Administration of Classified Contracts, Report Number A230065/Q/3/P24001. Read more here.
LITIGATION & DISPUTE RESOLUTION
Artificial Intelligence or Artificial Interference?: How AI is Reshaping Litigation for Better and Worse, Part II, PilieroMazza Blog, Matthew E. Feinberg, Adel Mansour
In the first installment of our blog series, Artificial Intelligence or Artificial Interference?: How AI is Reshaping Litigation for Better and Worse, we wrote about how artificial intelligence (AI) is beginning to have an impact on litigation and various pitfalls created by reliance on AI in the legal context. Late last year, a noteworthy case brought those concerns to fruition after two plaintiffs introduced AI-generated and materially altered exhibits as “evidence.” To be sure, artificial intelligence has its benefits, but, as Mendones v. Cushman and Wakefield, Inc. shows, AI presents significant risks, and attorneys and litigants alike must be cognizant of the impact AI is having throughout the litigation process. Read more here.
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