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Upcoming Events: Register to attend PilieroMazza’s upcoming events here. Recent Thought Leadership: Check out PilieroMazza’s recent client alerts and blogs here. Podcasts: Listen to PilieroMazza’s podcasts GovCon Live! here, Clocking in with PilieroMazza here, and Ex Rel. Radio here. |
New Department of Defense Policy Memo Imposes Sweeping Restrictions on Consulting, Management, Advisory Services, and Contractor Utilization, PilieroMazza Blog, Isaias “Cy” Alba, IV, Kristine “Krissy” Crallé
The Department of Defense (DoD) has issued a significant policy memorandum “to promote fiscal responsibility, streamline operations, and maximize [DoD] readiness and lethality.” The May 27 Memo, Implementation of Executive Order 14222 – Department of Government Efficiency Cost Efficiency Initiative Memorandum, identifies four distinct policies aimed at in-sourcing expertise, reducing reliance on external support, and harnessing the talent of existing DoD experts. This latest reform is consistent with the DoD’s ongoing efforts to phase out and eliminate reliance on consulting service contracts. Read more here.
Market Research Slimmed Down: How the FAR Part 10 Overhaul Impacts Government Contractors, PilieroMazza Blog, Samuel S. Finnerty
The FAR Council’s “Revolutionary FAR Overhaul” has streamlined FAR Part 10, shifting from a prescriptive, statute-heavy approach to a leaner set of minimum requirements. While this promises faster procurements and greater agency flexibility, it also raises critical questions for small businesses and government contractors accustomed to predictable market research triggers. In this blog, we break down what you need to know about the new FAR Part 10, which GSA has already adopted via a class deviation, effective May 22, 2025. Read more here.
DBE Program in Peril: Recent Legal Challenges and What They Mean for Women- and Minority-Owned Contractors, PilieroMazza Client Alert, Jacqueline K. Unger, Antonio R. Franco
Recent legal challenges jeopardize the future of the Department of Transportation’s (DOT) Disadvantaged Business Enterprise (DBE) program, a long-standing initiative designed to support minority- and women-owned businesses in federally funded state and local transportation infrastructure projects. In litigation against the DOT filed in October 2023, two non-DBE firms challenged the constitutionality of the program’s use of race- and sex-based presumptions of social and economic disadvantage to determine DBE eligibility. In the latest setback for the program, on May 28, 2025, the DOT sided with the plaintiffs in filing a joint motion seeking to resolve the case by having the court issue a permanent injunction on the program’s use of the presumption, stipulating that the presumption is unconstitutional. This Client Alert explains the lawsuit challenging the DBE program, the parties’ recent joint filing, and key takeaways for construction firms and other contractors that interact with the DBE program. Read more here.
Washington Post Quotes Tony Franco: Trump Administration Upends $37 Billion Affirmative Action Program for Nearly 49,000 Government Contractors, PilieroMazza News, Antonio R. Franco
In an interview with Tony Franco, Managing Partner at PilieroMazza, a Washington-based law firm that represents government contractors, Mr. Franco said that he was “not surprised the administration would settle a case like this … because we know how they feel about diversity, equity and inclusion programs of all types. He added that, “this is one of those programs that is illustrative of the kind of programs that were set up by the federal government years ago in order to equal the playing field.”
According to the Washington Post, Mr. Franco and other government contracting experts said the settlement, if approved, leaves room for the program to continue in some fashion, allowing, for example, preferences to be based on economic disadvantage instead of race or gender. Visit this link to access PilieroMazza’s client alert on this topic. Read more here.
Federal Acquisition Regulation (FAR) Overhaul Adoption:
- Department of State (DOS) FAR Class Deviation for FAR Part 1 in Support of Executive Order (EO) on Restoring Common Sense to Federal Procurement. On May 22, DOS issued a Class Deviation fully implementing and incorporating the FAR Model Deviation for FAR Part 1. This Class Deviation is effective upon issuance and applies to all DOS procurements and contracting activities. Read more here.
- DOS FAR Class Deviation for FAR Part 34 in Support of EO on Restoring Common Sense to Federal Procurement. On May 22, DOS issued a Class Deviation fully implementing and incorporating the FAR Model Deviation for FAR Part 34. This Class Deviation is effective upon issuance and applies to all DOS procurements and contracting activities. Read more here.
- Securities and Exchange Commission (SEC) Class Deviation for FAR Part 1 in Support of Executive Order (EO) on Restoring Common Sense to Federal Procurement. On May 27, SEC issued a Class Deviation fully implementing and incorporating the FAR Model Deviation for FAR Part 1. This Class Deviation is effective immediately and applies to all SEC procurements. Read more here.
- Department of Commerce (DOC) FAR Class Deviation for FAR Part 1 in Support of EO on Restoring Common Sense to Federal Procurement. On May 22, DOC issued a Class Deviation fully implementing and incorporating the FAR Model Deviation for FAR Part 1. This Class Deviation is effective immediately and applies to all DOC procurements. Read more here.
- Consumer Product Safety Commission (CPSC) FAR Class Deviation for FAR Part 10 in Support of EO 14475, Restoring Common Sense to Federal Procurement. On May 27, CPSC issued a Class Deviation fully implementing and incorporating the FAR Model Deviation for FAR Part 10. This Class Deviation is effective immediately and applies to all CPSC procurements. Read more here.
- Millennium Challenge Corporation (MCC) Class Deviation to Implement FAR Revisions Parts 10 and 52 Issued on May 22, 2025. On May 23, MCC issued a Class Deviation fully implementing and incorporating the FAR Model Deviations for FAR Parts 10 and 52. This Class Deviation is effective May 22, 2025, for all solicitations and new contracts as of May 22, 2025, but it does not apply to contracts signed and executed on or before May 22, 2025. Read more here.
- SEC Class Deviation for FAR Part 34 in Support of EO on Restoring Common Sense to Federal Procurement. On May 27, SEC issued a Class Deviation fully implementing and incorporating the FAR Model Deviation for FAR Part 34. This Class Deviation is effective immediately and applies to all SEC procurements. Read more here.
- DOC FAR Class Deviation for FAR Part 34 in Support of EO on Restoring Common Sense in Federal Procurement. On May 22, DOC issued a Class Deviation, effective immediately, fully implementing and incorporating the FAR Model Deviation for FAR Part 34. Read more here.
Department of Defense (DOD) Memorandum: Executive Order (EO) 14271 – Ensuring Commercial, Cost-Effective Solutions in Federal Contracts – Implementation Guidance
On May 27, DOD issued a memorandum implementing the requirements of EO 14271 and providing the DOD’s standard implementation process for Review of Pending Actions and Oversight of Non-Commercial Procurements. Read more here.
Pentagon Heightens Scrutiny on IT, Management Consulting Contracts, NextGov/FCW
Defense Secretary Pete Hegseth’s newest directive for the department zeroes in on providers of “system IT integration, implementation, or advisory services.” The Defense Department is under a new edict to lower the number of IT consulting and management services contracts as part of a larger push to take on more of that work in-house. Read more here.
Pentagon Orders Civilian Employees to Submit Money-Saving Ideas, Government Executive
After this week, Defense Department civilians will no longer have to submit an email list of five things they accomplished over the previous week, according to an email from the Pentagon’s acting personnel chief, ending a requirement the Pentagon put in place back in March. Their last email must include one idea that will “improve the Department’s efficiency or root out waste,” according to the message from Jules Hurst, and shouldn’t include anything classified or sensitive. Read more here.
Upcoming Government Contract Presentations
CONFERENCE: Staying 8(a) Eligible: Navigating Compliance Amid Rising Scrutiny, June 9, 2025, Peter B. Ford
WEBINAR: Managing the Financial Impact of Tariffs on Your Government Contract, June 17, 2025, Jacqueline K. Unger, Ryan Boonstra
WEBINAR: Legal Strategies & Capture Planning, June 20, 2025, Isaias “Cy” Alba, IV
WEBINAR: Avoiding Common Teaming and Subcontracting Pitfalls, June 25, 2025, Jon Williams
WEBINAR: The Buy American Act and Trade Agreements Act: What Government Contractors Need to Know, June 26, 2025, Jacqueline K. Unger, Abigail “Abby” Finan
Industry Awaits Significant Disruption as GSA Works on Contract Takeovers, NextGov/FCW
No matter what your opinion is, government contractors and their agency counterparts should brace themselves for significant disruption as the General Services Administration moves to absorb nearly all responsibility for acquiring “common goods and services.” Contractors are watching for impacts to competition, market access, and innovation. Read more here.
GSA Has Been Given More of the Government’s Contracting Authority, NextGov/FCW
As Nextgov/FCW reports, the General Services Administration is likely to take over the two most important — and longstanding — GWACs outside the agency’s control: NASA SEWP and NIH CIOSP. This is a further expansion of the philosophy outlined in a Trump executive order directing agencies to centralize procurement at GSA. Read more here.
NATIVE AMERICAN LAW & TRIBAL ADVOCACY
Administrative Conference of the United States (ACUS) Notice: Federal Agency Collaboration with State, Local, Tribal, and Territorial Governments
On May 27, ACUS published a notice and request for comments on Federal agency approaches and processes for collaborating with State, local, Tribal, and territorial governments when administering Federal programs. Responses may inform an ongoing ACUS project, “Federal Agency Collaboration with State, Local, Tribal, and Territorial Governments,” which may inform and recommend best practices for agencies to use. The notice is available here. Comments close July 28.
Office of Personnel Management (OPM) Memoranda:
- Merit Hiring Plan. On May 29, OPM issued a memorandum implementing Executive Order (EO) 14170, Reforming the Federal Hiring Process and Restoring Merit to Government Service, which directed OPM to establish a plan for recruitment and hiring processes to be more efficient and based on merit, practical skill, and dedication to the U.S. Constitution. Read more here.
- Hiring and Talent Development for the Senior Executive Service. On May 29, OPM issued a memorandum providing its policy, guidance, and timelines regarding hiring and development of Senior Executive Service, as required by the EO, Restoring Accountability and Career Senior Executives. Read more here.
U.S. Department of Labor (DOL) News Release: DOL Launches Opinion Letter Program Across Five Agencies to Expand Compliance Assistance
On June 2, DOL announced the launch of its opinion letter program intended to expand DOL’s commitment to providing meaningful compliance assistance to help workers, employers, and other stakeholders understand how federal labor laws apply in specific workplace situations. Read more here.
Federal Job Seekers Will Be Quizzed on Trump’s Executive Orders, Bloomberg Government
The Trump administration is adding four essay questions to applications for civil service jobs, asking applicants about their favorite executive orders and their commitment to government efficiency. Read more here (subscription required).
Appeals Panel Leaves Layoff Injunction in Place as Trump’s RIF Plans Likely Head to Supreme Court, Government Executive
An appeals court has allowed a pause on all layoffs at most major federal agencies to remain in place, rejecting the Trump administration’s bid to block a lower court’s injunction and likely sending the matter to the Supreme Court for final adjudication. Read more here.
Labor Cancels Unemployment Modernization Grants for States, NextGov/FCW
The Labor Department is terminating grant funding it gave to states to modernize their unemployment systems after the jobless aid system struggled to respond to the economic turmoil caused by the pandemic. Read more here.
Five Workforce Bills for Federal Employees to Watch This Summer, Federal News Network
The proposed cuts to federal benefits that House lawmakers teed up as part of the GOP budget reconciliation bill are top of mind for many employees, but that’s not the only legislation on the table that may bring changes for federal employees. Read more here.
Most Major Agencies Are Now Indefinitely Barred from Issuing Mass Layoffs, Government Executive
The Trump administration is indefinitely barred from issuing or finalizing widespread layoffs at most major federal agencies after a judge issued a preliminary injunction finding the president likely acted outside his legal and constitutional powers. Read more here.
Upcoming Labor & Employment Presentations
PM WEBINARS: Multijurisdictional Employers, Part 2: 2025 State-by-State Updates on Non-Compete and Non-Solicitation Agreements, July 1, 2025, Sarah L. Nash, Zachary S. Stinson
TRAINING: Labor Rules & Regulations: Federal Market Compliance, June 25, 2025, Sarah L. Nash
Upcoming False Claims Act Presentations
PM WEBINARS: DOJ Uses FCA to Target DEI Policies and Antisemitism: The Impact on Government Contractors, July 10, 2025, Matthew E. Feinberg, Sarah L. Nash
Cybersecurity Compliance in the Crosshairs: Raytheon’s $8.4 Million FCA Settlement and What It Means for Defense Contractors, PilieroMazza Blog, Matt Feinberg, Jackie Unger, Nate Jahnigen
Government contractors regularly handle sensitive federal data, and cybersecurity compliance is no longer optional—it’s mandatory. A recent settlement between the Department of Justice (DOJ) and defense contractor Raytheon Company (Raytheon) highlights the critical importance of strict adherence to federal cybersecurity standards and the severe consequences of falling short. DOD contractors that neglect compliance or inaccurately represent their cybersecurity posture may find themselves facing costly False Claims Act (FCA) litigation. Read more here.
House-Passed Budget Bill Includes State AI Moratorium, Route Fifty
The House of Representatives passed its budget bill through the reconciliation process just before Memorial Day, with the 10-year block on states regulating or enforcing new laws on artificial intelligence intact. Its future remains uncertain in the Senate. Read more here.