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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GOVERNMENT CONTRACTS / LABOR & EMPLOYMENT / REAs, CLAIMS, AND APPEALS
Contracting Through the Long Haul: Maximizing Recovery During a Protracted Government Shutdown, PilieroMazza Client Alert, Sarah L. Nash, Lauren Brier, Abigail “Abby” Finan, Josie Farinelli
As the federal government shutdown continues, contractors are left to grapple with growing uncertainty regarding whether certain costs are recoverable or whether certain work can be performed. Previous client alerts emphasized that maintaining open and consistent lines of communication with your contracting officers (CO) is critical. Although some COs may be furloughed and unavailable, it is imperative to establish a record of your decisions, and why you believe those decisions to be reasonable under the circumstances. This client alert: (1) provides actionable advice for contractors who received a stop-work order and need to ensure compliance with contractual requirements—such as the ability to restart work as soon as the shutdown ends—while also maximizing recovery of standby costs and (2) helps contractors navigate scenarios in which no stop-work order was issued. For more comprehensive information on considerations for government contractors during a shutdown, please read our client alert “September 2025: Reducing the Negative Impacts of a Government Shutdown for Federal Contractors.” Read more here.
Department of War (DOW): Guidance for Continuation of Operations During a Lapse in Appropriations – Oct. 2025
On October 16, DOW released a document providing guidance for identifying missions and functions that may continue in the absence of available appropriations. Read more here.
Civilian Pool, Contract Spending Drops in FY25: BGOV Contracting, Bloomberg Government
The White House budget office vowed to continue laying off government agency workers but pay military members and federal law enforcement as the US shutdown entered its 14th day with no resolution in sight. Read more here (subscription required).
Why This Shutdown Lacks a Sense of Urgency: Congress Tracker, Bloomberg Government
Nothing says “urgency” like a four-day weekend and canceled votes. But that’s where Congress stands as the federal government rolls into the third workweek of a shutdown that no one seems in any rush to end. Usually, standoffs like this one are described as a crisis. But repeated showdowns and deadline-driven governance have seemingly made Congress accustomed to what was once considered catastrophic. Read more here (subscription required).
BGOV Bill Analysis: S. 2572, Fiscal 2026 Defense Funding, Bloomberg Government
The Defense Department would receive $851.9 billion in net discretionary appropriations for fiscal 2026 under S. 2572. The net total would be $21.7 billion more than the Trump Administration’s request and $20.4 billion more than base fiscal 2025 funding levels, according to the Senate Appropriations Committee’s report on the measure. It would provide a 5% increase for military personnel compared with fiscal 2025, 4% more for operation and maintenance, and 2% more for procurement, while slightly reducing funding for military research, development, and testing. Read more here (subscription required).
A New DFARS Rule Could Block Defense Contracts for Firms with Foreign Consulting Ties, Federal News Network
The Defense Department is tightening restrictions on who can win consulting contracts. A new DFARS amendment bars awards to firms that also advise certain foreign governments — unless they clear a high bar for conflict mitigation. Read more here.
Bipartisan House Bill Seeks to Equip Small Businesses with AI, NextGov/FCW
A new House bill will mandate that the federal government help small businesses across the U.S. adopt artificial intelligence solutions that benefit their operations. The AI for Mainstreet Act calls on the Small Business Administration to support small U.S. enterprises in adopting artificial intelligence systems. Read more here.
Shutdown Impact: What It Means for Workers, Federal Programs and the Economy, Federal News Network
The federal government shutdown is quickly approaching the second-longest on record, with no end in sight. Some lawmakers are predicting it could become the longest, surpassing the 35 days from President Donald Trump’s first term. The Trump administration is using the current shutdown to buttress priorities it favors while seeking to dismantle those it doesn’t. Nevertheless, Democrats are insisting that any funding bill include help for millions of Americans who will lose health insurance coverage or face dramatically higher monthly premiums if Congress does nothing. The shutdown began on October 1. Here’s a look at its impact so far on workers, the economy, and the services the government provides. Read more here.
Hegseth Changes Pentagon Press Policy: 5 Takeaways, The Hill
All but one media outlet that regularly covers the Department of Defense is set to lose access to the Pentagon. Defense Secretary Pete Hegseth demanded that reporters agree to a new policy under which they would need to pledge not to obtain or use any unauthorized material, even if the information is unclassified, or hand over their press badges. Media outlets say this is a violation of their First Amendment rights, and nearly every news outlet has refused to sign. Read more here.
Army Secretary Tees up Acquisition Reforms Amid ‘Unprecedented’ Top Cover from Trump Administration, Federal News Network
The Army’s new secretary says the service is weeks away from unveiling changes that will “completely disrupt” Army acquisition bureaucracy, arguing that the existing system and the civilian leaders who work within it have failed for decades to deliver the capabilities soldiers need. Read more here.
Upcoming Government Contract Presentations
TRAINING: Past Performance: How to Use Yours, Benefit from Others’, and Defend It from Attacks, October 28, 2025, Daniel Figuenick, III, Abigail “Abby” Finan
WEBINAR: FAR Part 19 Shake-Up: What It Means for Your Contracts, Your Team, and Your Bottom Line, October 28, 2025, Isaias “Cy” Alba, IV
CONFERENCE: Small Business Update, October 30, 2025, Isaias “Cy” Alba, IV
TRAINING: Limitations on Subcontracting: Key Updates and Tips for Compliance, November 4, 2025, Emily A. Reid, Abigail “Abby” Finan
TRAINING: Unlocking the Secrets of Debriefings, Government Evaluation of Proposals and Protests, November 6, 2025, Katherine B. Burrows, Eric Valle
PM WEBINAR: Maximizing Recovery: Tactics for Stop Work REAs and Termination Proposals, November 6, 2025, Lauren Brier
WEBINAR: Legal Strategies & Capture Planning, November 7, 2025, Isaias “Cy” Alba, IV
PM WEBINAR: Overcoming the Compliance Minefield of Cost-Reimbursement Contracts, Part 3: Ready, Set, Comply! Build Indirect Rates That Stand Up to DCAA Scrutiny, November 12, 2025, Isaias “Cy” Alba, IV
CONFERENCE: Mission Critical: Compliance and Preparing Defense Manufacturers for SBA’s Latest Rules, November 17, 2025, Isaias “Cy” Alba, IV
Executive Order (EO): Ensuring Continued Accountability in Federal Hiring
On October 15, President Trump issued an EO requiring Federal hiring to be subject to specific policies and procedures going forward to ensure that the Federal Government is optimally staffed to meet critical mission needs. Read more here.
Shutdown News for Federal Contractors: A New Bill and a New Rule, Federal News Network
A new bill would guarantee back pay for contract workers after a shutdown, while a fresh class deviation gives agencies more flexibility to continue essential work even when appropriations lapse. Read more here.
Judge Blocks Shutdown Layoffs After Finding Trump’s Actions Are Likely Illegal, Government Executive
A federal judge blocked the Trump administration from implementing any new or existing layoffs in relation to the shutdown, saying the cuts were likely illegal. Read more here.
UBS Gets Temporary Order Enforcing Nonsolicitation Agreements, Bloomberg Government
UBS Financial Services Inc. has prevented, at least temporarily, three of its former employees from allegedly violating their contracts by soliciting clients to move with them to a competitor. Read more here (subscription required).
Upcoming Labor & Employment Presentations
WEBINAR: Current Contracting Landscape, November 12, 2025, Nichole D. Atallah
CONFERENCE: Unpacking and Seizing Opportunity in Changes to Labor and Employment, November 20, 2025, Nichole D. Atallah
FALSE CLAIMS ACT / MERGERS & ACQUISITIONS
Upcoming False Claims Act Presentations
PM WEBINAR: FCA Implications for M&A Transactions, November 5, 2025, Matthew E. Feinberg, Kristen Centre
Judiciary Democrats Launch Watchdog Website Amid Withheld Funding from Inspector General Group, Government Executive
Democrats on the House Judiciary Committee have launched a centralized online repository of resources for whistleblowers as the websites of many government watchdogs remain dark because of the White House budget office withholding funding from a central inspector general group. Read more here.
General Services Administration (GSA) Advanced Notice: Multiple Award Schedule (MAS) Refresh 30 and Upcoming Mass Modification
GSA Federal Acquisition Service (FAS) is planning to issue GSA MAS Solicitation 47QSMD20R0001 – Refresh # 30 in November 2025. The full notice is available here.
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