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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Long-Awaited Release of FAR Part 19: New Rule of Two and More, PilieroMazza Client Alert, Antonio R. Franco, Kristine “Krissy” Crallé
On September 26, 2025, the Federal Acquisition Regulatory Council released the much-anticipated rewrite of Federal Acquisition Regulation (FAR) Part 19, formerly titled Small Business Programs, as part of the broader Revolutionary FAR Overhaul initiative. To the pleasant surprise of many in the government contracting community, much of Part 19’s original content remains intact, considering other more significant changes to other parts of the FAR. Still, several notable revisions—most prominently, retention of the Rule of Two—carry significant implications for small business contractors. PilieroMazza summarizes the new FAR Part 19 rewrite and identifies key changes for small business prime and subcontractors. Read more here.
FAR Part 19 Overhaul: What It Means for Size Recertification, M&A, and Contract Eligibility, PilieroMazza Blog, Samuel S. Finnerty
When the FAR Council issued its long-awaited rewrite of FAR Part 19 as part of the Revolutionary FAR Overhaul, many in the government contracting community focused on headline issues like the preservation of the “Rule of Two” and the streamlining of small business policies. But tucked within the reorganization is one of the most impactful—and potentially disruptive—changes for contractors: the treatment of size recertification. While the new FAR attempts to simplify the rules by anchoring size status at the master contract level, it creates significant tension with Small Business Administration (SBA) existing regulations, leaving contractors, investors, and contracting officers navigating uncertain terrain when it comes to contract eligibility, option exercises, and M&A.
For many government contractors, recertification is not just a compliance box. Recertification drives whether companies qualify for pending proposals, remain eligible for future contract options, and can continue to compete for orders under existing contracts. It also determines whether agencies may continue to claim small business credit, and whether buyers and sellers can transact with confidence in the M&A market. In short, the stakes are high. Read more here.
FAR Part 19 Overhaul: What It Means for the 8(a) Program, PilieroMazza Blog, Antonio R. Franco, Kristine “Krissy” Crallé
On September 26, 2025, the Federal Acquisition Regulatory (FAR) Council released the FAR Part 19 model deviation text, significantly reorganizing the Part’s overall structure. The updated FAR Part 19 not only streamlines the layout to align with the acquisition lifecycle but also revises key rules governing set-aside contracts awarded under various small business programs. One of the most notable areas affected is the 8(a) Business Development Program. This blog provides a more detailed analysis of recent changes to the FAR as it relates to 8(a) contracting, expanding on the initial overview from our October 3rd client alert. Read more here.
Federal Acquisition Regulation (FAR) Model Deviation Text Complete
On September 30, the FAR Council completed the release of the model deviation text for the FAR and issued a final call for informal feedback by November 3 at 4:30 pm ET. The FAR Council also released model deviation text for the following FAR Parts: FAR Part 15, Contracting by Negotiation; FAR Part 16, Types of Contracts; FAR Part 19, Small Business; FAR Part 22, Application of Labor Laws to Government Acquisitions; FAR Part 23, Sustainable Acquisition, Material Safety, and Pollution Prevention; FAR Part 25, Foreign Acquisition; FAR Part 32, Contract Financing; FAR Part 42, Contract Administration and Audit Services; and FAR Part 53, Forms. The General Services Administration (GSA) issued class deviations fully incorporating the same into all GSA procurements for the following FAR Parts: 15, 16, 25, and 42. Informal feedback for the remaining FAR Parts and the full text of the FAR Model Deviation is due November 3 at 4:30 pm ET.
DOT Ends Race- and Sex-Based Presumptions of Disadvantage in DBE and ACDBE Programs, PilieroMazza Client Alert, Jacqueline K. Unger
On September 30, 2025, the Department of Transportation (DOT) announced a major change to the eligibility criteria for its Disadvantaged Business Enterprise (DBE) and Airport Concessions DBE (ACDBE) Programs. Through an interim final rule (IFR) taking effect on October 3, 2025, DOT is removing the use of the race- and sex-based presumptions of social and economic disadvantage for establishing DBE and ACDBE eligibility. The IFR will have an immediate impact on all current DBE/ACDBE firms and future applicants, as all firms will be required to demonstrate disadvantage on an individual basis. Current DBE/ACDBE firms will be reevaluated, and those that do not demonstrate social and economic disadvantage will be decertified. This client alert provides key changes in the IFR and important takeaways for DBE/ACDBE firms. Read more here.
Department of Transportation (DOT) Interim Final Rule: Disadvantaged Business Enterprise (DBE) Program and Airport Concession DBE (ACDBE) Programs Implementation Modifications
On October 3, DOT published an interim rule and request for comments removing race- and sex-based presumptions of social and economic disadvantage from the DBE and ACDBE programs. The rule is available here and is effective as of October 3, 2025. Comments close November 3, 2025.
Managing the Financial Impact of Tariffs on Your Government Contract, PilieroMazza Webinar Replay, Jacqueline K. Unger, Ryan Boonstra
Join PilieroMazza’s Jackie Unger and Ryan Boonstra for this timely webinar where they explore how tariffs affect pricing, sourcing, and performance obligations under federal contracts. Whether you’re managing an existing contract or preparing for future solicitations, this session will equip you with tools to better navigate the financial challenges tariffs may pose. Click here to view the recorded session.
Department of War (DOW) Class Deviation: Contract Obligations in Advance of Fiscal Year (FY) 2026 Funding
On October 1, DOW issued a memorandum and class deviation, effective immediately, requiring contracting officers to utilize the contract clause contained in the class deviation to provide funding during a lapse in appropriations. Read more here.
Government Accountability Office (GAO) Report: Government Contracting, Leveraging Federal Buying Power Can Save Billions
On September 29, GAO released a report summarizing how its recommendations and other agency initiatives have resulted in billions in savings. Since 2014, the Office of Management and Budget, with support from the General Services Administration, has led the category management initiative. The initiative established 10 common spending categories, which account for more than half of federal contract spending. It also established government-wide contracts that offer competitive pricing and provide increased visibility into data to inform buying strategies. The full report is available here.
Senate Rejects Dueling Government Funding Bills on Day 6 of Shutdown, The Hill
The Senate on Monday pushed the government shutdown to the one-week mark as Democrats blocked the GOP’s “clean” stopgap funding bill from advancing for a fifth time. Senators voted 52-42 on the House-passed bill, which needed 60 votes to advance and would have funded the government at Biden-era spending levels until late November. The tally has remained virtually unchanged, other than absences, since the shutdown started last Wednesday. Read more here.
Trump Opens Door to Talks GOP Has Resisted as Shutdown Extends, Bloomberg Government
With the US government shutdown closing in on the one-week mark, President Donald Trump showed signs of cracking, sending mixed messages about the state of talks with Democrats on their biggest demand. Trump, who had remained on the sidelines of negotiations for days, said he was open to negotiating with Democrats over health care subsidies to bring an end to the funding stalemate, at one point suggesting those talks had already begun. Read more here (subscription required).
Shutdown’s Ripple effect: Contractors, Small Businesses Face Devastating Economic Hit, Government Executive
At least 1 million contractor employees face lost paychecks as the funding lapse disrupts their companies’ services to agencies and freezes federal operations. Read more here.
Contract Consolidation Is Again Shrinking Civilian Supplier Base, Bloomberg Government
The civilian agency supplier base continued to shrink in fiscal 2025 as counts of small and other-than-small businesses hit their lowest levels since at least fiscal 2010. Read more here (subscription required).
Upcoming Government Contract Presentations
PM WEBINAR: Overcoming the Compliance Minefield of Cost-Reimbursement Contracts, Part 2: Mastering DCAA Audits in Cost-Plus-Fixed-Fee Contracts, October 14, 2025, Isaias “Cy” Alba, IV
PM WEBINAR: Avoiding Common Teaming and Subcontracting Pitfalls, October 16, 2025, Jon Williams
TRAINING: Legal Considerations: How Best to Structure Your Company as a Federal Contractor, October 21, 2025, Isaias “Cy” Alba, IV
TRAINING: Past Performance: How to Use Yours, Benefit from Others’, and Defend It from Attacks, October 28, 2025, Daniel Figuenick, III, Abigail “Abby” Finan
PM 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
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, Legal Strategies & Capture Planning, November 7, 2025, Lauren Brier
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
CNN Quotes Nichole Atallah: Federal Workers Face Unpaid Furloughs as Shutdown Continues, PilieroMazza News, Nichole D. Atallah
As the government shutdown continues, federal workers—particularly those in low-wage, hourly roles—are unlikely to be made whole after furloughs, warns Nichole Atallah, Chair of PilieroMazza’s Labor & Employment Group. “If you’re a cafeteria worker or a janitor, you can’t make up that time. It’s lost,” Atallah told CNN in a phone interview. Read more here.
Department of Labor (DOL) News Release: DOL Issues 4 Opinion Letters Addressing Emergency Pay, Tip Pooling, Family Medical Leave, Fair Labor Standards Act (FLSA) Compliance
On September 30, DOL’s Wage and Hour Division announced four opinion letters designed to promote clarity, consistency, and transparency in the application of federal labor standards. The opinion letters provide official written interpretations from the division that address real-world questions and explain how laws apply to specific factual circumstances presented by individuals or organizations, which may also have a broader interest to those impacted by the issue presented. Read more here.
OMB Deletes Reference to Law Guaranteeing Backpay to Furloughed Feds from Shutdown Guidance, Government Executive
An Office of Management and Budget FAQ document now states that only excepted employees forced to work without pay are guaranteed backpay at the conclusion of a lapse in appropriations. The Office of Management and Budget on Friday quietly revised a shutdown guidance document to remove references to a law passed in 2019 to guarantee that all federal workers are provided backpay at the conclusion of a lapse in appropriations. Read more here.
Upcoming Labor & Employment Presentations
TRAINING: ABCs of the SCA: Critical Path Service Contract Act Training for Government Contractors, October 21-23, 2025, Nichole D. Atallah, Sarah L. Nash
TRAINING: Labor Rules & Regulations: Federal Market Compliance, October 22, 2025, Nichole D. Atallah
CONFERENCE: Unpacking and Seizing Opportunity in Changes to Labor and Employment, November 20, 2025, Nichole D. Atallah
Key Changes in GSA Schedule Contracting: What You Need to Know, PilieroMazza Webinar Replay, Jon Williams
Join Courtney Fairchild of Global Services and PilieroMazza’s Jon Williams for this timely and informative webinar where they break down key changes to GSA’s MAS program and what they mean for GovCons. Whether you’re a current MAS contract holder or considering entry into the program, do not miss this opportunity to stay informed and position your company for success in the federal marketplace. Click here to view the recorded session.
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
NATIVE AMERICAN LAW & TRIBAL ADVOCACY
Small Business Administration (SBA) Notice: Tribal Consultation for SBA’s Office of Manufacturing and Trade and Other Small Business Programs and Services Offered by the Agency, with a Focus on SBA’s Ongoing Manufacturing, Onshoring and Export Initiatives to Encourage Small Businesses Going Global
On September 29, SBA announced a tribal consultation meeting in Mashantucket, Connecticut, requesting comments and input on all issues or concerns relating to any of SBA’s programs. Specifically, SBA seeks comments on how SBA can best provide access for tribally owned small businesses to initiatives under its Office of Manufacturing and Trade, with a particular focus on SBA’s ongoing onshoring, manufacturing, and export initiatives to encourage small businesses going global. SBA is requesting general comments and input on how these programs are working and is inviting suggestions on potential avenues for improving their efficiency or reducing any unnecessary regulatory burden associated with the programs. The Tribal Consultation meeting will be on October 27, 2025, from 1:00 p.m. to 4:00 p.m. (EDT), Mashantucket, Connecticut. The Tribal Consultation meeting pre-registration deadline is October 22, 2025. The notice is available here.
Senators Propose Federal Approval Framework for Advanced AI Systems Going to Market, NextGov/FCW
Sens. Josh Hawley, R-Mo., and Richard Blumenthal, D-Conn., introduced new legislation on Monday that creates a risk evaluation program for advanced artificial intelligence products, notably prohibiting a model’s consumer deployment for use in interstate or foreign commerce until it meets the bill’s required safety criteria. Read more here.
Cyber Threat Information-Sharing Law Lapses as Shutdown Begins, Bloomberg Government
US companies no longer have legal protection to share cyber threat information with the federal government, one of many disruptions from lawmakers’ failure to strike a government funding deal. The Cybersecurity and Information Sharing Act of 2015 expired overnight, along with annual appropriations for federal agencies, sending the US government into a shutdown. The cyber law provided a shield encouraging companies to report breaches and threats without fear of liability. The Department of Homeland Security said it would preserve the cyber information-sharing platform during a lapse in the law. Read more here (subscription required).
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