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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GovCon M&A and Organizational Conflicts of Interest: How Acquisitions Can Restrict Future Opportunities | The GovCon M&A Playbook, Part 6
PilieroMazza Blog; Author: Samuel S. Finnerty
A buyer identifies a government contractor with strong customer relationships, complementary capabilities, and a $100 million pipeline. The buyer expects the acquisition to open new markets, create cross-selling opportunities, and support growth across the combined company. Then diligence uncovers a problem.
The buyer already performs program management, systems engineering and technical assistance (SETA), testing and evaluation, acquisition support, or other advisory work for some of the same agencies and programs. Its personnel may help develop requirements, evaluate contractor performance, advise government decision-makers, or access nonpublic procurement information. Those roles may be unobjectionable today because the buyer and target are independent companies. The acquisition connects them.
After closing, the buyer could find itself evaluating an affiliate, competing for work shaped by its own personnel, or pursuing opportunities with access to information unavailable to other offerors. The combined company may need to preserve separate systems and teams, decline opportunities, restructure existing work, or choose between contracts it expected to keep.
The target may still have a $100 million pipeline on paper. But how much of that pipeline remains available once the companies share an owner is another question altogether. For GovCon buyers, organizational conflict of interest (OCI) risk is a pipeline, valuation, and deal-structure issue. Read more here.
Warfighting at Warp Speed, Part 5: Software Acquisitions at Speed and Scale
PilieroMazza Blog; Authors: Lauren Brier, Josie Farinelli, Kristine “Krissy” Crallé
PilieroMazza has been covering the Department of War’s (DOW) acquisition overhaul since Secretary Hegseth’s November 2025 memorandum: “Transforming the Warfighting Acquisition System to Accelerate Fielding of Capabilities.” Now, the Department of the Army (Army), via Army Directive 2026-19, Enabling Modern Software Acquisition Practices (the Directive), has taken a concrete step to implement the DOW’s policy of focusing on acquiring and delivering weapons and business systems at speed and scale. Under the July 22, 2026 Directive, Army Secretary Driscoll announced the Army will move away from its longstanding preference for custom-built software and instead prioritize commercial products that can be configured for military use and delivered more quickly. For software suppliers and defense contractors, the Directive signals new opportunities and reinforces the overhaul’s longstanding push to have industry adapt to faster, less traditional acquisition methods. Read more here.
Small Business Administration (SBA) Memorandum: SBA to Consider In-Person Public Testimony on Proposed Size Standards Rules
Source: U.S. Small Business Administration
On September 16, SBA announced that it will consider public testimony on the proposed rules to amend its size standards. The event will occur Monday, September 21, from 9:30 am to 11:30 am MT in Denver, Colorado. Pre-registration is available here. Read more here.
Small Business Administration (SBA) News Release: SBA Issues Guidance to Prioritize Defense-Critical Firms as New 8(a) Program Rules Take Effect
Source: U.S. Small Business Administration
On September 10, SBA announced new guidance relating to recent reforms of the 8(a) Business Development Program for individually owned firms. SBA will prioritize processing for 8(a) applicants in defense-critical industries. Additionally, the agency will reinstate merit-based “potential for success” reviews for prospective participants consistent with the statue and purpose of the program. Read more here.
AI Safety Advocacy Group Launches New State-Level Effort
Source: NextGov/FCW
Washington, D.C.-based advocacy group Americans for Responsible Innovation announced a new state-level advocacy policy initiative Thursday to push for responsible AI guardrails. Americans for Responsible Innovation debuted the advocacy arm to bring responsible AI policy assistance to local lawmakers. Read more here.
5 DOT Contract Opportunities: From Aviation Infrastructure to Cooperative Driving Automation
Source: GovConWire
The Department of Transportation is rapidly modernizing to create safer and more efficient public transit systems. As aging infrastructure and evolving safety demands strain existing systems, the agency is turning to industry for the expertise and innovative capabilities needed to address challenges and strengthen the nation’s transportation networks. Read more here.
DHS Opens Bidding on $441M Biometric Device Multiple-Award Contract
Source: GovConWire
The Department of Homeland Security is seeking proposals for a government-wide multiple-award contract to supply biometric capture devices, with a ceiling of $440.7 million. Proposals are due Sept. 18, eight days after the solicitation was posted on SAM.gov on Sept. 10. Questions are due Sept. 14. Read more here.
Department of Defense (DOD) Class Deviation 2026-O0046 Rev. 1: Revolutionary Federal Acquisition Regulation (FAR) Overhaul Part 45, Defense FAR Supplement (DFARS) Part 245
Source: U.S. Department of War
On September 9, DOD issued a class deviation, effective immediately, revising its class deviation issued on February 20, 2026. This revision implements section 1826 of the National Defense Authorization Act for Fiscal Year 2026. Read more here.
General Services Administration (GSA) News Release: GSA Expands OneGov AI Offerings with Discounted, Consumption-Based Access to OpenAI’s ChatGPT
Source: U.S. General Services Administration
On September 10, GSA announced a new OneGov agreement with OpenAI that will make its ChatGPT models available to the federal government through discounted, consumption-based pricing. The first agreement under the next phase of GSA’s OneGov AI strategy is a 27-month offer expected to take effect Oct. 1, 2026, giving agencies more than two years of stable, discounted pricing. Read more here.
Defense Innovation Unit (DIU) is Speeding Up Security Clearance Process For Startups
Source: Federal News Network
DIU is getting after a key barrier that prevents some commercial companies from doing business with the military: accessing secure facilities before the Pentagon is ready to buy their technology. Historically, some startups have faced a Catch-22 in obtaining security clearances—they need a government contract to begin their facility clearance process, but without a clearance, they cannot compete for some classified work. Read more here.
DHS Forecasts Recompete of Financial Systems Contract
Source: GovConWire
The Department of Homeland Security has forecast a recompete worth more than $100 million for services supporting its Trio Financial Systems Modernization Solution, or Trio FSMS. DHS published the entry Tuesday on its acquisition planning forecast system, listing Deloitte as the incumbent. It plans a firm-fixed-price task order under NASA’s Solutions for Enterprise-Wide Procurement V vehicle. Read more here.
CONFERENCE:
Built to Succeed: The Legal Essentials for Small Business Growth, October 6, 2026
BizConn Alliance
Speaker: Tracey L. Pruiett*
GSA FEDERAL SUPPLY SCHEDULES / LABOR & EMPLOYMENT
GSA Announces Per Diem Increases for Feds This Fall
Source: Government Executive
The General Services Administration announced Wednesday that it would increase per diem rates associated with lodging when fiscal 2027 begins on Oct. 1. Beginning in October, the amount federal agencies reimburse employees for daily lodging associated with official travel will increase by at least $3. Read more here.
CONFERENCES:
Federal Government Contracting 101: A Roadmap for Commercial Businesses, October 17, 2026
ACRA’s 32nd Annual Conference
Speaker: Timothy “Tim” F. Valley, Jr.
Small Business Administration (SBA) News Release: SBA Announces Suspensions for 870,000 U.S. Borrowers Tied to $39 Billion In Suspected Pandemic Fraud
Source: U.S. Small Business Administration
On September 14, SBA announced that it suspended 870,000 U.S. borrowers connected to an estimated $39 billion in suspected fraudulent pandemic-era Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) activity. The nationwide action marks the culmination of the SBA’s state-by-state pandemic-fraud crackdown as a member of the White House Task Force to Eliminate Fraud. It is the agency’s largest suspension announcement to date, representing action against borrowers in 45 new states, six territories, and the District of Columbia. Read more here.
LITIGATION & DISPUTE RESOLUTION
Bill Would Let Federal Whistleblowers Sue if Disciplined Over Violating NDAs
Source: Government Executive
A pair of House Democrats introduced legislation last month that seeks to strengthen federal whistleblower protections in the face of the Trump administration’s effort to instill a standard non-disclosure agreement for use across government. Read more here.
Department of Justice (DOJ) Press Release: DOJ’s Fraud Division, SBA, and SBA OIG Target $245M in COVID Loan Fraud Enforcement Activity as State Partnerships Continue Expanding
Source: U.S. Department of Justice
On September 14, DOJ announced the results of Operation No Doze, a surge of criminal enforcement actions targeting fraud in SBA’s small business COVID-era loan programs. Read more here.
Upcoming Presentations
PM WEBINARS:
Starting a Nonprofit: What Every Business Leader Should Know
October 1, 2026
Speaker: Kristen Centre
Buying and Selling a Business: M&A Processes and Procedures
October 21, 2026
Speaker: Kristen Centre
FBI Cyber Leader Details Bureau’s First Unclassified Cyber Strategy
Source: Federal News Network
The 17-page strategy details a four-pillar approach to countering cyber threats across the bureau. Brett Leatherman, assistant director of the FBI’s Cyber Division, said previous cyber strategies for the bureau have either been classified or focused on specific threats, like countering China. Read more here.