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GSA to Oversee Federal Purchasing: A Step Toward Efficiency or a Challenge for Agencies and Contractors? PilieroMazza Client Alert, Samuel S. Finnerty
On March 20, 2025, President Trump signed an executive order to consolidate federal procurement under the General Services Administration (GSA). Framed as an effort to eliminate waste and save taxpayer dollars, the order mandates that federal agencies shift their purchasing of common goods and services to the GSA. While this move is being touted as a step toward efficiency, the reality may be far more complex for government contractors. Read more here.
White House Presidential Actions:
On March 20, the Trump Administration released the following Executive Orders (EOs) and Memorandum:
- Stopping Waste, Fraud, and Abuse by Eliminating Information Silos. This EO requires, to the maximum extent possible, agencies to allow Federal Officials to have “full and prompt access to all unclassified agency records, data, software systems, and information technology systems.” Agencies are required to rescind agency guidance that acts as a barrier to access the information within 30 days. The Federal Government will be required to have “unfettered access to comprehensive data from all State programs that receive Federal funding including . . . those . . . maintained in third-party databases.” The Department of Labor is also required to give the Federal Government “unfettered access” to its unemployment data and payment records. Read more here.
- Strengthening the Suitability and Fitness of the Federal Workforce. This Presidential Memorandum directs the Office of Personnel Management (OPM) to have the final authority for executive branch employees. OPM is required to develop regulatory criteria for suitability determinations and actions based on post-appointment conduct. Read more here.
- Achieving Efficiency Through State and Local Preparedness. On March 19, the Trump Administration released an Executive Order outlining the new policy and development of a National Resilience Strategy, which will be published within 90 days following the Executive Order and will be reviewed and revised every 4 years. Within the next 180 days of the Executive Order, agencies are directed to review all critical infrastructure and national continuity policies and recommend revisions to those policies to the President. These recommendations must include transitioning to a risk-informed approach to critical infrastructure and implementing the National Resilience Strategy. Within 240 days of the Executive Order, agencies are directed to review all national preparedness and response policies and recommend reformulations for Federal responsibility for those policies to the President. This Executive Order also establishes, within 240 days, a National Risk Register to inform of malign risks to the national infrastructure. Read more here.
Department of Defense (DOD) Memorandum: Transition of the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) to the System for Award Management (SAM)
On March 19, DOD issued a memorandum providing instructions for viewing and searching sub-award reports in SAM to provide a more seamless and integrated approach to viewing and modifying Subcontract Reports in SAM for federal and non-federal users. Read more here.
Government Accountability Office (GAO) Report: DOD Contracting, Opportunities Exist to Improve Pilot Program for Employee-Owned Businesses
On March 20, GAO released a report regarding their findings related to their examination of the Department of Defense’s (DOD) pilot program which awards certain contracts to companies organized with employee stock ownership plans. DOD issued guidance in November 2022, but GAO believes the memorandum is insufficient in providing contracting officers with appropriate information to inform their eligibility determination for companies, which is exemplified by DOD improperly awarding a contract to an ineligible company. GAO recommends that DOD update its guidance to assist contracting officers in implementing the pilot program. The full report is available here.
Department of Defense (DOD) News: DOD to Cut $580 Million in Spending
On March 20, DOD announced that it signed a memorandum, Continuing Elimination of Wasteful Spending at the Department of Defense, directing the termination of $580 million in programs, contracts, and grants. The software development program for the Defense Civilian Human Resources Management System is among the top programs that will be cut, along with other initiatives promoting diversity, equity, and inclusion. Read more here.
Small Business Administration (SBA) News Release: SBA Announces Agency-Wide Reorganization
On March 21, SBA announced its plans to reduce its workforce by 43% and perform an agency-wide reorganization. SBA notes, however, that its loan guarantee and disaster assistance programs and its field and veteran operations will not be impacted by its workforce reduction and reorganization. The workforce reduction will reduce the workforce to pre-pandemic levels and eliminate non-essential roles. The reorganization intends to expand capital formation, target Paycheck Protection Program loan fraud, and eliminate pandemic-era positions. The Offices of Advocacy, Inspector General, Veterans Business Development, and Manufacturing and Trade are not considered to be impacted by these changes. This reorganization was made pursuant to Executive Order 14210. Read more here.
Internal USAID List Provides Snapshot of Trump Cuts, The Hill
A nearly 400-page list provided to Congress may give a rare insight into the scope of Secretary of State Marco Rubio’s cuts to the U.S. Agency for International Development (USAID), which have already roiled the global humanitarian community and shut down programs around the world. Read more here.
Defense Topline in Reconciliation Bill Likely to Exceed $100 Billion, Federal News Network
The Defense Department is likely to receive more than $100 billion in additional funding through budget reconciliation. A top House lawmaker said the money should be spent to close capability gaps in the field rather than on major defense programs. Read more here.
Upcoming Government Contract Presentations
WEBINAR: Nuts, Bolts, and Beyond: To Be a Government Contractor, April 9, 2025, Eric Valle
WEBINAR: Small Business Contracting & Subcontracting, April 18, 2025, Meghan F. Leemon
PM WEBINAR: Diversifying your Contract Pipeline by Maximizing Opportunities through the DOD’s Mentor-Protégé Program, April 18, 2025, Isaias “Cy” Alba, IV, Kristine “Krissy” Crallé
SEMINAR: Executive Orders and the Future of Government Contracts: Legal Insights for Contractors, April 16, 2025, Meghan F. Leemon
TRAINING: Joint Venture and Mentor-Protégé Bidding Strategies, April 3, 2025, Peter B. Ford, Meghan F. Leemon
TRAINING: Insights on the Regulations Pertaining to Novation’s and How It Impacts Company Value, April 9, 2025, Isaias “Cy” Alba, IV
TRAINING: Understanding and Avoiding Affiliation for Small Business Government Contractors, April 22, 2025, Emily A. Reid, Cole R. Fox
Financial Crimes Enforcement Network (FinCEN) Interim Final Rule: Beneficial Ownership Information (BOI) Reporting Requirement Revision and Deadline Extension
On March 26, the Department of the Treasury’s FinCEN published an interim final rule and request for comments narrowing the BOI reporting requirements under the Corporate Transparency Act (CTA). This Rule exempts domestic reporting companies from the BOI reporting requirements. Foreign reporting companies will still be required to submit BOI reports, but the deadline for those reports is extended until April 25, 2025. Foreign reporting companies owned by “U.S. persons” are not required to submit BOI relating to those “U.S. persons.” The Rule does not indicate whether “U.S. persons” include individuals who lawfully reside in the U.S. The Interim Final Rule is available here, and comments close on May 27, 2025.
Divisive Del. Corporate Law Bill May Get Compromise Tweak, Law360
A Delaware state representative reported active interest Friday in possible “opt-in” requirements for proposed changes to the section of Delaware’s general corporation law pertaining to potentially conflicted business transactions and controlling investors. Read more here (subscription required).
Government Accountability Office (GAO) Report: COVID-19 Relief, Improved Controls Needed for Referring Likely Fraud in SBA’s Pandemic Loan Programs
On March 24, GAO released a report detailing its review of the Small Business Administration’s (SBA) four-step process for managing fraud risks in the COVID-19 Economic Injury Disaster Loan program. GAO noted that the SBA’s Inspector General was unable to fully investigate nearly 2 million of the 3 million referrals because the SBA did not provide enough information, or correct information, in its referrals. GAO recommended SBA and its IG develop a plan to address this issue. The full report is available here.
General Services Administration (GSA) Report: GSA’s Administration of Performance-Based Contracts Puts the Government at Risk of Unsatisfactory Contractor Performance and Wasted Funds
On March 25, GSA’s Office of Inspector General’s Office of Audits released a report detailing its findings that GSA contracting personnel inadequately implemented, if at all, a quality assurance surveillance plan (QASP), did not timely prepare past performance reports, and Federal Acquisition Service contracting personnel lacked compliance with internal contract administration policy. The full report is available here.
Department of Defense (DOD) Memorandum: Efforts to Combat Unauthorized Disclosures
On March 21, DOD issued a memorandum directing the Director for Defense Intelligence to support the Office of the Secretary of Defense in an investigation into unauthorized disclosures of sensitive and classified information across the DOD. Read more here.
President Trump’s DEI Executive Orders Are Back On: What Contractors Need To Know, PilieroMazza Client Alert, Sarah L. Nash, Nichole D. Atallah
On March 14, the Fourth Circuit stayed a preliminary injunction that had prohibited President Trump’s administration and federal agencies from implementing Executive Orders 14151 and 14173 (“DEI Executive Orders”). This means the Trump administration can proceed with implementing the DEI Executive Orders pending ongoing litigation. In this blog, we discuss what federal contractors should take away from the Fourth Circuit’s order. Read more here.
Upcoming Labor & Employment and Government Contracts Presentations
WEBINAR: GovCon: Need to Know – Employment, Health and Safety, April 29, 2025, Sarah L. Nash
PM WEBINAR: Multijurisdictional Employers, Part 1: Independent Contractors vs. Employees, Classifications Under Federal and State Laws, May 1, 2025, Nichole D. Atallah, Georgianne “Georgi” Kokenis
LITIGATION & DISPUTE RESOLUTION / BUSINESS & TRANSACTIONS
Managing Litigation Risk During the Business Lifecycle, Part 1: Entity Formation and Organization, PilieroMazza Blog, Todd M. Reinecker, Abigail “Abby” L. Baker, Geoffrey C. Williams, Akinyi Orinda, Cole R. Fox
Starting and operating a business—whether a small business, startup, or government contractor—involves a myriad of risks, many of which can lead to costly and potentially damaging litigation. While these risks evolve over the life of a company, early-stage businesses, especially those in the process of entity formation and drafting corporate governance documents, are particularly vulnerable. In this first part of PilieroMazza’s blog series, “Managing Litigation Risk During the Business Lifecycle,” we explore how understanding these risks and taking proactive steps to address them can help safeguard your business from future disputes that could compromise its operations and financial viability. Read more here.
General Services Administration (GSA) News Release: GSA announces FedRAMP 20x
On March 24, GSA announced updates to the Federal Risk and Authorization Management Program (FedRAMP), which will focus on developing a new approach to authorizations to streamline automated authorization and improve security. Read more here.
NIST’s vulnerability database logjam is still growing despite attempts to clear it, NextGov/FCW
Despite goals set last year by the National Institute of Standards and Technology to process a backlog of unanalyzed cybersecurity vulnerabilities, the agency said it’s not expecting a slowdown anytime soon. Vulnerability submissions increased 32% in 2024, NIST said. The agency is considering machine learning to automate certain vulnerability analysis tasks. Read more here.