Managing Litigation Risk During the Business Lifecycle, Part 1: Entity Formation and Organization
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 . . . Read More
CPARS Ratings: Subjective or Objective? ASBCA Weighs In
For government contractors, a Contractor Performance Assessment Reporting System (CPARS) rating can make or break future opportunities. But how objective are these ratings? A recent ruling [1] by the Armed Services Board of Contract Appeals (Board) sheds light on a crucial reality—CPARS ratings are not purely fact-based assessments; they’re the government’s opinion on contractor performance. The Case: A Battle Over CPARS Ratings St. Michael’s Inc. (SMI) challenged three CPARS ratings issued by the Defense Logistics Agency (DLA), arguing that the ratings . . . Read More
No More Free Passes? New Order Forces Plaintiffs to Pay for Injunctions Against the Federal Government
In a bold move to curb the growing number of lawsuits halting the implementation of recent executive policies, the Trump administration issued an executive order , “Ensuring the Enforcement of Federal Rule of Civil Procedure 65(c),” aimed at making it more difficult for plaintiffs to obtain injunctions against the federal government. This order seeks to enforce a rule requiring plaintiffs to post a security equal to the government’s potential costs and damages if an injunction is later found to be unjustified. It . . . Read More
OCI Mitigation Plans: Proposed Rule Emphasizes Compliance and Increased Enforcement
PilieroMazza recently published a client alert regarding a Proposed Rule on Organizational Conflicts of Interest (OCI). On January 15, 2025, DoD, GSA, and NASA (collectively, the Government) issued a Proposed Rule (Proposed Rule) that significantly alters OCI are managed in federal contracting. One of the key changes of the Proposed Rule that should be highlighted is the incorporation of mitigation plans into the awarded contract. The Proposed Rule impacts offerors by enacting more stringent compliance requirements, and by incorporating the mitigation plan into the contract . . . Read More
10 FAQs: Navigating Legal Challenges for Government Contractors Impacted by President Trump’s Recent Executive Orders
Government contractors are facing a host of legal and compliance challenges following President Trump’s recent executive orders. These orders have prompted government-wide contract reviews, funding issues, increased scrutiny on foreign assistance agreements, and the mass issuance of stop work orders and terminations for convenience. If you are a government contractor, here are some key questions you should be asking to ensure your business is protected. If any of these FAQs apply to your business, consulting legal counsel promptly can help . . . Read More
Guilty Until Proven Innocent: Key Takeaways from the Recent Final Rule on the FAR’s Suspension and Debarment Procedures
In a recent Final Rule (Rule) made effective January 17, 2025, the Federal Acquisition Regulation’s (FAR) suspension and debarment procedures were revised to be more consistent with the procedures in 2 CFR part 180 applicable to nonprocurement transactions such as grants, cooperative agreements, and loans. Below is background on the FAR’s suspension and debarment procedures and key takeaways from the Rule. Background Federal contracts may only be awarded to “responsible prospective contractors.” In other words, contractors must be presently responsible to do . . . Read More
Proposed Rule on Organizational Conflicts of Interest Signals Significant Changes for Contractors
Organizational conflicts of interest (OCIs) should be front of mind for any federal government contractor. The mere presence of an OCI may cause contractors to reconsider which contracting opportunities to pursue, reshape teaming and subcontracting arrangements, and revise mitigation policies, procedures, and plans in ways that impact company-wide systems and processes. Most significantly, an OCI may be enough for the government to strip a contractor of an award it just won. Recently, the government published a proposed rule ( Proposed Rule ), . . . Read More
FCA Settlement Highlights Importance of Accurate Small Business Certifications in Government Contracting
The Department of Justice (DOJ) recently announced a $949,696.90 False Claims Act (FCA) settlement with GS Foods Group Inc. (GS Foods) for improperly bidding on contracts reserved for small businesses despite not qualifying as a small business. The DOJ settlement underscores the critical need for accurate small business representations and certifications in government contracting. Visit this link to register for our webinar, “PilieroMazza Annual Review: What DOJ’s 2024 FCA Report Means for Government Contractors” and check out our podcast Ex Rel. Radio . Briefly, the . . . Read More
PilieroMazza Annual Review: What DOJ’s 2024 FCA Report Means for Government Contractors
On January 15, 2025, the Department of Justice (DOJ) released its annual fraud statistics report ( Annual Report ) detailing settlements and judgments obtained under the False Claims Act (FCA) and other fraud matters during Fiscal Year 2024 (FY 2024), which ended September 30, 2024. During FY 2024, the government recovered $2,920,738,612, a 4.8% increase compared to FY 2023. 2024 also saw a landmark ruling from a federal trial court that the qui tam provisions of the FCA are unconstitutional. Below are key . . . Read More
FY2025 NDAA: Significant Impacts on Small and Large Defense Contractors
The Servicemember Quality of Life Improvement and National Defense Authorization Act for Fiscal Year 2025 (FY2025 NDAA), signed into law on December 23, 2024, has significant implications for defense acquisition and contracting. Each year, PilieroMazza highlights key changes that impact small and large defense contractors when considering opportunities and complying with current law. Background Congress introduces legislation every year to authorize funding for the Department of Defense (DOD) and sets the policy landscape for the next fiscal year for defense contracting, acquisition, and procurement. In 2024, PilieroMazza reviewed the noteworthy provisions in the FY2024 NDAA , which included a prohibition on executive agencies . . . Read More