No More Minimum Wage Obligations Shifts Pricing Strategies for Service and Construction Contractors
On Friday, March 14, 2025, President Trump revoked Executive Order 14026, Increasing the Minimum Wage for Federal Contractors (EO). Government contractors in the service and construction sectors should evaluate how Trump’s decision to cancel the EO will impact their pricing strategies and outstanding price adjustment requests. Effective immediately, contractors are no longer bound by EO 14026’s minimum wage requirements. This means that most service and construction contractors may revert employee pay to the applicable wage determination rates under their contracts. . . . 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
March 2025: Reducing the Negative Impacts of a Government Shutdown for Federal Contractors
On top of the uncertainty introduced through the Trump administration’s shifting priorities and rapid-fire executive orders, government contractors are now confronted with an impending shutdown as the federal government is set to run out of funding on March 14. Although the House of Representatives passed a six-month continuing resolution that would keep funding at current levels through the rest of the fiscal year (i.e., September 30), it remains to be seen whether the Senate has the votes to pass the . . . 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
Court Blocks Suspension and Termination of Foreign Aid Contracts: Key Takeaways for Government Contractors
In a landmark decision, Judge Ali has issued a preliminary injunction (PI) preventing the U.S. government from enforcing suspensions, stop-work orders, and terminations for foreign aid contracts issued between January 20 and February 13, 2025—the date on which Judge Ali issued a temporary restraining order in this case. The ruling is a major rebuke of the executive branch’s attempt to halt congressionally appropriated funds, reaffirming Congress’s constitutional spending authority. This ruling requires the government to resume payments and allow drawdowns for . . . Read More
Corporate Transparency Act, Part 9: Reporting Due March 21, 2025, No Penalties for Not Reporting (For Now)
On February 18, 2025, the final court order [1] blocking reporting under the Corporate Transparency Act (CTA) was lifted. Thus, the CTA’s reporting requirements are back in effect, and the new reporting deadline for most reporting companies is March 21, 2025; however, FinCEN has announced that no penalties or fines will currently be enforced for not reporting. Please visit this link to access Parts 1-8 in this series. Although reporting requirements are back in effect, penalties and fines will not be enforced for . . . 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
2nd Court Blocks Government Funding Freeze: 5 Takeaways for Contractors
A second federal judge indefinitely blocked the Trump administration’s blanket freeze on appropriated and obligated federal funds for government contractors, reinforcing Congress’s authority over government spending. This decision directly impacts government contractors who rely on federal funding for projects and operations. Key Takeaways for Government Contractors Funding Pause Declared Unlawful The court ruled that the executive branch cannot impose a blanket freeze on congressionally appropriated funds. Judge McConnell wrote, “[t]he Executive put itself above Congress. It imposed a categorical mandate on . . . Read More
SCOTUS Greenlights Release of Foreign Aid Funds to Government Contractors
On March 5, 2025, the United States Supreme Court (SCOTUS) upheld a federal judge’s order directing the government to pay nearly $2 Billion to federal contractors for completed foreign aid work. [1] This client alert identifies key takeaways from the SCOTUS denial and provides important considerations for government contractors whose payments were subject to executive freezes on foreign aid spending. Background As previously reported by PilieroMazza , President Trump issued Executive Order 14169, “ Reevaluating and Realigning United States Foreign Aid ,” which ordered agencies with foreign development assistance programs . . . Read More