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Upcoming Events: Register to attend PilieroMazza’s upcoming events here. Recent Thought Leadership: Check out PilieroMazza’s recent client alerts and blogs here. Podcasts: Listen to PilieroMazza’s podcasts GovCon Live! here, Clocking in with PilieroMazza here, and Ex Rel. Radio here. |
Trump’s Executive Order on DOGE Cost Efficiency: Key Takeaways for Government Contractors, PilieroMazza Client Alert, Samuel S. Finnerty, Lauren Brier, Kelly A. Kirchgasser
On February 26, 2025, President Trump issued an executive order implementing the Department of Government Efficiency (DOGE) Cost Efficiency Initiative (Order). The Order seeks to transform federal spending on contracts, grants, and loans to ensure transparency and accountability. This includes requiring federal agencies to implement new mechanisms to record, justify, and approve agency payments; perform comprehensive reviews of contracts, grants, contracting policies, procedures, and personnel; and issue new guidance on signing or modifying new and existing contracts. The Order also freezes non-essential travel and non-critical credit card spending and imposes requirements on agencies for the disposition of government-owned and leased property. This client alert identifies key takeaways from the Order and provides important considerations for government contractors to best protect their interests. Read more here.
Navigating Executive Orders: Strategies for Managing Stop-Work Orders and Terminations, PilieroMazza Webinar Replay, Lauren Brier
Recent executive orders have led to an increase in stop-work orders and terminations for convenience, creating significant challenges for government contractors. Understanding how to navigate these changes and optimize recovery is crucial for maintaining stability and compliance. Click here to access the webinar replay.
Federal Judge Issues Preliminary Injunction Blocking Trump Administration’s Blanket Freeze on Federal Funding, PilieroMazza Client Alert, Samuel S. Finnerty, Ryan Boonstra
As PilieroMazza has been tracking in our recent alerts here and here, the Trump administration is attempting to block federal funding through a freeze outlined in the now-rescinded OMB Directive M-25-13 (Directive). The Directive and the broad policies contained therein were temporarily blocked by the U.S. District Court for the District of Columbia (D.D.C.) when it issued a temporary restraining order on January 28, 2025. However, since the issuance of that TRO, the administration continues to implement the freeze and deny contractors access to previously allocated federal funds. Accordingly, plaintiffs in that case requested the TRO be converted to a preliminary injunction, which would remain in effect until the case can be fully litigated on the merits. In a 39-page memorandum opinion issued yesterday, Judge AliKhan of the D.D.C. granted plaintiffs’ motion and issued a preliminary injunction that blocks the Trump administration “from implementing, giving effect to, or reinstating under a different name” the blanket, nationwide freeze on disbursement of federal funds outlined in the Directive. This ruling could impact all contractors that have been affected by the nationwide funding freeze. Read more here.
Judge Says Trump Administration Must Comply with Order to Restore Foreign Aid Funding, What It Means for Government Contractors, PilieroMazza Client Alert, Samuel S. Finnerty
As PilieroMazza recently discussed, on February 13, 2025, Judge Amir H. Ali, of the United States District Court for the District of Columbia issued a temporary restraining order (TRO) requiring the Trump administration to restore funding for foreign assistance awards halted as a result of recent executive and agency actions. On February 20, 2025, Judge Ali partially granted a motion to enforce the TRO, criticizing the government for continuing its blanket suspension pending review of foreign assistance agreements—which is the very action the TRO blocked. Undeterred, the defendants, including State Department and budget aides, the U.S. Department of State, USAID, and the Office of Management and Budget (OMB), requested further clarification from the court as to whether—despite the TRO—they are prohibited from, among other things: (1) relying on other statutory or contractual bases for suspending or terminating contracts or grants or (2) conducting a payment integrity review process. In a ruling issued over the weekend, Judge Ali further clarified the TRO, which could help foreign aid contractors facing funding freezes, stop work orders, and terminations. Read more here.
Executive Order (EO) 14215: Ensuring Accountability for All Agencies
On February 18, EO 14215 was published in the Federal Register. This EO directs the Director of the Office of Management and Budget (OMB) to establish and implement performance standards for agency heads and report their findings to the President. For executive branch employees, the President’s and the Attorney General’s interpretation of the law is authoritative. The EO is available here.
Department of Defense (DOD) News Release: DOD Probationary Workforce Statement
On February 21, DOD announced that it is reevaluating its probationary workforce to comply with the President’s order. The DOD anticipates a 5-8 % reduction in its civilian workforce, and the DOD expects 5,400 to be released the week of February 24. Read more here.
General Services Administration (GSA) News Release: GSA Announces FAR Class Deviations, Guidance for Contracting Officers
On February 18, GSA announced that it issued two deviations to the Federal Acquisition Regulations (FAR) and procurement practices on Saturday, February 15, 2025. These deviations are necessary to implement President Trump’s Executive Orders regarding “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”, “Initial Recissions of Harmful Executive Orders and Actions”, and Section 2 of “Ending Procurement and Forced Use of Paper Straws.” Read more here.
Small Business Administration (SBA) News Release: SBA Administrator Loeffler Issues Memo on Day One Priorities
On February 24, SBA announced the issuance of the SBA Administrator’s Day One memorandum which includes, among others, the following priorities for the SBA: (1) promoting made-in-America manufacturing; (2) implementing and enforcing President Trump’s executive orders; (3) supporting the Department of Government Efficiency to combat small business fraud; (4) conducting an agency-wide audit; (5) restarting its dormant collections programs and protecting solvency; (5) banning undocumented immigrants from receiving assistance from the SBA; (6) restricting certain foreign nationals from receiving SBA assistance; (6) improving cybersecurity; (7) reducing the 8(a) contracting goal from 15% to 5%. Read more here.
Government Accountability Office (GAO) Report: DHS Annual Assessment, Improved Guidance on Revised Acquisition Goals Would Enhance Transparency
On February 25, GAO released a report detailing the results of its annual assessment of the Department of Homeland Security (DHS). In its report, GAO noted and recommended that DHS address the lack of guidance for key changes in major acquisition programs like cost and schedule parameters. Read more here.
Government Accountability Office (GAO) Press Release: GAO Urges Attention to 2025 “High Risk List” to Save Billions and Improve Government Efficiency and Effectiveness
On February 25, GAO announced the issuance of its biennial “High Risk List” which identifies vulnerabilities to fraud, waste, abuse, and mismanagement in government operations. GAO noted that progress was seen in ten areas, resulting in approximately $84 billion in financial benefits since the last update 2 years ago. Read more here.
Republicans Hope to Jam through Defense, Border Funding Boost Ahead of Shutdown Fight, The Hill
Senate Republicans have the ambitious goal of jamming through funding boosts for defense and border security — separately from the appropriations process — ahead of a mid-March deadline to prevent a government shutdown. Read more here.
Defense R&D Vendors Resilient to Shrinking Federal Supply Base, Bloomberg Government
The federal government supplier base dipped slightly in fiscal 2024 with about 800 fewer contractors winning work than in the previous year as Defense Department research and development contractors continued their longer-term growth trajectory. Read more here (subscription required).
Sustainability Clause Axed in NASA’s Mega-Sized IT Solicitation, Bloomberg Government
A pending and long-awaited multibillion-dollar contract from NASA for information technology goods and services won’t require vendors to confirm their “commitment to sustainability” as of a Wednesday amendment to the solicitation. Read more here (subscription required).
Upcoming Government Contract Presentations
SEMINAR: Executive Briefing: SBA’s New Regulations-Impact on Small Business, March 4, 2025, Isaias “Cy” Alba, IV
TRAINING: SBA Regulatory Updates, March 4, 2025, Isaias “Cy” Alba, IV
WEBINAR: Federal Spending Freeze and Blocked Executive Orders: Critical Updates for Contractors, March 10, 2025, Lauren Brier, Samuel S. Finnerty
TRAINING: Unlocking the Secrets of Debriefings, Government Evaluation of Proposals and Protests, March 13, 2025, Katherine B. Burrows, Eric Valle
SEMINAR: Impact of White House Executive Orders on Contractors and Agencies, March 19, 2025, Isaias “Cy” Alba, IV
WEBINAR: Contracting for IT Services on GSA MAS: Pitfalls and Possibilities, March 20, 2025, Jon Williams
FALSE CLAIMS ACT / AUDITS & INVESTIGATIONS
PilieroMazza Annual Review: What DOJ’s 2024 FCA Report Means for Government Contractors, PilieroMazza Webinar Replay, Jacqueline K. Unger, Matthew E. Feinberg
DOJ’s recently released Annual Report highlights a significant increase in FCA enforcement, with nearly $3 Billion recovered—a 4.8% increase from FY 2023. The report also sheds light on major 2024 settlements and judgments that will have lasting implications on the government contracting community. Join Matt Feinberg and Jackie Unger as they break down key takeaways from DOJ’s Annual Report and what they mean for contractors facing FCA claims in 2025 and beyond. Click here to access the webinar replay.
How to Comply with Trump’s Executive Order, Ending Illegal Discrimination and Restoring Merit-Based Opportunity, PilieroMazza Webinar Replay, Nichole D. Atallah, Sarah L. Nash
President Trump’s executive order, Ending Illegal Discrimination and Restoring Merit-Based Opportunity, revoked EO 11246: Equal Employment Opportunity and prohibits contractors from continuing any illegal discrimination or affirmative action program. However, the EO left many questions unanswered and contractors confused about what they need to do to comply before the April 21, 2025, compliance deadline. Click here to access the webinar replay.
DEI Executive Orders Partially Blocked: What’s In and What’s Out, For Now . . ., PilieroMazza Client Alert, Nichole D. Atallah, Sarah L. Nash
On February 21, 2025, a federal court preliminarily blocked the Trump administration from enforcing key provisions of the recent executive orders (EOs) to eliminate “illegal” diversity, equity, and inclusion (DEI) programs and initiatives from the federal government and federal contractors. The court found the provisions to be unconstitutionally vague and likely to infringe on free speech. This PilieroMazza client alert outlines the current status of the EOs and potential impacts on federal contractors. Read more here.
Department of Veterans Affairs (VA) Press Release: VA Dismisses More Than 1,400 Probationary Employees
On February 24, VA announced that it is dismissing over 1,400 employees in non-mission critical positions, though it is still hiring for more than 300,000 mission-critical positions which are exempt from the hiring freeze. VA believes the workforce reduction will allow VA to redirect $83 million to other services. Read more here.
Homeland Security Axes Hundreds in Trump Federal Workforce Cuts, Bloomberg Government
DHS cut more than 200 people at the Federal Emergency Management Agency and more than 130 at the Cybersecurity and Infrastructure Security Agency, plus another 50 employees at US Citizenship and Immigration Services and 10 in the department’s Science and Technology Directorate, according to the department. Read more here (subscription required).
National Science Foundation Fires 11% of Staff on Trump Order, Bloomberg News
The National Science Foundation fired 168 workers to comply with President Donald Trump’s executive order, the latest in a series of layoffs throughout the US government as the Trump administration seeks to shrink federal agencies. Read more here (subscription required).
NASA Working to Exempt Employees from Government-Wide Layoffs, Bloomberg News
NASA managers are seeking a “blanket waiver” to save probationary employees from layoffs, according to internal meeting notes seen by Bloomberg, as other federal agencies are forced to fire their newest hires to reduce employee headcount. Read more here (subscription required).
Trump Labor Nominee Walks Back Past Support of Pro-Union Bill, Bloomberg Law
Lori Chavez-DeRemer Wednesday distanced herself from her past support of expanding collective bargaining law, vowing to senators she would follow President Donald Trump’s agenda if confirmed as his Secretary of Labor. Read more here (subscription required).
Senate Dem Reintroduces Equal COLA Act, and More, Government Executive
Sen. Alex Padilla, D-Calif., on Tuesday reintroduced legislation aimed at standardizing the annual cost-of-living adjustments federal retirees receive each year. Read more here.
Judge Bars Firing of Intelligence Officers Working on DEI Issues, The Hill
A federal judge temporarily barred two intelligence agencies from terminating employees who had been assigned to work on diversity efforts. The order blocks the Office of the Director of National Intelligence and the CIA from firing eleven anonymous employees working in diversity, equity, inclusion, and accessibility (DEIA) related roles as litigation continues. Read more here.
2,000 USAID Staff to Be Cut, Others Put on Administrative Leave, The Hill
The Trump administration is putting all civil servants employed by the U.S. Agency for International Development (USAID) on administrative leave beginning Monday at midnight, according to a notice reviewed by The Hill. Read more here.
Musk: Federal Workers Who Haven’t Returned to Office Will Be Placed on Leave This Week, The Hill
Department of Government Efficiency (DOGE) leader Elon Musk said early Monday that federal workers who haven’t returned to the office will be placed on administrative leave this week. Read more here.
GSA Takes ‘Sledgehammer’ to Workforce with Planned Layoffs, NextGov/FCW
The General Services Administration will be laying off additional employees as the Trump administration continues to cut the federal workforce. The agency’s acting administrator informed employees Monday that a reduction in force effort was impending. Read more here.
OPM Procurement Processing Fully Halted Following Agency Layoffs, Internal Email Says, NextGov/FCW
Sweeping terminations in OPM’s Office of Procurement Operations have fully halted agency contracting business and are likely to increase OPM’s operational risks, an internal email reads. Read more here.
Upcoming Labor & Employment Presentations
CONFERENCE: Driving Growth with Fractional Human Resources, March 10, 2025, Nichole D. Atallah
CONFERENCE: Ins and Outs of the Service Contract Act for GovCons, March 11, 2025, Nichole D. Atallah
CYBERSECURITY & DATA PRIVACY / LABOR & EMPLOYMENT
AI Anti-Discrimination Legislation Passes Virginia Statehouse, Bloomberg Government
Virginia would become the second state to approve comprehensive anti-discrimination restrictions on the use of artificial intelligence under legislation cleared Wednesday by the Democratic-controlled General Assembly. Read more here (subscription required).