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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. |
March 2025: Reducing the Negative Impacts of a Government Shutdown for Federal Contractors, PilieroMazza Client Alert, Jacqueline K. Unger, Nichole D. Atallah, Lauren Brier
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 continuing resolution before the deadline. As we approach the possibility of another government shutdown, it’s crucial for government contractors to be prepared for the potential impacts on their operations. While shutdowns are not new, each one brings its own set of challenges and uncertainties. The current administration’s executive orders and actions have added an extra layer of uncertainty for government contractors. Below we provide key considerations and steps to take to ensure your business remains resilient during this period. Read more here.
Cy Alba and PilieroMazza Earn #1 Spot in JD Supra’s 2025 Readers’ Choice Award for Government Contract Thought Leadership, PilieroMazza News
PilieroMazza is thrilled to announce that Isaias “Cy” Alba, IV, and the Firm earned a #1 ranking in JD Supra’s 2025 Readers’ Choice Award for outstanding thought leadership covering topics related to government contracting. This distinction celebrates Cy and PilieroMazza for consistently delivering content that achieved the highest visibility and engagement among readers of GovCon topics over the past year. Read more here.
Guilty Until Proven Innocent: Key Takeaways from the Recent Final Rule on the FAR’s Suspension and Debarment Procedures, PilieroMazza Blog, Jacqueline K. Unger, Daniel Figuenick, III
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. Read more here.
OCI Mitigation Plans: Proposed Rule Emphasizes Compliance and Increased Enforcement, PilieroMazza Blog, : Isaias “Cy” Alba, IV, Christopher A. Jannace
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 itself, making it contractually binding and thereby enabling significant liability under the False Claims Act (FCA) or other actions against contractors. However, contractors should also remember that, while this proposed update is more stringent, failure to diligently follow current mitigation plans will still subject them to liability. Read more here.
Department of Defense (DOD) Memoranda:
- Purchases from Federal Prison Industries (FPI), Updated List of Federal Supply Classification Codes to Be Completed. On March 10, the DOD issued a memorandum, effective April 9, 2025, publishing a list of product categories for which the share of the DOD market is greater than 5%. The full Memorandum is available here.
- Class Deviation, Revocation of Executive Order (EO) on Sustainability. On March 7, DOD issued a memorandum, effective immediately and implementing EO 14148 (Initial Recissions of Harmful Executive Orders and Actions), requiring contracting officers to include certain solicitation provisions and contract clauses in new solicitations contained in Attachment 1 to the Class Deviation. For existing solicitations and contracts, contracting officers must amend and modify the same per the requirements in Attachment 2 to the Class Deviation. Contracting officers are further required not to consider the representations in the System for Award Management (SAM). Contracting officers are prohibited from requiring offerors to disclose a greenhouse gas inventory or report greenhouse gas emissions. The full Class Deviation and Attachments are available here.
- Directing Modern Software Acquisition to Maximize Lethality. On March 6, DOD issued a memorandum, effective immediately, to reframe its acquisition approach from hardware-centric to software-centric. As such, DOD requires DOD components to adopt the Software Acquisition Pathway as the preferred pathway for business and weapon system programs in the DOD. Further, the use of Commercial Solutions Openings and Other Transactions is the default solicitation and award approach under the Software Acquisition Pathway. Within 30 days, the DOD will develop an implementation plan. The full Memorandum is available here.
- Revision 1, Pilot Program to Incentivize Contracting with Employee-Owned Businesses. On March 6, DOD issued a memorandum, revising the email address to be used for submitting employee stock ownership plan (ESOP) pilot program applications and updating the frequently asked questions. The pilot program is continuing to accept applications. The full Memorandum and Attachments are available here.
- Executive Order (EO) 14222 Contract Process Review and Warrant Appointments. On March 5, DOD issued a memorandum intended to address two requirements of EO 14222 and stated that DOD is conducting a review of its contracting policies, procedures, and personnel prescribed by the EO. DOD states that it is open to receiving input, which should be done by March 21, 2025. The full Memorandum is available here.
- Government-Wide Commercial Purchase Card (GPC) Freeze in Response to Executive Order (EO) “Implementing the President’s ‘Department of Government Efficiency’ Cost Efficiency Initiative.” On March 4, DOD issued a memorandum, effective immediately, directing immediate suspension of all government-issued GPCs held by civilian employees. This Memorandum was issued to comply with the President’s EO, “Implementing the President’s “Department of Government Efficiency” Cost Efficiency Initiative.” The Memorandum is available here.
- Class Deviation, Restoring Merit-Based Opportunity in Federal Contracts. On March 3, DOD issued a memorandum, effective immediately, requiring contracting officers to not implement existing Executive Orders (EOs), Federal Acquisition Regulation (FAR) provisions and clauses, and Defense Federal Acquisition Regulation Supplement (DFARS) provisions and clauses relating to equal opportunity and affirmative action in government contracting. This Class Deviation requires contracting officers to amend solicitations and contracts and replace them with new language in the Attachment to the Class Deviation to comply with the following EOs: Ending Illegal Discrimination and Restoring Merit-Based Opportunity; Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government; revoking EO 11246; and directing the Government to not use the term “gender” in Federal policies and documents. The Class Deviation and Attachment are available here.
Small Business Administration (SBA) News Release
- SBA Announces Made in America Manufacturing Initiative: On March 10, SBA announced its support of the Made in America Manufacturing Initiative. The SBA will collaborate with other agencies to support small businesses and eliminate burdensome rules, policies, and procedures. The SBA will launch the Red Tape Hotline designed to assist small business owners and manufacturers in sharing their feedback about onerous regulations. The SBA will also launch an Office of Manufacturing and Trade to provide resources specific to small manufacturers. Read more here.
- Administrator Loeffler Announces SBA Reforms to Put American Citizens First: On March 6, SBA announced a series of “reforms” intended to benefit American citizens by revoking taxpayer benefits to undocumented immigrants and removing offices out of sanctuary cities. SBA intends to promulgate new regulations to require SBA loan applicants to include citizenship verification, and lenders will be required to confirm that SBA loan applicants are not owned by undocumented immigrants. This news release does not clarify whether small businesses owned by immigrants authorized to work and conduct business in the U.S. would still be eligible to apply for SBA loans. Read more here.
House Republicans Pass Bill to Avert Government Shutdown, The Hill
The legislation would fund the government through Sept. 30, the end of the fiscal year, while boosting funds for defense programs and imposing cuts to nondefense funding. Current funding expires at 11:59 p.m. Friday. Read more here.
VA Targets 585 ‘Non-Mission Critical’ Contracts for Elimination, NextGov/FCW
The Veterans Affairs Department is moving to cancel 585 contracts that it has deemed non-mission critical or duplicative. The VA claims $900 million in savings and that the cuts will not impact health care, benefits, or services. Read more here.
Indo-Pacific Pentagon Acquisition Highest Yet in Fiscal 2024, Bloomberg Government
Unclassified Indo-Pacific Pentagon acquisition nearly tripled over the last 10 full fiscal years, topping $18 billion in fiscal 2024 in support of US commitment to ‘regional security.’ Read more here (subscription required).
Pentagon Aims to Accelerate Acquisition of New Tech through Software-Contracting Change, DefenseOne
The Pentagon must default to rapid acquisition processes when buying software, from business systems to weapons components, the defense secretary said in a Thursday memo. The move is a “big deal,” one expert told Defense One, because it will push the Defense Department to stop spending considerable money and time trying to build its own software and instead go to the marketplace for products that might already exist. Read more here.
H.R. 856, Safe and Smart Federal Purchasing Act, Passed House
On March 3, H.R. 856 passed in the House of Representatives. This Bill was introduced to the House Oversight and Government Reform Committee by Rep. Donalds (R-FL-19) on January 31. If enacted, this Bill will require the Office of Management and Budget (OMB) to evaluate procurement activities of federal agencies to determine if the provisions of the Federal Acquisition Regulation (FAR) regarding the lowest price technically acceptable source selection process created a national security risk. The full text of the Bill as introduced in the House is available here.
BGOV Bill Analysis: H.R. 1692, Extend DHS Acquisition Authority, Bloomberg Government
The Homeland Security Department would be authorized to enter into flexible “other transaction agreements” (OTAs) as part of its research and development efforts through fiscal 2028 under H.R. 1692. Read more here (subscription required).
Upcoming Government Contract Presentations
TRAINING: Legal Considerations When Supporting OCONUS Contracts, March 18, 2025, 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
TRAINING: Joint Venture and Mentor-Protege 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
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
TRAINING: Understanding and Avoiding Affiliation for Small Business Government Contractors, April 22, 2025, Emily A. Reid, Cole R. Fox
CONFERENCE: Small Business Legal Case Updates, April 24, 2025, Meghan F. Leemon
GOVERNMENT CONTRACTS / BUSINESS & TRANSACTIONS
Corporate Transparency Act, Part 9: Reporting Due March 21, 2025, No Penalties for Not Reporting (For Now), PilieroMazza Client Alert, Meghan F. Leemon, Abigail “Abby” L. Baker, Cole R. Fox
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. Read more here.
REAs, CLAIMS, AND APPEALS
2nd Court Blocks Government Funding Freeze: 5 Takeaways for Contractors, PilieroMazza Client Alert, Samuel S. Finnerty
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. Read more here.
Court Blocks Suspension and Termination of Foreign Aid Contracts: Key Takeaways for Government Contractors, PilieroMazza Client Alert, Samuel S. Finnerty
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 completed work prior to February 13th. Read more here.
10 FAQs: Navigating Legal Challenges for Government Contractors Impacted by President Trump’s Recent Executive Orders, PilieroMazza Blog, Samuel S. Finnerty, Lauren Brier
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 you mitigate risks and protect your contractual rights. Read more here.
Upcoming Labor & Employment Presentations
WEBINAR: A Review of the Key Labor Statutes Applicable to Government Contractors – How to Keep your Workforce Happy and Stay Off DOL’s Radar, March 19, 2025, Sarah L. Nash
WEBINAR: Service Contract Act, March 24, 2025, Nichole D. Atallah
WEBINAR: GovCon: Need to Know – Employment, Health and Safety, April 29, 2025, Sarah L. Nash
CYBERSECURITY & DATA PRIVACY
H.R. 872, Federal Contractor Cybersecurity Vulnerability Reduction Act of 2025, Passed House
On March 3, H.R. 872 passed in the House of Representatives. This Bill was introduced to the House Oversight and Government Reform and Armed Services Committees by Rep. Mace (R-SC-1) on January 31. If enacted, this Bill will require revisions to acquisition regulations regarding information systems vulnerabilities for contractors whose contract is at or above the simplified acquisition threshold or who use, operate, manage, or maintain a federal information system. The Office of Management and Budget (OMB) will also be required to review the Federal Acquisition Regulation (FAR) and recommend updated contract requirements and language for contractor vulnerability disclosure programs. Recommendations must include requirements to ensure the implementation of vulnerability disclosure policies from the National Institute of Standards and Technology (NIST). The Federal Acquisition Regulation Council (FARC) must review the recommendations and update the FAR. The Department of Defense (DOD) must also review and update its DOD Supplement to the FAR. The full text of the Bill as engrossed in the House is available here.
BGOV Bill Analysis: H.R. 872, Contractor Cyber Vulnerabilities, Bloomberg Government
Federal procurement contracts would need to have updated language requiring contractors to implement standard cybersecurity vulnerability disclosure processes under H.R. 872. Read more here (subscription required).