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A Message from PilieroMazza, PilieroMazza News
The PilieroMazza family remains fully committed to supporting you and your business during these uncertain times. Shifting priorities under the new administration are a challenge for all of us, but please know we are here to help you avoid potential risks and capitalize on emerging opportunities. To assist in keeping you informed, we encourage you to visit our “Government Contract Executive Orders” resource center (linked here), where we provide up-to-date coverage on recent developments that may impact your business. Read more here.
Government Accountability Office (GAO) Report: Small Business Contracting, National Nuclear Security Administration (NNSA) Needs Increased Contractor Oversight to Reduce Reporting Errors
On March 13, GAO released a report detailing that NNSA and its contractors reported awards totaling $16.8 billion to small businesses in fiscal years (FYs) 2018 to 2022. In its report, GAO examined the accuracy of those reports and estimated that $1.1 billion went to businesses that did not qualify as small and that the NNSA and its contractors had insufficient data for the $1.9 billion that was given to small businesses. GAO recommended the NNSA improve oversight and reporting accuracy by identifying root causes and preventing fraud risks in the errors of the data quality from contractors and their subcontractors. The full report is available here.
Department of Defense (DOD)
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- News: Mass Timber, 3D Printing May be Future of Military Construction for Army, Navy: On March 11, DOD announced that, on Capitol Hill, Dave Morrow, director of military programs for the Army Corps of Engineers, and Keith Hamilton, chief engineer for Naval Facilities Engineering Systems Command, met with lawmakers from the House Appropriations Committee, subcommittee on defense, to discuss the current and potential future uses of innovative construction techniques and technologies by the armed forces. Read more here.
- Notice: U.S. Court of Appeals for the Armed Forces Proposed Rules Changes: On March 12, DOD published a notice of proposed changes to the Rules of Practice and Procedure for the U.S. Court of Appeals for the Armed Forces. Particularly, the proposed changes amend the rules to require a certification of the word count in a pleading and modify the time to file review certificates from 30 days to 28 days to make filing requirements consistent throughout the rules. The Notice is available here. Comments close April 11, 2025.
Trump Signs Funding Bill to Avoid Shutdown, The Hill
President Trump signed the Republican-crafted spending bill to avert a government shutdown, the White House said on Saturday. The Republican-crafted bill will fund the government through Sept. 30 and caps off the first funding fight of Trump’s second term. The saga has also led to an internal war among Democrats on Capitol Hill. Read more here.
H.R. 1692, Producing Advanced Technologies for Homeland Security (PATHS) Act, Passed House
On March 11, H.R. 1692 passed in the House of Representatives. This Bill was introduced to the House Homeland Security Committee by Rep. Guest (R-MS-3) on February 27, 2025. If enacted this Bill will extend the authority of the Department of Homeland Security (DHS) to use other transactions for research and prototype projects. This Bill requires DHS to notify Congress of extending its authority within 72 hours for projects related to artificial intelligence technology. The minimum contract award value is lowered to $1 million for reporting on the DHS website. The full text of the Bill as introduced in the House is available here.
How 2016 NDAA Transformed OTAs into Key Defense Contracting Tool, Federal News Network
A contracting method known as Other Transaction Authority (OTA) has been around since 1958, during the beginnings of NASA and the Advanced Research Projects Agency. For nearly six decades, government agencies used this vehicle to work with research labs, universities, and small businesses to build prototypes. But the 2016 defense policy bill transformed this once obscure and rarely used contracting vehicle into a key tool for moving innovative technologies out of the lab and into production. Read more here.
GSA Considers Takeover of Contracting Work at Other Agencies Amid Reorganization, Federal News Network
The General Services Administration is exploring a possible takeover of contracting functions of other federal agencies, as part of a reorganization of its procurement shop. GSA’s reorganization plans also link back to the Trump administration’s longstanding plans to merge OPM and GSA into a single agency. Read more here.
US Small-Business Optimism Retreats as More Shift to Price Hikes, Bloomberg News
US small-business optimism fell to a four-month low in February and a gauge of uncertainty neared a record high as business owners grew uneasy about tariffs. Read more here (subscription required).
Better Data, Not a Review, New Systems Will Fix Acquisition, Federal News Network
President Donald Trump is charging DOGE and agencies to look at contracting processes, procedures, and the systems that support those efforts by late March. Read more here.
VA Cuts Support Work for New EHR, After Canceling Hundreds of Contracts, Federal News Network
The Department of Veterans Affairs is looking to accelerate the rollout of its new Electronic Health Record. The VA is walking back the termination of some EHR support contracts, but many of the affected companies already laid off staff. Read more here.
Upcoming Government Contract Presentations
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
CPARS Ratings: Subjective or Objective? ASBCA Weighs In, PilieroMazza Blog, Samuel S. Finnerty
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 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. Read more here.
No More Free Passes? New Order Forces Plaintiffs to Pay for Injunctions Against the Federal Government, PilieroMazza Blog, Samuel S. Finnerty
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 also marks a major change in how the government will handle future legal challenges. Read more here.
FALSE CLAIMS ACT / AUDITS & INVESTIGATIONS
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 how 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.
H.R. 1156, Pandemic Unemployment Fraud Enforcement Act, Passed House
On March 11, H.R. 1156 passed in the House of Representatives. This Bill was introduced to the House Ways and Means Committee by Rep. Smith (R-MO-8) on February 10, 2025. If enacted, this Bill will amend the Coronavirus Aid, Relief, and Economic Security (CARES) Act to extend the statute of limitations for fraud to 10 years for civil and criminal enforcement. The full text of the Bill as reported in the House is available here.
Government Accountability Office (GAO) Report
- Program Integrity, Agencies, and Congress Can Take Actions to Better Manage Improper Payments and Fraud Risks: On March 11, GAO released a report detailing the steps that agencies, including the Department of Health and Human Services, Small Business Administration, Department of Defense, and others, can take to increase accountability regarding improper payments and fraud. GAO recommended that agencies and Congress address and prevent improper payments and fraud by shifting their focus to prevention, implementing regular risk assessments and root cause analyses, increasing accountability when improper payments and fraud occur, and sharing data and technology such as the Department of Treasury’s Do Not Pay database. The full report is available here.
- Improper Payments, Information on Agencies’ Fiscal Year (FY) 2024 Estimates: On March 11, GAO released its report detailing how federal agencies estimate improper payments for FY 2024. Federal agencies identified $135 billion (84%) of those improper payments (totaling $162 billion) were estimated to be because of overpayments. This year’s estimate of improper payments represents a $74 billion decrease in improper payments from the previous year. The full report is available here.
No More Minimum Wage Obligations Shifts Pricing Strategies for Service and Construction Contractors, PilieroMazza Client Alert, Sarah L. Nash, Nichole D. Atallah
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. Read more here.
Nichole Atallah Speaks with Federal News Network: DOD No Longer Requires Equal Employment Opportunity Clauses In Contracts, PilieroMazza News, Nichole D. Atallah
A new policy directs all Defense Department components not to include Equal Employment Opportunity provisions and clauses in new contracts and solicitations. In a memo released on March 4, John Tenaglia, the defense pricing, contracting and acquisition policy principal director, instructed DOD contracting officers not to enforce President Lyndon B. Johnson’s executive order signed in 1965 that mandated all federal contractors to promote equal employment opportunities and prevent discrimination. Read more here.
White House
- Memorandum: Removing Discrimination and Discriminatory Equity Ideology from the Foreign Service: On March 19, the White House released a memorandum directing the Secretary of State to “promptly revise” the 2022-2025 Decision Criteria for Tenure and Promotion in the Foreign Service to remove references to Diversity, Equity, Inclusion, and Accessibility (DEIA). This memorandum requires that officers and employees of the Foreign Service cannot be recruited, hired, promoted, or retained based on their race, color, religion, sex, or national origin. While acting in an official capacity, officers and employees are forbidden to promote, advocate, or support “discriminatory equity ideology.” Per Executive Order 14211, One Voice for America’s Foreign Relations, a determination and review will need to be made as to whether any current Foreign Service Members have engaged in the now-outlawed practice and whether they engaged in “actions motivated by discriminatory equity ideology” and must “take appropriate action” or take their findings to the President to “take appropriate actions.” Read more here.
- Fact Sheet: President Donald J. Trump Removes DEI from the Foreign Service: On March 18, the Trump Administration announced that President Trump signed a memorandum aimed at removing DEI from the Foreign Service. This Fact Sheet outlines actions taken by the Trump Administration to remove Diversity, Equity, Inclusion (DEI), and Accessibility (DEIA) across the Federal government. First, the Trump Administration directs the Secretary of State to remove DEIA as a Core Precept from the Foreign Service tenure and promotion criteria. Certain agencies are also directed to “identify and take appropriate action” for any officer engaging in “illegal discrimination.” The Fact Sheet also summarizes the implementation of removing the requirement in the Department of State for employees to be committed to DEIA to be eligible for promotions. The
Office of Personnel Management (OPM) Memorandum
- Guidance on Collective Bargaining in Connection with RIFs: On March 12, OPM issued a memorandum providing guidance to agencies regarding collective bargaining and reductions in force (RIFs). This memorandum advises agencies to conduct a comprehensive review of their collective bargaining agreements (CBAs) to determine the extent, if at all, RIFs are covered by CBAs. OPM advises agencies that “[a]ny CBA provisions that are inconsistent with OPM regulations [] or that excessively interfere with management to ‘determine the organization’ and the ‘number of employees’ of the agency as well as ‘layoff, and retain employees in the agency’ are unenforceable.” Read more here.
- Further Agency Reporting to OPM on Taxpayer-Funded Collective Bargaining Expenses: On March 17, OPM issued a memorandum to all heads of U.S. departments and agencies directing agencies to submit information and expenses regarding collective bargaining agreements for fiscal year 2024. The deadline for agencies to submit the information is April 18, 2025. Read more here.
Department of Defense (DOD) News: Official, Roughly 21,000 DOD Civilians Volunteered for Deferred Resignation
On March 18, DOD announced that approximately 21,000 DOD civilian employees volunteered to participate in the Deferred Resignation Program (DRP) implemented by the Office of Personnel Management (OPM). DOD reported that it has been actively processing DRP applications to reduce the DOD civilian workforce by 5 to 8% or by 50,000 to 60,000 employees. Read more here.
Judge: Musk’s and Trump’s Effort to Disband USAID Is Likely Unconstitutional, Government Executive
A federal judge in Maryland issued a preliminary injunction ordering the Trump administration to reinstate electronic system access to workers at the U.S. Agency for International Development who had been fired or put on leave in recent weeks, finding that President Trump and Elon Musk likely violated the separation of powers and Appointments Clause of the Constitution when it ordered the shuttering of the foreign aid agency. Read more here.
Judge Orders DOGE to Comply with FOIA Requests, Government Executive
A federal judge on Monday night ruled that the Department of Government Efficiency must comply with a government group’s Freedom of Information Act requests, rebuffing the Trump administration’s assertions that records from the Elon Musk-backed initiative should be shielded from the public. Read more here.
The Trump Administration Is Taking Steps to Comply with Court Orders to Reinstate Tens of Thousands of Fired Workers, Government Executive
The Trump administration appears to be preparing to comply with multiple court orders to quickly place tens of thousands of federal workers fired during their probationary periods, according to officials at three agencies briefed on the plans. Some employees are already receiving notices that they will rejoin the payroll. Read more here.
Union Sues DHS to Protect TSA Screeners’ Collective Bargaining Rights, Government Executive
The nation’s largest federal employee union on Thursday sued the Trump administration seeking to reverse the decision to revoke the collective bargaining rights of airport screeners at the Transportation Security Administration. The American Federation of Government Employees accused the Trump administration of retaliating against the labor group over their efforts to block the mass firing of probationary workers across the government. Read more here.
Top Republican and Democrat Plan Competing Bills to Curb VA Firings, Protect Veterans, Government Executive
On Tuesday, Senate Veterans Affairs Committee Ranking Member Sen. Richard Blumenthal, D-Conn., revealed his Putting Veterans First Act. Blumenthal’s bill would reinstate with backpay all veterans, military spouses, survivors, veteran caregivers, and members of the Guard and Reserves—and all VA employees thus far—illegally fired, demoted or suspended as part of the Trump administration’s mass terminations. It would further protect veterans in the civil service from being included in future mass terminations. Read more here.
DOD’s Purchase Card Freeze, Travel Pause Create More Uncertainty for Civilian Workforce, Federal News Network
Amid sweeping layoffs, the Defense Department has thrown its civilian workforce into further uncertainty after it paused all travel and placed a $1 spending limit on all government purchase cards, effectively making them useless. Read more here.
Upcoming Labor & Employment Presentations
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
Government Accountability Office (GAO) Report: Mission-Critical Information Technology (IT), Agencies Are Monitoring Selected Acquisitions for Cybersecurity and Privacy Risks
On March 11, GAO released its report examining IT acquisition programs critical to agency missions, such as national security and public health, and cost approximately $50 billion. Of the 16 programs examined, seven programs identified significant cybersecurity and information privacy risks which increase as IT infrastructure ages with more complex threats and vulnerabilities. The full report is available here.
Gov Tech Layoffs Could Hamper SHARE IT Act Software Mandates, Federal News Network
Experts say recent cuts at the General Services Administration’s Technology Transformation Services and elsewhere could hinder implementation of the “Source Code Harmonization and Reuse In Information Technology Act,” or the SHARE IT Act. The SHARE IT Act requires agencies to share custom-developed software code. But the termination of 18F and other tech experts could hamper the law’s goals. Read more here.