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GOVERNMENT CONTRACTS

SCOTUS Greenlights Release of Foreign Aid Funds to Government Contractors, PilieroMazza Client Alert, Samuel S. FinnertyLauren BrierKelly A. Kirchgasser 

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. 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. Read more here.

Tariffs on Products from Canada, Mexico, and China: Rising Costs and Supply Shortages for Government Contractors, PilieroMazza Client Alert,  Jacqueline K. UngerChristopher A. Jannace

PilieroMazza recently published a client alert regarding executive orders issued on February 1, 2025, imposing additional tariffs on products from Canada, Mexico, and China, and the decision to delay the tariffs on Canada and Mexico until March 6, 2025. This client alert provides government contractors with an update on these tariffs—which may increase the cost of performance or lead to supply shortages, resulting in delays—and how to insulate your business. Read more here.

H.R. 788, DOE and SBA Research Act, Passed House

On February 25, H.R. 788 passed in the House of Representatives. This Bill was introduced to the House Science, Space, and Technology and Small Business Committees by Rep. LaLota (R-NY-1) on January 28. If enacted, this bill requires the Department of Energy and Small Business Administration to enter an agreement to collaborate on research and development activities to include small businesses and expand the technical capabilities of the agencies. The full text of the bill as introduced in the House is available here.

H.R. 818, Small Business Procurement and Utilization Reform (SPUR) Act of 2025, Passed House

On February 24, H.R. 818 passed in the House of Representatives. This Bill was introduced to the House Small Business Committee by Rep. Stauber (R-MN-8) on January 28. If enacted, this bill requires agencies to include awards of prime contracts to first-time qualified Historically Underutilized Business Zones small business concerns, small businesses owned and controlled by service-disabled veterans, small businesses owned and controlled by socially and economically disadvantaged individuals, or small businesses owned and controlled by women. The full text of the bill as introduced in the House is available here.

Negotiations to Avert a Shutdown Sputter as Disputes Over DOGE Cuts Persist, NBC News

Congress is careening toward a government shutdown in just 11 days as the discord between the two parties over funding talks grows, with no clear path to reach a deal. Read more here.

Some Small Businesses are on the Brink After Trump’s Spending Cuts Affect Contracts, ABC News

A cost-cutting spree carried out by President Donald Trump’s administration has put thousands of public employees out of work, but the slash-and-burn approach has also spilled over into the private sector, crippling some small businesses with ties to the federal government and weakening a federal agency tasked with supporting small firms, according to interviews with seven small business owners, as well as small business advocates. Read more here.

Comptroller General Says Impoundment Violations are a ‘High Priority’ for GAO, Government Executive

Comptroller General Gene Dodaro testified that his agency, the Government Accountability Office, is investigating the Trump administration’s early-term efforts to claw back federal funding across government for potential violations of the Impoundment Control Act. Read more here.

Trump Agencies Move to Centralize Contracts in Bid to Cut Costs, Bloomberg News

President Donald Trump’s administration is planning to consolidate government-wide purchasing efforts into a single agency, dismissing contracting officers as it seeks to make sweeping cuts to federal spending, according to an official familiar with the effort. Read more here (subscription required). 

Pentagon Still Falls Short on Jump-Starting Innovation, GAO Says, Bloomberg News

A decade after establishing an outpost in Silicon Valley to speed adoption of commercial technology by the U.S. military, the Pentagon still struggles to apply innovations to major strategic challenges, according to a new report by the Government Accountability Office. Read more here (subscription required). 

ICE Inks Contracts to House 2,000 Immigrant Detainees, Law360 

U.S. Immigration and Customs Enforcement has awarded contracts to house more than two thousand detainees at facilities owned by private detention firms GEO Group Inc. and CoreCivic Inc., including a $1 Billion deal to reopen a previously closed facility. Read more here (subscription required). 

BGOV Bill Analysis: H.R. 818, First-Time Contractor Scorecard, Bloomberg Government

The bill would direct the SBA to include the number of small vendors that had never previously been awarded prime contracts as part of the agency’s annual small business procurement scorecard, which is used to evaluate how well agencies meet federal small business contracting targets. The SBA already uses the scorecard to track how much of an agency’s contracting dollars go to small businesses, including those owned by members of specific economic and demographic groups. Read more here (subscription required). 

Upcoming Government Contract Presentations

WEBINAR: Federal Spending Freeze and Blocked Executive Orders: Critical Updates for Contractors, March 10, 2025, Lauren BrierSamuel S. Finnerty

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

 

LABOR & EMPLOYMENT

OPM Tells Court It Never Ordered Mass Firings, Contradicting Prior Claims, Government Executive

The Trump administration told a federal court this week it did not issue a governmentwide directive to fire newly hired federal workers, a claim that runs contrary to its previous statements and accounts from agency officials. Read more here.

DOL Contractor Watchdog Plans to Cut Staff by 90%, Memo Says, Bloomberg Law 

The Department of Labor is preparing to cut the workforce of its federal contractor watchdog by 90% after the Trump administration gutted much of the office’s enforcement power, according to a memo reviewed by Bloomberg Law. Read more here (subscription required). 

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

 

FALSE CLAIMS ACT / AUDITS & INVESTIGATIONS

H.R. 825, Assisting Small Businesses Not Fraudsters Act, Passed House

On February 24, H.R. 825 passed in the House of Representatives. This Bill was introduced to the House Small Business Committee by Rep. Williams (R-TX-25) on January 28. If enacted, this bill prohibits owners, officers, directors, or key employees of small businesses who have been convicted of financial crimes involving financial misconduct or false statements from receiving assistance from the Small Business Administration (SBA). The full text of the bill as introduced in the House is available here.