As part of the One Big Beautiful Bill Act (“OBBBA”) signed into law by the President on July 4th, Congress made approximately $150 billion in appropriations to support defense and national security priorities.  As detailed further below, OBBBA touches on many different defense industries and sectors—including the maritime industry, missile systems, space and satellite technologies, nuclear technologies, and artificial intelligence and other advanced technologies.  Further, the OBBBA appropriates significant funding to support strategic investments in the defense industrial base and provides the Department of Defense (“DoD”) with an extended timeline (until 2029) to execute these investments.  Existing government contractors, and advanced technology providers interested in becoming contractors, should closely monitor the implementation of these OBBBA provisions, which will shape DoD opportunities for years to come.Continue Reading One Big Beautiful Bill Act makes $150B investment in Defense

The Trump Administration continues to focus on procurement reform aimed at increasing acquisition efficiency, including through the “Revolutionary FAR Overhaul” and reinforced preference for commercial products. Now, with the House Armed Services Committee (HASC) introducing a defense procurement reform bill, it is clear that HASC leadership is also targeting increased efficiency as a key goal of the Fiscal Year 2026 National Defense Authorization Act (FY26 NDAA). We cover the bill’s key proposals and their potential impact on defense contractors below.Continue Reading SPEEDing up Procurement?: House Armed Services Bill Seeks to Reform Defense Acquisition

A pair of recent Government Accountability Office (GAO) bid protest decisions addressing impaired objectivity organizational conflicts of interest (OCIs) highlight the fact-specific and highly discretionary nature of a contracting officer’s OCI investigation, as well as the important role that contractors themselves can play in supporting such an investigation.  We discuss these two protests and the key takeaways for contractors below.Continue Reading A Tale of Two Impaired Objectivity Investigations:  Key Takeaways for Contractors Navigating Potential Organizational Conflicts of Interest

Since President Trump issued Executive Order (“E.O.”) 14275, “Restoring Common Sense to Federal Procurement” on April 15, 2025 as part of an effort to remake Federal procurement, the Administration has undertaken a variety of initial steps to implement its so-called “Revolutionary FAR Overhaul” (“RFO”).  These steps include “streamlining” each Part of the Federal Acquisition Regulation (“FAR”) on a rolling basis to remove “non-statutory requirements.”  To date, seven streamlined FAR Parts have been released on the RFO page of acquisition.gov:  Parts 1, Federal Acquisition Regulation; 10, Market Research; 11, Describing Agency Needs; 18, Emergency Acquisitions; 34, Major System Acquisition; 39, Acquisition of Information and Communication Technology; and 43, Contract Modifications.  The public has the opportunity to provide “informal input” for each Part—the soonest of which is to provide feedback on FAR Part 10 by July 7, 2025 at 4:30 PM ET.[1]   Although the volume of streamlined FAR Parts, non-regulatory resources, and commentary on acquisition.gov has started to proliferate in recent weeks, the extent to which these resources can and will be relied on in a strategic, accessible manner by the broader acquisition community still remains to be seen. Continue Reading Continued Signs of Progress in the Revolutionary FAR Overhaul

This is the fourth blog in a series of Covington blogs on cybersecurity policies, executive orders (“EOs”), and other actions of the new Trump Administration.  This blog describes key cybersecurity developments that took place in May 2025. 

CISA Releases AI Data Security Guidance

On May 22, the Cybersecurity and Infrastructure…

Continue Reading May 2025 Cybersecurity Developments Under the Trump Administration

On June 6, 2025, President Trump issued an Executive Order (“Sustaining Select Efforts to Strengthen the Nation’s Cybersecurity and Amending Executive Order 13694 and Executive Order 14144”) (the “Order”) that modifies certain initiatives in prior Executive Orders issued by Presidents Obama and Biden and highlights key cybersecurity priorities for…

Continue Reading White House Issues New Cybersecurity Executive Order

On May 22, 2025, the Cybersecurity and Infrastructure Security Agency (“CISA”), which sits within the Department of Homeland Security (“DHS”) released guidance for AI system operators regarding managing data security risks.  The associated press release explains that the guidance provides “best practices for system operators to mitigate cyber risks through…

Continue Reading CISA Releases AI Data Security Guidance

In a recent bid protest decision— Digital Force Technologies, Inc., B-423319 (May 19, 2025), the Government Accountability Office (“GAO”) denied a protest of a Small Business Innovation Research (“SBIR”) program Phase III sole source solicitation issued by the Air Force, concluding that the Air Force had properly procured work from a successor-in-interest entity that derives from, extends, or completes efforts under prior SBIR contracts.  Notably, GAO found that a single SBIR-derived component of the overall system to be procured can be a sufficient link to prior SBIR work for an agency to exercise its authority to issue a sole source SBIR Phase III contract.

This decision builds on previous GAO decisions in ASRC Federal Data Network Technologies, LLC, B-418765, Aug. 28, 2020, 2020 CPD ¶ 339 (“ASRC II”)[1] and Toyon Research Corporation, B-409765, Aug. 5, 2014, 2014 CPD ¶ 235, in which GAO had explained that “it must be evident that the requirements for the second effort incorporated original concepts, findings, ideas, or research results that were generated in the first.”[2] 

This blog post briefly summarizes background on the SBIR program and requirements for Phase III sole source awards, as backdrop to GAO’s findings in Digital Force Technologies.  The post then analyzes particular aspects of GAO’s decision suggesting an expansion of existing case law in this area and concludes with a brief discussion of practical considerations for government contractors.Continue Reading Digital Force Technologies, Inc.:  A “SBIR-Derived Component” Can Be Sufficient For SBIR Phase III

The Government Accountability Office (“GAO”) released a report on the Defense Contract Audit Agency’s (“DCAA”) past and future use of private-sector, independent public accountants to augment its auditor workforce. The initiative—approved under Section 803 of the Fiscal Year (“FY”) 2018 National Defense Authorization Act (“NDAA”)—began in fiscal year 2020 and was originally envisioned by Congress as a tool to reduce DCAA’s backlog of incurred cost audits. But, as GAO noted, DCAA had largely eliminated its audit backlog by the end of FY 2018, primarily through its reliance on risk-based sampling methodology, which reduced the number of audits DCAA was required to complete.Continue Reading GAO: DCAA Built a Valuable Bench of Independent Public Accountants, Now What?

On May 19, 2025, Deputy Attorney General Todd Blanche issued a memorandum establishing a DOJ Civil Rights Fraud Initiative.  The Initiative will use the False Claims Act (“FCA”) to “investigate and . . . pursue claims against any recipient of federal funds that knowingly violates federal civil rights laws.”  Educational institutions, federal contractors, grantees, and other entities that receive federal funding should take note of the latest FCA Initiative.  Similar FCA initiatives, such as those focused on collusion and cybersecurity fraud, have resulted in significant related FCA enforcement.Continue Reading Justice Department Establishes Civil Rights Fraud Initiative, Using False Claims Act to Target DEI