On June 11, 2026, the Small Business Administration (“SBA”) published a proposed rule that would fundamentally alter how individuals qualify as “socially disadvantaged” under the 8(a) Business Development Program (“8(a) BD Program” or “Program”).  The comment period will be underway until July 13, 2026.

This five-page proposed rule states that it aims to align the 8(a) BD Program with constitutional and statutory requirements and remedy what it characterizes as the discriminatory effect of the program in the past.

Continue Reading SBA’s Proposed Update to the 8(a) Business Development Program: A New Approach to Social Disadvantage

On June 10, the Cybersecurity & Infrastructure Security Agency (CISA) released Binding Operational Directive (BOD) 26-04 on Prioritizing Security Updates Based on Risk and the accompanying Implementation Guidance. In releasing the BOD and Implementation Guidance, CISA noted that the documents are “part of CISA’s response to the current threat landscape” and the impact of AI on the volume of identified security vulnerabilities and compressed timelines for remediation as threat actors move quickly to exploit them. While the BOD and Implementation Guidance apply to agencies, CISA Acting Director Nick Anderson noted in the release of the documents that “CISA strongly encourages all partners to adopt similar actions in their vulnerability management policy.”

Continue Reading CISA Releases Binding Operational Directive on Prioritizing Security Updates Based on Risk

In January 2025, Covington issued a client alert noting that the National Defense Authorization Act (“NDAA”) for Fiscal Year (“FY”) 2025, which sets annual spending and policy for the Pentagon, introduced new China-related prohibitions on defense contractors and their consultants. The provision is finally set to take effect on…

Continue Reading New Restrictions on Defense Contractors Retaining Outside Consultants Set to Take Effect
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The Government Accountability Office recently issued a report on the Department of Defense’s civilian workforce reductions.  It offers a concrete record of how DoD has reduced staffing, where those reductions have occurred, and how the Department has assessed their effects. GAO’s report matters not only as a workforce-management review, but also as a practical resource for companies that depend on DoD procurement, oversight, audit, logistics, finance, and program-management functions. For defense contractors, the report suggests that delays, capacity constraints, and operational friction may persist—and that these issues are likely to receive increased congressional and internal DoD attention.

Continue Reading GAO Scrutinizes DoD Civilian Workforce Cuts: What the Report Means for Federal Contractors

On June 2, 2026, the White House issued an executive order titled “Promoting Advanced Artificial Intelligence Innovation and Security” (the “Order”).  The Order reflects the Administration’s stated policy of advancing U.S. leadership in artificial intelligence (“AI”) while addressing national security risks associated with increasingly capable AI systems.  To accomplish these policy goals, the Order outlines two approaches: (1) strengthening U.S. Government and private industry cyber defenses in response to “advanced AI,” and (2) developing voluntary benchmarking and review frameworks for secure development and release of “frontier” AI models.

Continue Reading White House Releases Executive Order on Advanced AI Innovation and Security

On May 29, 2026, the Office of Management and Budget (“OMB”), together with several other federal agencies, published a proposed rule that would fundamentally change many aspects of the regulations in 2 CFR Part 200 governing federal financial assistance awards, including grants, cooperative agreements, loans, and loan guarantees.  The comment period will be underway until July 13.

The 412 page proposed rule states that it is aimed at increasing transparency, accountability, and oversight in federal financial assistance.  It provides examples of “the types of wasteful spending” that it is meant to target, including recipients “potentially misus[ing] funds to provide services for illegal immigrants.”

While the proposed rule contains numerous changes, this post highlights some of the most notable.

Continue Reading Proposed Rule Would Fundamentally Impact Federal Grant and Financial Assistance Framework

Over one year ago, on May 2, 2025, the FAR Council took the first concrete step in the administration’s “Revolutionary FAR Overhaul” (“RFO”) initiative by issuing the initial round of rolling model deviation guidance—a deliberate move to translate reform of the Federal Acquisition Regulation (“FAR”) from an abstract policy goal into acquisition text.  That moment marked the beginning of a new implementation reality: rather than waiting for a single, comprehensive rulemaking, the government began operationalizing the overhaul in increments, part by part, through deviations.  Now, a year later, the question for contractors is no longer whether the overhaul is “coming,” but how it is being implemented across agencies and systems.  This is therefore a good time to take stock of where implementation stands, where friction is emerging, and what sophisticated contractors can do to stay ahead of the curve.  For additional information, our prior coverage of the RFO roll-out can be found here and here.

Continue Reading From Paper Reform to Practice: How Agencies Are Actually Implementing the Revolutionary FAR Overhaul

On April 29, 2026, Secretary of War Pete Hegseth told the House Armed Services Committee that the Pentagon will “shortly announce a sub-unified command of autonomous warfare.”  The announcement came as the Department of War (DoW) unveiled its fiscal year (FY) 2027 budget request, which proposes approximately $54 billion for the Defense Autonomous Warfare Group (DAWG)—a dramatic increase from the roughly $226 million the DAWG received previously.  When all DoW drone and counter-drone related budget lines in the FY 2027 budget request are aggregated, the total approaches $74 billion—an amount Pentagon officials have described as the largest investment in such technologies in U.S. history.  

Beyond the headline numbers, Secretary Hegseth’s reference to a “sub-unified command” is institutionally significant.  It raises fundamental questions about how the DoW intends to organize autonomous warfare inside the joint force and warrants a closer look at what a sub-unified command actually is.

Continue Reading The Pentagon’s New Sub-Unified Command for Autonomous Warfare:  What It Means and Where It Might Land

On April 30, 2026, President Trump issued an Executive Order (EO) titled, “Promoting Efficiency, Accountability, and Performance in Federal Contracting.”  This EO directs agencies to make fixed-price contracts the default form of contracting, and requires agency officials to execute written justifications to use other forms of contracting.  Of particular note for large contractors, the EO directs that, “[w]ithin 90 days of the date of this order, each agency head shall review and, to the maximum extent practicable and consistent with law, seek to modify, restructure, or renegotiate its 10 largest non-fixed-price contracts by dollar value . . . to facilitate use of fixed prices and performance-based incentives for contract deliverables to the maximum extent practicable.”

Continue Reading The New Executive Order on “Promoting Efficiency, Accountability, and Performance in Federal Contracting”: What Federal Contractors Need to Know  

On April 20, 2026, one week after President Trump signed the Small Business Innovation and Economic Security Act (Public Law 119-83) into law, the Department of War (“DoW”) issued a press release announcing that it was “immediately advancing” a “redesigned and more focused initiative to accelerate the delivery of advanced capabilities to the warfighter.”  As we covered last month, the Small Business Innovation and Economic Security Act reauthorizes the Small Business Innovation Research and Small Business Technology Transfer (“SBIR/STTR”) programs through September 30, 2031, ending a nearly six-month lapse that froze new SBIR/STTR solicitations and awards across federal agencies.

The DoW’s announcement signals that the Department intends to be the first mover in implementing the reauthorized SBIR/STTR programs.  The announcement also introduces a new initiative, the Accelerated Research for Transition (“ART”) Program, that warrants close attention from the defense small business community.

Continue Reading SBIR/STTR Is Back and the Department of War Is Wasting No Time