The Department of Commerce recently released a new funding opportunity to support semiconductor-related research and development using funds appropriated under the CHIPS Act of 2022 (Pub. L. No. 117-167, 136 Stat. 1366 (Aug. 9, 2022)). Set forth below are a few key considerations that interested applicants should bear in mind when evaluating this opportunity, including that the Department may expect to receive upside (e.g., equity stakes) in selected projects.Continue Reading U.S. Department of Commerce Opens New Funding Opportunity for Semiconductor R&D
Michael Wagner
Mike Wagner represents companies and individuals in complex compliance and enforcement matters arising in the public procurement context. Combining deep regulatory expertise and extensive investigations experience, Mike helps government contractors navigate detailed procurement rules and achieve the efficient resolution of government investigations and enforcement actions.
Mike regularly represents contractors in federal and state compliance and enforcement matters relating to a range of procurement laws and regulations. He has particular experience handling investigations and litigation brought under the civil False Claims Act, and he routinely counsels government contractors on mandatory and voluntary disclosure considerations under the FAR, DFARS, and related regulatory regimes. He also represents contractors in high-stakes suspension and debarment matters at the federal and state levels, and he has served as Co-Chair of the ABA Suspension & Debarment Committee and is principal editor of the American Bar Association’s Practitioner’s Guide to Suspension & Debarment (4th ed.) (2018).
Mike also has extensive experience representing companies pursuing and negotiating grants, cooperative agreements, and Other Transaction Authority agreements (OTAs). In this regard, he has particular familiarity with the semiconductor and clean energy industries, and he has devoted substantial time in recent years to advising clients on strategic considerations for pursuing opportunities under the CHIPS Act, Inflation Reduction Act, and Bipartisan Infrastructure Law.
In his counseling practice, Mike regularly advises government contractors and suppliers on best practices for managing the rapidly-evolving array of cybersecurity and supply chain security rules and requirements. In particular, he helps companies assess and navigate domestic preference and country-of-origin requirements under the Buy American Act (BAA), Trade Agreements Act (TAA), Berry Amendment, and DOD Specialty Metals regulation. He also assists clients in managing product and information security considerations related to overseas manufacture and development of Information and Communication Technologies & Services (ICTS).
Mike serves on Covington’s Hiring Committee and is Co-Chair of the firm’s Summer Associate Program. He is a frequent writer and speaker on issues relating to procurement fraud and contractor responsibility, and he has served as an adjunct professor at the George Washington University Law School.
Expired: SBIR/STTR and DPA Authorities in Limbo
Two cornerstone authorities for federal contracting quietly expired on September 30, 2025, creating ripple effects that contractors—small and large—cannot afford to overlook. The Small Business Innovation Research/Small Business Technology Transfer (“SBIR/STTR”) programs, commonly known as “America’s Seed Fund” for their role in fueling early-stage innovation, and the Defense Production Act…
Continue Reading Expired: SBIR/STTR and DPA Authorities in LimboE-Verify and the False Claims Act: An Emerging Tool in Immigration Enforcement
On September 18, 2025, the Department of Justice (“DOJ”) announced a civil False Claims Act (“FCA”) settlement against a New Jersey shipbuilder to resolve allegations that it improperly employed unauthorized workers to work on Navy ships. The settlement, which exceeded $4 million, is the second this year involving government contractors alleged to have employed unauthorized workers in violation of FAR 52.222-54, Employment Eligibility Verification. With immigration enforcement squarely at the center of the current administration’s domestic agenda, government contractors should be mindful of this enforcement theory and take appropriate steps to ensure compliance and protect themselves from a costly FCA claim. Continue Reading E-Verify and the False Claims Act: An Emerging Tool in Immigration Enforcement
First Order Issued under the Federal Acquisition Supply Chain Security Act, Triggering Immediate Requirements on Contractors
On September 15, 2025, the Office of the Director of National Intelligence (“ODNI”) issued the first public exclusion and removal order (the “Order”) under the framework established by the Federal Acquisition Supply Chain Security Act of 2018 (“FASCSA”). The Order applies to all products and services produced or provided by Acronis AG as well as all subordinate, subsidiary, or affiliated organizations doing business under various names in support of Acronis AG. The exclusionary Order has two immediate impacts on the federal supply chain. First, federal contractors entering into new contracts or following contractual modifications are prohibited from supplying products or services from Acronis to agencies that are either subject to the Order or that have otherwise adopted it (“Covered Agencies”). Second, contractors are prohibited from using products or services from Acronis in the performance of new and modified contracts with Covered Agencies. In addition, certain agencies must remove these products and services from particular information systems.
Although the prohibitions apply to new contract awards, all contractors to Covered Agencies that have the applicable FASCA FAR clause (FAR 52.204-30) in their agreements must conduct diligence to determine whether they have provided or used any prohibited products or services in the performance of their contracts. Following this review, the clause requires contractors to report the use of prohibited products or services to Covered Agencies.
Additional detail on the FASCSA exclusionary process and this first public Order is provided below.Continue Reading First Order Issued under the Federal Acquisition Supply Chain Security Act, Triggering Immediate Requirements on Contractors
Fraud Prevention in Focus: Examining DOD’s Risk Management Strategies
The Department of Defense (“DOD”) is responsible for almost half of the federal government’s discretionary spending and spends more on contracting than all other federal agencies combined, obligating about $445 billion in fiscal year 2024. Given the renewed focus on fraud detection and prevention across the U.S. government – as highlighted both by the efforts of the Department of Government Efficiency (“DOGE”) and by recent congressional committee hearings focused on reducing waste, fraud, and abuse – the issue of fraud in DOD has become increasingly relevant.
On June 4, 2025, the House Committee on Oversight and Government Reform’s Subcommittee on Government Operations held a hearing titled “Safeguarding Procurement: Examining Fraud Risk Management in the Department of Defense,” during which congressional members examined strategies to combat fraud in DOD – including procurement fraud – and the steps the department is taking to address the problem.Continue Reading Fraud Prevention in Focus: Examining DOD’s Risk Management Strategies
One Big Beautiful Bill Act makes $150B investment in Defense
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
Continued Signs of Progress in the Revolutionary FAR Overhaul
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
Reintroduced SHIPS Act Signals Continued Momentum for Domestic Maritime Investment
On April 20th, a bipartisan, bicameral group of lawmakers, including Senator Mark Kelly (D-Ariz.) and Senator Todd Young (R-Ind.) in the Senate and Representative John Garamendi (D-Calif.) and Representative Trent Kelly (R-Miss.) in the House, reintroduced the Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act of 2025 (the “SHIPS Act” or the “Act”). The SHIPS Act’s sponsors describe the bill as a “comprehensive approach to revitalizing the U.S. Merchant Marine.” It aims to: (1) establish national oversight and consistent funding for U.S. maritime policy; (2) make U.S.-flagged vessels more commercially competitive through de-regulation; (3) rebuild the U.S. shipyard industrial base; and (4) expand and strengthen the maritime labor force. It also sets a goal for establishing a fleet of 250 U.S.-flagged vessels in international commerce.Continue Reading Reintroduced SHIPS Act Signals Continued Momentum for Domestic Maritime Investment
Early Signs of Progress in the “Revolutionary FAR Overhaul”
On Friday, May 2, the U.S. government announced further steps in its much-discussed plan to re-write the FAR by establishing a “Revolutionary FAR Overhaul” (“RFO”) website on Acquisition.gov, issuing written guidance to federal agencies, and releasing proposed revisions to FAR Part 1 – Federal Acquisition Regulation System and Part 34 – Major System Acquisition. This activity comes on the heels of recent presidential directives requiring agencies to examine and reform their approach to procurement of goods and services, including Executive Order (“E.O.”) 14275, “Restoring Common Sense To Federal Procurement,” and E.O. 14271, “Ensuring Commercial, Cost-Effective Solutions in Federal Contracts.”
As anticipated, the FAR re-write is spearheaded by the Office of Federal Procurement Policy (“OFPP”) within the Office of Management and Budget (“OMB”) and the Federal Acquisition Regulatory Council (“FAR Council”). The RFO website proclaims that the re-write is “the first-ever comprehensive overhaul of the FAR” and aims to “return the FAR to its statutory roots, rewritten in plain language, and remove most non-statutory rules.” It also will result in “non-regulatory buying guides [to] provide practical strategies grounded in common sense while remaining outside the FAR.” In short, the goal is characterized as “faster acquisitions, greater competition, and better results.”Continue Reading Early Signs of Progress in the “Revolutionary FAR Overhaul”
Renewed Effort to Support Commercial Shipbuilding Capacity and the Domestic Maritime Industry
On April 9th, President Trump issued the Restoring America’s Maritime Dominance Executive Order (“Maritime EO”), which declares that “[i]t is the policy of the United States to revitalize and rebuild domestic maritime industries and workforce to promote national security and economic prosperity.” The Maritime EO aims to improve the nation’s commercial shipbuilding capacity and bolster the maritime workforce. The four corners of the Maritime EO primarily take two key steps—(1) directing the National Security Adviser to prepare a Maritime Action Plan (“MAP”) to revitalize domestic maritime industries and (2) imposing a series of trade-related measures to bolster domestic shipping. The Fact Sheet accompanying the Maritime EO further notes that President Trump has established a new Office of Maritime and Industrial Capacity at the National Security Council, which presumably will help coordinate implementation of the Maritime EO.
While much remains to be seen on how the Maritime EO will be implemented, it is clear that the Trump administration intends to take a multifaceted approach to supporting the domestic maritime industry. In this regard, the EO tracks and builds upon the SHIPS for America Act of 2024 (“SHIPS Act”), proposed legislation that garnered broad bipartisan support last year after its initial introduction in Congress. The SHIPS Act was co-sponsored by then-Rep. Michael Waltz, who as the current National Security Adviser has principal responsibility for managing the development of the MAP that forms the backbone for the EO and its policy objectives. Especially in light of the legislative momentum in this area, we expect that this initial action and any subsequent executive and legislative actions will be of significant interest to a wide range of U.S. businesses, including ship builders and their suppliers.Continue Reading Renewed Effort to Support Commercial Shipbuilding Capacity and the Domestic Maritime Industry