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
Digital Force Technologies, Inc.: A “SBIR-Derived Component” Can Be Sufficient For SBIR Phase III
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
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”
The Executive Order 11246 Grace Period Ends Today (April 21)
On January 21, 2025, President Trump issued Executive Order 14173, titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (“EO 14173”), which, among other things, revoked Executive Order 11246 (“EO 11246”), a 60-year-old Civil Rights-era directive that prohibited federal contractors from discriminating on the basis of race, color, religion, sex
Continue Reading The Executive Order 11246 Grace Period Ends Today (April 21)Trump Administration Issues Two Executive Orders Seeking To Remake Federal Procurement
President Trump has issued two new Executive Orders (“EOs”) that seek to reshape federal procurement. The much anticipated “Restoring Common Sense To Federal Procurement” EO (the “FAR Reform EO”) seeks to “create the most agile, effective, and efficient procurement system possible” by revising the Federal Acquisition Regulation (“FAR”)
Continue Reading Trump Administration Issues Two Executive Orders Seeking To Remake Federal ProcurementDoD is Shrinking its Civilian Workforce: What Contractors Should Know Now
Since January 20, the Trump administration has taken numerous executive actions that impact federal government contractors and grant recipients. In just a single day last week, the Trump administration issued a series of EOs and presidential memoranda that, among other things, seek to reform the defense acquisition system, bolster the U.S. maritime industry, and streamline foreign military sales. The potential impact of these changes to Department of Defense (“DoD”) procurement policy are relatively self-evident.
At the same time, the Trump administration has taken various steps to reorganize and reduce the federal workforce, including significant changes to the DoD civilian workforce. The potential effects of these personnel policies are less obvious but may be equally meaningful for defense contractors. This blog focuses on one such executive action, Executive Order 14210 (titled Implementing the President’s ‘‘Department of Government Efficiency’’ Workforce Optimization Initiative) and its potential implications for the defense industrial base.Continue Reading DoD is Shrinking its Civilian Workforce: What Contractors Should Know Now
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
New Executive Actions Address the Defense Acquisition System, U.S. Maritime Industries, Foreign Military Sales, and “Unlawful” Regulations
President Trump issued a series of executive orders (“EOs”) and presidential memoranda on Wednesday, April 9, that could impact government contractors across a broad range of industries. Among other initiatives, these executive actions seek to reform the defense acquisition system, reinvigorate the U.S. maritime industry, and streamline foreign military sales. The actions also reflect President Trump’s goal of catalyzing innovation and economic growth by reducing regulatory burdens, both in general and in the energy industry specifically.
We briefly summarize below the six April 9 executive actions most likely to impact government contractors.Continue Reading New Executive Actions Address the Defense Acquisition System, U.S. Maritime Industries, Foreign Military Sales, and “Unlawful” Regulations
Timeline of Key Developments Related to Recent Executive Actions: April Edition
Updated as of April 30, 2025
Over the first one-hundred days of the second Trump Administration, Covington’s Government Contracts Practice has tracked the latest developments related to recent executive actions most relevant to federal contractors and grantees. This April edition of our key developments timeline provides a targeted overview of
Continue Reading Timeline of Key Developments Related to Recent Executive Actions: April Edition