Earlier this year, the Defense Security Cooperation Agency (“DSCA”) issued updated policy guidance implementing a significant expansion of the universe of countries authorized to use Foreign Military Financing (“FMF”) for direct purchases of U.S. defense items. Previously, only ten countries were eligible for use of FMF for direct commercial contracting
Continue Reading DSCA Expands FMF Eligibility for Direct Commercial ContractsThe $10 Million TINA Threshold Is Now in Effect: What Contractors and Subcontractors Need to Know
Last December, we previewed the significant cost accounting and pricing data disclosure changes contained in the Fiscal Year 2026 National Defense Authorization Act (“NDAA”), including Section 1804(c)’s increase to the threshold governing the Truthful Cost or Pricing Data Statute (formerly the Truth in Negotiations Act, and still commonly called “TINA”). That change is no longer on the horizon: it is here. The FY 2026 NDAA was signed into law on December 18, 2025, and the higher TINA threshold has taken effect for contracts entered into after June 30, 2026. This post focuses on what that means, in practical terms, for prime contractors and subcontractors.
Continue Reading The $10 Million TINA Threshold Is Now in Effect: What Contractors and Subcontractors Need to KnowDefense Department Publishes Guidance Page Concerning Restrictions on Defense Contractors Retaining Outside Consultants
Over the last month, we have issued multiple client alerts outlining developments related to the Chinese military company covered lobbyist prohibition enacted by Section 851 of the National Defense Authorization Act (“NDAA”) for Fiscal Year (“FY”) 2025, codified at 10 U.S.C. § 4663. This is a follow-up to
Continue Reading Defense Department Publishes Guidance Page Concerning Restrictions on Defense Contractors Retaining Outside ConsultantsRegulations Issued for New Restrictions on Defense Contractors Retaining Outside Consultants
The Chinese military company covered lobbyist prohibition enacted by Section 851 of the National Defense Authorization Act (“NDAA”) for Fiscal Year (“FY”) 2025, codified at 10 U.S.C. § 4663, took effect on June 30, 2026. Just before that date, the Department of Defense took steps to implement the
Continue Reading Regulations Issued for New Restrictions on Defense Contractors Retaining Outside ConsultantsCongress Considers Further FOCI Reforms as DoW Moves to Expand Disclosure Requirements for Unclassified Defense Contractors
The public comment period for the long-awaited Defense Federal Acquisition Regulation Supplement (“DFARS”) proposed rule, “Mitigating Risks Related to Foreign Ownership, Control, or Influence” (the “proposed DFARS FOCI rule”), closed on July 6, 2026. But recent activity in Congress suggests that the Department of War (“DoW”)’s proposed rule may be only one part of a broader effort to expand the government’s visibility into and mitigation of foreign ownership, control, or influence (“FOCI”) risks across the defense industrial base. Taken together, the proposed DFARS FOCI rule and pending provisions in the House and Senate versions of the Fiscal Year (“FY”) 2027 National Defense Authorization Act (“NDAA”) could substantially extend FOCI-related scrutiny beyond the traditional universe of cleared contractors performing classified work.
Continue Reading Congress Considers Further FOCI Reforms as DoW Moves to Expand Disclosure Requirements for Unclassified Defense ContractorsNew Restrictions on Defense Contractors Retaining Outside Consultants Set to Take Effect
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 EffectGAO Scrutinizes DoD Civilian Workforce Cuts: What the Report Means for Federal Contractors
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 ContractorsThe Pentagon’s New Sub-Unified Command for Autonomous Warfare: What It Means and Where It Might Land
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 LandSBIR/STTR Is Back and the Department of War Is Wasting No Time
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“Adjusting Certain Delegations”: New Executive Order Aims to Streamline and Clarify Delegated Authorities Under the Defense Production Act
On March 13, 2026, President Trump issued an Executive Order (EO) titled “Adjusting Certain Delegations Under the Defense Production Act.” As we have covered in prior blog posts, the Defense Production Act (DPA) has traditionally been considered the primary federal means to manage and support defense production.
Continue Reading “Adjusting Certain Delegations”: New Executive Order Aims to Streamline and Clarify Delegated Authorities Under the Defense Production Act