Several months into the Department of War’s (DoW) suspension of the next phase of the Cybersecurity Maturity Model Certification (CMMC) Program, contractors are continuing to navigate uncertainty relating to the program. With the Department’s review underway, this post takes stock of where the program stands, what remains in effect, and what contractors should be considering.
Continue Reading CMMC Reform Task Force Updates September 2026Defense Industry
Department of War Issues Memorandum Aimed at Strengthening the Industrial Base Through Acquisition Reform
On September 14, 2026, Deputy Secretary of War Stephen Feinberg issued a memorandum and an accompanying appendix focused on strengthening the defense industrial base by reforming acquisition requirements related to a wide range of issues, including accounting standards, efficiency, government oversight, procedural requirements, audits, pricing, and more. Building on prior policymaking, including Executive Order 14402 (April 30, 2026), this memorandum directs agency actions aimed at making defense acquisition more commercially oriented and less dependent on government-unique accounting and oversight regimes.
Among other things, the memorandum directs the Department of War (“DoW”) to shift away from the Cost Accounting Standards (“CAS”) and increase its reliance on the Generally Accepted Accounting Principles (“GAAP”), including by advancing CAS coverage reform at the CAS Board. The memorandum further directs a number of other reforms related to accelerating acquisition transformation, scaling advance market commitments, improving efficiency, reducing administrative burden, limiting audits, streamlining business system reviews, and increasing the use of commercial contracting and other transaction authority (“OTA”) agreements.
Continue Reading Department of War Issues Memorandum Aimed at Strengthening the Industrial Base Through Acquisition ReformThe U.S.-India Reciprocal Defense Procurement Agreement: A New Chapter in a Complex Relationship
By Stephanie Barna & Nooree Lee on
For decades, the United States and India circled each other as potential defense partners—aligned by democratic values and shared strategic concerns, yet separated by Cold War legacies and divergent procurement cultures. Now, a proposed Reciprocal Defense Procurement Agreement (“RDPA”) promises to open each country’s military marketplace to the other’s defense…
Continue Reading The U.S.-India Reciprocal Defense Procurement Agreement: A New Chapter in a Complex RelationshipDoW Issues Revision 3 of its Class Deviation on Security Requirements
By Susan B. Cassidy, Ryan Burnette & Darby Rourick on
Posted in Cybersecurity, Defense Industry
On September 3, 2026 the Department of War (DoW) issued Revision 3 to its Class Deviation and associated Procedures, Guidance and Information (PGI) that implements a new Part 240 (consistent with the Revolutionary FAR Overhaul of Part 40, which we reported on in July). Like the proposed FAR Rule, this DFARS Class Deviation addresses supply chain and information security issues but is focused on requirements that are unique for DoW contracts.
Continue Reading DoW Issues Revision 3 of its Class Deviation on Security RequirementsDSCA Expands FMF Eligibility for Direct Commercial Contracts
By Nooree Lee & Catherine Wettach on
Posted in Defense Industry, FMS and DCS
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
By Michael Pierce & Nooree Lee on
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 Effect