Government Contracts Regulatory Compliance

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 Reform

On September 1, 2026, the Cost Accounting Standards (“CAS”) Board published two final rules implementing seismic changes to cost accounting requirements for federal government contractors.  The most significant change implements a requirement in last year’s National Defense Authorization Act (“NDAA”), doubling the dollar value threshold for full coverage under CAS. …

Continue Reading CAS Board Rolls Out Two Changes with Significant Impact on Federal 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 Contractors

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
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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

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

As we previously covered, on March 26, 2026, President Trump issued Executive Order (EO) 14398, “Addressing DEI Discrimination by Federal Contractors,” to address “racially discriminatory DEI activities” in federal contracting.  Among other things, EO 14398 directed the FAR Council to issue deviation and interim guidance within 60 days to implement the new contract clause set forth in Section 3 of the EO.  On April 20, the FAR Council issued those model deviations[1] ahead of schedule, along with corresponding implementation guidance. 

Continue Reading Revolutionary FAR Overhaul Incorporates New “Addressing DEI Discrimination” Executive Order Provisions

On March 26, 2026, President Trump issued an Executive Order (EO) titled “Addressing DEI Discrimination by Federal Contractors,” the latest in a series of Executive Orders and related actions by the Administration targeting what it views as unlawful Diversity, Equity, and Inclusion (“DEI”) related practices.  Most notable about…

Continue Reading New “Addressing DEI Discrimination” Executive Order: What Federal Contractors Need to Know

On February 18, 2026, the General Services Administration (“GSA”) issued a proposed revision to the certifications that federal financial assistance recipients or applicants must make in order to register in the System for Award Management (“SAM”), adding certifications related to diversity, equity, and inclusion programs; immigration; and national security.  The proposed revision also addresses applicability in the event of an active injunction.  Public comment is due by March 30, 2026.

Continue Reading GSA Proposes New SAM Certification Language for Federal Funding Recipients Addressing DEI, Immigration, and National Security

On January 23, 2026, Vice President Vance announced the administration’s intent to expand the “Mexico City Policy.”  First established by President Reagan, the Mexico City Policy originally prohibited foreign non-governmental organizations (“NGOs”) from using funds to “promote abortion as a method of family planning in other nations.”  The policy was repealed by the Biden administration but then reinstated at the outset of the current administration.  On January 27, 2026, the State Department implemented the Vice President’s announcement, and expanded the Mexico City Policy to require recipients of “foreign assistance” to abide by award terms reflecting three new policies: (1) Protecting Life in Foreign Assistance (“PLFA”); (2) Combating Gender Ideology in Foreign Assistance (“CGIFA”); and (3) Combating Discriminatory Equity Ideology in Foreign Assistance (“CDEIFA”).[1]

Collectively, the new PLFA, CGIFA, and CDEIFA policies are referred to as the Promoting Human Flourishing in Foreign Assistance policy (“PHFFA”).  These rules create new obligations relevant to U.S. NGOs, foreign NGOs, and other international organizations receiving foreign assistance. This blog post focuses on the new CDEIFA requirements—and the potential pitfalls—for U.S. NGOs.

Continue Reading State Department Revives and Expands the Mexico City Policy