Procurement Policy

On May 29, 2026, the Office of Management and Budget (“OMB”), together with several other federal agencies, published a proposed rule that would fundamentally change many aspects of the regulations in 2 CFR Part 200 governing federal financial assistance awards, including grants, cooperative agreements, loans, and loan guarantees.  The comment period will be underway until July 13.

The 412 page proposed rule states that it is aimed at increasing transparency, accountability, and oversight in federal financial assistance.  It provides examples of “the types of wasteful spending” that it is meant to target, including recipients “potentially misus[ing] funds to provide services for illegal immigrants.”

While the proposed rule contains numerous changes, this post highlights some of the most notable.

Continue Reading Proposed Rule Would Fundamentally Impact Federal Grant and Financial Assistance Framework

On April 30, 2026, President Trump issued an Executive Order (EO) titled, “Promoting Efficiency, Accountability, and Performance in Federal Contracting.”  This EO directs agencies to make fixed-price contracts the default form of contracting, and requires agency officials to execute written justifications to use other forms of contracting.  Of particular note for large contractors, the EO directs that, “[w]ithin 90 days of the date of this order, each agency head shall review and, to the maximum extent practicable and consistent with law, seek to modify, restructure, or renegotiate its 10 largest non-fixed-price contracts by dollar value . . . to facilitate use of fixed prices and performance-based incentives for contract deliverables to the maximum extent practicable.”

Continue Reading The New Executive Order on “Promoting Efficiency, Accountability, and Performance in Federal Contracting”: What Federal Contractors Need to Know  

On January 23, 2026, the Office of Management and Budget (OMB) issued Memorandum M-26-05 “Adopting a Risk-based Approach to Software and Hardware Security,” which rescinds a previous Biden Administration’s requirement for all federal agencies to obtain a self-attestation from software producers in the “Common Form” developed by the Cybersecurity and Infrastructure Security Agency (CISA) before using certain third-party software.  As its rationale, OMB noted that the prior memoranda diverted agencies from developing tailored assurance requirements and failed to account for threats posed by insecure hardware.  Memorandum M-26-05 signals that the federal government is moving away from a “one-size fits-all” approach to software security and will instead allow each agency to develop tailored requirements.  In creating their own assurance requirements, agencies may still require a self-attestation and/or Software Bill of Materials (SBOM) from the software vendor if the agency determines that such assurances are necessary based on the risks involved and the agency’s needs.

Continue Reading OMB Rescinds the “Common Form” Secure Software Attestation Requirement

On November 7, 2025, Secretary of War Pete Hegseth used a speech at the National War College to unveil a Department of War (“DoW”) memorandum titled “Transforming the Defense Acquisition System into the Warfighting Acquisition System to Accelerate Fielding of Urgently Needed Capabilities to Our Warriors.”  This memorandum, referred to throughout as the “WAS Memo”—formally redesignates the Defense Acquisition System (“DAS”) as the Warfighting Acquisition System (“WAS”), places the acquisition enterprise on a “wartime footing,” and sets forth the governance, structural, and process reforms that will shape how DoW capabilities are acquired and fielded. 

This post is the second in a three-part series analyzing these reforms.  In our first post, we examined the WAS Memo’s new emphasis on commercial products and offerings as the preferred acquisition approach.  This post turns to the broader restructuring initiatives contained in the WAS Memo and its accompanying Acquisition Transformation Strategy.

Continue Reading From DAS to WAS:  Secretary Hegseth’s Acquisition Overhaul and What It Means for Industry

Last week, Secretary Hegseth delivered a speech at the National War College introducing transformations to the defense procurement process.  Among them, the Secretary discussed awarding companies bigger and longer contracts for proven systems; removing “excessive and burdensome” requirements (for example, acquisition rules, accounting standards, and testing oversight); and empowering program leaders with authority to direct program outcomes, move money, and adjust priorities.  Overall, the speech outlined a vision for a more agile defense procurement process that leans heavily on practices already proven and featured in the commercial sector.

Continue Reading Contractors Should Not Overlook the Administration’s Call to Action on Commerciality

On August 20, 2025, the Department of Defense (“DoD”) issued a sweeping memo that tears up and rebuilds the way the military decides what new weapons and systems it needs.  The Military Services appear to be wasting no time translating the memo into action.  Acquisition leaders at last week’s Association of the United States Army conference emphasized that “Transforming in Contact” will serve as the framework for redefining requirements and reprioritizing programs—demonstrating that reform is already underway.  For its part, the Air Force has begun reorganizing its A5/7 directorate to assume greater responsibility for requirements generation, while the Chief of Space Operations has publicly outlined the Space Force path to driving requirements and resourcing.  

This “requirements process” is the first step in acquisition—it defines the problem and tells the rest of the system what to buy, build, or develop.  Change the requirements process and you change the entire defense marketplace.  For decades, DoD has used a system called the Joint Capabilities Integration and Development System (“JCIDS”).  JCIDS was paperwork-heavy and checklist-driven:  the Military Services (Army, Navy, Air Force, Marine Corps, Space Force) would write lengthy justifications for new programs, and those proposals would wind their way through layers of approval at the Joint Staff in the Pentagon.  Critics said JCIDS was too slow and too rigid for modern threats, especially as China and other adversaries innovate quickly.

The August 20 memo blows up that model.  In its place, DoD is putting forward a problem-focused approach that aims to:

  • Define the biggest operational challenges first(not just collect Military Service wish lists)
  • Tie priorities to moneyso “important” projects actually get funded
  • Bring industry into the process earlierthrough experiments, not just proposals
  • Cut out layers of low value review

Below we unpack the memo and offer five practical takeaways for industry.

Continue Reading JCIDS, Rewired:  What DoD’s New Requirements Memo Means

On Friday, August 22, 2025, the Small Business Administration (“SBA”) released a proposed rule to increase the size standard for what it considers to be a small business across 263 industries. The proposed rule principally covers receipts-based size standards.  These proposed increases stem from SBA’s periodic review of size standards…

Continue Reading SBA Proposes Increasing 200+ Receipts-Based Size Standards

On August 13, 2025, the White House issued Executive Order 14335, “Enabling Competition in the Commercial Space Industry” (“EO 14335” or the “EO”).  Framed as a push to “enhance American greatness by enabling a competitive launch marketplace and substantially increasing commercial space launch cadence and novel space activities by 2030,” EO 14335 directs federal agencies to reform regulatory barriers in four key areas:  (1) commercial launch and reentry, (2) spaceport infrastructure, (3) novel space activity authorization, and (4) leadership and accountability.  Sec. 2.  Each of these initiatives aims to streamline bureaucracy, reduce delays, and accelerate U.S. commercial space growth.  Below, we break down the EO’s provisions in each area and examine their significance for industry stakeholders.

Continue Reading To Efficiency and Beyond?:  President Trump Issues Executive Order to Enable a Competitive Space Launch Market

This is part of an ongoing series of Covington blogs on the AI policies, executive orders, and other actions of the Trump Administration.  This blog describes AI actions taken by the Trump Administration in July 2025, and prior articles in this series are available here.

White House Issues AI…

Continue Reading July 2025 AI Developments Under the Trump Administration

On August 7, 2025, President Trump issued Executive Order 14332, “Improving Oversight of Federal Grantmaking,” (“EO 14332” or “the EO”) to “strengthen oversight and coordination of, and to streamline, agency grantmaking” and “ensure greater accountability for use of public funds.”  Sec. 1.  Among other things, the EO:  (1) directs agencies to review discretionary funding opportunities for consistency with agency priorities; (2) provides principles for agencies to use in assessing discretionary awards; (3) directs the Office of Management and Budget (“OMB”) to revise the Uniform Guidance applicable to federal financial assistance; and (4) requires agencies to include terms and conditions in their discretionary grant agreements allowing for termination for convenience and preventing recipients from drawing down funds without prior written explanation and approval.  Through these methods, EO 14332 focuses on increased political oversight of discretionary funding, ensuring broad termination for convenience rights, and limiting indirect costs.  The EO arrives at the intersection of recent efforts by the Trump Administration both to cancel, terminate, or otherwise pause federal funding viewed as inconsistent with the Administration’s policy priorities and to streamline federal procurement regulations.

Continue Reading White House Issues Executive Order Focused on “Improving Oversight of Federal Grantmaking”