Among the most challenging areas of regulatory compliance for federal contractors are cost accounting and cost and pricing data disclosure requirements. Indeed, many companies place guardrails on the nature and scale of their business relationships with the U.S. government precisely to avoid the application of these requirements. In a move that seems consistent with the federal government’s push towards expanding the defense industrial base and working with more commercial companies, Congress recently released the final negotiated language of the FY 2026 National Defense Authorization Act (“NDAA”). The draft text, currently awaiting a full Senate vote, contains impactful changes to reduce the applicability of federal Cost Accounting Standards (“CAS”) and the Truthful Cost or Pricing Data Statute (formerly the Truth in Negotiations Act, commonly referred to as “TINA”). Continue Reading FY26 NDAA Aims to Raise the Dollar Thresholds for the Applicability of CAS and TINA
BIOSECURE Act Moves Closer to Enactment with Inclusion in FY 2026 NDAA Text
After failing to be included in the Fiscal Year (“FY”) 2025 National Defense Authorization Act (“NDAA”) or passed as a standalone piece of legislation, the BIOSECURE Act has moved closer to finally being enacted after it was included in the final FY 2026 NDAA text released by Congress on December 7, 2025. Section 851 of the FY 2026 NDAA is titled “Prohibition on Contracting with Certain Biotechnology Providers,” but includes in substance what was previously introduced and considered in Congress as the BIOSECURE Act.
The bill has the potential to impose significant restrictions on the use of certain Chinese companies in the supply chain for products procured by the U.S. Government and accordingly has been of interest to industry over the last few years. This blog post summarizes the scope of the bill, highlights the changes in the FY 2026 NDAA text as compared to prior iterations of the bill, and flags key considerations for government contractors in the life sciences space.Continue Reading BIOSECURE Act Moves Closer to Enactment with Inclusion in FY 2026 NDAA Text
FY2025 NDAA: Congressional Efforts to Bolster U.S. Resilience Against Chinese Tech and Influence
The FY 2025 National Defense Authorization Act (“NDAA”) sustains Congress’s continued focus on countering China’s expanding influence and enhancing U.S. resilience in an era of great power competition. This year’s legislation reflects the practice of carrying the State Department and Intelligence Authorization Acts within the NDAA—marking the third consecutive year that these critical measures have been advanced in tandem. The Foreign Relations and Intelligence Committees in both chambers of Congress have increasingly adopted the Armed Services Committees’ playbook, embedding China-focused legislation modeled on past defense measures in their respective authorizations. This blog examines key provisions designed to address what Congress views as strategic challenges posed by China while closing loopholes that could confer military, economic, or technological advantages to Beijing. We divide these provisions into the following five categories: (1) provisions that address potential security risks linked to Chinese-origin technology; (2) provisions that limit the transfer of U.S. technology or data to China; (3) so-called “time to choose” provisions that curtail Department of Defense (“DoD”) engagement with third parties that engage with China; (4) provisions that tackle a range of broader geopolitical concerns; and (5) studies and reports to identify emerging issues and concerns.
Continue Reading FY2025 NDAA: Congressional Efforts to Bolster U.S. Resilience Against Chinese Tech and Influence
Congress Attempts to Revitalize the Program Fraud Civil Remedies Act
Since 1986, the little brother to the civil False Claims Act, known as the Program Fraud Civil Remedies Act of 1986 (“PFCRA”), has seen very little use. Section 5203 of the Fiscal Year 2025 National Defense Authorization Act (“NDAA”) seeks to breathe new life into the law by renaming it
Continue Reading Congress Attempts to Revitalize the Program Fraud Civil Remedies ActNew Section 889 Restrictions Included in Updated Uniform Guidance Regulations from the Office of Management and Budget
On August 13, 2020, the Office of Management and Budget (OMB) released new revisions to its Guidance for Grants and Agreements set forth under 2 CFR (commonly referred to as the Uniform Guidance). The Uniform Guidance governs the terms of federal funding issued by agencies, including grants, cooperative agreements, federal
Continue Reading New Section 889 Restrictions Included in Updated Uniform Guidance Regulations from the Office of Management and Budget
“Section 889” Prohibition on “Use” of Covered Telecommunications Equipment by Federal Contractors Released as an Interim Rule
On July 10, 2020, the interim rule implementing Section 889(a)(1)(B) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Pub. L. No. 115-232) was released by the U.S. Government’s Federal Acquisition Regulatory Council. Section 889 prohibits the U.S. Government from buying (as of August 2019)—or contracting
Continue Reading “Section 889” Prohibition on “Use” of Covered Telecommunications Equipment by Federal Contractors Released as an Interim Rule
Targeting DoD’s Reliance on Russian Energy
At the end of last month, the Department of Defense (“DoD”) issued a class deviation to implement Section 2821 of the National Defense Authorization Act for Fiscal Year 2020 (“FY20 NDAA”), which seeks to reduce dependence on Russian energy by prohibiting the acquisition of energy sourced from inside Russia for
Continue Reading Targeting DoD’s Reliance on Russian Energy
What Is Lowest Priced Technically Acceptable? GAO Clarifies Reach of New LPTA Restrictions
As previously discussed on this blog, the National Defense Authorization Act for Fiscal Year 2017 and the NDAA for Fiscal Year 2018 imposed new limitations on when the Department of Defense can use Lowest Price Technically Acceptable source selection methods. Just last month, the Department of Defense issued a final rule amending the Defense Federal Acquisition Regulation Supplement to implement those provisions. Now, in Inserso Corp., B-417791, B-417791.3, Nov. 4, 2019, GAO has weighed in on what counts as LPTA for purposes of those restrictions. This decision may indicate a potentially significant limitation on the reach of the NDAA provisions, new DFARS rule, and proposed FAR rule.
Continue Reading What Is Lowest Priced Technically Acceptable? GAO Clarifies Reach of New LPTA Restrictions
How Well Do You Know Your Supply Chain? New Policy Developments Affect Defense and Security Contractors
This post first appeared on Covington’s Global Policy Watch blog on September 7, 2018
Generating and sustaining the United States’ global economic and military superiority over more than the last half century has depended on a dominant U.S. global economic position and perpetual technological innovation. The United States has increasingly
Continue Reading How Well Do You Know Your Supply Chain? New Policy Developments Affect Defense and Security Contractors
Senate Armed Services Committee Proposes Expansive but Unclear Software Review Provisions
As the Senate approaches the end of its debate on the National Defense Authorization Act for Fiscal Year 2019, provisions of the bill regarding access to and review of information technology code deserve close attention. These sections, if enacted, would significantly impact Department of Defense contractors and also would affect matters associated with investments subject to review by U.S. national security agencies.
As drafted, the provisions could expose current and prospective contractors to intrusive scrutiny and significant risks. They lack clarity on key definitions, leaving the precise scope of those risks unclear. We summarize major issues and concerns below. We expect these provisions to receive scrutiny during the House-Senate conference on the NDAA over the summer.
Continue Reading Senate Armed Services Committee Proposes Expansive but Unclear Software Review Provisions