Weekly Update for Government Contractors and Commercial Businesses – September 2025 #2

PilieroMazza PLLC

GOVERNMENT CONTRACTS

How the Boards of Contract Appeals Work—And Why It Matters for Your Bottom Line, PilieroMazza Webinar Replay, Lauren BrierJosie Farinelli
When government contractors receive an adverse decision from a contracting officer, it can be difficult to balance the costs, performance risks, and impact on future opportunities while considering litigation. Fortunately, the Boards of Contract Appeals (BCAs) offer an alternative to traditional court proceedings that may better align with your business goals. Join PilieroMazza’s Lauren Brier and Josie Farinelli as they explore how the BCAs work and why they might be the right venue for your next appeal. This webinar is designed to help federal contractors navigate the appeals process strategically and cost-effectively. Click here to view the recorded session.

Could You Qualify as Small Under SBA’s Proposed Revisions to Receipts-Based Size Standards? PilieroMazza Blog, Meghan F. Leemon
On August 22, 2025, the Small Business Administration (SBA) issued a proposed rule entitled “Small Business Size Standards: Monetary-Based Industry Size Standard,” which proposes to increase the size standard for 263 industries and retain the receipts-based size standards for 237 industries and sub-industries. A proposed rule for employee-based size standard will be published in the near future. SBA’s proposed changes may allow some GovCons to stay small longer—or even regain small business status. Knowing the correct size standard and calculation is critical before contractors start bidding on their next contract. Read more here.

NVSBC Training Session: Cy Alba and Abby Finan Discuss “Diversifying Your Contract Pipeline by Maximizing Opportunities Through the DOD’s Mentor-Protégé Program,” PilieroMazza News, Isaias “Cy” Alba, IVAbigail “Abby” Finan
With the evolving federal contracting landscape, more businesses are looking to enter or expand within the Department of Defense market. Understanding the DOD’s Mentor-Protégé Program and its complexities can help you get a leg up in the complex DOD market and accelerate your success. In this training session hosted by the National Veteran Small Business Coalition  (NVSBC), Marie Myszkier is joined by PilieroMazza attorneys Cy Alba and  Abby Finan, who cover the ins and outs of the DOD’s MPP. Don’t miss this opportunity to gain strategic insights and position your business for success in the defense industrial base! Click here to listen.

Executive Order (EO): Restoring the United States Department of War
On September 5, President Trump issued an EO determining that the Department of Defense should once again be known as the Department of War and the Secretary should be known as the Secretary of War. The full EO is available here.

Small Business Administration (SBA) Notice: Small Business Size Standards, Notification of Two Virtual Public Forums on Monetary-Based Industry Size Standards
On September 5, the SBA announced it is holding a series of two virtual public forums on size standards to update the public and to consider public testimony on proposed changes contained in the proposed rule titled Small Business Size Standards: Monetary-Based Industry Size Standards. Testimony presented at these forums will become part of the administrative record for SBA’s consideration when developing the final rule. The virtual forum dates are as follows: Wednesday, September 17, 2025, from 1:00 p.m. to 3:00 p.m. (EDT) and Thursday, September 18, 2025, from 1:00 p.m. to 3:00 p.m. (EDT). You may register here. The full notice is available here.

Government Accountability Office (GAO) Report: VA Acquisitions, Leadership Accountability and Savings Goals Needed to Improve Purchasing Efficiency
On September 2, GAO released a report detailing its review of the Department of Veterans Affairs’ (VA) progress in implementing category management. Among other objectives, this report identifies the extent to which VA (1) implemented category management policies and processes, and (2) achieved intended category management outcomes. GAO reviewed VA policies, procedures, and plans, and OMB’s category management guidance; analyzed VA contract and category management data between fiscal years 2019 and 2024 and assessed progress against established goals; and interviewed VA officials, including those responsible for managing VA’s 10 common spending categories and VA contracting activities. Read more here.

Supreme Court Is Asked to Allow White House to Block $4B in Foreign Aid, Defense One
The Trump Administration asked the Supreme Court to overturn a lower court’s ruling and allow it to withhold $4 billion in foreign aid that was approved by Congress. A lower court held that the move deprives Congress of its constitutional power of the purse. Read more here.

House Reduces Pool of Money Available for IT Modernization, Federal News Network
House lawmakers zeroed out the Technology Modernization Fund and cut two others that agencies have used to accelerate moving off legacy IT. Agencies looking for extra funding for IT modernization projects in fiscal 2026 may have a harder time finding it. Read more here.

Major Changes to SBIR Program Debated as Reauthorization Deadline Nears, Federal News Network
The Small Business Innovation Research program expires on September 30, and there is little agreement on what the future of the program will look like. The reauthorization of the Small Business Innovation Research program is caught in a tug-of-war. The new-age venture capitalists want to transform the 43-year-old program to meet what they say is the 21st-century approach to research and development. Read more here.

BGOV Bill Analysis

  • H.R. 3838, Fiscal 2026 Defense Authorization, Bloomberg Government: Defense and national security programs may receive $892.6 billion under modified H.R. 3838, the House’s version of the fiscal 2026 National Defense Authorization Act. The total discretionary authorization for the Pentagon, Energy Department, and other defense-related programs is equal to the amount requested by the Trump administration, according to the House Armed Services Committee report on the bill. The measure would set an end-strength military force limit of 1.3 million active-duty personnel and support a 3.8% pay increase for service members. Read more here (subscription required).
  • S. 2296, Fiscal 2026 Defense Authorization, Bloomberg Government: US defense and national security programs may receive $925.8 billion under S. 2296, the fiscal 2026 National Defense Authorization Act. The measure’s total discretionary authorization for the Pentagon, Energy Department, and defense-related activities would be $32.1 billion above the levels requested by the Trump administration, according to the Senate Armed Services Committee report on the bill. The bill would more than double funding for military construction, and it would authorize a roughly 12% boost above the request for procurement. Read more here (subscription required).

Upcoming Government Contract Presentations

PM WEBINAR: Overcoming the Compliance Minefield of Cost-Reimbursement Contracts, Part 1: Preparing for a Surge in DCAA Audit Activity, September 16, 2025, Isaias “Cy” Alba, IV

PM WEBINAR: The Buy American Act and Trade Agreements Act: What Government Contractors Need to Know, September 17, 2025, Jacqueline K. UngerAbigail “Abby” Finan

PM WEBINAR: Decoding the FAR Part 6 Rewrite: Implications for Small Business Contracting and the Rule of Two, September 18, 2025, Isaias “Cy” Alba, IV

TRAINING: Joint Venture and Mentor-Protege Bidding Strategies, October 2, 2025, Peter B. FordMeghan F. Leemon

PM WEBINAR: Managing the Financial Impact of Tariffs on Your Government Contract, October 7, 2025, Jacqueline K. UngerRyan Boonstra

PM WEBINAR: Overcoming the Compliance Minefield of Cost-Reimbursement Contracts, Part 2: Mastering DCAA Audits in Cost-Plus-Fixed-Fee Contracts, October 14, 2025, Isaias “Cy” Alba, IV

PM WEBINAR: Avoiding Common Teaming and Subcontracting Pitfalls, October 16, 2025, Jon Williams

TRAINING: Legal Considerations: How Best to Structure Your Company as a Federal Contractor, October 21, 2025, Isaias “Cy” Alba, IV

TRAINING: Past Performance: How to Use Yours, Benefit from Others’, and Defend It from Attacks, October 28, 2025, Daniel Figuenick, IIIAbigail “Abby” Finan


GSA FEDERAL SUPPLY SCHEDULES

GSA Launches FAS Office of Centralized Acquisition Services, Government Executive
The General Services Administration established a new office within its Federal Acquisition Service — the Office of Centralized Acquisition Services — that will serve as a central hub supporting a variety of federal agencies’ acquisition efforts for nearly $500 billion worth of goods and services each year. Read more here.

Upcoming GSA Federal Supply Schedules Presentations

PM WEBINAR: Key Changes in GSA Schedule Contracting: What You Need to Know, October 2, 2025, Jon Williams


FAR OVERHAUL

Federal Acquisition Regulation (FAR) Model Deviation Text for FAR Parts 7, 24, and 44
On September 4, the FAR Council released the model deviation text for the following FAR Parts:

  • FAR Part 7, Acquisition Planning. FAR Part 7 was revised to distinguish between task and delivery orders and awards of new contracts, which require distinct acquisition planning. FAR Part 7 was updated to include requirements previously found in FAR Part 10 to ensure that small business concerns are appropriately considered during acquisition planning. The General Services Administration’s (GSA) memorandum and class deviation fully incorporating the same into all GSA procurements are available here and will be effective November 3, 2025. Informal feedback is due October 20, 2025.
  • FAR Part 24, Protection of Privacy and Freedom of Information. FAR Part 24 removes subpart 24.301, which requires contractors to provide security training to employees. This requirement was already covered in clause 52.224-3. FAR Part 24 affirms compliance with the Freedom of Information Act and the Privacy Act. The GSA memorandum and class deviation fully incorporating the same into all GSA procurements are available here and will be effective November 3, 2025. Informal feedback is due October 20, 2025.
  • FAR Part 44, Subcontracting Policies and Procedures. FAR Part 44 was revised to consolidate guidance into process-oriented subparts and encourage participation from the commercial sector. Notable changes include consolidation of policies relating to subcontract consent, advance notification, and the contracting officer’s evaluation process; reorganized and streamlined post-award procedures; and reorganization of the subpart for requirements. The model deviation removes the use of Administrative Contracting Officer as a designation, which is replaced with Contracting Officer. The GSA memorandum and class deviation fully incorporating the same into all GSA procurements are available here and will be effective November 3, 2025. Informal feedback is due October 20, 2025.

Federal Buying Rule Update Teases New Contract Class Designation, Bloomberg Government 
The use of best-in-class contract vehicles for IT purchases may be affected by new changes to the Federal Acquisition Regulation. The latest updates to Part 8, which focuses on procurement sourcing, direct agencies to use “required use” contracts or blanket purchase agreements for procurement of common goods and services, of which IT purchases are designated. Amendments to the August proposed revisions also walk back language mandating the use of “best-in-class” designated contracts. Read more here (subscription required). 

GSA’s Allen Targeting Fall Launch for Formal FAR Rulemaking, Federal News Network
The FAR overhaul has been coming out in chunks, but officials plan to begin a formal rulemaking this fall, and one GSA leader is encouraging feedback. After unveiling a series of immediate acquisition changes over the summer, the Trump Administration is on track to debut a formal rulemaking to overhaul and streamline the Federal Acquisition Regulation this fall. Read more here.


LABOR & EMPLOYMENT

Multijurisdictional Employers, Part 3: Best Practices for Paid Sick Leave and Family Leave, PilieroMazza Webinar Replay, Sarah L. NashSara N. Strosser
As paid sick leave and family leave laws continue to evolve across federal, state, and local jurisdictions, employers operating in multiple states face complex compliance challenges. From differing accrual rates and usage thresholds to notice requirements and recordkeeping mandates, managing leave policies across jurisdictions demands a proactive and informed approach. Click here to view the recorded session.

Nichole Atallah and GovCon Giants’ Eric Coffie Discuss the Hidden Government Contract Clause that Could Kill Your Company, PilieroMazza News, Nichole D. Atallah
Nichole and Eric unpack one of the biggest traps in government contracting: the subcontract. Too many small businesses rush to sign on the dotted line with a prime contractor without truly understanding what’s inside those pages. The subcontract is your bible—ignore it, and it can wipe out your business. They break down how teaming agreements differ from subcontracts, why “up to 49%” language will crush your workshare, and how dispute resolution clauses can force you to fight in Alaska or even under UK law. Click here to listen.

Department of Labor (DOL) News Release

  • DOL Announces $8M Funding Availability to Support Revitalization of Domestic Shipbuilding Industry: On September 4, DOL announced the availability of up to $8 million in funding to reinvigorate the U.S. shipbuilding industry, a key part of the department’s efforts to usher in a new era of American worker dominance in global supply chains. Read more here.
  • DOL Unveils Proposals to Put American Workers, Businesses First in Release of Semiannual Regulatory Agenda: On September 4, DOL announced that the Trump Administration released its Unified Agenda of Regulatory and Deregulatory Actions, which provides the American people with a transparent look at regulations being considered by the Administration and ensures the public is engaged throughout the process. Read more here.

Upcoming Labor & Employment Presentations

CONFERENCE: Impact of the Trump Administration on Government Contracts, September 12, 2025, Nichole D. Atallah

PM WEBINAR: Multijurisdictional Employers, Part 4: Marijuana and Other Drug Testing in the Workplace, September 25, 2025, Sarah L. NashSara N. Strosser

TRAINING: Labor Rules & Regulations: Federal Market Compliance, October 22, 2025, Nichole D. Atallah


CYBERSECURITY & DATA PRIVACY

House Panel Advances Bill to Extend Bedrock Cyber Info-Sharing Law, NextGov/FCW
The House Homeland Security Committee approved a measure that would renew a cornerstone cybersecurity law designed to optimize the exchange of cyber threat information between the private sector and the U.S. government. Some Republicans want to ensure there’s language that would prevent the nation’s core cyber defense agency from engaging in alleged “censorship” of Americans’ free speech. Read more here.

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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