Weekly Update for Government Contractors and Commercial Businesses – June 12, 2025

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PilieroMazza Achieves Top Recognition in 2025 Chambers USA Rankings, PilieroMazza News

PilieroMazza is proud to announce that the 2025 edition of Chambers USA once again recognizes the Firm’s Government Contracts Group with the highest nationwide ranking—marking its fourth consecutive year in this prestigious category. “Their knowledge of the government contractor market and federal regulations is a strength for PilieroMazza,” shared a Firm client. Another client noted, “The team is very in-tune with its client’s needs.” This continued recognition underscores the top-tier legal services the Group offers clients navigating complex government contracting matters. Read more here.

 

GOVERNMENT CONTRACTS

Protect Small Business Opportunities: The “Rule of Two” Faces Potential Elimination, PilieroMazza Client Alert, Isaias “Cy” Alba, IV, Kristine “Krissy” Crallé

The federal government is actively trying to reduce its size and deregulate agencies across the Executive Branch. As noted in a previous Client Alert by Sam Finnerty, the Federal Acquisition Regulation (FAR) has not been exempt from these initiatives. On May 6, 2025, the FAR Council issued its first formal deregulation measure, signaling that any regulations not explicitly codified by statute may be subject to removal from the FAR and the Small Business Administration’s (SBA) regulations. As a result, the “Rule of Two”—a key policy designed to ensure small businesses have a fair opportunity to compete for federal contracts—faces potential elimination due to its lack of statutory foundation. Read more here.

How the Boards of Contract Appeals Work—And Why It Matters for Your Bottom Line, Part 1, PilieroMazza Blog, Lauren Brier, Josie Farinelli, Kelly A. Kirchgasser

When faced with the prospect of appealing an adverse decision from a contracting officer, government contractors may wonder whether it’s possible to prioritize costs, performance ratings, and future prospective contracts while engaging in litigation. The Boards of Contract Appeals (BCAs) may suit those purposes, as they aim to provide federal contractors the opportunity to have their appeal heard before an independent board of administrative judges without the expense, timeline, and formality associated with traditional litigation at the Court of Federal Claims (COFC). In this first blog of a four-part series, PilieroMazza’s GovCon attorneys help federal contractors understand how the BCAs work—and why they might be the right venue for protecting your bottom line. Read more here.

Federal Acquisition Regulation (FAR) Overhaul Adoption:

• Department of Health and Human Services (HHS) Memorandum: FAR Class Deviation (CD) No. 2025-03 in Support of Executive Order (EO) 14275, “Restoring Common Sense to Federal Procurement;” Deviation to FAR Parts 1, 34 & Applicable Portions of Part 52. On June 2, HHS issued a CD fully implementing and incorporating the FAR Model Deviations for FAR Parts 1, 34, and portions of 52. This CD is effective upon issuance and applies to all HHS solicitations, contracts, and orders. Read more here.
  
  
• Department of Education (ED) Memoranda:
  • FAR CD for FAR Part 1 in Support of EO on Restoring Common Sense to Federal Procurement. On June 2, ED issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 1. This CD is effective immediately and applies to all relevant FAR and ED Acquisition Regulation parts. Read more here.
  • FAR CD for FAR Part 34 in Support of EO on Restoring Common Sense to Federal Procurement. On June 2, ED issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 34. This CD is effective immediately. Read more here.

• Department of Agriculture (USDA) Memoranda:
  • FAR CD for FAR Part 1 in Support of EO 14275 on Restoring Common Sense to Federal Procurement. On June 2, USDA issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 1. This CD is effective immediately and applies to all USDA procurements. Read more here.
  • FAR CD for FAR Part 34 in Support of EO 14275 on Restoring Common Sense to Federal Procurement. On June 2, USDA issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 34. This CD is effective immediately and applies to all USDA procurements. Read more here.

• National Aeronautics and Space Administration (NASA) Memoranda:
  • CD from FAR Part 1 to Implement the Revolutionary FAR Overhaul. On June 2, NASA issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 1. This CD is effective immediately and applies to the NASA FAR Supplement (NFS 1801). Read more here.
  • CD from FAR Part 34 to Implement the Revolutionary FAR Overhaul. On June 2, NASA issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 34. This CD is effective immediately and applies to the NASA FAR Supplement (NFS 1834). Read more here.

• Commodity Futures Trading Commission (CFTC) Memoranda:
  • FAR CD for FAR Part 1 in Support of EO on Restoring Common Sense to Federal Procurement. On May 30, CFTC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 1. This CD is effective immediately and applies to all CFTC procurements. Read more here.
  • FAR CD for FAR Part 10 in Support of EO on Restoring Common Sense to Federal Procurement. On May 30, CFTC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 10. This CD is effective immediately and applies to all CFTC procurements. Read more here.
  • FAR CD for FAR Part 34 in Support of EO on Restoring Common Sense to Federal Procurement. On May 30, CFTC issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 34. This CD is effective immediately and applies to all CFTC procurements. Read more here.

• Merit Systems Protection Board (MSPB) Memoranda:
  • FAR CD for FAR Part 1 in Support of EO 14275 on Restoring Common Sense to Federal Procurement. On May 29, MSPB issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 1. This CD is effective immediately and applies to all MSPB procurements. Read more here.
  • FAR CD for FAR Part 10 in Support of EO 14275, Restoring Common Sense to Federal Procurement. On May 29, MSPB issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 10. This CD is effective immediately and applies to all MSPB procurements. Read more here.
  • FAR CD for FAR Part 34 in Support of EO 14275, Restoring Common Sense to Federal Procurement. On May 29, MSPB issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 34. This CD is effective immediately and applies to all MSPB procurements. Read more here.

• Department of Transportation (DOT) Memoranda:
  • CD No. 2025-03 from the FAR for FAR Part 1 in Support of EO 14275 on Restoring Common Sense to Federal Procurement. On May 29, DOT issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 1. This CD is effective immediately and applies to all DOT Operating Administrations, Office of the Secretary of Transportation, and the Office of the Inspector General, and excludes the Federal Aviation Administration per the Transportation Acquisition Regulation (TAR) 1201.104(d). The CD is also incorporated into TAR Part 1201. Read more here.
  • CD No. 2025-03 from the FAR for FAR Part 1 in Support of EO 14275 on Restoring Common Sense to Federal Procurement. On May 29, DOT issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 34. This CD is effective immediately and applies to all DOT Operating Administrations, Office of the Secretary of Transportation, and the Office of the Inspector General, and excludes the Federal Aviation Administration per the Transportation Acquisition Regulation (TAR) 1201.104(d). The CD is also incorporated into TAR Part 1201. Read more here.

• Department of Homeland Security (DHS) Memoranda:
  • FAR CD (Number 25-04) for FAR Part 1 in Support of EO on Restoring Common Sense to Federal Procurement. On May 29, DHS issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 1. This CD is effective immediately and applies to all DHS procurements. Read more here.
  • FAR CD (Number 25-04) for FAR Part 34 in Support of EO on Restoring Common Sense to Federal Procurement. On May 29, DHS issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 34. This CD is effective immediately and applies to all DHS procurements. Read more here.

• Peace Corps Memorandum: FAR CD for FAR Part 1 in Support of EO on Restoring Common Sense to Federal Procurement. On May 29, the Peace Corps issued a CD fully implementing and incorporating the FAR Model Deviation for FAR Part 1. This CD is effective immediately and applies to all Peace Corps solicitations and new contracts as of May 2, 2025, but does not apply to contracts signed or executed before May 1, 2025. Read more here.

Potential Shortcomings in USAID–State Department Merger Plan Raise Concerns, Government Executive

The State Department Office of Inspector General on Monday issued a report highlighting possible issues with the Trump administration’s planning process for folding the U.S. Agency for International Development into the foreign relations department. Read more here.

Department of Defense (DOD) News: Hegseth, NATO Leader Find Common Ground on Defense Spending

While jointly speaking at a NATO defense meeting in Brussels today, Defense Secretary Pete Hegseth and NATO Secretary General Mark Rutte both stated an increase in defense spending targets — by both the United States and NATO ally countries — is essential to deterring the coming threats that are posed by anti-Western aggressors. Read more here.

Small Business Administration (SBA) Correcting Amendments: HUBZone Program Updates and Clarifications, and Clarifications to Other Small Business Programs; Correction

On June 4, SBA published correcting amendments to its HUBZone Program final rule published on December 17, 2024. These amendments make several technical corrections to the final regulations. The rule is available here and is effective June 4. 

Government Accountability Office (GAO) Report: Advanced Manufacturing: Aligning Strategies and Improving Agency Reviews Could Help Institutes Achieve National Goals (GAO-25-107369)

Advanced manufacturing quickly turns new materials and methods into products, like airplane parts 3D-printed on demand. The Manufacturing USA Program connects businesses, academic institutions, and others through 17 institutes that do research and development and train workers. The Departments of Commerce, Defense, and Energy sponsor the institutes—whose work can lead to new technologies. GAO found agencies could improve how they work with the institutes. Specifically, Defense and Energy can take a long time to review some institutes’ project funding requests—which can delay or deter new projects. GAO’s recommendations address this issue and more. The full report is available here.

Presidential Action: Adjusting Imports of Aluminum and Steel into the United States

After considering current information newly provided by the Secretary, among other things, President Trump has determined that it is necessary to increase the previously described steel and aluminum tariffs to adjust the imports of steel and aluminum articles and their derivative articles so that such imports will not threaten to impair the national security. Effective as of 12:01 a.m. eastern daylight time on June 4, 2025, President Trump determined that it is necessary and appropriate to increase the tariff rate for imports of steel articles and derivative steel articles, and aluminum articles and derivative aluminum articles, from 25 percent ad valorem to 50 percent ad valorem. The full proclamation is available here.

House Committee on Small Business Press Release: Seven Committee Bills Passed on the House Floor 

On June 3, the U.S. House of Representatives passed seven small business bills under suspension favorably out of the chamber. Read the full press release here.

House of Representatives Bills, Bloomberg Government:

• BGOV Bill Analysis: H.R. 789, Canceled Contract Opportunities: The Small Business Administration would need to develop procedures to help small businesses that spent time and money preparing bids for canceled federal contracting solicitations find similar opportunities under H.R. 789. Read more here (subscription required). 
• BGOV Bill Analysis: H.R. 1816, Certify Women-Owned Contractors: Women-owned small businesses that self-certify their contractor designation would be excluded from federal agencies’ contracting goals under H.R. 1816. Read more here (subscription required). 
• BGOV Bill Analysis: H.R. 2987, Cap on Small Business Lenders: The Small Business Administration would have to cap at 16 the maximum number of certified small business lending companies eligible to make 7(a) loans under H.R. 2987. Read more here (subscription required). 
• BGOV Bill Analysis: H.R. 2966, Immigration Status for SBA Loans: Individuals who aren’t US citizens or lawful permanent residents can’t receive Small Business Administration loans under H.R. 2966. Read more here (subscription required). 
• BGOV Bill Analysis: H.R. 2931, SBA Offices in ‘Sanctuary’ Cities: The Small Business Administration would be required to relocate or close any offices in states or cities that have policies that limit cooperation with federal immigration authorities under H.R. 2931. Read more here (subscription required). 

Upcoming Government Contract Presentations

WEBINAR: Managing the Financial Impact of Tariffs on Your Government Contract, June 17, 2025, Jacqueline K. Unger, Ryan Boonstra

WEBINAR: Legal Strategies & Capture Planning, June 20, 2025, Isaias “Cy” Alba, IV

WEBINAR: Avoiding Common Teaming and Subcontracting Pitfalls, June 25, 2025, Jon Williams

WEBINAR: The Buy American Act and Trade Agreements Act: What Government Contractors Need to Know, June 26, 2025, Jacqueline K. Unger, Abigail “Abby” Finan

TRAINING: Navigating the FAR/DFARS: The Most Confusing and Little-Known Clauses, August 13, 2025, Eric Valle, Kristine “Krissy” Crallé 

 

FALSE CLAIMS ACT / AUDITS & INVESTIGATIONS

GAO Tells Congress DOD Must Take Fraud Risk Seriously, Law360

The Government Accountability Office’s director of forensic audits and investigative services testified Wednesday that words and actions by U.S. Department of Defense leadership have called into question the DOD’s commitment to combating fraud. Read more here (subscription required). 

Upcoming False Claims Act Presentations

PM WEBINAR: DOJ Uses FCA to Target DEI Policies and Antisemitism: The Impact on Government Contractors, July 10, 2025, Matthew E. Feinberg, Sarah L. Nash

 

BUSINESS & TRANSACTIONS / LITIGATION & DISPUTE RESOLUTION

Managing Litigation Risk During the Business Lifecycle, Part 4: M&A Transactions with Government Contractors, PilieroMazza Blog, Isaias “Cy” Alba, IV, Abigail “Abby” L. Baker, Timothy “Tim” F. Valley Jr., Ashley Krause

Transactions that involve government contracts carry a unique set of challenges. Unlike a typical merger or acquisition, deals involving government contracts require the navigation of a complex web of federal laws, regulations, security requirements, and procurement nuances that substantially impact valuation, integration, and post-closing operations. As such, in the due diligence process, it is imperative to conduct tailored due diligence to identify red flags and key value drivers that could impact the proposed transaction and reduce the risk of post-closing litigation. In this fourth installment of PilieroMazza’s blog series, “Managing Litigation Risk During the Business Lifecycle,” we explore the key areas of focus when conducting due diligence on a government contractor target. Read more here.

 

GSA FEDERAL SUPPLY SCHEDULES

General Services Administration (GSA) Blogs: 

• GSA and Post-Quantum Cryptography (PQC): Enabling a Secure Federal Future: GSA is committed to helping agencies securely navigate the shift to PQC. With quantum computing advancing rapidly, the threat to traditional encryption methods is no longer theoretical. Agencies must begin preparing now to safeguard sensitive data against future quantum-enabled decryption capabilities. Read more here.
• Part 1: Setting the Stage: Understanding the Vision Behind the FAR Overhaul: FAS is pleased to announce the start of a two-part blog series that delves into the transformative changes of the Federal Acquisition Regulation (FAR) under the Revolutionary FAR Overhaul (RFO) initiative. Prompted by Executive Order 14275, Restoring Common Sense to Federal Procurement, this marks the most significant update to the FAR in over four decades. We’re kicking off the series with a thoughtful perspective on what this transformation means for the workforce. Read more here.

 

CONSTRUCTION

Upcoming Construction Presentations

WEBINAR: How Do I Get Paid When They Stop Paying? Strategies for Construction Contractors, August 1, 2025, Jessica A. duHoffmann, Tracey L. Pruiett

 

LABOR & EMPLOYMENT

Office of Personnel Management (OPM) Proposed Rule: Prevailing Rate Systems; Abolishment of Hennepin, Minnesota, as a Nonappropriated Fund Federal Wage System Wage Area 

On June 2, OPM published a proposed rule and request for comments regarding a rule to abolish the Hennepin, Minnesota, nonappropriated fund (NAF) Federal Wage System (FWS) wage area and define most of its counties to the nearest NAF FWS wage areas. Those counties without NAF FWS employment would no longer be defined to a NAF wage area. These changes are necessary because NAF FWS employment in the survey area has been declining, and the local activities no longer have the capability to conduct local wage surveys. The proposed rule is available here. Comments close July 2.

Trump is Planning to Slash 107,000 Federal Jobs Next Year, Government Executive

The Trump administration is looking to slash a net of 107,000 employees at non-defense agencies next fiscal year, which would lead to an overall reduction of more than 7% of those workers. Read more here.

State Department ‘Appears’ to be Violating Court Order by Issuing Layoffs As Soon As June 13, Judge Says, Government Executive

A federal judge on Wednesday said the State Department appears to be violating her pause on most agency layoffs by moving forward with planned cuts, though she asked for additional evidence before making a final decision. The Trump administration says it has paused planned RIFs at 17 agencies, but State is “a special case.” Read more here.

Pentagon Won’t Say How Many Civilians Have Left Since February, Government Executive

Defense Secretary Pete Hegseth set a goal in February for the Defense Department: shed 5 to 8 percent of the civilian workforce, or roughly 60,000 employees. To accomplish that goal, the Pentagon first instituted a hiring freeze and attempted to lay off hundreds of probationary employees. Then it offered a deferred resignation program that allowed employees to quit working but still be paid through September, while offering early retirement to longtime employees. Now, the defense secretary’s office refuses to say how much the workforce has shrunk this year, as it moves forward with a comprehensive review aimed at further slashing the number of civilian employees. Read more here.

Upcoming Labor & Employment Presentations

TRAINING: Labor Rules & Regulations: Federal Market Compliance, June 25, 2025, Sarah L. Nash

PM WEBINAR: Multijurisdictional Employers, Part 2: 2025 State-by-State Updates on Non-Compete and Non-Solicitation Agreements, July 1, 2025, Sarah L. Nash, Zachary S. Stinson

PM WEBINAR: Multijurisdictional Employers, Part 3: Best Practices for Paid Sick Leave and Family Leave, August 7, 2025, Nichole D. Atallah, Sara N. Strosser