Following a tumultuous start to fiscal year 2026, including a government shutdown that lasted 43 days, the National Defense Authorization Act for fiscal year 2026 (NDAA 2026), Pub. L. 119-60, was passed by Congress and signed into law on December 18, 2025. NDAA 2026 is a critical legislative act, setting acquisition reforms and policies and authorizing appropriations and funding levels for the Department of Defense (DoD). With $900.6 billion in funding for the DoD, NDAA 2026 contains a plethora of acquisition reform provisions and critical updates impacting defense contractors. Title XVIII of NDAA 2026 significantly increased certain acquisition thresholds, including triggers for the Truthful Cost or Pricing Data Act (formerly the Truth in Negotiations Act) and Cost Accounting Standards application, which you can read about here. Additionally, NDAA 2026 increases the thresholds for noncompetitive acquisitions and when information technology requirements qualify as a major system.Continue Reading FY2026 NDAA: Major Increases to Critical Acquisition Thresholds
Philip Lee
FAR 2.0 Part 39 in Arcade Mode—How Federal IT Acquisition Just Hit Reset
For those who grew up gripping a joystick and dodging alien fire in Defender, riding ostriches through floating platforms in Joust, or crossing a hectic freeway in Frogger, winning wasn’t about memorizing rules; it was about adapting fast, reading the patterns, and leveling up. That same urgency now applies to federal information and communication technology (ICT) contractors. A sweeping overhaul of FAR Part 39 has just been released, and while it may not blink and beep like a cabinet in a darkened arcade, it’s just as demanding. There’s no attract mode here. The game has already started.Continue Reading FAR 2.0 Part 39 in Arcade Mode—How Federal IT Acquisition Just Hit Reset
Feature Comment: The CUI Program: DOD, We Have A Problem (Part II)
In Part I of this series we introduced readers to what Controlled Unclassified Information (CUI) is understood to consist of under the CUI Program at 32 CFR pt. 2002, differentiating and safeguarding CUI, CUI Program Authority and Control, and CUI policy as promulgated under the U.S. Department of Defense CUI Program. (See 66 GC ¶…
Feature Comment: The CUI Program: DOD, We Have a Problem
The U.S. Department of Defense’s Cybersecurity Maturity Model Certification (CMMC) Program will become operational at some point in fiscal year 2025. In October, the DOD issued a Final Rule to address evolving cybersecurity requirements and cyber threats while defining the security controls that DOD intends defense contractors and subcontractors to implement. The program will require…
Surviving And Thriving In The Small Business Administration’s 8(a) Program: Maximizing Opportunities For NHOs, ANCs, and Tribes
Alex Major, Franklin Turner, and Philip Lee co-authored the article “Surviving And Thriving In The Small Business Administration’s 8(a) Program: Maximizing Opportunities For NHOs, ANCs, And Tribes” for Briefing Papers. The article provides an overview of the Small Business Administration’s 8(a) Business Development Program, which provides socially and economically disadvantaged small business owners with federal…
OMB Issues Guidance to Agencies on Responsible Artificial Intelligence Acquisitions
Contractors interested in offering federal agencies artificial intelligence (AI) can now glean insight into how agencies are expected to conduct AI acquisitions. On September 24, 2024, the Office of Management and Budget (OMB) issued Memorandum M-24-18, Advancing the Responsible Acquisition of Artificial Intelligence in Government (the Memorandum), providing guidance and directing agencies “to improve their capacity for the responsible acquisition of AI” systems or services, including subcomponents. The Memorandum builds on the White House’s Executive Order 14110, Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence, and OMB Memorandum M-24-10, Advancing Governance, Innovation, and Risk Management for Agency Use of Artificial Intelligence. Taking effect on March 23, 2025, M-24-18 will apply to all solicitations and contract option exercises for AI systems covered under the Memorandum.Continue Reading OMB Issues Guidance to Agencies on Responsible Artificial Intelligence Acquisitions
A Standard on Many Levels: A Look at CMMC 2.0 in Final
Over the course of the past few years, gallons of ink have been spilled addressing the seemingly ever-pending US Department of Defense’s (DoD) Cybersecurity Maturity Model Certification (CMMC) Program. After keeping us waiting for years, it finally arrived when, on October 15, 2024, DoD published its Final Rule to establish the CMMC Program. See 89 Fed. Reg. 83092 (Oct. 15, 2024). Effective December 16, 2024, the Rule will require certain defense contractors to have implemented security measures to achieve a particular CMMC level necessary to safeguard Federal Contract Information (FCI) or Controlled Unclassified Information (CUI) as a condition of contract award. Codified at 34 C.F.R. Part 170, the CMMC Program will be augmented by a separate proposed acquisition rule to add a new 48 C.F.R. Part 204, amending the Defense Federal Acquisition Regulation Supplement (DFARS) to address procurement considerations related to the CMMC Program, including allowing DoD to require a specific CMMC level in a solicitation or contract. See 89 Fed. Reg. 66327 (Aug. 15, 2024) or our analyses here and here. The date when that DFARS clause will become final is still unclear, but most suspect it will be soon.Continue Reading A Standard on Many Levels: A Look at CMMC 2.0 in Final
Department of Labor Issues New Guidance on the Use of Artificial Intelligence and Employment Decision-Making
On April 29, 2024, the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) released guidance to federal contractors regarding the use of artificial intelligence (AI) in their employment practices. See https://www.dol.gov/agencies/ofccp/ai/ai-eeo-guide. The guidance reminds federal contractors of their existing legal obligations, the potentially harmful effects of AI on employment decisions if used improperly, and best practices. Arriving early, the guidance puts contractors on notice of their responsibilities when using AI in their employment decisions.Continue Reading Department of Labor Issues New Guidance on the Use of Artificial Intelligence and Employment Decision-Making
CISA’s CIRCIA Proposed Rule: Another Player Enters the Reporting Regime
Cyber incidents involving critical infrastructure pose a serious risk to the US. In March 2024, the Environmental Protection Agency and the National Security Advisor warned state governors about potential attacks on drinking water and wastewater facilities by specific Iran- and China-aligned hackers. The following month (on April 4, 2024), in an attempt to prepare for such attacks and otherwise improve the federal government’s ability to collect and analyze data related to cyber incidents on critical infrastructure, the Cybersecurity and Infrastructure Security Agency (CISA) issued a proposed rule to implement cyber incident reporting requirements under the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (CIRCIA). Enacted in an omnibus appropriation, CIRCIA directed CISA to issue rulemaking requiring the reporting of cyber incidents or the payment of ransoms in response to cyberattacks affecting critical infrastructure. Continue Reading CISA’s CIRCIA Proposed Rule: Another Player Enters the Reporting Regime
Executive Order 14410: An Artificial Intelligence Odyssey
What do you think is going to be scarier—artificial intelligence (AI) or the government’s effort to regulate AI? On October 30, 2023, the White House issued Executive Order (E.O.) 14410, Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence. As the federal government’s latest foray into harnessing AI, this E.O.—like those before it, generally—recognizes that AI offers extraordinary potential and promise, provided that it is harnessed responsibly to prevent the exacerbation of societal harms. Since E.O. 14410, there has been a flurry of activity in the federal government, including guidance and policies providing an indication of how agencies can/should/will harness AI to support agency objectives. While we are far from a situation similar to Skynet from the Terminator franchise or HAL 9000 from 2001: A Space Odyssey, the government’s accelerated activity to reap AI’s potential benefits far outpaces the provision of actionable guidance so contractors can understand and adapt to what will be required in offering AI products and services to the government. So let’s open the pod bay doors and explore…Continue Reading Executive Order 14410: An Artificial Intelligence Odyssey
