Regulatory & Statutory Developments

On December 18, 2025, the Fiscal Year 2026 National Defense Authorization Act (FY2026 NDAA) became law. True to each year’s NDAA being a sprawling piece of legislation, the FY2026 NDAA contains many priorities of the current Administration. Nestled among its myriad provisions, federal grant recipients should take note of Section 230, the “Prohibition on Modification of Indirect Cost Rates for Institutions of Higher Education and Nonprofit Organization.” This section provides a speed bump for rapid changes to indirect cost rates for Department of Defense grantees and reflects congressional sympathy to grantee concerns, particularly those of institutes of higher education (IHEs).

Continue Reading College Prep: What Colleges with DoD Grants Should Do Now Under the FY2026 NDAA

The US Department of Justice’s (DOJ) new Data Security Program (DSP), designed to protect sensitive information and national security-related data from misuse by foreign actors, took full effect on October 6, 2025. The program introduces new restrictions on how companies handle and share sensitive US personal data and government-related data, especially when certain foreign entities are involved. With enforcement underway, companies should understand who is covered, what activities are restricted, and what compliance measures are required. Failure to comply with the rules can result in civil or criminal penalties.

Continue Reading DOJ Launches New Data Security Program—What Your Company Needs to Know

Drumroll, please. On November 7, 2025, the Department of Defense (DoD) released three memoranda signaling changes to its approach to procurement and Foreign Military Sales/Direct Commercial Sales in the years to come: “Unifying the Department’s Arms Transfer and Security Cooperation Enterprise to Improve Efficiency and Enable Burden-Sharing”; “Reforming the Joint Requirements Process to Accelerate Fielding of Warfighting Capabilities”; and “Transforming the Defense Acquisition System into the Warfighting Acquisition System to Accelerate Fielding of Urgently Needed Capabilities to Our Warriors.” The latter memorandum appends the DoD’s Acquisition Transformation Strategy (the Strategy), which is aimed at dramatically reforming how the DoD’s acquisition system operates with an eye toward increasing the speed and flexibility of DoD procurements and the acquisition workforce. This document begins the march toward sunsetting the existing Defense Acquisition System in favor of what is envisioned to be a more rapid and effective system designed to provide the DoD with the capabilities it needs to meet its mission requirements.

Continue Reading The Drumbeat of Progress: DOD’s Acquisition Transformation Strategy

The Federal Acquisition Service (FAS) of the General Services Administration (GSA) revealed on October 17, 2025, that it will issue a Multiple Award Schedule (MAS) Solicitation 47QSMD20R0001 “refresh” sometime in November 2025. While GSA allowed the contracting community 10 business days to submit comments—until October 31, 2025—as MAS contract holders know, GSA issues refreshes from time to time so that changes are made uniformly in recognition of shifts in policy, regulations, or statutes. Administering MAS contracts in this way allows GSA to curate terms in a consistent manner for contractual vehicles at all stages of performance, as contractors perform orders at different times.

Continue Reading Total GSA Schedule Makeover: Incoming Mass Mod Not Merely a Refresh

This year, The Rocky Horror Picture Show celebrates the 50th anniversary of its release. While that cult classic film has stood the test of time, another relic of the 1970s, the Cost Accounting Standards (CAS), is showing its age. When CAS was initially promulgated, Congress determined that the generally accepted accounting principles (GAAP) were not enough to satisfy the government’s requirements for evaluating contract costing and pricing. However, in the decades since, GAAP has evolved, and there are now areas of overlap that have arisen since CAS was first promulgated. Recognizing this overlap, the government has set in motion a review to determine which parts of CAS could be addressed by GAAP, which is the commercial standard regularly used by companies. If there were accounting areas where GAAP could stand in place of CAS, the government wants to reduce the overall burden in the procurement process by allowing contractors to more heavily rely on GAAP, which they are already using to report on their daily business activities.

Continue Reading CAS Madness Takes Its Toll: The Detailed Work of Conforming CAS to GAAP

The DoD has finally crossed the CMMC finish line, but for contractors, the race is just beginning. With the Final Rule effective Nov. 10, award eligibility will hinge on a “current” CMMC status in SPRS, backed by annual affirmations and strict compliance. The next two months are critical for getting race-ready. In this Featured Comment…

Government procurement is essential to modern governance. But when firms rig bids, allocate markets, or otherwise collude, taxpayers pay more, honest competitors are shut out, and trust erodes. In recent months, US agencies have continued to emphasize the importance of fair competition in government procurement, scrutinizing regulations that may favor incumbents or unfairly limit competition and expanding whistleblower options.

Continue Reading Rigging the Game? Antitrust Risks in the Public Contracting Arena

July’s “Winning the Race: America’s AI Action Plan,” released by the White House, contains helpful recommendations for the energy sector as the use of AI becomes more prevalent and, with it, the need for more energy. The plan recommends the use of an existing consultation and coordination process for expediting the federal permitting and review of large infrastructure projects to cover all eligible data center and data center energy projects. It also recommends optimizing existing grid resources, prioritizing the interconnection of reliable power sources, ensuring sufficient generation exists to support data centers, and embracing new technology and sources of energy.

Continue Reading Power Up: What the AI Action Plan Means for the Energy Sector

“Ding ding.” – Apollo Creed,
Rocky III

September 30. All (most?) federal years end the same way, at least on paper—like a prizefight, with the clock ticking down; an agitated, uncertain crowd; a lot of money on the table; and a ref capable of stopping the match at any moment. This year will be at once both no different and a completely different beast. With ever-recent uncertainty surrounding appropriations, continuing-resolution (CR) risk, evolving Federal Acquisition Regulation (FAR) language, the tightening screws of cyber attestations, industry supply-chain and acquisition changes, and grant closeouts that always take longer than you’d think, September is not a month for contractor improvisation. It’s a month when a dedicated corner team, a game plan, and crisp execution all are paramount.

Continue Reading And in This Corner … the Sweet Science of Federal Contracting’s Year-End

Earlier this year, we addressed a growing sense of confusion and unease among federal contractors relating to shifting diversity, equity, and inclusion (DEI) standards. Specifically, awardees had to take stock of the Department of Justice’s (DOJ) newly launched Civil Rights Fraud Initiative. DOJ explained that it intended to pursue False Claims Act (FCA) cases against “any recipient of federal funds that knowingly violates federal civil rights law,” with an emphasis on unlawful DEI workplace programs. But given this year’s abrupt shift regarding DEI standards, contractors were left to guess which conduct could put them in DOJ’s crosshairs. On July 29, DOJ elaborated on what it considers “unlawful discrimination,” issuing Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination (“Guidance”) to all federal agencies. The Guidance outlines what DOJ deems “best practices” so that any organization that receives federal financial assistance—e.g., universities, local governments, and nonprofit organizations—can take practical steps “to minimize the risk of violations.”

Continue Reading New “Unlawful Discrimination” Guidance from DOJ Underscores Risks to Federal Grant Recipients