In December 2025, Section 1826 of the FY 2026 NDAA created one of the most valuable classifications in defense contracting and most companies that qualify don’t know it yet. Qualify as a “nontraditional defense contractor” and you’re exempt from certified cost or pricing data, FAR Part 31, and the entire DFARS business-systems architecture. The kicker?
What Federal Contractors Should Be Watching This Summer
Summer 2026 has arrived with a new wave of artificial intelligence (AI) policy from the White House. On June 2, 2026, President Trump signed an Executive Order titled “Promoting Advanced Artificial Intelligence Innovation and Security” (the Order). The Order directs federal agencies—on aggressive 30‑ and 60‑day timelines, with key deliverables due by July 2, 2026 and August 1, 2026—to harden federal information systems with AI‑enabled defenses, establish a voluntary framework for pre‑release federal access to so‑called “covered frontier models,” and prioritize criminal enforcement against malicious AI‑enabled cyber activity. Although the Order is framed as innovation‑and‑security policy and expressly disclaims any “mandatory governmental licensing, preclearance, or permitting requirement” for new AI models, it will have immediate operational consequences for federal information‑technology and cyber contractors, AI developers, critical‑infrastructure operators, and their service providers.
Continue Reading AI Heats Up: New Executive Order on Promoting Advanced Artificial Intelligence Innovation and Security
The Department of Defense’s proposed rule implementing Section 847 of the FY 2020 NDAA could fundamentally reshape how foreign ownership, control, or influence (FOCI) is monitored across the defense industrial base. Through proposed DFARS Part 240, the rule would extend recurring FOCI disclosure, National Industrial Security System (NISS) reporting, and Defense Counterintelligence and Security Agency (DCSA) oversight far beyond the traditional facility-clearance context and into ordinary government contracting. For foreign-owned contractors, allied-country suppliers, private equity sponsors, and federal subcontractors, the proposal signals the emergence of a permanent compliance regime built around continuous visibility rather than one-time vetting.
Friends, Romans, contractors, lend me your ears;
I come to disclose your owners, not to debar them.
The FOCI that contractors do is oft assessed;
The clearances are oft interred with their bones.
So let it be with allies. The honorable rule
Hath told you that we treat all foreigners alike;
If it be so, it is a grievous form,
And grievously hath the SF-328 answered it.
The speech may be a little ridiculous, but in its way, it’s also a little accurate. The proposed DFARS rule implementing Section 847 of the FY 2020 NDAA is not unkind to allies. It is, as was Mark Antony, scrupulously polite to them, right up to the moment it asks them to register as suspects.
Continue Reading Section 847 and the New Era of DOD Continuous FOCI Monitoring
Remember in Coming to America when Eddie Murphy’s Prince Akeem shows up in Queens full of charm, optimism, and big dreams and somehow it all works out? Fast-forward 38 years (yes, it’s been that long) and European companies looking to sell into the US Department of Defense (DoD) and Department of Homeland Security supply chains will need much more than charm. Instead, they’ll need real strategy, a focused structure, and readiness for regulatory scrutiny that doesn’t end with an award notification. In the current climate, with a heightened domestic preference policy, new executive directives such as the “Prioritizing the Warfighter in Defense Contracting” executive order, and renewed focus on supply chain security and performance, it is essential for foreign companies and their counsel to clearly understand the terrain before landfall.
Continue Reading Coming to America (the Government Contracting Edition): Ownership, Compliance, and Shifting Policy
The BIOSECURE Act in the FY 2026 NDAA is a quiet, sweeping shift in federal supply-chain enforcement that reaches beyond “biotech” and into the tools most companies barely think about like software, AI, data platforms, and third-party services used behind the scenes. As Alex Major and Franklin Turner write in The Government Contractor, BIOSECURE Act
The FY2026 National Defense Authorization Act (NDAA) became law on December 18, 2025, enacting a tidal wave of the Trump administration’s priorities with respect to Department of Defense (DoD) procurement. One key priority reflected in the NDAA is reducing compliance burdens so that (i) established DoD contractors are incentivized to pursue awards and (ii) more companies opt in to being a DoD contractor to grow the industrial base. Importantly, Section 1804 and Section 1806 of the NDAA take action on this priority by raising the dollar thresholds for complex domains of government contracting: the Cost Accounting Standards (CAS) and submission of certified cost or pricing data. While these changes are welcome developments, companies should be cognizant that a steady stream of compliance requirements remains even with these increased thresholds.
Continue Reading Swept Away: FY2026 NDAA Updates to CAS and Certified Cost or Pricing Data Thresholds
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 NDAADrumroll, 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
Here we are again. With federal funding for fiscal year 2025 lapsed, all government contractors now face potential stop work orders and financial disruptions. Below are key considerations and steps to mitigate potential risk and maximize cost recovery:
Continue Reading Key Steps for Government Contractors During the Federal Shutdown
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