In Spring 2025, President Trump issued Executive Order 14271, titled “Ensuring Commercial, Cost-Effective Solutions for Federal Contracts” which informed agencies that they should emphasize procuring commercially available products and services as much as possible. Fast forward a year later, and it would seem the White House’s Office of Management and Budget (“OMB”) is not seeing the push for utilizing commercially available products and services they expected among federal agencies. So a few weeks ago, almost a year to the day of President Trumps 2025 Executive Order, OMB issued a memo to federal agencies driving home the points of President Trump’s 2025 Executive Order and placing reporting requirements on agencies, which could effect the direction of future possible procurements across federal contracting.
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President’s Executive Order Requires Terms Addressing DEI in Contracts
Recently, President Trump issued an executive order focused on federal contractors and DEI (meaning “Diversity Equity and Inclusion”) initiatives. Through this executive order, the President has quickly placed new requirements on federal contractors and agencies to include specific terms within their contracts and subcontracts. These terms add up to a somewhat lengthy contract clause, with the basic requirement that parties agree to not utilize DEI practices and agree to comply with any investigations of such practices by an agency. The executive order also provides some stark consequences for any failure to comply with its aims. Let’s dive in.
Continue readingGovCon FAQs: My Contract Was Terminated For Convenience, What Do I Do?
“Hope for the best, prepare for the worst” is an adage that many of us repeat in our conversations, but we never expect the worst to actually happen. For federal contractors, one of the worst things that could happen is having a contract terminated–even if the termination is for convenience. Even if you prepare for the worst, the question inevitably becomes, what do I do now? In this GovCon FAQ, we will discuss terminations for convenience and what steps to take after receiving the dreaded termination notice.
Continue readingGAO: No Notice of New Opportunity Needed for Incumbents
Often Incumbents on a contract feel that the agency owes them some notice on when a new procurement for the work they are performing is published. While this may happen in practice, it is yet another occurrence in Federal contracting that, while common, is not a requirement. GAO recently examined whether an incumbent in frequent contact with and in current performance with an agency should have been given direct notice that the work it had been performing was being re-solicited. Plainly put, GAO held that no special individualized notice was required to be sent to the incumbent, that there was to be a solicitation posted.
Continue readingBridge to Nowhere: COFC Says Incumbents not Guaranteed Bridge Contract During CICA Stay
Losing an award can be quite tough, especially when you are the incumbent on the preceding related contract. Often, a salve for an incumbent contractor’s pain can be a bid protest which may result in a bridge contract to that incumbent for the period of the protest. This actually was a fairly common practice for many years in federal contracting. Consequently, many contractors have interpreted such an incumbent bridge contract as a requirement, not simply a course of dealing. However, the United States Court of Federal Claims has highlighted the harsh reality that the incumbent is absolutely not guaranteed a bridge contract after a bid protest, and the agency may take other actions with the named awardee without violating the stay’s requirements.
Continue readingOHA SDVOSB Appeal: Voting Provisions Scuttle Veteran Control
In a recent decision, SBA’s Office of Hearings and Appeals (OHA) emphasized the importance of a careful reading and complete understanding of the control and ownership requirements for Service-Disabled Veteran Owned Small Businesses (SDVOSBs). This decision provides contractors with an excellent opportunity to brush up on SBA’s control rules regarding qualifying and non-qualifying owners. As the appellant found out in this case, while it may seem to some at first glance that simple majority ownership by the service-disabled veteran is enough to meet SDVOSB requirements, voting provisions matter as well. Failure to keep in mind all aspects of SDVOSB requirements could lead to a denial of SDVOSB status. Let’s take a look at the language of the regulation in question, and how this case illustrates the potential consequences of overlooking a critical item in an otherwise-compliant application for SDVOSB certification.
Continue readingBREAKING: SBA Launches an End of Year 8(a) Program Audit
8(a) Program participants received an early holiday surprise from the SBA’s 8(a) Program this past week. A mass request was sent out to 8(a) Program participants and some graduates requesting extensive (mostly financial) internal documentation so that the SBA could audit the program for any potential fraud, waste, or abuse. While the need to protect taxpayer funds and the 8(a) Program are fundamentally important, such a sudden wide ranging document request came as a surprise to many across federal contracting. The SBA’s explanation provided some insight for this broad request.
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