Morgan Lewis Government Contractor Guidebook

Recent developments in government contracting highlight continued procurement reform, evolving False Claims Act (FCA) enforcement, and significant litigation affecting bid protests, labor cost recovery, and protection of contractor intellectual property. The latest updates include the first proposed rules under the FAR Council’s Revolutionary FAR Overhaul, new US Department of Justice (DOJ) initiatives leveraging artificial intelligence in fraud enforcement, a Federal Circuit decision reinforcing bid protest timeliness requirements, and two contractor disputes involving labor costs and trade secrets.

Recent developments in government contracting highlight growing federal attention to artificial intelligence (AI) governance, technology supply chain security, domestic industrial capacity, and contractor compliance obligations. The latest updates include new General Services Administration (GSA) rulemaking affecting information and communication technology (ICT) acquisitions, a significant Department of Defense (DoD) investment in domestic rare earth processing, and two Department of Justice (DOJ) settlements reinforcing continued enforcement priorities in the small business and cybersecurity arenas.

Recent developments in government contracting highlight the administration’s evolving approach to artificial intelligence, continued scrutiny of DEI initiatives, and ongoing implementation of Executive Order 14398. The latest updates include a new national security policy memorandum on AI adoption, a proposed Small Business Administration rule affecting 8(a) eligibility, an Office of Management and Budget directive concerning federal funding of certain nonprofit organizations, and litigation challenging the administration’s DEI-related contractor requirements.

The US Department of Justice (DOJ) is changing how it reviews certain False Claims Act (FCA) whistleblower cases, and organizations participating in federally funded benefits programs should take notice.

With the US Supreme Court’s 2025–2026 term nearing its conclusion, several recent decisions have already emerged as important developments for government contractors. Although arising in different contexts, three rulings this term address the boundaries of contractor liability and the circumstances under which contractors may invoke federal protections when facing litigation. The decisions underscore a common theme: contractors are most likely to receive legal protection when they can demonstrate a clear connection between the challenged conduct and specific government direction or authorization.

As the US government expands procurement of commercial products and services, technology companies, from startups to established firms, have growing opportunities to sell to and collaborate with federal agencies.

Recent developments in government contracting include the release of the House Armed Services Committee’s draft National Defense Authorization Act (NDAA) for Fiscal Year 2027, a new Department of Justice (DOJ) initiative aimed at accelerating review of certain False Claims Act (FCA) whistleblower cases, and the advancement of a major surface transportation reauthorization bill in the House of Representatives, highlighting continued congressional and executive branch focus on defense modernization, fraud enforcement, and major infrastructure investment.

The White House’s recent executive order on federal contracting could significantly reshape how agencies structure procurements and allocate performance risk. Executive Order 14402, Promoting Efficiency, Accountability, and Performance in Federal Contracting, directs executive agencies to default to fixed-price contracts unless they can justify and obtain approval for another contract type.

Recent developments in government contracting include a major Department of Commerce initiative to fund domestic quantum computing capabilities, continued implementation of the administration’s fixed-price contracting directive, and legislative efforts to codify the small business “Rule of Two” into statute. Together, these developments reflect continued emphasis on industrial policy, procurement reform, and preservation of longstanding small business contracting requirements.

Recent developments in government contracting include a proposed US Department of Defense rule expanding foreign ownership, control, or influence (FOCI) requirements, a Government Accountability Office report focused on procurement reform and oversight, and a major False Claims Act settlement tied to customs duty evasion.