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.
Morgan Lewis Government Contractor Guidebook
YOUR GUIDE TO THE ISSUES THAT MATTER TO GOVERNMENT CONTRACTORS
A recent executive order targeting diversity, equity, and inclusion (DEI) practices in federal contracting signals a significant escalation in enforcement risk, particularly under the False Claims Act (FCA). The order introduces a broad definition of prohibited conduct, mandates new contract clauses with short implementation timelines, and directs more aggressive use of whistleblower-driven enforcement. These changes point to heightened scrutiny of contractor policies, subcontractor oversight, and internal compliance systems.