Recent developments in government contracting highlight significant changes affecting cybersecurity compliance, defense industry consolidation, contract disputes, and federal grant conditions. The latest updates include the Department of War’s decision to delay implementation of the next phase of the Cybersecurity Maturity Model Certification program, continued Department of Justice scrutiny of mergers in the defense industrial base, an Armed Services Board of Contract Appeals ruling on the public availability of Board decisions, and a federal court injunction blocking enforcement of certain DEI-related grant conditions.
Morgan Lewis Government Contractor Guidebook
YOUR GUIDE TO THE ISSUES THAT MATTER TO GOVERNMENT CONTRACTORS
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.
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.