https://www.morganlewis.com/rss/blogsBlogs RSS Feed5https://www.morganlewis.com/blogs/governmentcontractorguidebook/2026/04/government-contractor-ma-the-diligence-issues-most-likely-to-affect-valueWhile M&A involving government contractors continues to attract strategic buyers and sponsors, with these deals comes a different level of diligence than a typical commercial transaction. The reason is straightforward: when a company does business with the government, contract performance, compliance, and enforcement risk are often closely linked. In addition to creating operational friction, a diligence issue may affect valuation or future eligibility for work or expose the buyer to inherited liability.Thu, 23 Apr 2026 00:00:00 -05001ef2ad6d-d5b7-4eb7-9cab-4d6638835037Government ContractsFalse Claims Act & Qui Tam LitigationMergers & AcquisitionsCybersecurity, Incident Response & PrivacyUnited StatesLITFDACBTMAACCPAlexander B. HastingsJustin D. Weitzhttps://www.morganlewis.com/blogs/governmentcontractorguidebook/2026/04/cmmc-in-effect-cybersecurity-compliance-measuresThe US Department of Defense (DOD) has implemented the Cybersecurity Maturity Model Certification (CMMC) program as of November 2025. The final rule implementing CMMC established new cybersecurity requirements for federal contractors and subcontractors and, resultingly, heightened the risks of noncompliance, including potential False Claims Act (FCA) risks.Wed, 22 Apr 2026 00:00:00 -05005eb1ba2e-2048-4105-9679-d938fd85b8bfGovernment ContractsCybersecurity, Incident Response & PrivacyLITACCPAlexander B. HastingsDaniel Funarohttps://www.morganlewis.com/blogs/governmentcontractorguidebook/2026/04/govcon-update-ai-clause-fy-2027-budget-signals-and-cas-threshold-reformsRecent developments across procurement policy, federal budgeting, and cost accounting standards signal meaningful shifts for government contractors. A newly proposed acquisition clause from the General Services Administration (GSA) would introduce government-unique requirements for artificial intelligence (AI). The White House’s FY 2027 budget request underscores a continued prioritization of defense spending. And the Cost Accounting Standards (CAS) Board has proposed long-anticipated reforms that could narrow CAS applicability.Wed, 22 Apr 2026 00:00:00 -0500312b260b-469e-4bd4-b046-487ccbb7334cGovernment ContractsLitigation, Regulation & InvestigationsUnited StatesArtificial IntelligenceTechnologyLITAlexander B. HastingsClinton Smallhttps://www.morganlewis.com/blogs/governmentcontractorguidebook/2026/04/the-white-houses-latest-fraud-initiative-points-to-more-audits-data-sharing-and-enforcement-activityThe March 16, 2026 executive order establishing the new interagency Task Force to Eliminate Fraud signals a more coordinated, enforcement-focused approach to fraud risks in federally funded benefit programs. The initiative emphasizes front-end eligibility and identity verification, expanded data sharing across federal and state systems, and increased reliance on civil enforcement tools, including the False Claims Act (FCA). With accelerated implementation timelines and broad agency participation, the order points to heightened scrutiny for contractors, grantees, and other entities involved in administering or receiving federal funds.Tue, 21 Apr 2026 00:00:00 -0500ea5f76e5-523f-4604-b2c4-c487a582385cGovernment ContractsFalse Claims Act & Qui Tam LitigationWhistleblowing & RetaliationTax-Exempt OrganizationsUnited StatesLITFDALBRTAXAmanda B. RobinsonAlexander B. HastingsScott WhitmanJustin D. Weitzhttps://www.morganlewis.com/blogs/governmentcontractorguidebook/2026/04/executive-order-targeting-dei-practices-will-expand-fca-risk-for-federal-contractorsA 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.Mon, 20 Apr 2026 00:00:00 -050035ad89a6-a5b3-4d23-9e8f-51003b5274f2Government ContractsFalse Claims Act & Qui Tam LitigationOrganizational Culture: Change & ComplianceUnited StatesLITFDAWTRLisa C. DykstraSharon Perley MaslingAlexander B. HastingsE. Pierce BlueJonathan WiltMargaret M. McDowellScott Whitman