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
While 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.