In the roughly four weeks since his inauguration, President Trump has announced then paused tariffs on Canada and Mexico, expanded tariffs on steel and aluminum, and suggested introducing reciprocal tariffs on the rest of the world.

Continue Reading Update on Tariffs: Vigorous Enforcement Likely Amidst Uncertainty

On February 4, the Fifth Circuit Court overturned a September 2023 order from a Texas trial court finding President Biden lacked the authority under the Federal Property and Administrative Services Act (FPASA or Act) to increase the minimum wage for federal contractors to $15 per hour. A three-judge panel found the president was within his authority under FPASA to hike the minimum wage because the president subjectively determined the hike would benefit government contracting and the order was objectively compatible with the language of the statute. The breadth of presidential authority under FPASA has recently become a hotly contested legal issue. The Fifth Circuit decision adds another circuit court weighing in on an issue that has already split the Ninth and Tenth circuits, increasing the likelihood that the Supreme Court weighs in.

Continue Reading Fifth Circuit Delivers Boost to Presidential Authority Under the FPASA

Note: This post was updated with new information on February 13, 2025.

On February 7, the National Institutes of Health (NIH) issued Supplemental Guidance to its 2024 NIH Grants Policy Statement, Indirect Cost Rates, purporting to cap indirect cost (also called facilities and administration, F&A) rates at 15% for all new grants issued as well as for go forward expenses for existing grants for educational purposes.  The purported basis for the cap, which is a quarter or less of the indirect rate charged by many universities, hospitals, and other research institutions, is that 15% is in line with the rate permitted by a number of foundations. 

Continue Reading Can the NIH Cap Indirect Cost Rates at 15%?

On January 21, in MVL, Inc., et al. v. United States, the U.S. Court of Federal Claims (COFC) struck down a 2022 Executive Order (EO), as well as the implementing Federal Acquisition Regulation (FAR), signed by then-President Biden that required government contractors to enter Project Labor Agreements (PLAs) in order to compete on federal construction projects valued at over $35 million.

Continue Reading Project Labor Agreements No Longer Mandated for Large Federal Construction Contracts

As we reported previously, President Trump’s January 21 Executive Order (EO) 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” terminated certain affirmative action requirements applicable to government contracts and federally-funded construction contracts.  The EO also mandates that new provisions be included in all government contracts and all grants, certifying that counterparties do not have diversity, equity and inclusion (DEI) policies that violate federal anti-discrimination law. We noted that, in absence of additional government guidance, there was some challenge in identifying what DEI programs may be permissible going forward.

Continue Reading DEI Developments: DOJ Issues Memo, “Ending DEI and DEIA Discrimination and Preferences”

In an article for Law360, I summarized the U.S. Department of Treasury’s new outbound investment regulations and outlined key compliance considerations for U.S. investors. I explained that the rule “aims to prevent U.S. capital and less tangible benefits like managerial services from accelerating the development of certain technologies that could harm U.S. security interests.”

Continue Reading Key Compliance Considerations for U.S. Investors Under the Treasury’s New Outbound Investment Regulations

In addition to the Trump administration’s general freeze on most grant funding, which was rescinded as well as enjoined by federal district courts in Rhode Island and Washington, D.C., the new administration yesterday took steps to halt funding to organizations and governmental entities that fail to comply with immigration and Education Amendments Act requirements. These additional measures, which will almost certainly face legal challenges, could cause further disruptions in federal funding to numerous jurisdictions and educational institutions, as well as to companies that provide goods and services to those entities under contracts funded by federal grants.

Continue Reading Additional Grant Pauses – Trump Administration Seeks to Maximize the Power of the Purse

As global supply chains continue to expand, it is essential to understand the legal, compliance, and practical challenges that arise. Forced labor, economic sanctions, corruption, and other risks can be significant, especially when relying on suppliers in China and the developing world. The early actions of the new Trump administration, and the responses from trading partners, make these challenges even more pronounced.

Continue Reading Register Now | Managing Forced Labor and Other Supply Chain Compliance Challenges Webinar

Generally speaking, the U.S. procurement system allows companies competing for U.S. government contracts broad rights to challenge contract awards, as well as the terms of solicitations. There are, however, restrictions applicable to challenging task orders awarded under indefinite-delivery/indefinite-quantity contracts that limit where such challenges may be filed and prohibit challenges below a certain threshold. Congress recently raised the threshold applicable to certain task orders, and it is important that any company competing for government task orders as part of a business capture strategy understand those rights and limitations.

Continue Reading Bid Protest Minute: Understanding the Increased DoD/Coast Guard/NASA Task Order Protest Threshold

On February 18, I will join Priscilla Sweeney (U.S. Army Corps of Engineers), for a valuable networking and informational session hosted by the Tennessee APEX Accelerator. This event offers a unique opportunity to enhance your experience at the U.S. Army Corps of Engineers Mississippi Valley Division Regional Industry Day. Don’t miss this chance to connect and gain insights before the conference.

For registration details, please visit the TN APEX Accelerator event page.