Photo of Richard Arnholt

Richard Arnholt

Richard Arnholt advises companies, large and small, on the complex rules and regulations applicable to grants and contracts from federal and state governmental entities. In an era of increased budgetary pressures for contractors, Richard focuses his practice on providing practical business and legal guidance to help clients efficiently navigate the minefield of government procurement and grant regulations.

On April 14, U.S. District Judge Matthew F. Kennelly ruled, in relevant part, that the U.S. Department of Labor (DOL) cannot require federal grant recipients to certify that their diversity, equity and inclusion (DEI) programs do not violate applicable federal anti-discrimination law and prohibited the termination of the plaintiff’s Women in Apprenticeship and Nontraditional Occupations (WANTO) grant on the basis that it was “equity-related.”Continue Reading District Court Blocks Department of Labor Enforcement of Contractor DEI Certification Requirement

Through a duo of Executive Orders (EOs), issued on April 15 and 16 respectively, President Trump announced “a first-of-its-kind overhaul of Federal procurement policy.” The rewrite represents a once-in-a-generation opportunity to make an incredibly complex system more efficient and user friendly. With that said, while the president positions the changes as an effort of “increase[ing] competition and efficiency while decreasing costs,” the devil is in the details. Below we discuss areas of emphasis for the Trump administration, the short-term implications of the Federal Acquisition Regulations (FAR) rewrite, and explore important considerations that could inform what the final version of “FAR 2.0” looks like.Continue Reading White House Announces “Revolutionary FAR Overhaul”: What to Know

On April 2, the United States District Court for the Eastern District of Virginia dismissed a whistleblower’s False Claims Act (FCA) action after the relator attempted to dismiss the government as a plaintiff-intervenor in the lawsuit. Continue Reading False Claims Act Gives Broad Dismissal Authority to Government, District Judge Says

According to an April 1 Department of Justice (DOJ) press release, DRI Relays Inc. (DRI), a subsidiary of TE Connectivity Corporation (TEC) and manufacturer of electrical relays and sockets used on military platforms, agreed to pay $15.7 million to settle allegations that it violated the False Claims Act (FCA). The company supplied military parts that failed to meet the required military testing specifications, while falsely certifying that they did. The settlement highlights the benefits of self-disclosures, the importance of robust diligence during the acquisition process, and the lengthy nature of some FCA investigations.Continue Reading New False Claims Act Settlement Highlights Importance of Voluntary Self-Disclosures and Due Diligence

On January 24, the SBA announced updated small business contracting goals for fiscal year 2025, significantly decreasing some goals and standardizing targets across federal agencies. These changes bring the small business targets more closely in line with historic targets.Continue Reading Trump Administration Revises SBA’s Small Business Goals

As many of our readers know, the ostensible subcontractor rule is one way in which the Small Business Administration (SBA) can find affiliation between a small business and one of its subcontractors, potentially resulting in the small business’s disqualification from a procurement.  The rule is designed to ensure that small businesses perform the primary and vital requirements of a set-aside contract and are not unduly reliant on an entity that is not similarly situated to perform the contract.  Allegations of affiliation based on this doctrine are frequently made in size protests, putting at risk awards that small businesses have expended significant time and resources to secure. Continue Reading Small Business Size Protest Minute: The Ostensible Subcontractor Exception that (Almost) Swallowed the Rule

On March 14, the U.S. Court of Appeals for the  Fourth Circuit granted the government’s motion for a stay pending appeal, terminating a Maryland district court’s injunction of certain elements of President Trump’s January 20 and 21 diversity, equity and inclusion (DEI) executive orders (EO), “Ending Radical and Wasteful Government DEI Programs and Preferencing” and “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.”  We wrote about the district court’s injunction here and here.Continue Reading Fourth Circuit Terminates Maryland District Court’s DEI Injunction

On February 26, GAO denied the protest of Mission Analytics, Inc., challenging the award of a small business set-aside contract to ThunderCat Technology, LLC, explaining that “it is a firm’s responsibility to submit a well-written quotation.” The protest underscores the fact that proposals lacking sufficient detail and the requested information may be deemed technically unacceptable and ineligible for award. It is crucial that companies carefully review proposals before submission to ensure they cover all the requirements of an RFQ.Continue Reading Bid Protest Minute: Bidder’s Responsibility to Submit Well-Drafted Proposal

Following U.S. General Services Administration’s (GSA) lead, which we wrote about here, on March 4, the Department of Defense (DoD) issued a Class Deviation—Restoring Merit-Based Opportunity in Federal Contracts—directing DoD Contracting Officers (COs) to “remove, replace, and not enforce Federal Acquisition Regulation (FAR) solicitation provisions and contract clauses associated with Executive Order (EO) 11246, Equal Employment Opportunity.”Continue Reading Department of Defense Issues Affirmative Action Class Deviation