Government Contracts

On February 21, the Maryland District Court issued an injunction prohibiting the administration from implementing requirements in Executive Order (EO) 14151, Ending Radical and Wasteful Government DEI Programs and Preferencing, and EO 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity.Continue Reading DEI Executive Orders Enjoined by Maryland District Court

On February 15, the U.S. General Services Administration (GSA) announced two new “class deviations” (CDs) making a number of changes to the procurement rules applicable to GSA solicitations and contracts, including leases of real property. Continue Reading GSA Issues FAR Class Deviations Implementing DEI Requirements

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 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

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…

After an immediate, severe backlash against OMB’s January 27 memo ordering a freeze on almost all federal financial assistance, as well as legal action that led to a January 28 temporary restraining order issued by the D.C. District Court minutes before the freeze was to go into effect, the Trump administration has now rescinded that memo. Continue Reading Trump Administration Rescinds Freeze on Federal Financial Assistance (Or Does It)?

UPDATE (January 29, 2026): On January 28, Law360 reported that the D.C. District Court issued a temporary restraining order enjoining OMB’s directive to freeze federal financial assistance.  We will closely monitor and report on further developments. 

The first seven days of the Trump administration have brought new meaning to the saying that the only constant in government contracting is change. Multiple executive actions promise to be just the start of what is expected to be a period of significant change to the rules governing federal contracts and grants. This summary provides government contractors, grant recipients, and compliance professionals with an overview of significant changes to federal contract and grant rules, with more to come over the coming weeks. Continue Reading Key Changes to Federal Contract and Grant Rules: What Government Contractors and Grant Recipients Need to Know About Trump’s First Week

From the Bass, Berry & Sims Blog Network
From the Bass, Berry & Sims Blog Network

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