On February 21, the Trump Administration released the America First Investment Policy (the memo or memorandum). The wide-ranging memo formally targets investment from the People’s Republic of China, including Hong Kong and Macau (collectively, the PRC), in sensitive U.S. sectors, modifies aspects of the Committee for Foreign Investment in the United States (CFIUS) process, and proposes new restrictions on outbound investment.
Continue Reading America First Investment Policy Sets Sights on ChinaExecutive Order Directs Systematic Review of “Covered Contracts and Grants” For Possible Termination
Over the first month of the new administration, President Trump has directed the review or termination of certain types of contracts and grants, including equity-related agreements, awards under the Inflation Reduction Act and the Investment and Jobs Act, and foreign aid agreements awarded by USAID. Those actions, while disruptive, have been limited to certain agreement types or agencies.
Continue Reading Executive Order Directs Systematic Review of “Covered Contracts and Grants” For Possible TerminationCOFC Decision Significantly Broadens OTA Bid Protest Jurisdiction
On February 24, Judge Armando Bonilla of the Court of Federal Claims (COFC) declined to dismiss a challenge to a $648 million award under a Missile Defense Agency (MDA) development deal, finding that the court had jurisdiction to review Other Transaction (OT) Authorities like the one at issue. For years, unsuccessful offerors have found it difficult to challenge OT award (OTA) decisions because both the GAO and COFC have found they have limited jurisdiction over these types of agreements.
Continue Reading COFC Decision Significantly Broadens OTA Bid Protest JurisdictionHaas Automation Agrees to Pay More Than $2.5 Million to Settle Sanctions and EAR Violations
By Faith Dibble & Thad McBride on
On January 17, the Treasury Department’s Office of Foreign Assets Control (OFAC) and the Commerce Department’s Bureau of Industry and Security (BIS) announced that Haas Automation Inc. (Haas) agreed to settle potential civil liability related to multiple violations of the Ukraine-/Russia-related Sanctions Regulations and the Export Administration Regulations (EAR).
Continue Reading Haas Automation Agrees to Pay More Than $2.5 Million to Settle Sanctions and EAR ViolationsDEI Executive Orders Enjoined by Maryland District Court
By Richard Arnholt on
Posted in Government Contracts, Labor & Employment
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 CourtGSA Issues FAR Class Deviations Implementing DEI Requirements
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 RequirementsUpdate on Tariffs: Vigorous Enforcement Likely Amidst Uncertainty
By Faith Dibble, Lindsey Fetzer & Thad McBride on
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 UncertaintyFifth Circuit Delivers Boost to Presidential Authority Under the FPASA
By Richard Arnholt on
Posted in Government Contracts
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 FPASACan the NIH Cap Indirect Cost Rates at 15%?
By Richard Arnholt & Clint Hermes on
Posted in Government Contracts
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%?Project Labor Agreements No Longer Mandated for Large Federal Construction Contracts
By Richard Arnholt on
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