Insights

As discussed in more detail here, the U.S. Department of War (DoW) recently issued a memorandum (Memo 26-P-1023, dated July 13, 2026) directing the immediate suspension of Cybersecurity Maturity Model Certification (CMMC) Phase II requirements (Level I and II self assessments are still permitted). Significantly, the memo directs that “all pending and future CMMC implementation milestones across DoW solicitations and contracts are held in abeyance until further notice.” Moreover, the DoW issued a memorandum on implementing these requirements (available here), directing agencies to issue amendments removing CMMC Level 2 and 3 requirements from active solicitations “as soon as practicable.” Contractors should monitor the government’s compliance with this requirement and should be prepared, if needed, to file a bid protest to protect their rights.

A recent U.S. Government Accountability Office (GAO) decision dismissing three pre-award protests as untimely highlights an important procedural trap for would-be protesters. In Oready, LLC, GAO dismissed three protests filed one business day too late, even though they were submitted prior to the solicitation closing date and time. 

On April 8, 2026, the Small Business Administration’s (SBA) Office of Hearings and Appeals (OHA) denied an appeal arguing that a concern’s early submission of its proposal with pricing was an attempt to “end-run the regulations” for when size is determined. In Size Appeal of DecisionPoint Corporation, SBA No. SIZ-6379, OHA confirmed that a company’s size is determined on the date it submits its initial offer which includes price, even if the proposal is submitted in advance of the proposal submission deadline and the offeror becomes large before the provided deadline.

On April 13, 2026, President Trump signed into law the Small Business Innovation and Economic Security Act, which reauthorized the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.  These programs are Small Business Administration-sponsored initiatives intended to encourage small business contractors to conduct early-stage research and development (R&D) and help foster technological innovation related to U.S. government needs across several federal agencies, including the Department of War, Department of Energy, National Aeronautics and Space Administration, and National Institutes of Health.  SBIR/STTR are sometimes referred to as “America’s Seed Fund.”  Consistent with that characterization, SBIR contractors performing in the defense and technology space are often the focus of venture capital and private equity interest and investment.

On April 13, 2026, President Trump signed the Small Business Innovation and Economic Security Act of 2026 (S. 3971) (the Act), extending the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs through September 30, 2031. The legislation cleared the U.S. Senate on March 3, 2026 and then was passed by the U.S. House of Representatives on March 17, 2026 after a six-month interruption in program authority that halted the issuance of new awards across federal agencies. The programs’ previous authorization expired on September 30, 2025.

As we previously reported, on January 16, 2026, the Department of War (DoW) announced an audit of 8(a) sole source awards over $20 million, joining the previously-announced audits by the Small Business Administration (SBA) and U.S. Treasury Department (discussed here and here).  A DoW memorandum also dated January 16, 2026 but only recently made public reveals that this audit is much broader in than originally announced.  Any active 8(a) sole source contract, 8(a) set-aside contract, or small business set-aside contract over $20 million is under scrutiny. 

The Small Business Administration (SBA) has rolled out changes to its 8(a) Program even as it suspends 8(a) participants for failure to respond to the SBA’s December 5, 2025 8(a) audit letters.

On January 16, 2026, U.S. Secretary of War Pete Hegseth posted a video on social media outlining the U.S. Department of War’s (DoW) plan to combat fraud, waste, and abuse in the Small Business Administration’s (SBA) 8(a) Business Development Program. 

On December 18, 2025, the Fiscal Year 2026 National Defense Authorization Act (FY 2026 NDAA) (P.L. 119-60) was signed into law. The Act makes significant changes to defense acquisition, sourcing restrictions, and interactions between the Defense Industrial Base (DIB) and the Department of Defense (DOD). 

On December 5, 2025, the Small Business Administration (SBA) sent letters to 4,300 current and recent participants in the 8(a) Business Development Program requiring production by January 5, 2026, of financial records, contracting and subcontracting agreements, and employee records.  Below we discuss the genesis of the U.S. Government’s focus on fraud in small business programs, the new SBA request for documents, the coming Treasury audit of preference-based contracts, and more.

On September 4, 2025, the Small Business Administration’s (SBA) Office of Hearings and Appeals (OHA) granted an appeal challenging SBA’s determination that a service-disabled veteran did not control an entity applying for Service-Disabled Veteran-Owned Small Business (SDVOSB) status based on a minority owner’s ability to block certain actions in the matter of VSBC Appeal of: Blue Skye Foods, LLC, SBA No. VSBC-442-A.

On August 22, 2025, the Small Business Administration (SBA) published a proposed rule that would raise the receipts-based small business size standards across 259 industries and the asset-based size standard across 4 industries. The proposed rule aims to provide greater opportunity for growing small businesses to retain their small business status longer and continue to benefit from SBA loan programs and federal contracting opportunities reserved for small businesses.

On August 18, 2025, the Small Business Administration (SBA) published a notice of tribal consultation to be held in Michigan on September 17, 2025. In addition to seeking input from the Native American community on the management and operation of SBA’s Capital Access and Government Contracting and Business Development programs, SBA is focusing on the nonmanufacturer rule (NMR).

Earlier this year, we highlighted a notable Court of Federal Claims (CFC) decision recognizing that an energy savings performance contract (ESPC) contractor may be able to recover proposal preparation costs under the CFC’s bid protest jurisdiction. Now, in Siemens Government Technologies, Inc. v. United States, another CFC decision has reaches a similar conclusion and goes even further — also highlighting the potential to recover under the Court’s Contract Disputes Act (CDA) jurisdiction.  

The deadlines for filing a GAO protest are short and strictly enforced.  In post-award protests, the general rule is that a company must file its protest within ten days of when the protester knows, or should have known, of its basis of protest.  However, GAO’s regulations provide an exception to this rule for “protests challenging a procurement conducted on the basis of competitive proposals under which a debriefing is requested and, when requested, is required”—in such a situation, “[the] protest shall not be filed before the debriefing date offered to the protester, but shall be filed not later than 10 days after the date on which the debriefing is held.”  4 CFR §21.2(a)(2).

A recent Court of Federal Claims decision addressed a novel fact pattern involving a bid protest (seeking bid preparation costs) relating to an energy savings performance contract (ESPC) and has the potential to expand contractor recovery opportunities in both areas of law.

On May 12, 2025, the U.S. Small Business Administration (SBA) announced that it is holding a tribal consultation meeting and requesting comments and input on topics relating to the 8(a) and mentor-protégé programs. The tribal consultation will be held on June 13, 2025 in Anchorage, Alaska, and SBA is anticipating that the meeting will cover a range of topics relevant to 8(a) and mentor-protégé program participants.

Most protests involve competitive procurements and the many rules governing how agencies are to conduct such procurements. In certain circumstances, agencies are permitted to bypass some of these rules and limit competition. But, as GAO noted in a recently issued sustain decision, the authority to use noncompetitive procedures does not provide the agency carte blanche.

United States Attorneys’ Offices recently announced a number of False Claims Act (FCA) settlements arising out of the Paycheck Protection Program (PPP). These settlements reveal several trends that PPP loan recipients should be aware of.

On February 24, 2025, the Small Business Administration (SBA) issued a “Day One” memo outlining SBA Administrator Kelly Loeffler’s priorities.