Insights

Bid protest practitioners in recent years have witnessed agencies’ increasing efforts to limit the production of documents and information in response to Government Accountability Office (GAO) bid protests—often will little pushback from GAO. This practice has underscored the notable difference in the scope of bid protest records before GAO versus the Court of Federal Claims. However, in Tiger Natural Gas, Inc., B-423744, Dec. 10, 2025, 2025 CPD ¶ __, GAO made clear that there are limits to the scope of redactions, and GAO will sustain a protest where there is insufficient evidence that the agency’s actions were reasonable.

On December 12, 2025, the U.S. Government Accountability Office (GAO) released its annual report on bid protests for fiscal year 2025, containing the full statistics shown below:

In its recently published FY 2025 Annual Report (Report), the Civilian Board of Contract Appeals (CBCA) provided detailed statistics about appeals involving disputes between contractors and civilian agencies.  This past year, the civilian agencies with the highest number of docketed claims at the Board were the Department of Veterans Affairs (70 appeals), the United States Agency for International Development (43 appeals), the General Services Administration (36 appeals), the Department of State (12 appeals ), and the Department of Education (12 appeals).  These agencies accounted for 173, or approximately 78%, of the 221 Contract Disputes Act (CDA) appeals docketed at the Board. 

Every year since 1979, the Armed Services Board of Contract Appeals (ASBCA) has issued a Report of Transactions and Proceedings (Report), which provides helpful statistics for contractors and practitioners regarding the ASBCA’s docket and success rates for contractor litigation and ADR. The ASBCA published its FY 2025 Report on October 30, 2025. 

On the morning of December 12, 2025, the Eleventh Circuit heard argument in United States ex rel. Zafirov v. Florida Medical Associates, LLC, et al., No. 24-13581 (11th Cir. 2025). This case concerns the constitutionality of the False Claims Act (FCA) qui tam provisions and a groundbreaking September 2024 opinion in which the United States District Court for the Middle District of Florida held that the FCA’s qui tam provisions were unconstitutional under Article II. See United States ex rel. Zafirov v. Fla. Med. Assocs., LLC, 751 F. Supp. 3d 1293 (M.D. Fla. 2024). That decision, penned by District Judge Kathryn Kimball Mizelle, was the first success story for a legal theory that has been gaining steam ever since Justices Thomas, Barrett, and Kavanaugh indicated they would be willing to consider arguments about the constitutionality of the qui tam provisions in U.S. ex rel. Polansky v. Exec. Health Res., 599 U.S. 419 (2023). In her opinion, Judge Mizelle held (1) qui tam relators are officers of the U.S. who must be appointed under the Appointments Clause; and (2) historical practice treating qui tam and similar relators as less than “officers” for constitutional purposes was not enough to save the qui tam provisions from the fundamental Article II infirmity the court identified. That ruling was appealed and, after full briefing, including by the government and a bevy of amici, the litigants stepped up to the plate this morning for oral argument.

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 November 7, 2025, in Thornton v. National Academy of Sciences, No. 25-cv-2155, 2025 WL 3123732 (D.D.C. Nov. 7, 2025), the District Court for the District of Columbia dismissed a False Claims Act (FCA) retaliation complaint on the basis that the plaintiff’s allegations that he was fired after blowing the whistle on purported illegally discriminatory use of federal funding was not sufficient to support his FCA claim. This case appears to be one of the first filed, and subsequently dismissed, following Deputy Attorney General Todd Blanche’s announcement of the creation of the Civil Rights Fraud Initiative on May 19, 2025, which “strongly encourages” private individuals to file lawsuits under the FCA relating to purportedly discriminatory and illegal use of federal funding for diversity, equity, and inclusion (DEI) initiatives in violation of Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity (Jan. 21, 2025). In this case, the court dismissed the FCA retaliation claim and rejected the argument that an organization could violate the FCA merely by “engaging in discriminatory conduct while conducting a federally funded study.” The analysis in Thornton could be a sign of how forthcoming arguments of retaliation based on reporting allegedly fraudulent DEI activity will be analyzed in the future.

The facts before the Third Circuit in the recently decided case of Patel v. United States illustrate how parties can put themselves in a bind if they make factual admissions when resolving a criminal case involving fraud on the government while not simultaneously resolving the government’s civil claims under the False Claims Act (FCA) for the same underlying conduct.

On November 7, 2025, Secretary of War Pete Hegseth announced the Department of War’s (“DoW”) Acquisition Transformation Strategy (the “Strategy”) during a speech to military leaders and industry at the National War College on Fort McNair.  The Strategy sets out five pillars for acquisition reform, each containing near-and long-term actions to “ensure delivery of capabilities to the American warfighter” at a more rapid pace.  

On October 16, 2025, the European Commission and the High Representative of the Union for Foreign Affairs and Security Policy presented their Defense Readiness Roadmap 2030 to the EU Member States. This comprehensive plan aims to strengthen European defense capabilities. It follows, and should be read together with, the Commission’s Defense Readiness Omnibus that was published in June 2025. The Omnibus contains a set of proposals to facilitate defense investments and boost EU Member States’ responsiveness to today’s security challenges.

The UK’s increased defence spending and zero-tariff trade on aircraft parts with the US is generating broad interest in the UK defence sector.

On September 30, 2025, the Department of Justice (DOJ) announced that Georgia Tech Research Corporation (GTRC) agreed to pay $875,000 to settle allegations that it violated the False Claims Act (FCA) and federal common law by failing to meet cybersecurity requirements under certain Air Force and Defense Advanced Research Projects Agency (DARPA) contracts.  The settlement adds to the growing list of recoveries under DOJ’s Civil Cyber-Fraud Initiative and is yet another example of DOJ’s ongoing enforcement focus on cybersecurity obligations for federal contractors handling sensitive government information.  The settlement also provides insight into how government contractors may challenge FCA liability when faced with allegations of cybersecurity noncompliance.

Congress has not passed crucial funding bills for the start of Fiscal Year 2026.  If Congress fails to act by September 30, the government may be forced to shut down for lack of funding.  In anticipation of that possibility, agencies government-wide are preparing for a shutdown, and contractors and companies that work with the government should do so as well.  Our team is ready and available to help advise companies through the shutdown process.

The Transportation Security Administration (TSA) recently proposed an expanded role regulating unmanned aircraft systems (UAS), or drones.  On August 7, 2025, the Federal Aviation Administration (FAA) and TSA published a joint Notice of Proposed Rulemaking (proposed rule), titled Normalizing Unmanned Aircraft Systems Beyond Visual Line of Sight Operations (BVLOS).  Through this landmark proposed rule, the FAA and TSA aim to provide industry with a clear path forward for streamlined UAS operations for a variety of purposes, including package delivery, agriculture, aerial surveying, civic interest (public safety), and flight testing.  Comments on the proposed rule are due October 6, 2025.

The Department of Education (DOE) announced on September 10, 2025, that it will end discretionary funding to several Minority-Serving Institution (MSI) grant programs that, it stated, “discriminate by conferring government benefits exclusively to institutions that meet racial or ethnic quotas.”[1] The agency stated that it would “us[e] its statutory authority to reprogram discretionary funds to programs that do not present such concerns.”[2] This announcement follows a July 2025 decision by the Department of Justice to no longer defend the constitutionality of a provision of the Higher Education Act of 1965 (HEA) that authorizes grant funding to Hispanic-Serving institutions, after determining that such programs “violate the equal-protection component of the Fifth Amendment’s Due Process Clause.”[3]

On September 18, 2025, the Director of National Intelligence (DNI) issued the first order under the authority conferred by the Federal Acquisition Supply Chain Security Act (FASCSA), requiring exclusion and removal of products and services by an identified source.[1]

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 September 9, 2025, GSA released version 1 of the FAR Companion, a living resource guide aimed primarily at assisting federal acquisition professionals. The FAR Companion is designed to provide guidance and recommendations to acquisition professionals to better understand the FAR and related procurement principles for planning, awarding, managing, and closing out contracts. It consolidates practitioner insights, innovation and vendor engagement strategies, handbooks, training materials, and problem-solving ideas into one source.

On September 10, 2025, the Department of Defense (DoD) published a final rule (CMMC Clause Rule) that will apply its much-anticipated Cybersecurity Maturity Model Certification program (CMMC) to DoD contractors and subcontractors. Under the CMMC Clause Rule, starting on November 10, 2025, DoD can include CMMC requirements—potentially including third-party cybersecurity assessments—in contracts that require the handling of Controlled Unclassified Information (CUI) or Federal Contract Information (FCI).

The System for Award Management (SAM, available at sam.gov) is set to incorporate Revolutionary FAR Overhaul (RFO) changes as early as the first quarter of 2026. The RFO process, which began earlier this year, will trigger matching changes to representations and certifications in SAM.gov.