BIG NEWS! DOD has adopted Parts 1 and 10 of the FAR overhaul – keep checking here to track as other FAR parts are adopted.
SBA 8(a) AUDIT:
SBA Issues Suspension Notices to 8(a) Firms Following Data Call – On December 5, 2025, the Small Business Administration (SBA) issued a program-wide data call (Data Call) to all 8(a) Business Development Program (8(a) Program) participants seeking three years of financial and contractual records. The Data Call was designed to identify fraud, waste, and abuse in the 8(a) Program. Further to that stated goal, following the response deadline of January 19, 2026, SBA swiftly moved to take adverse action against 8(a) firms it deems non-compliant with the Data Call obligations. 8(a) firms that received a Notice of Suspension or believe they may be affected should act quickly to address compliance issues and, if necessary, submit informal or formal appeals to protect their program participation.
8(a) program pushed further to the edge by DoD audit – The 8(a) small business contracting program is coming under the microscope of its biggest user. The Defense Department is joining a growing list of agencies auditing the use of sole-source contracts through the 8(a) program.
SBA suspends 1,000 8(a) firms for not submitting data – The Small Business Administration suspended more than 1,000 companies in the 8(a) program. SBA made the decision after it deemed those small businesses non-compliant with its financial data request from December. “Suspended firms have 45 days to appeal the suspension,” said Maggie Clemmons, an SBA spokesperson in an email to Federal News Network. “SBA will release further information on the suspensions in the coming days.” The suspension comes after SBA sent a letter to more than 4,300 8(a) firms in December seeking 13 different data, ranging from a list of the company’s employees to bank statements for the last three fiscal years to a copy of all 8(a) contracts, as part of its ongoing audit of the program.
Defense Department Initiates Review of 8(a) and Small Business Awards (Not Just Sole-Source Awards) – In a memorandum dated January 16, 2026, the Department of Defense (DoD) has directed a department-wide review of every small business set-aside award in excess of $20 million. The Department has also ordered a review of all sole-source and set-side contracts of the same value awarded to any participant in the Small Business Administration’s (SBA) 8(a) business development program. The memorandum is notable for the breadth and speed of the contemplated review and the potentially wide-ranging effects it could have on 8(a) and other small business DoD contractors. The memorandum is the latest initiative reflecting stated concerns within the Administration that 8(a) and other small business contracting programs may involve fraud, race-based favoritism, excessive profiteering, and illegal pass-throughs.
SBA’s Newly-Released 8(a) Program Mandate with “Clarifying Guidance” Regarding Social Disadvantage Criteria Brings Far More Confusion Than “Clarity” – On January 22, 2026, SBA issued brand new “SBA Guidance” to its Office of Government Contracting and Business Development and its Office of Field Operations via a highly confusing 8(a) Program Mandate. On its Website, SBA labels it “Clarifying Guidance That Race-Based Discrimination is Not Tolerated in the 8(a) Program[,]” and further labels it the “Latest Action” in our Federal Government’s “Year-Long Effort to Dismantle DEI Discrimination, Expose Fraud, and Restore Fairness in Federal Contracting[.]” But no matter SBA’s intent behind it, this guidance does everything but clarify even a single aspect of SBA’s 8(a) Program eligibility rules and social disadvantage requirement.
GOVCON INSIGHTS AND INFORMATION:
The Rise of OTA in Defense Contracting, Part 5: Commercial Solutions Openings and NDAA FY26 – In the evolving landscape of government contracting, non-FAR-based procurements, including Other Transactions Authority (OTA), have become a focal point. A key element of President Trump’s April 9, 2025, Executive Order, “Modernizing Defense Acquisitions and Spurring Innovation In the Defense Industrial Base,” emphasized reforming the Department of War’s (DOW) acquisition process by prioritizing Commercial Solutions Openings (CSOs) and OTA. In November 2025, Secretary Hegseth’s memorandum, “Transforming the Warfighting Acquisition System to Accelerate Fielding of Capabilities,” highlighted that the Under Secretary of War for Acquisitions and Sustainment (USW(A&S)) would soon mandate the use of OTA, among other non-FAR-based procurements whenever feasible. Defense contractors should also take note that the National Defense Authorization Act of Fiscal Year 2026 (NDAA FY26) suggests a broader application of CSOs, indicating Congress’s interest in expanding the use of non-FAR-based procurements like OTA and CSOs. As OTAs and CSOs are used more frequently, defense contractors will gain a competitive advantage for early adoption and greater leverage to negotiate favorable data rights and intellectual property terms outside the FAR. Please visit this link for Parts 1-4 in this series.
USAF consolidates some acquisition program offices into mission-focused groups – The Air Force is sweeping some of the offices that oversee its acquisition programs into groups with similar missions, part of an effort that aligns with—but also predates—recent acquisition-reform guidance issued by the defense secretary.
No Interest, No Protest: The Critical Importance of Understanding the “Interested Party” Standard – Last week, the Supreme Court declined to review Percipient.ai, Inc. v. United States, 153 F.4th 1226 (Fed. Cir. 2025), a high‑profile Federal Circuit decision that limits who may bring a protest at the U.S. Court of Federal Claims (COFC). Percipient.ai invested years and untold legal fees in protesting and appealing COFC’s “interested party” standard, underscoring just how consequential meeting that definition is for government contractors seeking to challenge federal procurement decisions. In this blog, we explain why positioning your company as an “interested party” is one of the most important actions you can take to preserve your ability to file bid protests before COFC.
End of an Era: State of Recertification Regulations Grace Period – The Small Business Administration (“SBA”) grace period for implementation of its new recertification regulations ended as of January 17, 2026. As we previously advised, last year SBA substantially rewrote its recertification regulations, moving them to 13 C.F.R. § 125.12 and fundamentally changing the treatment of small business contracts after a recertification. These new regulations were technically effective January 16, 2025, but a one-year grace period delayed their implementation for small business set aside multiple award contracts (“MACs”). Now in effect for all types of contracts, the new regulations do not change previous requirements for recertification of size and small business status from buyer and seller (and affiliates thereof) within 30 days of a merger, acquisition, or other transaction that results in a change of control. However, as further outlined below, the effects of that recertification changed significantly under the new regulations, at least with respect to eligibility for future task orders on small business multiple-award contracts, as well as small business task orders on General Services Administration (“GSA”) multiple award schedule contracts.
Market data shows surprising winners and losers among top federal contractors after a year of turmoil – A volatile year across the federal marketplace produced results few expected, with some major contractors posting strong gains while others slipped under the weight of delays and cancellations. New analysis shows how shifting defense priorities, executive‑order signals and program setbacks reshaped the landscape for investors.
DISA moving out on Mission Network-as-a-Service effort in 2026 –
This year, the Defense Information Systems Agency will prioritize an effort to unify all of the combatant commands’ networks worldwide into a single, cloud-based platform to improve security and interoperability.
An interesting case at the Court of Federal Claims could shape future energy savings performance contracts – A case before the Court of Federal Claims highlights how shifting requirements in an ESPC project sparked a costly dispute and what it could mean going forward.
2026 NDAA: DoD CPARS Changes Coming
Both the Senate and House, as part of the draft 2026 National Defense Authorization Acts (NDAA), have proposed nearly identical ideas on overhauling the Department of Defense’s Contractor Performance Assessment Report System (CPARS) processes. While both NDAAs have passed, and therefore require reconciliation in a committee, their ideas are extremely similar and signal a coming change in CPARS processes for defense contractors. One big change is to focus on specific negative performance events using “a standardized scoring mechanism” and to remove reporting on “positive or neutral performance assessments.” Read about proposed changes to the DoD’s CPARS evaluation process.
Understanding the Buy American Act’s Scope (from Florida Apex Accelerators):
Federal government contractors–and especially small businesses–often find themselves competing under solicitations subject to the Buy American Act (BAA). While the BAA’s name may sound like a mandate to purchase only American-made products, the BAA is actually a domestic preference statute that can give a leg up to contractors providing domestic products, but does not prohibit foreign products. Here is a brief overview of how the BAA works in practice:
When the BAA applies to a solicitation, the federal government is required to purchase domestic products unless one of the several exceptions applies. These exceptions allowing for the purchase of foreign products include, but are not limited to:
- The acquisition falls below the micro-purchase threshold (currently $15,000 for most acquisitions);
- The products or their components are not sufficiently produced or available in the United States;
- The cost of purchasing domestic products would be unreasonable; and
- For Department of War contracts, the products are sourced from a so-called “Qualifying Country” with which the United States has a certain type of reciprocal defense agreement.
Perhaps the most commonly used exception is the “unreasonable cost” exception. As implemented by FAR 25.106 and DFARS 225.106, when an offered domestic product is not the lowest cost, the Contracting Officer must add an evaluation penalty to the foreign product, generally in an amount of 20%-50%. The cost of the domestic product is deemed reasonable if it does not exceed the adjusted cost of the foreign product. In this manner, the Buy American Act attempts to balance two important public policies: supporting and promoting American businesses, on the one hand, and being good stewards of the taxpayers’ money, on the other.
Contractors should understand that, unlike a separate domestic preference law, the Trade Agreements Act, the BAA does not prohibit the government from purchasing products from certain countries if one of the exceptions, like the unreasonable cost exception, applies. In fact, in a recent bid protest case, Auburn Manufacturing, Inc., B-423308, B-423308.2 (2025), the GAO held that the government did not violate the Buy American Act by purchasing products manufactured in China.
Understanding how the Buy American Act operates can help government contractors better decide which products will be most competitive on bids covered by the BAA. Contractors who bid on BAA-covered acquisitions would be well-served to investigate the statute and its requirements in more detail.
OPPORTUNITIES:
Army Issues Presolicitation for Potential $270M Test & Evaluation Support IDIQ
VA Seeks Offers for Potential $700B CCN Next Gen Medical IDIQ
SSA Issues RFI for IT Support Services Contract Recompete
USN RFI: Tactical Oceanography, Full-Spectrum Undersea Warfare.
NGA RFI: Endor on-site Film Digitization, IT Support, and Equipment Maintenance and Services.
DIA RFI: AI testing and assurance.
VA RFI: Records Management.
FEMA RFI: Outsourced Contact Center – Temporary Surge Support.
GSA RFI: Improve Federal IT Procurement.
SSA RFI: ITSSC Recompete.
FREE TRAINING:
Upcoming Presentations from PilieroMazza:
TRAINING: Insights on the Regulations Pertaining to Novations and How It Impacts Company Value, February 11, 2026, Isaias “Cy” Alba, IV, Abigail “Abby” L. Baker
PM WEBINAR: Warfighting at Warp Speed: Why Defense Contractors Must Track the DOW’s Acquisition Overhaul, January 28, 2026, Lauren Brier, Josie Farinelli
PM WEBINAR: PilieroMazza Annual Review: 2025 GovCon Year in Review, January 29, 2026, Jon Williams, Lauren Brier, Meghan F. Leemon, Eric Valle
WEBINAR: 2025 Small Business Regulatory Year in Review, February 4, 2026, Jon Williams
PM WEBINAR: DCAA’s Annual Update, February 24, 2026, Isaias “Cy” Alba, IV
CONFERENCE: 2026 Employment Law Rescue Guide for Contractors, January 28, 2026, Nichole D. Atallah
PM WEBINAR: You’re Hired! Restrictions on Hiring Former Government Employees for Government Contractors, February 3, 2026, Sara Ryan, Abigail “Abby” Finan
PM WEBINAR: PilieroMazza Annual Review: Workforce Updates for Multijurisdictional Employers—What to Watch in 2026, February 11, 2026, Nichole D. Atallah, Sarah L. Nash
GovCon Roundup Live is a free monthly webcast hosted by Carroll Bernard and Steven Koprince of Govology. The webcast covers policy changes, legislative updates, and industry shifts that signal strategic opportunities for contractors to pivot, reposition, and stay one step ahead. Learn more about GovCon Roundup Live and register to attend future live sessions (with the opportunity for live Q&A).
Recent GovCon Roundup Live webcasts include:
- GovCon’s AI Wake-Up Call: What Smart Contractors Are Doing Now
- WOSB Program Under the Microscope: Data, Roadblocks, and the Path Ahead
- The FAR Revolution: Three Proposed Procurement Reforms Contractors Should Watch
- Counting What Matters: Small Business Contracting Goals & Metrics
Project Spectrum: Cybersecurity Innovation and Support
Date: February 19, 2026
Time: 1:00 PM CST
Location: Virtual
Register Here
About the Event: The South Carolina APEX Accelerator will be hosting a webinar with Project Spectrum to discuss cybersecurity innovation and support. Project Spectrum is a free, Department of War (DoW) support initiative providing government contractors with cybersecurity tools, resources, and training to improve their cyber resilience and meet DoW contracting requirements.