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Key Legal and Regulatory Shifts - Government and Commercial Contractors Need to Know This week

Key Legal & Regulatory Shifts

Introduction

In the fast-changing world of government contracting, keeping up with legal and regulatory shifts is essential. Recent updates impact intellectual property, procurement, civil rights enforcement, and small business programs—requiring prompt action to stay competitive and compliant. Here’s what you need to know.

1.DOD Releases Essential IP Guidebook for Defense Contractors

On May 1, 2025, the Department of Defense unrolled its long-awaited Intellectual Property (IP) Guidebook, a must-have resource for government contractors seeking clarity on IP and data rights under defense contracts. The guide aims to assist acquisition teams in building robust IP strategies that cover all stages of a program’s lifecycle making it essential reading for anyone in defense procurement . 

2. FAR Part 6 Deviations Roll Out for Competition Requirements

The FAR Council issued model deviation text for FAR Part 6 (Competition Requirements) on June 12, streamlining acquisition procedures, clarifying language, and maintaining small-business set-asides. Key federal agencies like DOT, NASA, and ED have already issued class deviations to align with the updated model simplifying solicitations and reducing compliance risk.  

3. DOJ Launches FCA Initiative on DEI and Antisemitism Compliance

The Department of Justice recently introduced its Civil Rights Fraud Initiative, leveraging the False Claims Act (FCA) to scrutinize contractors’ DEI policies and alleged antisemitism. Federal contractors must now reassess internal DEI programs or face potential FCA enforcement. 

4. SBA Launches Full-scale Audit of 8(a) Business Development Program

Late June saw the SBA’s Administrator Kelly Loeffler announce an audit of the 8(a) small business program, targeting eligibility, compliance, and use of benefits. Any participant in the 8(a) BD Program should begin documentation audits and internal reviews now to prepare. 

Why These Updates Matter to Government Contractors

  • Strategic IP Management: The DOD’s IP Guidebook is key to safeguarding ownership and negotiating rights in defense contracts.

  • Procurement Efficiency and Compliance: FAR Part 6 updates simplify competition processes and preserve small-business opportunities.

  • Heightened Compliance Scrutiny: The DOJ’s FCA initiative intensifies legal risk for contractors with DEI and civil rights obligations.

  • Proactive Audit Preparedness: SBA’s new 8(a) audit signals increased oversight—be ready with robust records and compliance systems.

Recommended Action Plan

  • Review and Apply the IP Guidebook
    Contractors working with the DOD should integrate the guidebook’s IP principles into statements of work, contract negotiations, and data management planning.

  • Update Procurement Documents
    Ensure solicitations, RFPs, and internal documentation reflect the June 12 FAR Part 6 deviation and confirm small-business set-aside language remains intact.

  • Reevaluate DEI Policies
    Conduct thorough internal audits of DEI, antisemitism prevention, and civil rights compliance. Consider registering for the July 10 webinar to better understand FCA-related risks.

  • Prepare for 8(a) Audit
    Gather all eligibility records, agreements, and performance reports. Perform an internal mock audit to identify and address any red flags ahead of the SBA’s review.

Conclusion

By implementing these updates especially in IP management, procurement language, DEI policy review, and audit readiness—government contractors can maintain compliance, stay ahead of enforcement, and protect their position in a competitive bidding landscape. 

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