Two cornerstone authorities for federal contracting quietly expired on September 30, 2025, creating ripple effects that contractors—small and large—cannot afford to overlook. The Small Business Innovation Research/Small Business Technology Transfer (“SBIR/STTR”) programs, commonly known as “America’s Seed Fund” for their role in fueling early-stage innovation, and the Defense Production Act (“DPA”), the backbone of the government’s ability to prioritize contracts and strengthen the industrial base, both lapsed at the close of the fiscal year. Although lawmakers have floated temporary or long-term fixes in pending legislation, nothing has yet been enacted. The simultaneous government shutdown further complicates the picture, making new awards unlikely in the near term and magnifying uncertainty for contractors who rely on these authorities.Continue Reading Expired: SBIR/STTR and DPA Authorities in Limbo
Michael Wagner
Mike Wagner represents companies and individuals in complex compliance and enforcement matters arising in the public procurement context. Combining deep regulatory expertise and extensive investigations experience, Mike helps government contractors navigate detailed procurement rules and achieve the efficient resolution of government investigations and enforcement actions.
Mike regularly represents contractors in federal and state compliance and enforcement matters relating to a range of procurement laws and regulations. He has particular experience handling investigations and litigation brought under the civil False Claims Act, and he routinely counsels government contractors on mandatory and voluntary disclosure considerations under the FAR, DFARS, and related regulatory regimes. He also represents contractors in high-stakes suspension and debarment matters at the federal and state levels, and he has served as Co-Chair of the ABA Suspension & Debarment Committee and is principal editor of the American Bar Association’s Practitioner’s Guide to Suspension & Debarment (4th ed.) (2018).
Mike also has extensive experience representing companies pursuing and negotiating grants, cooperative agreements, and Other Transaction Authority agreements (OTAs). In this regard, he has particular familiarity with the semiconductor and clean energy industries, and he has devoted substantial time in recent years to advising clients on strategic considerations for pursuing opportunities under the CHIPS Act, Inflation Reduction Act, and Bipartisan Infrastructure Law.
In his counseling practice, Mike regularly advises government contractors and suppliers on best practices for managing the rapidly-evolving array of cybersecurity and supply chain security rules and requirements. In particular, he helps companies assess and navigate domestic preference and country-of-origin requirements under the Buy American Act (BAA), Trade Agreements Act (TAA), Berry Amendment, and DOD Specialty Metals regulation. He also assists clients in managing product and information security considerations related to overseas manufacture and development of Information and Communication Technologies & Services (ICTS).
Mike serves on Covington’s Hiring Committee and is Co-Chair of the firm’s Summer Associate Program. He is a frequent writer and speaker on issues relating to procurement fraud and contractor responsibility, and he has served as an adjunct professor at the George Washington University Law School.
One Big Beautiful Bill Act makes $150B investment in Defense
Trump Administration Issues Executive Orders that Seek to Shape CHIPS Program and Promote Domestic Mineral Production
President Trump recently issued two separate Executive Orders (EOs) that will have implications for how federal agencies seek to promote the administration’s goal of attracting domestic and foreign investment to industrial projects in the United States, with particular implications for the semiconductor and critical minerals industries.
- An EO on March 31st establishes an “Investment Accelerator” office within the Department of Commerce that will be responsible for overseeing the implementation of the CHIPS Program—including the negotiation of agreements under the CHIPS Act. This office will also provide technical and regulatory support for investors, and seek to facilitate research collaborations between private industry and national labs.
- An earlier EO issued on March 20th seeks to mobilize federal lending and leasing authorities at the Department of Defense (DoD), the U.S. International Development Finance Corporation (DFC), and other federal agencies to support the development of domestic critical mineral projects. Per an accompanying fact sheet, the White House is taking a broad interpretation of covered minerals under this March 20th Order and will seek to include materials such as coal.
Both EOs are notable efforts by the White House to align federal spending and financial assistance programs with the Trump Administration’s priorities, which have variously included calls to promote self-sufficiency in critical materials and promoting “energy independence” and “energy dominance.” These efforts come against a backdrop under which the Administration is also pursuing the use of tariffs to promote U.S. manufacturing, and taking steps to review and in some cases modify or terminate infrastructure or energy-related grants from the Biden-era. More details are provided below. Continue Reading Trump Administration Issues Executive Orders that Seek to Shape CHIPS Program and Promote Domestic Mineral Production
President Trump’s “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” Executive Order Targets Federal Contractors and the Private Sector
On January 21, 2025, President Trump issued the Ending Illegal Discrimination and Restoring Merit-Based Opportunity Executive Order (the “EO”), which revokes Executive Order 11246, a 60-year-old Civil Rights-era directive that prohibited federal contractors from discriminating on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin, and required federal contractors to take affirmative action to provide equal opportunity in employment. The EO seeks to “end[] illegal preferences and discrimination” and “promote individual initiative, excellence, and hard work” by ending the use of “dangerous, demeaning, and immoral race- and sex-based preferences under the guise of so-called ‘diversity, equity, and inclusion’ (DEI) or ‘diversity, equity, inclusion, and accessibility’ (DEIA)” programs. The EO does so by prescribing required contract provisions for federal contracts and by requiring specific reports from the heads of federal agencies, including identification of private entities for potential investigation, as described further below. The provisions of the EO do not apply to federal or private sector employment and contracting preferences for veterans. Federal contractors and grant recipients have until April 21, 2025 to comply with the EO’s revocation of affirmative action requirements. However, federal contractors, subcontractors, and grant recipients may become subject to the new contract provision requirements imposed by the EO without delay.1
Elimination of Federal Contractor Affirmative Action Requirements & DEI References
In addition to revoking Executive Order 11246, the EO requires the Office of Federal Contract Compliance Programs (“OFCCP”), which has been responsible for administering and enforcing Executive Order 11246 for many years, to “immediately cease” promoting diversity, enforcing affirmative action requirements, and allowing or encouraging federal contractors and subcontractors to engage in “workforce balancing” based on race, color, sex, sexual preference, religion, or national origin. The EO explicitly prohibits federal contractors or subcontractors from considering race, color, sex, sexual preference, religion, or national origin in employment, procurement, or contracting practices. Although OFCCP will no longer enforce affirmative action requirements, the EO delays implementation of this prohibition for current federal contractors through April 21, 2025, so contractors have until this date to sunset any affirmative action programs, absent judicial intervention.2
The EO also directs the Director of the Office of Management and Budget (“OMB”) and the Attorney General to review and revise, as appropriate, all government-wide processes, directives, and guidance; remove references to DEI principles from federal acquisition, contracting, grants, and financial assistance procedures; and terminate “all DEI-related mandates, requirements, programs, or activities,” which the EO does not define.Continue Reading President Trump’s “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” Executive Order Targets Federal Contractors and the Private Sector
April 2023 Developments Under President Biden’s Cybersecurity Executive Order and National Cybersecurity Strategy
This is the twenty-fourth in a series of Covington blogs on implementation of Executive Order 14028, “Improving the Nation’s Cybersecurity,” issued by President Biden on May 12, 2021 (the “Cyber EO”). The first blog summarized the Cyber EO’s key provisions and timelines, and the subsequent blogs described the actions taken by various government agencies to implement the Cyber EO from June 2021 through March 2023. This blog describes key actions taken to implement the Cyber EO, as well as the U.S. National Cybersecurity Strategy, during April 2023.
CISA Requests Comment on Secure Software Self-Attestation Common Form
On April 27, 2023, the U.S. Cybersecurity and Infrastructure Security Agency (“CISA”) released a 60-day Request for Comment on a draft secure software self-attestation common form. Comments will be accepted through June 26, 2023 and may be submitted through Regulations.gov. The draft common form, developed in close consultation with the U.S. Office of Management and Budget (“OMB”), is a key step in implementation of OMB Memorandum M-22-18, which was issued pursuant to Section 4 of the Cyber EO and directs agencies to only use software that complies with Government-specified secure software development practices (the “OMB Memorandum”). Specifically, and among other requirements, the OMB Memorandum directs that software providers self-attest that the software developer follows the secure development processes described by NIST Secure Software Development Framework (SP 800-218) and the NIST Software Supply Chain Security Guidance. The key provisions of the OMB Memorandum are discussed in more detail in our prior blog.
Scope. The OMB Memorandum applies to all software (other than agency-developed software) developed or experiencing major version changes to be operated “on the agency’s information systems or otherwise affecting the agency’s information.” CISA’s draft common form further specifies that the “following software requires self-attestation:
- Software developed after September 14, 2022;
- Existing software that is modified by major version changes […] after September 14, 2022; and
- Software to which the producer delivers continuous changes to the software code (such as software-as-a-service products or other products using continuous delivery/continuous deployment).”
National Security Update – Departments of Commerce and Treasury Release Notice of Proposed Rulemaking Regarding CHIPS “Guardrails”
On March 21, 2023, the Department of Commerce (“Commerce”) published a Notice of Proposed Rulemaking (the “Commerce Proposed Rule”) to implement certain provisions of the CHIPS and Science Act of 2022 (“CHIPS Act”) that place restrictions on certain activities of businesses receiving federal funding pursuant to the CHIPS Act (“Commerce…
Continue Reading National Security Update – Departments of Commerce and Treasury Release Notice of Proposed Rulemaking Regarding CHIPS “Guardrails”January 2023 Developments Under President Biden’s Cybersecurity Executive Order
This is the twenty-first in a series of Covington blogs on implementation of Executive Order 14028, “Improving the Nation’s Cybersecurity,” issued by President Biden on May 12, 2021 (the “Cyber EO”). The first blog summarized the Cyber EO’s key provisions and timelines, and the subsequent blogs described the actions taken by various Government agencies to implement the Cyber EO from June 2021 through December 2022. This blog describes key actions taken to implement the Cyber EO during January 2023.
GSA Announces That It Will Require Software Vendors to Submit Letters of Attestation Beginning in June 2023.
On January 11, 2023, the General Services Administration (“GSA”) Senior Procurement Executive and Chief Information Officer jointly issued Acquisition letter MV-23-02, “Ensuring Only Approved Software Is Acquired and Used at GSA” (the “GSA letter”). The GSA letter establishes a June 12, 2023 effective date for implementing the secure software acquisition requirements of Office of Management and Budget (“OMB”) Memorandum M-22-18, issued pursuant to Section 4 of the Cyber EO. That OMB memorandum directs that agencies must only use software that complies with Government-specified secure software development practices. These practices include obtaining self-attestations of conformity with secure software development practices and in certain cases as determined by agencies, artifacts such as Software Bills of Materials (SBOMs) from software vendors to verify that the acquired software[1] was developed and produced according to NIST security guidelines and best practices.
The GSA letter directs GSA’s IT officials to update GSA’s policies by June 12, 2023 to reflect the process for collecting, renewing, retaining, and monitoring the self-attestation information mandated by OMB M-22-18. For existing contracts that include the use of software, the GSA letter directs GSA IT to provide an internally accessible list of the software used for each contract and to collect vendor attestations by June 12, 2023. For new contracts that include the use of software, the GSA letter directs the relevant acquisition teams to modify the acquisition planning process to ensure that performance of such contracts begins only after the requisite attestations have been collected and considered. Finally, with respect to GSA-administered Government-wide indefinite delivery vehicles (e.g., Federal Supply Schedule contracts, Government-Wide Acquisition Contracts, and Multi-Agency Contracts), the GSA letter directs GSA contracting activities to allow, but not require, contractors to provide attestations at the base contract level rather than the task or delivery order level, and to make those attestations available to ordering activities to the extent possible. With this said, the GSA letter specifies that ordering agencies will ultimately be responsible for complying with OMB M-22-18.Continue Reading January 2023 Developments Under President Biden’s Cybersecurity Executive Order
November 2022 Developments Under President Biden’s Cybersecurity Executive Order
This is the nineteenth in a series of Covington blogs on implementation of Executive Order 14028, “Improving the Nation’s Cybersecurity,” issued by President Biden on May 12, 2021 (the “Cyber EO”). The first blog summarized the Cyber EO’s key provisions and timelines, and the subsequent blogs described the actions taken by various Government agencies to implement the Cyber EO from June 2021 through October 2022. This blog describes key actions taken to implement the Cyber EO during November 2022.
I. CISA, NSA, and ODNI Release Software Supply Chain Security Guide for Customers
On November 17, 2022, the Cybersecurity and Infrastructure Security Agency (CISA), the National Security Agency (NSA), and the Office of the Director of National Intelligence (ODNI) released the third in a series of recommended practice guides for securing the software supply chain (the “Customer Guide”). The first practice guide in this series – published in September 2022 – was for software developers, and the second – published in October 2022 – was for software suppliers. Each of the three guides is intended to supplement the Secure Software Development Framework (SSDF) published by the National Institute of Standards and Technology (NIST) pursuant to Section 4 of the Cyber EO.
The Customer Guide identifies key supply chain security objectives for software customers (acquirers) and recommends several broad categories of practices to achieve those objectives including security requirements planning, secure software architecture, and maintaining the security of software and the underlying infrastructure (e.g., environment, source code review, test). For each of these practice categories, the guide identifies examples of scenarios that could be exploited (threat scenarios) and examples of controls that could be implemented to mitigate those threat scenarios. Continue Reading November 2022 Developments Under President Biden’s Cybersecurity Executive Order
Biden Administration Announces Priorities for the Implementation of the CHIPS Act of 2022
On August 25, 2022, President Biden announced a new Executive Order (“EO”) addressing the Implementation of the CHIPS Act of 2022 (“CHIPS Act”). The CHIPS Act was signed by President Biden on August 9, 2022, and, among other things, authorizes $39 billion in funding for new projects to establish semiconductor…
Continue Reading Biden Administration Announces Priorities for the Implementation of the CHIPS Act of 2022Significant Funding and Tax Credit Opportunities in the CHIPS and Science Act
On August 9, 2022, President Biden signed into law the CHIPS and Science Act—a massive, $280 billion bill to boost public and private sector investments in critical and emerging technologies.
We anticipate significant opportunities and an evolving regulatory landscape for companies, associations, universities, and others who work in various technology sectors, including:
- High performance computing, semiconductors, and advanced computer hardware/software
- Advanced communications technology and immersive technology
- Advanced energy and industrial efficiency technology (including batteries, nuclear)
- Advanced materials science (including composites 2D and next-generation materials)
- Artificial intelligence, machine learning, autonomy, and related advances
- Quantum information science and technology
- Biotechnology, medical technology, genomics, and synthetic biology
- Data storage/management, distributed ledgers, and cybersecurity (including biometrics)
- Natural and anthropogenic disaster prevention or mitigation
- Robotics, automation, and advanced manufacturing
Below is an overview of the legislation and the funding and tax credit opportunities it provides for entities that participate in the research, development, production, education, or transfer of critical and emerging technologies, especially semiconductor manufacturing and research and open-RAN technology.
Overview
Headlining the bill are $54 billion in appropriations to fund the Creating Helpful Incentives to Produce Semiconductors (“CHIPS”) for America Act, which was authorized in 2021. The bill also includes $1.5 billion in appropriations for a wireless supply chain innovation fund under the Utilizing Strategic Allied Telecommunications Act, which was similarly authorized in 2021. Across these two sets of appropriations, over $40 billion are allocated for direct financial assistance in the form of competitive grants for which private companies will be able to apply. The law also authorizes over $200 billion in new programs across the federal government, paving the way for additional grants, public-private partnerships, and technology transfer opportunities.Continue Reading Significant Funding and Tax Credit Opportunities in the CHIPS and Science Act