In his first few days in office, President Trump issued several executive orders (“EOs”) and memoranda, many of which may have implications for federal contractors and grant recipients, including the following:

General Policy and Regulatory Reversal

DEI

  • Ending Radical And Wasteful Government DEI Programs And Preferencing EO
    • Orders Director of Office of Management and Budget (OMB), Attorney General (AG), and Director of Office of Personnel Management (OPM) to “coordinate the termination of all discriminatory programs, including ‘illegal DEI’ and ‘diversity, equity, inclusion, and accessibility’ (DEIA) mandates, policies, programs, preferences, and activities in the Federal Government, under whatever name they appear.”  OPM immediately issued a memo to all federal agencies to provide initial guidance regarding this portion of the EO.  This includes a directive that each agency terminate, to the maximum extent allowed by law, all “equity-related” grants or contracts and that each agency provide a list of “[f]ederal grantees who received Federal funding to provide or advance DEI, DEIA, or ‘environmental justice’ programs, services, or activities since January 20, 2021 to the Director of the OMB.”
  • Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government EO
    • Defines sex as an “immutable biological classification.”  All federal agencies “shall enforce laws governing sex-based rights, protections, opportunities, and accommodations to protect men and women as biologically distinct sexes.”  Federal funds “shall not be used to promote gender ideology,” including pursuant to federal grants. 
  • Ending Illegal Discrimination and Restoring Merit-Based Opportunity EO
    • Revokes several previous EOs, including EO 11246 (Equal Employment Opportunity), which prohibited contractors from discriminating in employment decisions on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin and required contractors to take affirmative action to ensure equal opportunity in all aspects of employment.  Requires agency heads to include two terms in every contract or grant award: (1) “requiring the contractual counterparty or grant recipient to agree that its compliance in all respects with all applicable Federal anti-discrimination laws is material to the government’s payment decisions for purposes of section 3729(b)(4) of title 31, United States Code;” and (2) “requiring such counterparty or recipient to certify that it does not operate any programs promoting DEI that violate any applicable Federal anti-discrimination laws.”  Further, directs OMB, with the assistance of the AG to “[t]erminate all ‘diversity, ‘equity,’ ‘equitable decision-making,’ ‘equitable deployment of financial and technical assistance,’ ‘advancing equity,’ and like mandates, requirements, programs, or activities, as appropriate.” Covington has published a more detailed client alert discussing this EO specifically.

Energy, Trade and Foreign Aid

  • Unleashing American Energy EO
    • Section 2 announces changes in federal energy policy, including with regards to energy exploration and electric vehicles (EVs).  Section 7 requires all agencies to immediately “pause” the “disbursement” of funds appropriated under the IRA and IIJA, pending a review by OMB and the National Economic Council (NEC) to determine whether the processes, policies, and programs for issuing grants, loans, contracts, or any other financial disbursements of such appropriated funds are consistent with the revised policy advanced in Section 2.  OMB has since clarified that the immediate pause on disbursement of funds “only applies to funds supporting programs, projects, or activities that may be implicated by the policy established in Section 2 of the order.”
  • America First Trade Policy Memorandum
    • Instructs various agencies and officials to review, investigate, and take action with respect to specific trade issues, and to submit reports of their findings to the President by April 2025.  For example, the EO directs the U.S. Trade Representative (USTR), in consultation with Senior Counselor for Trade & Manufacturing to review the impact of government procurement commitments in trade agreements (including the World Trade Organization Government Procurement Agreement (WTO GPA)) on the volume of federal government procurement covered by EO 13788 (Buy American and Hire American) and issue recommendations on ensuring these agreements “are being implemented in a manner that favors domestic workers and manufacturers, not foreign nations.”  Also directs OMB to assess and propose guidance, regulations, or legislation to combat any distorting impact of foreign government financial contributions or foreign government subsidies on federal procurement programs.
  • Reevaluating and Realigning U.S. Foreign Aid EO
    • Requires agency heads with responsibility for U.S. foreign development assistance programs to immediately pause new obligations and disbursements of development assistance funds to foreign countries and implementing non-governmental organizations, international organizations, and contractors.  During the same 90-day window, heads will review foreign development assistance programs for alignment with the foreign policy of the U.S.  At the end of the 90-day review, agency heads will work with OMB to determine whether to continue, modify, or cease each assistance program.  New obligations and disbursements of foreign development assistance funds may resume for a program prior to the end of the 90-day period if a review is conducted, and the Secretary of State or his designee, in consultation with the Director of OMB, decide to continue the program in the same or modified form.  Additionally, any other new foreign assistance programs and obligations must be approved by the Secretary of State or his designee, in consultation with the Director of OMB. 

DOGE and Federal Workforce

  • Establishing and Implementing the President’s “Department of Government Efficiency” EO
    • Establishes Department of Government Efficiency (DOGE) to “moderniz[e] Federal technology and software to maximize governmental efficiency and productivity.”  Renames the U.S. Digital Service to the U.S. DOGE Service (USDS).  Establishes a “temporary organization” known as the “U.S. DOGE Service Temporary Organization.”  Requires agency heads, in consultation with the USDS Administrator, to establish a DOGE team of at least four employees.  Requires the USDS Administrator to start a “Software Modernization Initiative” to improve government-wide software and information technology (IT) systems, the goal of which is to promote inter-operability between agency networks and systems, data integrity, and responsible data collection.
  • Restoring Accountability To Policy-Influencing Positions within the Federal Workforce EO
    • Reinstates EO 13957 (Creating Schedule F in the Excepted Services) with amendments.  The original EO was intended to create a “greater degree of appointment flexibility with respect to” federal service employees “than is afforded by the existing competitive service process” by exempting “career positions in the Federal service of a confidential, policy-determining, policy-making, or policy-advocating character” from competitive hiring rules.  Covington’s Global Policy Watch blog previously discussed updates on the Trump Administration’s approach to civil service protections.
  • Hiring Freeze EO
    • Prohibits filling any Federal civilian position that is vacant at Noon on January 20, 2025 or creating new positions.  The Order exempts military personnel of the armed forces and positions related to immigration enforcement, national security, or public safety.  Within 90 days, Director of OMB, in consultation with Director of OPM and Administrator of DOGE shall submit a plan to reduce the size of the Federal Government’s workforce.  Order specifically prohibits “[c]ontracting outside the Federal Government to circumvent the intent of this memorandum.”
  • Return to In-Person Work EO
    • Directs agency heads to take all necessary steps to terminate remote work arrangements and require Federal executive branch employees to return to work in-person on a full-time basis.
  • Reforming the Federal Hiring Process and Restoring Merit to Government Service EO
    • The Assistant to the President for Domestic Policy, the Directors of OMB and OPM and the Administrator of DOGE will create a Federal Hiring Plan focused on government efficiency, preventing hiring based on “race, sex, or religion” and preventing “the hiring of individuals who are unwilling to defend the Constitution or to faithfully serve the Executive Branch.”

We are assessing the impact of these executive actions, and will continue to monitor further developments in the coming days and weeks.

Photo of Scott A. Freling Scott A. Freling

Scott is sought after for his regulatory expertise and his ability to apply that knowledge to the transactional environment. Scott has deep experience leading classified and unclassified due diligence reviews of government contractors, negotiating transaction documents, and assisting with integration and other post-closing…

Scott is sought after for his regulatory expertise and his ability to apply that knowledge to the transactional environment. Scott has deep experience leading classified and unclassified due diligence reviews of government contractors, negotiating transaction documents, and assisting with integration and other post-closing activities. He has been the lead government contracts lawyer in dozens of M&A deals, with a combined value of more than $76 billion. This has included Advent’s acquisition of Maxar Technologies for $6.4 billion, Aptiv’s acquisition of Wind River for $3.5 billion, Veritas Capital’s sale of Alion Science and Technology to Huntington Ingalls for $1.65 billion, and Peraton’s acquisition of Perspecta for $7.1 billion.

Scott also represents contractors at all stages of the procurement process and in their dealings with federal, state, and local government customers. He handles a wide range of government contracts matters, including compliance counseling, claims, disputes, audits, and investigations. In addition, Scott counsels clients on risk mitigation strategies, including obtaining SAFETY Act liability protection for anti-terrorism technologies.

Scott has been recognized by Law360 as a MVP in government contracts. He is a past co-chair of the Mergers and Acquisitions Committee of the ABA’s Public Contract Law Section.

Photo of Jay Carey Jay Carey

Recognized by Chambers as one of the nation’s top bid protest lawyers and government contracts practitioners, Jay Carey represents clients in complex, high-stakes government procurements often worth billions of dollars. He is a co-chair of the firm’s Government Contracts practice group and a…

Recognized by Chambers as one of the nation’s top bid protest lawyers and government contracts practitioners, Jay Carey represents clients in complex, high-stakes government procurements often worth billions of dollars. He is a co-chair of the firm’s Government Contracts practice group and a co-chair of the Aerospace, Defense, and National Security industry group.

Jay has won bid protests collectively worth more than $100 billion, for clients across a range of industries — including aerospace & defense, energy, healthcare, biotechnology, cybersecurity, IT, and telecommunications. He litigates protests before the U.S. Government Accountability Office (GAO); the Court of Federal Claims (COFC); and state tribunals across the country. A list of his recent wins can be found under the “Representative Matters” tab.

In addition, Jay advises clients on compliance matters, conducts internal investigations, and defends against investigations by federal and state agencies. He also counsels clients on matters related to the formation of government contracts, including organizational conflicts of interest and the protection of intellectual property rights when entering into procurement contracts, grants, cooperative agreements, and “Other Transaction Authority” agreements with the government.

Jay serves as co-chair of the American Bar Association Public Contract Law Section’s Bid Protest Committee.

Photo of Kayleigh Scalzo Kayleigh Scalzo

Ranked by Chambers USA among government contracts practitioners, Kayleigh Scalzo represents government contractors in bid protests and other high-stakes litigation matters with the government and other private parties. She has litigated bid protests in a wide variety of forums, including the Government Accountability…

Ranked by Chambers USA among government contracts practitioners, Kayleigh Scalzo represents government contractors in bid protests and other high-stakes litigation matters with the government and other private parties. She has litigated bid protests in a wide variety of forums, including the Government Accountability Office, U.S. Court of Federal Claims, U.S. Court of Appeals for the Federal Circuit, FAA Office of Dispute Resolution for Acquisition, federal and state agencies, and state courts.

Kayleigh a co-chair of the American Bar Association Public Contract Law Section’s Bid Protest Committee. She is also a frequent speaker on bid protest issues.

Kayleigh maintains an active pro bono practice focused on immigration issues and gender rights.

Photo of Michael Wagner 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…

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.

Photo of Nooree Lee Nooree Lee

Nooree advises government contractors and financial investors regarding the regulatory aspects of corporate transactions and restructurings. His experience includes preparing businesses for sale, negotiating deal documents, coordinating large-scale diligence processes, and navigating pre- and post-closing regulatory approvals and integration. He has advised on…

Nooree advises government contractors and financial investors regarding the regulatory aspects of corporate transactions and restructurings. His experience includes preparing businesses for sale, negotiating deal documents, coordinating large-scale diligence processes, and navigating pre- and post-closing regulatory approvals and integration. He has advised on 35+ M&A deals involving government contractors totaling over $30 billion in combined value. This includes Veritas Capital’s acquisition of Cubic Corp. for $2.8 billion; the acquisition of Perspecta Inc. by Veritas Capital portfolio company Peraton for $7.1 billion; and Cameco Corporation’s strategic partnership with Brookfield Renewable Partners to acquire Westinghouse Electric Company for $7.8+ billion.

Nooree also counsels clients navigating the Foreign Military Sales (FMS) program and Foreign Military Financing (FMF) arrangements. Nooree has advised both U.S. and ex-U.S. companies in connection with defense sales to numerous foreign defense ministries, including those of Australia, Israel, Singapore, South Korea, and Taiwan.

Over the past several years, Nooree’s practice has expanded to include advising on the intersection of government procurement and artificial intelligence. Nooree counsels clients on the negotiation of AI-focused procurement and non-procurement agreements with the U.S. government and the rollout of procurement regulations and policy stemming from the Executive Order on Safe, Secure, and Trustworthy Artificial Intelligence.

Nooree maintains an active pro bono practice focusing on appeals of denied industrial security clearance applications and public housing and housing discrimination matters. In addition to his work within the firm, Nooree is an active member of the American Bar Association’s Section of Public Contract Law and has served on the Section Council and the Section’s Diversity Committee. He also served as the firm’s Fellow for the Leadership Council on Legal Diversity program in 2023.

Photo of Peter Terenzio Peter Terenzio

Peter Terenzio routinely advises clients regarding the multiple regulatory regimes that apply to federal contractors. His practice also extends outside of traditional government procurement contracts to include federal grants and Other Transaction Authority (OTA) research, prototype, and production agreements.

Among other things, Peter…

Peter Terenzio routinely advises clients regarding the multiple regulatory regimes that apply to federal contractors. His practice also extends outside of traditional government procurement contracts to include federal grants and Other Transaction Authority (OTA) research, prototype, and production agreements.

Among other things, Peter regularly helps clients with the constantly evolving domestic-preference requirements promulgated pursuant to various federal laws, including, for example, the Buy American Act (BAA) and Trade Agreements Act (TAA), but also including more recently the Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA). He also has particular experience with helping clients navigate the complicated prevailing wage rules imposed by the Davis Bacon Act (DBA) and Service Contact Act (SCA). Peter has used this regulatory knowledge to help clients negotiate the specifics of their contracts, grants, and OTA agreements.

Peter also has significant experience with the disputes that may arise during the execution of government prime contracts. He knows how to work closely with the client’s subject matter experts to prepare and submit detailed requests for equitable adjustment (REAs) in order to secure much-needed price or schedule relief. Where necessary, he has assisted clients with converting their REAs into certified claims, and when disputes cannot be resolved at the Contracting Officer level, he has helped clients vindicate their contractual rights in litigation before the Boards of Contract Appeals.

Ethan Syster

Ethan Syster is an associate in the firm’s Washington, DC Office. He is a member of the Government Contracts Practice Group. Ethan assists clients with a broad range of issues across all stages of the public procurement process.