On Tuesday, October 22, 2024, Pennsylvania State University (“Penn State”) reached a settlement with the Department of Justice (“DoJ”), agreeing to pay the US Government (“USG”) $1.25M for alleged cybersecurity compliance violations under the False Claims Act (“FCA”). This settlement follows a qui tam action filed by a whistleblower and former employee of Penn State’s
It Takes Two: SBA Proposes Applying “Rule of Two” to Multiple-Award Contracts
SBA’s “Rule of Two” often requires federal agencies to set aside an acquisition for small businesses whenever there is reasonable expectation that offers will be obtained from at least two small businesses that are competitive in terms of fair market prices, quality, and delivery.
On Friday, SBA issued a Proposed Rule that would extend the…
DOD Office of Strategic Capital Begins Its Direct Lending Efforts to Secure U.S. Industrial Base
The Office of Strategic Capital (“OSC”) within the Department of Defense (“DOD”) has launched a Credit Program, under which it will provide debt financing in critical technology areas that drive national and economic security. As an initial step, OSC is soliciting applications for equipment loans, which may be submitted between January 2 and February 3,…
September 2024 Developments Under President Biden’s Cybersecurity Executive Order and National Cybersecurity Strategy
This is part of 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…
Public Comments to Proposed Rule Underscore the Need for Additional Clarity on SBA Recertification Requirements
The Small Business Administration (“SBA”) recently issued a proposed rule that would significantly change the rules concerning small business recertification in M&A transactions and other events (the “Proposed Rule”). SBA has framed the Proposed Rule as a consolidation of what is currently a scattered set of regulations, but the rule goes further than consolidating and…
Federal Court Enjoins DOT Disadvantaged Business Enterprise Program On Equal Protection Grounds
In the wake of the U.S. Supreme Court’s decision in Students for Fair Admissions, Inc. v. President & Fellows of Harvard College, there has been an increase in legal challenges to race and gender-based programs and initiatives in multiple contexts, including within government contracting. While the holding of Students for Fair Admissions did not…
Cybersecurity Maturity Model Certification (CMMC) Program Final Rule Announced
On October 11, 2024, the U.S. Department of Defense (“DoD”) released an unpublished version of the Cybersecurity Maturity Model Certification (“CMMC”) Program Rule. The final rule will be published in the Federal Register on October 15, 2024 and will become effective sixty days after publication. This rule formally establishes the CMMC Program for DoD and…
September 2024 Developments Under President Biden’s AI Executive Order
This is part of an ongoing series of Covington blogs on the implementation of Executive Order No. 14110 on the “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence” (the “AI EO”), issued by President Biden on October 30, 2023. The first blog summarized the AI EO’s key provisions and related Office of Management and…
Bigger Pay Days Are Coming for Some Federal Contract Workers in 2025
The U.S. Department of Labor (“DOL”) recently announced its annual update to the hourly minimum wage for federal contract workers. Beginning January 1, 2025, the minimum wage for employees performing work on or in connection with covered contracts will increase from $17.20 to $17.75 per hour. The increase applies to tipped and non-tipped employees, as…
Percipient.ai, Inc. v. U.S.: Government Requests Reconsideration of Federal Circuit’s Decision on Bid Protest Jurisdiction and Standing
As previously discussed on this blog, the Federal Circuit issued a major decision in June 2024 addressing bid protest jurisdiction and standing at the Court of Federal Claims (“COFC”): Percipient.ai, Inc. v. United States.
On September 5, 2024, the United States filed a petition for rehearing of that case — requesting that the…