Gordon Rees Scully Mansukhani announces the latest update from the firm's Government Contracts practice group, bringing you an overview of recent notable decisions, rule updates, and other critical information related to contracting with federal and state governments. Our team compiled the most pertinent legal developments in the ever-evolving landscape of government contracts to keep you informed. Please contact Patrick Burns or Meredith Thielbahr for further information regarding the cases and administrative actions highlighted below.
Proposed Agency Regulations:
DoD - Defense Federal Acquisition Regulation Supplement: Modification of Prize Authority for Advanced Technology Achievements
- The Department of Defense ("DoD") proposes revisions to the Defense Federal Acquisition Regulation Supplement ("DFARS") implementing Section 822 of the National Defense Authorization Act. The key feature of these revisions is the introduction of advanced technology prize programs aiming to recognize and reward notable achievements in research and technology development with contracts.
- These changes establish a competitive procedure for awarding contracts as prizes, imposing certain advertisement requirements, approval protocol for awards exceeding $10,000, and congressional reporting requirements. The proposed rule aims to increase participation in prize competitions, potentially benefiting new entities in DoD procurement, streamlining the competitive process, and converting certain cash prize awards into contracts or other agreements.
- Comments are due by June 24, 2024. Contact the GRSM Government Contracts practice group for additional details of the proposed rule and comment submission.
Forthcoming Agency Regulations:
FTC - Rule Banning Noncompetes
- On April 23, the Federal Trade Commission ("FTC") issued a final rule banning noncompetes for all employees of every level, including senior executives. The FTC enacted the new rule based on its determination that noncompetes are an ”often exploitative practice imposing contractual conditions that prevent workers from taking a new job or starting a new business.” Existing noncompetes for senior executives will remain in place, but employers are banned from entering into and attempting to enforce any new noncompetes, even involving senior executives. The rule does not exclude non-disclosure agreements, which still remain enforceable. We anticipate considerable legal opposition.
- Absent judicial intervention, the final rule takes effect on August 21, 2024.
DOL - Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees
- The Department of Labor ("DOL") is updating regulations under the Fair Labor Standards Act to adjust exemptions for certain employee categories like executive, administrative, and professional roles, including raising the standard salary level and increasing the total annual compensation threshold for highly compensated employees. These revisions also introduce a mechanism for regular updates to salary and compensation thresholds, starting with an initial update on July 1, 2024, to align with earnings growth.
- This final rule takes effect on July 1, 2024.
DoD, GSA, NASA - Sustainable Procurement
- Executive Order ("E.O.") 14057, signed on December 8, 2021, directs federal agencies to prioritize purchasing sustainable products and services as recommended by the Environmental Protection Agency to comply with relevant statutory requirements. In response, the DoD, General Services Administration ("GSA"), and National Aeronautics and Space Administration ("NASA") published a proposed rule in August 2023 to amend the Federal Acquisition Regulations ("FAR"), restructuring FAR Part 23 to focus on environmental and sustainability matters and updating procurement and construction requirements in alignment with E.O. 14057.
- This final rule takes effect on May 22, 2024.
GRSM Government Contracts Practice Group
GRSM's government contracts team has considerable experience defending and enforcing the rights of our contractor clients in disputes against government entities and private businesses. In addition to litigating claims in state and federal courts, we routinely handle matters before administrative tribunals, such as the Government Accountability Office, the Small Business Administration, and the Armed Services Board of Contract Appeals.
Our team of attorneys is located throughout the United States, which allows the firm to represent contractors, regardless of size, and in a wide variety of industries, including defense, information technology, construction, and aerospace, among others. Please contact the authors with any questions. GRSM would like to acknowledge the significant contributions to this update by Quyen Dang.
Contacts:
Patrick Burns - pburns@grsm.com
Meredith Thielbahr - mthielbahr@grsm.com