On September 24, 2024, the Office of Management and Budget (OMB) released Memorandum M-24-18, Advancing the Responsible Acquisition of Artificial Intelligence in Government (Memo). The 36-page Memo builds on OMB’s March 2024 guidance governing federal agencies’ use of AI, Memorandum M-24-10, which we reported on here. The Memo addresses requirements and guidance for agencies acquiring AI systems and services, focusing on three strategic goals: (i) ensuring collaboration across the federal government; (ii) managing AI risks and performance; and (iii) promoting a competitive AI market.Continue Reading OMB Releases Guidance to Advance Federal AI Acquisition
SAM Scams: Protect Your Company
Recently, there has been a significant increase in scams targeting users of the System for Award Management (SAM.gov). Active SAM registrations are required for federal government contractors, including to receive contracts and payments. The non-public portions of these registrations include bank account information, tax information, and other sensitive information about a company. Recent phishing scams and efforts to gain access to registrations indicate sophisticated actors are attempting to manipulate SAM registrations, possibly for access to payments from the government, among other reasons. Company SAM registration Administrators should protect the company’s SAM registration from unauthorized access to the greatest extent possible.Continue Reading SAM Scams: Protect Your Company
CMMC Final Rule Includes M&A Trigger for New Assessment
As Crowell covered in a recent alert, the Department of Defense (DoD) on October 11, 2024 released a final rule (the “Final Program Rule”) formalizing the requirements, assessment processes, and related governance for its Cyber Maturity Model Certification Program (CMMC).Continue Reading CMMC Final Rule Includes M&A Trigger for New Assessment
DOJ Announces Safe Harbor for Acquirers Who Disclose Pre-Acquisition Misconduct
On October 4, 2023, Deputy Attorney General (DAG) Lisa O. Monaco announced the Department of Justice’s (DOJ) new safe harbor policy for voluntary self-disclosures made in connection with mergers and acquisitions (Safe Harbor Policy). Following other announcements from DOJ over the past two years aimed at encouraging voluntary self-disclosures, the Safe Harbor Policy was adopted because DOJ does not want to “discourage companies with effective compliance programs from lawfully acquiring companies with ineffective compliance programs.” Through this new policy, DOJ is aiming to incentivize acquirers to timely disclose misconduct discovered during the M&A process (including pre-closing diligence and post-closing integration).Continue Reading DOJ Announces Safe Harbor for Acquirers Who Disclose Pre-Acquisition Misconduct
Watchdog Says: DoD Needs Department-Wide AI Acquisition Guidance
On June 29, 2023, the Government Accountability Office (GAO) released its second report[1] on Department of Defense (DoD) artificial intelligence (AI) acquisition efforts. This latest report examines the DoD’s lack of formal AI acquisition guidance and identifies key principles from the private sector that can be applied to the DoD’s AI acquisition efforts.
Although
Check Your SAM Registration Early and Often
Federal contractors must be registered on SAM.gov to be eligible for award of federal contracts. Failure to do so can have significant consequences, as the recent U.S. Court of Federal Claims (CFC) decision in Myriddian, LLC v. United States, No. 23-443 makes clear.
In Myriddian, the Centers for Medicare & Medicaid Services (CMS)
Buy America, by Americans—Office of Management and Budget Solicits Industry Input on Harmonizing Domestic Preference Regimes
As previewed in President Biden’s State of the Union Address, the Office of Management and Budget (OMB) issued a proposed rule and notification of proposed guidance on February 9, 2023 to improve uniformity and consistency in the implementation of Build America, Buy America (BABA) requirements applicable to federally funded infrastructure projects pursuant to the Infrastructure Investment and Jobs Act (IIJA).
This proposed rulemaking builds on preliminary guidance OMB issued on April 18, 2022, shortly before the BABA requirements became effective in May 2022. While the preliminary guidance focused heavily on agency waivers (both in terms of process and criteria), the proposed rule describes how the requirements related to manufactured products, iron and steel, and construction material will be interpreted. Continue Reading Buy America, by Americans—Office of Management and Budget Solicits Industry Input on Harmonizing Domestic Preference Regimes
Congress Passes Last Minute Three-Year SBIR/STTR Reauthorization Including New National Security-Related Restrictions and Requirements
On September 30, 2022, President Biden signed the SBIR and STTR Extension Act of 2022 (the Act), reauthorizing the Small Business Innovation Research (SBIR), Small Business Technology Transfer (STTR), and six pilot programs for three years, until September 30, 2025. The Act includes new due diligence and reporting requirements, award restrictions, and clawback provisions related to national security risks—particularly regarding firms with ties to China, Russia, North Korea, and Iran—and increased minimum performance standards for multiple SBIR/STTR award winners. The passage and signing of the Act averted a potential lapse of these programs, which were set to expire the day of the reauthorization. Continue Reading Congress Passes Last Minute Three-Year SBIR/STTR Reauthorization Including New National Security-Related Restrictions and Requirements
Fastest 5 Minutes – Special Edition: Developments Related to Domestic Preferences
This special edition of the Fastest 5 Minutes podcast covers recent developments related to domestic preferences including executive orders, final regulations, the Made in America Office, and the Infrastructure Investment and Jobs Act, and is hosted by Peter Eyre, Addie Cliffe, and Allison Skager. Crowell & Moring’s “Fastest 5 Minutes” is a biweekly podcast that
A Deeper Dive into the State Actions Targeting Russia that May Impact Government Contractors
As Congress considers legislation prohibiting government contractors from doing business in Russia, over 20 states have already acted. In this alert, we highlight: (i) how different states are defining Russian business operations, and the corresponding risks to differently situated government contractors; and (ii) unique aspects of certain state actions that contractors need to be aware