AI Legal Risks and the Anti-DEI Executive Order

Navigating the Messy Middle of Federal Contracting (with Stephanie Kostro)

"When we talk about small businesses being under a microscope, I do worry that the person looking through the lens isn't sure what they're looking for," PSC President Stephanie Kostro said. Fresh off the Professional Services Council annual conference, Stephanie joined Sam on the podcast to discuss the biggest policy issues for small businesses: fraud investigations and audits, the next stage of the FAR Overhaul, and acquisition reform in the military and at GSA. She also walked through the biggest legislative priorities for government contractors looking ahead to the FY27 NDAA, including the potential for action on the Rule of Two. A full transcript is online at http://www.govconintelligence.com [http://www.govconintelligence.com]. Links Stephanie Kostro bio [https://www.pscouncil.org/a/Bios/PSC_Staff/Stephanie_Sanok_Kostro_Bio.aspx] https://www.pscouncil.org/a/Bios/PSC_Staff/Stephanie_Sanok_Kostro_Bio.aspx About PSC [https://www.pscouncil.org/psc/About/About/__p/ca/About.aspx] https://www.pscouncil.org/psc/About/About/__p/ca/About.aspx JD Vance’s Anti-Fraud Task Force Uncovers $6 Billion In Suspected Fraudulent Government Contracts [https://dailycaller.com/2026/04/08/jd-vance-task-force-eliminate-fraud-six-billion-government-contracts-gsa-edward-forst-taxpayer-waste/] https://dailycaller.com/2026/04/08/jd-vance-task-force-eliminate-fraud-six-billion-government-contracts-gsa-edward-forst-taxpayer-waste/ OneGov Saves Taxpayers $1.1 Billion in First Year [https://www.gsa.gov/about-gsa/newsroom/news-releases/onegov-saves-taxpayers-11-billion-in-first-year-04292026] https://www.gsa.gov/about-gsa/newsroom/news-releases/onegov-saves-taxpayers-11-billion-in-first-year-04292026 GSA Announces OneGov Agreement with Snowflake to Accelerate Data-Driven Technology Adoption [https://www.gsa.gov/about-gsa/newsroom/news-releases/gsa-announces-onegov-agreement-with-snowflake-to-accelerate-datadriven-technolo-05212026] https://www.gsa.gov/about-gsa/newsroom/news-releases/gsa-announces-onegov-agreement-with-snowflake-to-accelerate-datadriven-technolo-05212026 Promoting Efficiency, Accountability, and Performance in Federal Contracting (EO 14402) [https://www.federalregister.gov/documents/2026/05/05/2026-08900/promoting-efficiency-accountability-and-performance-in-federal-contracting] https://www.federalregister.gov/documents/2026/05/05/2026-08900/promoting-efficiency-accountability-and-performance-in-federal-contracting H.R.2804 - Protecting Small Business Competitions Act of 2025 [https://www.congress.gov/bill/119th-congress/house-bill/2804/text] https://www.congress.gov/bill/119th-congress/house-bill/2804/text PSC 2024 Federal Small Business Scorecard [https://www.pscouncil.org/__p/cr/r/2024_Business_Forecast_Scorecard.aspx] https://www.pscouncil.org/__p/cr/r/2024_Business_Forecast_Scorecard.aspx Timestamps Introduction: The State of Federal Contracting 00:00:00 Navigating Fraud Task Forces and Small Business Audits 00:03:33 The Burden on Small Businesses and the Shrinking Procurement Workforce 00:13:37 PSC’s Advocacy Priorities and Defense Acquisition Reform 00:15:27 Looking Ahead to the FY27 NDAA and Commercial Harmonization 00:19:20 Value-Added Resellers in a OneGov World 00:26:20 Mitigating Vendor Lock-In Risks 00:31:21 Anticipating the Revolutionary FAR Overhaul Proposed Rules 00:32:38 Critical FAR Parts for Small Businesses to Track 00:37:32 Navigating the Fixed-Price Contract Mandate 00:38:54 Risk Tolerance and Price Adjustments 00:44:45 Codifying the Rule of Two at the Task Order Level 00:48:00 Tracking Federal Market Forecasts and Scorecards 00:50:56 Conclusion: The Upcoming Federal Acquisition Conference 00:53:30 This video is for informational purposes only and does not constitute legal advice. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.govconintelligence.com [https://www.govconintelligence.com?utm_medium=podcast&utm_campaign=CTA_1]

From the Front Lines: Bid Protests and Beyond (with Scott Flesch)

I sat down last week with Scott Flesch [https://www.millerchevalier.com/professional/scott-n-flesch], probably the most experienced bid-protest lawyer ever. Scott was the Chief Trial Attorney for the Army, where he worked on over 2,000 bid protests. He is now a member at Miller & Chevalier, a D.C. law firm. Our conversation started with the most recent Executive Order mandating fixed price contracting, and moved into the risks that contractors face from the FAR’s new class deviations implementing the DEI Executive Order. Scott also discussed the importance of intervening in protests, the differences between GAO and the Court of Federal Claims, and how small-business issues have come up in some recent cases. Links discussed Scott Flesch bio [https://www.millerchevalier.com/professional/scott-n-flesch] (Miller & Chevalier) Intervention Download: Why Offerors Must Prepare for Bid Protests [https://www.millerchevalier.com/sites/default/files/2025-07/2025-07-03_Intervention-Download.pdf] Executive Order: Promoting Efficiency, Accountability, and Performance in Federal Contracting [https://www.whitehouse.gov/presidential-actions/2026/04/promoting-efficiency-accountability-and-performance-in-federal-contracting/] FAR Council Memo: Agency Implementation of Executive Order 14398, Addressing DEI Discrimination by Federal Contractors [https://www.acquisition.gov/sites/default/files/page_file_uploads/FAR%20Council%20Guidance%20to%20Implement%20EO%2014398.pdf] Life Sciences Logistics LLC v. United States [https://www.cafc.uscourts.gov/opinions-orders/24-1522.OPINION.4-15-2026_2676666.pdf] (Court of Appeals for the Federal Circuit) Global Connections to Employment, Inc. v. United States [https://ecf.cofc.uscourts.gov/cgi-bin/show_public_doc?2026cv0301-41-0] (Court of Federal Claims) Noblis MSD, LLC v. United States [https://ecf.cofc.uscourts.gov/cgi-bin/show_public_doc?2026cv0301-41-0] (Court of Federal Claims) Revelations Counseling and Consulting LLC v. United States [https://ecf.cofc.uscourts.gov/cgi-bin/show_public_doc?2025cv2169-21-0] (Court of Federal Claims) CSlope Solutions LLC [https://www.gao.gov/products/b-422249.2%2Cb-422249.3%2Cb-422249.4] (GAO) Timestamps Introduction and the Value of the ABA Public Contract Law Section 00:00:00 The Shift Toward Fixed-Price Contracts 00:03:20 Dealing with Ambiguous Requirements and Bid Protests 00:09:58 Navigating the DEI Executive Order and False Claims Act Risks 00:14:37 Understanding CICA Stays at the GAO 00:23:27 CICA Stay Overrides 00:29:33 Procedures at the Court of Federal Claims 00:38:28 The Role of Intervenor’s Counsel in Bid Protests 00:41:12 The Noblis Case and Pleading for Injunctive Relief 00:50:32 Choosing Between the GAO and the Court of Federal Claims 00:53:21 The Revelations Case and Limitations on Subcontracting 01:00:44 The Certificate of Competency (COC) Process 01:05:23 Conclusion and Contact Information 01:10:20 With 20 years of Federal legal experience, Sam Le counsels small businesses through government contracting matters, including bid protests, contract compliance, small business certifications, and procurement disputes. Sam obtained his law degree from the University of Virginia and formerly served as SBA’s director of procurement policy. His website is www.samlelaw.com [http://www.samlelaw.com/]. This video is for informational purposes only and does not constitute legal advice. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.govconintelligence.com [https://www.govconintelligence.com?utm_medium=podcast&utm_campaign=CTA_1]

8(a) firms dip below 3,400--plus an important SBIR case

Links discussed 8(a) participants in 2026 [https://datawrapper.dwcdn.net/Tvaur/3/] EO on Promoting Efficiency, Accountability, and Performance in Federal Contracting [https://www.whitehouse.gov/presidential-actions/2026/04/promoting-efficiency-accountability-and-performance-in-federal-contracting/] White House Budget Request FY27 [https://www.whitehouse.gov/wp-content/uploads/2026/04/budget_fy2027.pdf] Appropriations Committee Draft Report on FY27 Government Appropriation Bill [https://docs.house.gov/meetings/AP/AP00/20260421/119215/HMKP-119-AP00-20260421-SD003.pdf] SBA Office of Advocacy Leadership [https://advocacy.sba.gov/home/about/leadership/] GAO decision in KriaaNet, Inc. [https://www.gao.gov/products/b-422717.4%2Cb-422717.5], B-422717.4, B-422717.5, April 23, 2026 GAO decision in Threat Tec, LLC [https://www.gao.gov/products/b-424221], B-424221, April 23, 2026 Public Law 119-82 [https://www.congress.gov/bill/119th-congress/senate-bill/3971?s=1&r=22&hl=small], Small Business Innovation and Economic Security Act OHA decision in Size Appeal of Nisou Enterprises, Inc. [https://govt.westlaw.com/sbaoha/Document/I42f6bf4d43c511f19ab69613f0f1c935?viewType=FullText&listSource=Search&originationContext=Search+Result&transitionType=SearchItem&contextData=(sc.Search)&navigationPath=Search%2fv1%2fresults%2fnavigation%2fi0ad62d340000016d27a084e0925fcf0c%3fppcid%3d46ec65ad60ad4d999937a990339a0292%26Nav%3dADMINDECISION_PUBLICVIEW%26fragmentIdentifier%3dI42f6bf4d43c511f19ab69613f0f1c935%26startIndex%3d21%26transitionType%3dSearchItem%26contextData%3d%2528sc.Default%2529%26originationContext%3dSearch%2520Result&list=ADMINDECISION_PUBLICVIEW&rank=26&t_Method=tnc&t_querytext=DA(last+90+days)], SBA No. SIZ-6380 (2026) Jason Miller: “Is SBA Moving the small business contracting goal posts? [https://federalnewsnetwork.com/acquisition-policy/2026/04/is-sba-moving-the-small-business-contracting-goal-posts/]” (Federal News Network) Draft SBA FY26 Scorecard factors [https://federalnewsnetwork.com/wp-content/uploads/2026/04/SBA-letter.pdf] (Federal News Network) FAR Council Memorandum [https://acquisition.gov/sites/default/files/page_file_uploads/FAR%20Council%20Guidance%20to%20Implement%20EO%2014398.pdf] on Agency Implementation of Executive Order 14398, Addressing DEI Discrimination of Federal Contractors (April 17, 2026) David Fahrenthold, Luke Broadwater, and Andrea Fuller: “Firm Building Trump’s Ballroom Got a Secret No-Bid Contract for a Nearby Job [https://www.nytimes.com/2026/04/25/us/politics/lafayette-park-fountains-trump-contract.html?unlocked_article_code=1.fFA.5Xq6.1lUPj2T8eSZd&smid=url-share]” (New York Times gift link) Correction: When I was referring to 8(a) firms being terminated, that was in April, not August. Timestamps 00:00 – 8(a) Program Data: Shrinking Participation and Audit Impacts 02:54 – SBA Budget Proposals: White House Cuts vs. House Appropriations 06:23 – WOSB Program: Addressing Backlogs and Recertification Surges 07:46 – Congressional Spotlight: The Decline in New Entrants and 8(a) Removals 11:09 – Regulatory Update: Delay of Dodd-Frank Section 1071 Reporting 12:34 – GAO Case Law: Reprocurement and Certificate of Competency (Creanet Case) 18:36 – SBIR Protests: Timeliness and Successor in Interest (ThreatTech Case) 24:41 – SBIR Reauthorization: Program Extension to 2031 and New Security Rules 25:44 – SBIR Program Extension and Security Denials 26:16 – OHA Suspension Appeals and the 8(a) Data Call 28:52 – OHA Case Law: Nisu and Identity of Interest Affiliation 31:12 – The SBA Scorecard and Category Goals 34:50 – Regulatory Developments: FAR Council and DEI Executive Order 36:20 – Q&A: AI in Source Selection and Bid Protests 39:13 – Q&A: 8(a) Sole Source Trends for Native-Owned Firms 43:03 – Q&A: White House Procurements and Sole Source Contracts 45:06 – Q&A: 8(a) Certifications and OHA Remand Timelines With 20 years of Federal legal experience, Sam Le counsels small businesses through government contracting matters, including bid protests, contract compliance, small business certifications, and procurement disputes. Sam obtained his law degree from the University of Virginia and formerly served as SBA’s director of procurement policy. His website is www.samlelaw.com [http://www.samlelaw.com/]. This video is for informational purposes only and does not constitute legal advice. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.govconintelligence.com [https://www.govconintelligence.com?utm_medium=podcast&utm_campaign=CTA_1]

AI Legal Risks and the Anti-DEI Executive Order

Jackson Moore [https://www.smithlaw.com/professionals/Jackson-Moore] and I recorded a GovCon Intelligence episode on location in Wilmington, North Carolina. We were on a panel there last week, moderated by Sue Kranes at the North Carolina Military Business Center Construction Summit. Jackson is a partner at Smith Anderson in Raleigh and recently has been writing about AI-related developments in GovCon. We talked about AI hallucinations and more broadly about how using AI can come back to haunt parties in litigation. Then we went back to the topic of our panel: the recent executive order on racially discrimination DEI and IBM’s $17 million settlement. Links Jackson Moore [https://www.smithlaw.com/professionals/Jackson-Moore] at SmithLaw.com NCMBC Summit [https://summit.ncmbc.us/] Turning Chats Into Trial Exhibits: Litigation Risks of Generative AI Use [https://www.smithlaw.com/newsroom/publications/turning-chats-into-trial-exhibits-litigation-risks-of-generative-ai-use] (smithlaw.com) You Can’t Spell Sanction without “A” and “I”: When Unchecked AI Hallucinations Result in Court Sanctions [https://www.smithlaw.com/newsroom/publications/you-cant-spell-sanction-without-a-and-i-when-unchecked-ai-hallucinations-result-in-court-sanctions] (smithlaw.com) Whitting v. City of Athens [https://www.damiencharlotin.com/documents/1674/Whitting__van_Irion_v._City_of_Athens_uSA_13_March_2026.pdf] (6th Cir. 2026) AI Hallucinations database [https://www.damiencharlotin.com/hallucinations/] (damiencharlotin.com) Appeals of Huffman Construction LLC [https://www.asbca.mil/LinkClick.aspx?fileticket=eAIy2KSL_Zg%3D&portalid=143] (ASBCA Oct. 23, 2025) U.S. v. Heppner [https://www.smithlaw.com/assets/htmldocuments/USA%20v.%20HEPPNER.pdf] (S.D.N.Y. Feb. 17, 2026). Steve Koprince: What aspects of federal contracting AI is most likely to get wrong [https://substack.com/@fedlift/note/c-244070163?r=jd3yw&utm_source=notes-share-action&utm_medium=web] Proposed GSA clause 552.239-7001, Basic Safeguarding of Artificial Intelligence Systems [https://buy.gsa.gov/interact/system/files/GSA_Federal_Acquisition%20Service%20Proposed%20Government%20AI%20System%20Terms%20and%20Conditions.pdf] Executive Order on Addressing DEI Discrimination by Federal Contractors [https://www.whitehouse.gov/presidential-actions/2026/03/addressing-dei-discrimination-by-federal-contractors/] IBM Pays $17 Million to Resolve Allegations of Discrimination Through Illegal DEI Practices [https://www.justice.gov/opa/pr/ibm-pays-17-million-resolve-allegations-discrimination-through-illegal-dei-practices] (justice.gov) 00:00 Welcome From Wilmington 00:26 Meet Jackson Moore 00:55 GovCon Law Practice Overview 01:55 AI In GovCon Law 02:55 Hallucinations And Sanctions 05:59 Verifying Case Citations 07:31 Sharing Data With AI 10:01 Protective Orders And AI 12:33 Discovery Of AI Chats 15:55 AI Gets GovCon Details Wrong 18:26 GSA Proposed AI Clause 23:12 Neutrality And Bias Questions 25:49 DEI Executive Order Fallout 28:29 False Claims Act Enforcement 32:08 Class Deviations And Litigation 36:15 How To Reach Jackson 36:30 Closing Thanks This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.govconintelligence.com [https://www.govconintelligence.com?utm_medium=podcast&utm_campaign=CTA_1]

Update on 8(a) suspensions, new cases on disadvantage, and policy predictions

On a GovCon Intelligence live stream, I covered the current state of the 8(a) Business Development Program and the latest suspension numbers, significant OHA and Federal Court decisions, and SBA administrative changes. I also addressed the impact of the Washington District Office’s move to Herndon and previewed the OIG’s 2026 audit priorities. 00:00:00 Introduction & 8(a) Suspensions Update 00:03:57 SBA Terminations and the Data Call 00:05:46 Office of Hearings and Appeals (OHA) Update 00:08:46 Understanding Economic Disadvantage: The ACC International Case 00:13:30 SBIR Phase III Bridge Contracts and the ThreatTec Case 00:16:34 Mentor-Protégé Past Performance and the iAdeptive Technologies Case 00:19:25 Corporate Transactions and SDVOSB Status: The Crosstown Courier Service Case 00:22:45 SBA Office Relocation 00:23:32 Impact of the SBA Washington District Office Relocation 00:26:02 Challenges in 8(a) Program Servicing and Application Approvals 00:27:10 The Mid-America Milling Decision and DBE Program Presumptions 00:31:13 New Legal Challenges to Private Sector Diversity Programs 00:32:12 Updates on the Ultima Services Case and SBA Regulations 00:33:22 Status of SBIR/STTR Program Reauthorization 00:34:27 The SBA OIG 2026 Oversight Plan: Audit Priorities 00:36:43 SBA COVID Relief Loans and EIDL Collections 00:38:06 Upcoming SBA Regulatory Reforms: Fraud, Waste, and Abuse 00:40:23 Summary and Closing Links SBA’s 8(a) suspensions (Jan 22 - Mar 26, 2026) [https://datawrapper.dwcdn.net/MFP0v/9/] Recent OHA decisions [https://govt.westlaw.com/sbaoha/Search/Results?transitionType=Default&contextData=%28sc.Default%29&t_Method=tnc&t_querytext=DA%28last%2090%20days%29&Page=1&SearchId=i0ad62d340000016d27a084e0925fcf0c&query=DA%28last%2090%20days%29&bhcp=1] Matter of ACC International Inc (OHA) [https://govt.westlaw.com/sbaoha/Document/I622a55311f6e11f18289ae7a0cb24b6d?viewType=FullText&listSource=Search&originationContext=Search+Result&transitionType=SearchItem&contextData=(sc.Search)&navigationPath=Search%2fv1%2fresults%2fnavigation%2fi0ad62d340000016d27a084e0925fcf0c%3fppcid%3d7fdc500be49a4946ab62afddac4df174%26Nav%3dADMINDECISION_PUBLICVIEW%26fragmentIdentifier%3dI622a55311f6e11f18289ae7a0cb24b6d%26startIndex%3d41%26transitionType%3dSearchItem%26contextData%3d%2528sc.Default%2529%26originationContext%3dSearch%2520Result&list=ADMINDECISION_PUBLICVIEW&rank=48&t_Method=tnc&t_querytext=DA(last+90+days)] ThreatTec v. United States (Ct. of Fed. Cl.) [https://ecf.cofc.uscourts.gov/cgi-bin/show_public_doc?2026cv0150-34-0] Stephen Bacon on the GAO’s decision in iAdeptive (LinkedIn) [https://www.linkedin.com/posts/stephen-bacon_protest-of-iadeptive-technologies-ugcPost-7442039246774784000-YeiS?utm_source=share&utm_medium=member_desktop&rcm=ACoAAEMLEekBxMJi-1KZDs9Q55wacpc381CzVRs] iAdeptive Technologies (GAO) [https://www.gao.gov/products/b-424158%2Cb-424158.2] VSBC Protest of Crosstown Courier Services (OHA) [https://govt.westlaw.com/sbaoha/Document/I1dd062371d2011f18ab9efc42c33e28e?transitionType=Default&contextData=%28sc.Default%29] News release: SBA Relocates Washington Metro Area District Office to Herndon, Virginia [https://www.sba.gov/article/2026/03/23/sba-relocates-washington-metro-area-district-office-herndon-virginia] Mid-America Milling Co. LLC v. US DOT (E.D. Ky.) [https://www.govinfo.gov/content/pkg/USCOURTS-kyed-3_23-cv-00072/pdf/USCOURTS-kyed-3_23-cv-00072-4.pdf] News release: American Alliance for Equal Rights Files Federal Lawsuit Challenging Race-Based Minority Supplier Certification Program [https://americanallianceforequalrights.org/american-alliance-for-equal-rights-files-federal-lawsuit-challenging-race-based-minority-supplier-certification-program/] Ultima Services Docket (courtlistener) [https://www.courtlistener.com/docket/16928316/ultima-services-corporation-v-us-department-of-agriculture/] S. 3971, SBIR Reauthorization [https://www.congress.gov/bill/119th-congress/senate-bill/3971/all-actions?s=1&r=33&hl=small] SBA OIG Audit Division 2026 Oversight Plan [https://www.sba.gov/sites/default/files/2026-03/SBA%20OIG%20-%20Audits%20Division%202026%20Oversight%20Plan.pdf] SBA OIG Evaluation of SBA’s All Small Mentor-Protege Program [https://www.sba.gov/sites/default/files/2019-09/SBA-OIG-Report-19-17.pdf] New York Times: The Small Business Administration lent $378 billion to keep businesses afloat. Getting paid back is proving difficult. [https://www.nytimes.com/2026/03/24/business/economy/sba-pandemic-loan-defaults.html?unlocked_article_code=1.WFA.b7Ih.HoBn_dPx6cyT&smid=url-share] Pending EO 12866 Regulatory Review on Fraud, Waste, and Abuse Reforms [https://www.reginfo.gov/public/do/eoDetails?rrid=1287014] EO 12866 Meeting on Fraud, Waste, and Abuse Reforms [https://www.reginfo.gov/public/do/viewEO12866Meeting?viewRule=true&rin=3245-AI66&meetingId=1334373&acronym=3245-SBA] With 20 years of Federal legal experience, Sam Le counsels small businesses through government contracting matters, including bid protests, contract compliance, small business certifications, and procurement disputes. Sam obtained his law degree from the University of Virginia and formerly served as SBA’s director of procurement policy. His website is www.samlelaw.com [http://www.samlelaw.com/]. This video is for informational purposes only and does not constitute legal advice. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.govconintelligence.com [https://www.govconintelligence.com?utm_medium=podcast&utm_campaign=CTA_1]