Government Contracting Policies To Watch In The 2nd Half Of 2026 [Law360]

Wednesday, July 22, 2026

Lawrence Prosen was quoted in a Law360 article examining key government contracting policy developments to watch in the second half of 2026, including the Department of Defense's suspension and review of CMMC Phase 2 cybersecurity requirements, ongoing FAR overhaul efforts, expanded foreign ownership disclosures, NDAA procurement reforms, and proposed changes to the SBA's 8(a) program. The article highlights how these initiatives could significantly affect defense contractors, particularly as the DOD reassesses cybersecurity compliance requirements that many companies have struggled to satisfy due to cost burdens and limited availability of third-party assessors.

“Or alternatively, they can't get the third-party verifications done, and therefore they can't bid or continue performing work,” said Larry. “And a lot of these companies have very niche products and niche issues that you know you can't just go out and replace them. And any procurement takes time to plan, prepare, and then issue and then make an award on. So, it's a real issue.” Larry noted that some contractors have elected to stop working with the DOD because of the burdens associated with complying with the underlying cybersecurity standards, underscoring concerns about maintaining access to critical suppliers and capabilities within the defense industrial base.

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