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Stay ahead in the dynamic world of government contracting with our roundup of the top five must-know updates from this week.
1. U.S. Foreign Aid on Hold: The U.S. government has issued a 90-day hold on virtually all foreign aid and a ‘stop-work’ order. This significant move impacts numerous international projects and could have far-reaching consequences for global development efforts. Secretary of State Marco Rubio halted spending on most existing foreign aid grants, including military assistance to Ukraine, which has shocked many State Department officials. The order requires department staffers to issue “stop-work orders” on nearly all existing foreign assistance awards, with some exceptions for emergency food assistance and foreign military financing for Egypt and Israel. This pause is part of a broader review to ensure that aid allocation aligns with the current administration’s foreign policy goals.
2. Chinese AI App DeepSeek Causes Panic: The Chinese AI app DeepSeek is sending shockwaves through the tech world. Its advanced capabilities have raised concerns about data privacy and security, prompting discussions on how to regulate such technologies. DeepSeek’s rapid rise has led to a significant sell-off in tech stocks as fears mount that the app could dominate U.S. AI development. The app’s sophisticated algorithms and potential for widespread data collection have sparked debates on the need for stricter regulations and international cooperation to address the challenges posed by such powerful AI technologies.
3. White House Orders DEI Employees on Leave: The White House has directed government Diversity, Equity, and Inclusion (DEI) employees to be placed on leave. This decision follows an executive order aimed at ending DEI programs across all federal agencies. The order requires all DEI employees to be placed on paid administrative leave and for agencies to submit plans for their reassignment by the end of the month.
4. New Proposed CUI Rule for All Federal Contractors: A new proposed rule on Controlled Unclassified Information (CUI) will now apply to all federal contractors, not just the Department of Defense. This expansion aims to enhance the protection of sensitive information across all federal contracts. The Federal Acquisition Regulatory (FAR) Council issued the proposed rule, which would impose uniform requirements for handling CUI by federal contractors and subcontractors. These requirements include implementing NIST Special Publication 800-171 to safeguard CUI on contractor information systems and reporting incidents impacting CUI within eight hours of discovery. Contractors who have not historically implemented DoD requirements will need to familiarize themselves with these new compliance obligations.
5. DOD’s 10-Day Social Media Pause: The Department of Defense has implemented a 10-day pause on social media activities. This pause, effective from January 25 to February 3, aims to refocus communications around key priorities such as national security and operational effectiveness. Exceptions to the pause include posts related to military operations along the U.S.-Mexico border and communications about base operations, recreational activities, and recruiting.
Stay tuned for next week’s edition of “Top 5 Things to Know in GovCon this Week” for more insights and updates from RSM on the ever-changing government contracting industry!
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Susanna Hoffpauer
Susanna Hoffpauer is a dedicated member of RSM's GovCon team, specializing in the implementation and sale of RSM's tailored government contracting services. With a focus on Dynamics 365 Finance & Operations (D365 F&O), Susanna brings a wealth of expertise in streamlining financial and operational processes for government contractors. In today's rapidly evolving regulatory landscape, Susanna ensures clients remain compliant with critical standards, including the Cybersecurity Maturity Model Certification (CMMC). Her commitment to excellence and deep understanding of compliance requirements makes her a trusted advisor in the government contracting space.
