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Government Contractor Guidebook

October 21, 2026

2 min read

Key Takeaways

Court upholds DEI executive order with narrow interpretation.
Navy sole-source award to Mustang Survival Manufacturing Inc. upheld by GAO.
DOJ issues directive for expanded fraud enforcement measures.
GAO sustains protest over DoD's academic skills training application award.

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Strategic Implications

These developments may indicate increased scrutiny of contractor compliance and fraud enforcement, suggesting that government contractors could face heightened regulatory risks. The court's narrow interpretation of the DEI executive order may provide near-term guidance for contractors, while the DOJ's directive could lead to more aggressive prosecution of fraud cases involving government contractors.

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What Happened

Contractor DEI Requirements And Navy Sole-Source Awards

A federal court has upheld the DEI executive order with a narrow interpretation, while the Navy’s sole-source award to Mustang Survival Manufacturing Inc. has been upheld by the GAO. Additionally, the DOJ has issued a directive for expanded fraud enforcement measures, and the GAO has sustained a protest over the DoD’s academic skills training application award. These developments reflect evolving contractor compliance obligations and increased scrutiny of potential fraud involving federal programs and contracts, as reported by Morgan Lewis Government Contractor Guidebook.

Source | Originally Published: October 20, 2026

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