The federal contracting market is shaped by events both small and large.  Here are three things that were reported this week that you might have missed but should not have.

1.  New York Court Upholds Contractor Teaming Agreement:  While many district courts view contractor teaming agreements as “agreements to agree” and, as such, are not enforceable, a federal court in New York court recently held that CTA’s can be enforced in New York if they meet one of two criteria. The first type is where the parties agree on all the points that require negotiation but agree to memorialize their agreement later.  The second is where parties agree on certain major terms, but leave other terms open for further negotiation.  The court found in BAE Systems Information and Electronics System Integration Inc. v. L3 Harris Cincinnati Electronics Corporation that the agreement in this case satisfied the first type of requirement and was, therefore, enforceable under New York Law.

2.  The House of Representatives is considering the Federal AI Governance and Transparency Act, a bi-partisan measure that spells out specific responsibilities for the Office of Management and Budget and other agencies in buying, managing and using artificial intelligence.  The measure is moving quickly and the Senate is expected to follow suit with their own bill.  Industry should absolutely track this legislation, weigh in where appropriate, and understand how it could impact federal business.

3.  The FAR Council Has More Potential Rules Than Staples:  A recent review of open federal acquisition rule cases found that the list of proposed or interim rules currently in progress at the FAR Council runs to a little over 16 pages.  Those add up to a host of new requirements that could come soon to a contract near you.  Just some examples include software supply chain security, sustainable procurement, new cybersecurity requirements for federal information systems, and Greenhouse Gas disclosure requirements.  GSA’s Office of Acquisition Policy recently announced a late March webinar on the rules it believes could impact their contractors.  It may be a good idea to check that out.