THE REGULATORY CIRCUS IS COMING TO TOWN: WHAT THAT MEANS FOR CONTRACTORS

The combination of the President’s decision to not seek reelection, fallout from the Supreme Court’s Loper decision, and a “laser focused” Office of Information and Regulatory Affairs (OIRA) all mean that contractors can expect a “regulatory circus” between now and January.  While this circus may produce gasps and surprises like the real thing, there likely will be little humor in store for industry.  First, the president’s decision not to run again puts pressure on those supporting his regulatory agenda to move as quickly as possible to finalize guidance in priority areas.  Look for faster-paced work on socio-economic rules, such as those having to do with climate or labor-related issues.  These could have a real impact on contractor compliance overhead.  Second, expect increased legal activity in challenging these and other rules now that the Supreme Court removed its previous Chevron deference precedent.  Contract lawyers and others are eager to file suits challenging rules that aren’t clearly tied to a specific statute or executive order.  Last, contractors must pay attention to what regulators themselves, are saying. “We’re laser focused on making sure that we have the strongest rules possible to move forward with the administration’s priorities,” said OIRA Associate Administrator Sam Berger during a Federal News Network interview recently.  OIRA must approve all rules, whether related to procurement or not.  While OIRA believes that some of their recent actions may reduce a company’s overall regulatory burden, that’s usually not what happens when an endless stream of new requirements issues forth.  Contractors need to focus on this circus from now until mid-January.  The new rules that could impact federal business are nothing to clown around about.