Tuesday Insight – October 21, 2025: A New DFARS Rule Could Block Defense Contracts for Firms with Foreign Consulting Ties

Dec 8, 2025

In an interview on “The Federal Drive” with Terry Gerton, Venable LLP Partner, Diz Locaria discusses this new rule- “The Defense Department is tightening restrictions on who can win consulting contracts. A new DFARS amendment bars awards to firms that also advise certain foreign governments — unless they clear a high bar for conflict mitigation… this new rule, it’s going in the DFAR, so it’s going to be applicable to DoD contractors. And essentially it’s implementing section 812 of the National Defense Authorization Act, concerned about conflicts of interest that consulting firms might have if they, their subsidiaries or affiliates are also doing business with certain foreign countries and foreign entities…”

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