Odette CaplanCory Mills and the Defense Contractor Spotlight: What Federal Contracting Law Means for Small Business Owners in 2026
Rep. Cory Mills (R-FL) has been making headlines in 2026, keeping the spotlight on defense contracting and military procurement issues in Congress. Before his election to Florida's 7th Congressional District, Mills built a career in the defense industry — including roles with companies supplying less-lethal munitions to law enforcement and military clients. His trajectory from contractor to congressman raises practical questions that thousands of American small business owners need answered: What does it take to do business with the federal government legally and profitably, and what are the compliance risks?
Federal Contracting: A $700 Billion Opportunity With Complex Rules
The US federal government is the world's largest purchaser of goods and services. In fiscal year 2025, federal agencies awarded more than $700 billion in contracts — a figure that includes everything from fighter jet components to office supplies, IT services, and healthcare equipment.
According to the Small Business Administration (SBA), small businesses received approximately 27% of federal contract dollars — nearly $190 billion — in FY2025. Congress has mandated that agencies set aside certain contracts for small businesses, including disadvantaged business enterprises, veteran-owned firms, and woman-owned businesses.
For entrepreneurs who want to tap this market, understanding the legal framework is not optional — it is the difference between a thriving government contracting business and a costly compliance failure.
The Federal Acquisition Regulation: The Bible of Government Contracting
The Federal Acquisition Regulation (FAR) is the primary set of rules governing how federal agencies buy goods and services. At over 2,000 pages, the FAR covers everything from pricing standards and bid protests to small business subcontracting plans and ethics clauses.
Key provisions every contractor must understand:
Truth in Negotiations Act (TINA) Contractors submitting cost proposals on large contracts (generally over $2 million) must certify that their cost and pricing data are accurate and complete. Providing false or incomplete data — even inadvertently — can trigger False Claims Act liability, with penalties of up to three times the damage plus fines of $13,000-$26,000 per claim.
The Anti-Kickback Act Federal law prohibits giving or receiving anything of value to obtain a federal contract or favorable treatment. This includes gifts, entertainment, or "consulting fees" paid to procurement officials or their associates. Violations carry criminal penalties.
Federal Contractor Debarment A contractor found to have violated federal procurement rules can be suspended or debarred — banned from receiving federal contracts for a period of up to three years. Debarment can be a business death sentence for companies dependent on government work.
Buy American Act Many federal contracts require that supplies be manufactured in the United States. Defense contracts often impose even stricter requirements under the Defense Federal Acquisition Regulation Supplement (DFARS). Non-compliance can void a contract and expose the contractor to False Claims Act liability.
Why Cory Mills' Background Matters to the Defense Contracting World
Mills' congressional profile has drawn renewed attention to the defense contracting ecosystem, particularly around small businesses supplying the Department of Defense. Several bills he has supported would expand the SBA's SBIR (Small Business Innovation Research) program and streamline the DoD's acquisition process for emerging technology companies.
For small defense suppliers — including those in manufacturing, cybersecurity, logistics, and professional services — understanding both the opportunity and the compliance burden is essential. Defense contracting is among the most heavily regulated sectors of federal procurement, with requirements around security clearances, ITAR (International Traffic in Arms Regulations) compliance, and cybersecurity standards under CMMC (Cybersecurity Maturity Model Certification).
ITAR Compliance: The Risk That Can End a Business Overnight
The International Traffic in Arms Regulations (ITAR) control the export of defense-related articles and services. Any company that manufactures, exports, or brokers items on the US Munitions List must register with the State Department's Directorate of Defense Trade Controls (DDTC) and comply with export licensing requirements.
ITAR violations are among the most serious compliance failures in federal contracting:
- Civil penalties up to $1.3 million per violation
- Criminal penalties up to $1 million and 20 years imprisonment per violation
- Loss of export privileges
Even inadvertent violations — such as sharing technical drawings with a foreign national employee without an export license — can trigger enforcement. The DDTC's enforcement statistics show that small businesses represent a disproportionate share of ITAR violations, precisely because they often lack dedicated compliance counsel.
When Should a Government Contractor Consult an Attorney?
Many small business owners wait too long before seeking legal help with federal contracting. The right time to bring in a government contracts attorney is:
- Before bidding on your first federal contract — to review solicitation requirements and ensure your proposal is compliant
- When negotiating a teaming agreement — these arrangements between prime and subcontractors create binding obligations that require careful legal review
- After receiving a show-cause notice or cure notice — these are pre-termination warnings that require an immediate, legally crafted response
- If you receive an Inspector General subpoena or audit request — cooperating without legal counsel in a government investigation is rarely in your interest
- Before self-disclosing a compliance violation — voluntary disclosure can mitigate penalties, but must be done correctly to receive credit
The intersection of defense contracting, political attention, and strict compliance requirements makes government contracting one of the areas where legal advice pays for itself most clearly. If your business is considering pursuing federal contracts, or if you're already a contractor facing compliance questions, an attorney who specializes in government contracts law can provide critical guidance through Expert Zoom.
