Welcome to
The Public Sector

The Public Sector is your go-to resource for staying ahead of critical legal developments. In the world of public sector law, change is constant. New regulations, shifting compliance standards, and evolving legal interpretations can impact how government agencies, municipalities, and businesses operate. Staying informed isn’t just an advantage—it’s a necessity.

What You'll Find on The Public Sector

  • Timely Legal Analysis: Breakdowns of new laws and regulations that impact the public sector.
  • Compliance Guidance: Practical steps to help organizations align with emerging legal requirements.
  • Case Law Insights: Key takeaways from recent court decisions and what they mean for you.
  • Policy Trends: Commentary on legislative priorities and their implications for the future.

Why The Public Sector?

At Scale LLP, we understand that legal uncertainty can create operational and financial risks. The Public Sector is designed to cut through the noise, offering actionable intelligence on what is happening in the world that will keep you informed, compliant, and prepared.

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Updates

Government Leasing

March 20, 2025

GSA plans to cut operations by 50%, including real estate holdings, by terminating or letting leases expire. Landlords should review lease terms, document vacancies, and seek legal support to protect their rights and compensation.

Government Contracting Freeze

February 13, 2025

On January 24, 2025, the Acting Administrator of the General Services Administration (GSA) released a Memorandum entitled “Acquisition Pause.” Generally, the Memorandum suspends all “GSA-funded” contracting actions, including new awards, task and delivery orders, modifications, and options. Several categories of contracting actions were exempted from the suspension, including emergency actions and essential services.

The stated intent of the Memorandum is to allow new GSA leadership to assess current government contracting actions and approve them on a case-by-case basis. This review is likely to ensure that any outstanding contracting actions are not contrary to any of the Executive Orders issued by the current administration.

Clients are advised that it is likely that this suspension will create delays in GSA contracting actions, to include awards of new contracts, modifications of existing contracts, and administrative contracting actions like extensions, notices to proceed, and exercising options. GSA contractors should assess their current projects to identify whether any of the listed exceptions apply. For contracting actions that are in process, clients should ensure that their deliverables and documentation are complete to avoid any back-and-forth with the agency that could further delay completion. Additionally, GSA contractors should maintain open lines of communication with their CORs and other agency contacts to ensure they are getting the most up-to-date information and any clarifications as to the Memorandum’s applicability and effects.

If you are a GSA contractor and have not been notified by GSA to stop or change their work, then it is important to proceed as normal under the contract unless and until you are instructed otherwise.

Overall, contractors should prepare for delays and do their best to mitigate any negative impacts that may result.

The Scale team is actively monitoring this and other government actions affecting contractors and will provide updates as the situation evolves. We anticipate that additional guidance will be issued by GSA in the coming days as more is learned about the specific contracting actions the Memorandum is intended to affect, and ambiguities are resolved. Please do not hesitate to reach out if you have any questions or concerns.

Government Leasing

February 13, 2025

Recent communications from the U.S. General Services Administration (GSA) indicate that the agency’s goal under the new administration is to cut all aspects of GSA by 50%. This includes staffing, budget, and infrastructure – meaning they intend to dispose of 50% of their owned real estate inventory and terminate (or allow to expire) 50% of their leases. GSA is currently assessing which of their leases have no firm terms, are already in their “soft” terms, or have firm terms set to expire in the coming years. They have already started the process of ending those contracts.

The Real Estate Group at Scale LLP is advising government landlords to take the following steps to prepare for GSA potentially vacating their space and terminating their lease contract.

  1. Review your lease contract carefully. Government leases contain specific language regarding when the firm term (if any) expires, and the termination rights that arise upon expiration of that firm term. Note that if your lease is still within the firm term (i.e., the government does not yet have a termination right), and GSA provides notice of termination, the landlord is entitled to the full amount of rent due for the remainder of that firm term. This is a situation that must be negotiated carefully to ensure the landlord is properly compensated and for the end of this guaranteed rental stream.

  1. If you have received a notice of termination, review that document carefully. If it contains any release of claims, waivers, or any other language that relieves GSA of responsibility, be advised that you are not required to sign that document and doing so may affect your ability to protect your interests.

  1. Carefully police how the government vacates the space. It is common for the government tenant to purposefully or inadvertently abandon personal property in the premises. If they do so, this could mean that the government is still technically occupying the space. The lease contract governs what happens when property is left behind, and the landlord does have an opportunity to file a claim with the Lease Contracting Officer (LCO) to assert that the government is a holdover tenant. It can take months to contract for moving services, and for many government tenants, termination of the lease may come as a surprise. Therefore, they may be ill-prepared to vacate the space. Additionally, thoroughly document any damage that has been done to the premises. Depending on the terms of the lease contract, you may be able to be compensated for damage or waste.

  1. Don’t be afraid to exercise your right to file a claim. If you believe the government has treated you unfairly, or if they have broken any terms of the lease, you can avail yourself of the contract dispute process, the first step of which is to file a claim with the LCO. There are very detailed requirements in the Federal Acquisition Regulation and Contract Disputes Act that govern this process, and obtaining legal counsel is recommended.

  1. Don’t go it alone. There are numerous consultants and law firms that can help you negotiate with the government, ensure your rights are protected, ensure you are properly compensated. Scale LLP’s Public Sector Team is here to provide guidance, negotiate, and take formal steps as needed.

In addition to the individual impact felt by landlords leasing space to the government, GSA’s actions will have repercussions across the real estate industry. GSA’s website states that it “owns and leases over 363 million square feet of space in 8,397 buildings across more than 2,200 communities nationwide.” While most of GSA’s space is government offices, they also lease and own space used for research, industrial and port purposes, courthouses, high-security operations like FBI and continuity of operations facilities, post offices, data centers, health care, agricultural, and public-facing service centers.

Burnout costs firms $500K per lawyer lost; what can law firms do?

A groundbreaking research project commissioned in 2023 by the California Lawyers Association and the District of Columbia Bar found that lawyers are “twice as likely as the general population to contemplate suicide.” An earlier study conducted by the Hazelden Betty Ford Foundation and the American Bar Association Commission on Lawyer Assistance Programs showed that nearly 21% of lawyers and others in legal professions were considered problem drinkers, and worse, over 36% of attorneys were struggling with alcohol abuse.

Time to Take Control of Your Own Practice Succession Plan

In HBO’s Succession, the family patriarch creates an unfair playing field, puppeteering a game that seemingly no one can win. For many Big Law and  boutique attorneys, the experience can feel eerily similar. Some are realizing that the risk of betting on themselves instead of waiting in the wings isn't really all that risky. Modern firms like Scale solve numerous problems inherent in a traditional legal practice. So long, puppeteer.

Scale Your Boutique Practice

I knew we could "do well while doing good" by providing quality counsel and balancing it with our service efforts, but I reached a point where I couldn't grow the firm any further on my own. My dream clients were out of reach with a team of our size, and I didn't know if my family could handle the additional years of effort it would take to grow organically.

Does the ‘Work from Anywhere’ Practice Model Lead to Increased Revenue? The Data Shows It Can.

The allure of working from home is here to stay. The pandemic showed us that not only is it possible, but it’s far more desirable for many, many lawyers and staff. Given the choice between taking a break from work by gossiping around the office water cooler or picking up their child from school, many have chosen the latter. Who needs to spend $20 on lunch when you can prepare a cheaper, healthier and more delicious lunch in your own kitchen? Why not clear your head by taking your dog for several walks throughout the day? And no one needs to sit in more traffic, ever. 

The rise of remote firms heralds a new era of boutique law firm mergers

The nature of law firms is changing rapidly, especially as firms strive to stabilize in a new post-pandemic reality. One of those realities is that law firms today are increasingly less local. Many traditional firms are struggling to redraw boundaries around the once indispensable requirement for its lawyers and staff to do their work primarily from a common office. Technology and the pandemic have helped the practice of law shift to less localized but equally connected modes. Remote firms like Scale LLP, which uses technology and a distributed platform to deliver services to its clients from primarily virtual spaces, are on the rise and growing and have even begun to snap up high-quality boutiques that fit their brand and profile.

What can the legal world learn from research on collaborative cultures and the rise of ‘conscious leadership’ in Silicon Valley?

It’s not hard to reach the conclusion that collaboration feels better, but is it any better for the bottom line? Despite what many lawyers believe, there is evidence in an article by Heidi Gardner, PhD at the Harvard Business School, about a collaborative culture’s positive impact on client revenue in the legal practice.

Lawyers May Work From Home, but Will Firms Ditch Those Expensive Leases?

Bloomberg reports that in the last week of December, 2021, over 40% of US workdays were worked from home, according to economists. Before the pandemic, that number was 5%.

The Virtues of a Virtual Practice in Summer

With summer only a month away, attorneys are thinking about how to juggle their summer plans while keeping up with their practice obligations. Now more than ever, a remote work practice is enabling more attorneys to do that with greater ease.

Top 3 Goals for Attorney Success in 2023

The Scale Community gathered this year in Denver for its firmwide attorney retreat to discuss what it would take to build, grow and thrive in 2023. Here are the top 3 goals from those discussions that can help the broader attorney community as we all look ahead to the year as it unfolds.

The Rise of the Lawyer Entrepreneur

Interview with Scale Founding Partner, Adam Forest

Law Firms Can Thrive in a Coming Recession. History Provides a Guide.

Most economists believe the U.S. is headed for a recession in 2023–or is already experiencing one.

Legal Market Report Says Firms Will Struggle to Retain Talent

The 2022 Report on the State of the Legal Market published by Georgetown University Law Center and Thomson Reuters confirms that, despite record profits, law firms still struggle to recruit and retain talent.

The Team Behind The Public Sector