A six-month Continuing Resolution, the fact that the US spends more to pay interest on the national debt than on national security, and a reduction in the number of commercial item companies doing federal business were just some of the key take-aways from last week’s Coalition for Government Procurement Fall Conference.  The conference, held in Falls Church VA, was perhaps the largest on record with over 600 total registrants.  This is a good indication that many in industry believe that their federal market is about to change (See below).  Rather than reciting the main points by speakers such as former Congressman Tom Davis and current acting OFFP head Christine Harada, below are some important bullets that may have slipped through the cracks on attendees’ own note taking: Read more

No, we’re not talking about resurrecting Renaissance Venice, but rather about the incoming Trump Administration’s Department of Government Efficiency (DOGE).  The DOGE organization, currently led by Elon Musk and Vivek Ramaswamy, is making sweeping suggestions about closing entire agencies and slashing the government workforce by 50%.  Contractors, too, are a target as they are believed to be systematically overcharging the government at every turn.  There will be changes – small and large – coming to the agencies you work with and on how you conduct that work.  It’s too early to tell whether today’s rhetoric will Read more

Reducing rules in government acquisition, supporting legislation that can actually improve contracting, making sure that cuts are made smartly and with few unintended consequences.  These are just three reasons why government contractors must make sure that their voices are heard over the coming months.  First, there is a real opportunity to meaningfully reduce regulations that govern contracts.  As noted above, the Trump Administration is serious about cutting government.  A brief overview of the contract rules you believe are unnecessary or overly burdensome will help guide those decisions.  Second, there is legislation that may actually pass that would inject some common sense into government acquisition, including potential increases to the Simplified Acquisition and Micro Purchase thresholds.  Other provisions would specifically strengthen the Multiple Award Schedules program and allow for advanced payments for cloud-based software subscriptions.  Third, contractors have the experience and knowledge to provide input to cost cutters on where reductions can be made without harming truly critical missions.  Companies work side by side with government agencies every day and know well not just operational matters, but the culture of how government work gets done.  Contractors should use their associations and own voices at this critical time.  Key decisions will be made that will impact how companies do business with federal customers.  Bad decisions can have negative consequences for your business for years to come.  While business development and project performance are always important, right now is a very unique time when those two actions simply aren’t enough to equal full market participation.  Many opinions will be forwarded to the new administration.  No one should think that everyone reviewing these has the expertise necessary to sort good ideas from bad.  Contractors must make sure that their recommendations and concerns are not just added to the mix but are actually heard.

The Presidential and Congressional elections will definitely re-shape the federal market in ways both immediate and longer-term.  Here are the top five things contractors and their government customers can expect in the days and months ahead:

1. Expect FY’25 appropriations to be moved into calendar year 2025. The incoming Senate and White House will want to have a say on how money is allocated from day one.  A Republican-controlled House with new members will want the same thing.  Expect another CR, perhaps lasting into March, to give them time to do that.  This is not an ideal outcome for government agencies or contractors but is similar to what happened in FY’24.  Contractors and their customers can expect substantial delays in the start of new programs and the delay of many acquisition decisions to the end of the year.  That could actually be a “best case” scenario, however, as another possible outcome is a year-long CR.  Neither contractors nor their customers should discount this is a real possibility.

2. Expect New Priorities: President Trump campaigned on improving American infrastructure, curtailing illegal immigration, and improving the economy.  He has also supported tariffs for overseas goods and his first term was marked by efforts to drive increased domestic manufacturing.  These priorities could present opportunities and challenges to government contractors.  Any companies with secure domestic supply chains may find themselves at an advantage, as would any that have technology or other solutions to clamp down on illegal border crossings.  Conversely, those with international supply chains, especially those that rely on goods from China, could find themselves at a disadvantage.  The Wall Street Journal has already reported that some firms have reached out to their supplier bases to remove or minimize the use of Chinese components in anticipation of new restrictions.  Government contractors should absolutely consider the same actions.

3. Expect New People: Existing appointees, such as GSA Administrator Robin Carnahan and de facto OFPP Administrator Christine Harada will be leaving their posts between now and January 20^th. Thousands of other appointees, including most civilian DOD officials and even some CIO’s, will be joining them.  A new team, with the priorities of the new administration, will be coming in.  While some of these positions took a while to be filled in the first Trump Administration, companies can expect to see at least some new appointees on the job on day one.  Getting to know these people and their missions will be important.

4. Expect Rules to Change: The Biden Administration’s use of the federal acquisition system to address socio-economic and other goals will now largely come to a halt.  This could mean an end to new Greenhouse Gas, sustainable acquisition, and related rule makings.  Recently implemented rules in this area may also be repealed or halted.  President Trump, however, may want to use the acquisition system for other purposes, such as national security and Buy American  Similarly, the President may also elect to bring back his first administrations “two-for-one” practice, requiring the removal of two rules for the implementation of every new one.  Watch this space.

5. Expect Career Federal Workers To Be On Edge: President Trump often went after the federal bureaucracy during the campaign and, during his first term, proposed a “Schedule F” for some federal workers that would essentially make them “at will” employees and not subject to federal workforce protections.  Although the Office of Personnel Management has since made establishing a “Schedule F” more difficult, career workers are still concerned that anyone not deemed “loyal” enough to the President and his policies could be fired or reassigned.  On top of this concern, the President has also said that he wants to try again to decentralize the federal workforce by moving more jobs out of Washington, D.C.  This all matters to federal contractors because it creates stress and uncertainty among those they’re trying to work with.  People concerned about their jobs and families may not be as focused on mission fulfillment.  This could definitely slow the pace of both business and operations actions.

GSA sought comments earlier this year from government and industry on how to improve the use of GSA Schedule Contractor Teaming Agreements (CTA’s).  The agency received multiple responses and issued updated guidance late last week.  The guidance discusses the difference between contract-level and task order level CTA’s.  While most contractors may think of these agreements in terms of task order level arrangements, GSA points out that companies can come together to form a team for the purpose of obtaining a unified Schedule contract.   GSA Read more