Well, that was more interesting than it needed to be.  Congress finally passed a CR that will keep the government open through March 14^th and then left Washington for the holiday break.  While December winds down, though, here are three things contractors can expect to see that will shape their markets and business approaches.

1. A New Congress With New Priorities: The 119^th Congress arrives in Washington in early January.  While both chambers will be Republican-controlled, margins in the House will make passing anything of substance difficult.  New committee chairs will also come into power with their own legislative and oversight agendas.  Contractors should definitely be prepared to have the government acquisition market come under scrutiny, both as part of DOGE-related cost cutting initiatives and for increased attention on fraud, waste, and abuse.

2. New Political Appointees Will Begin To Arrive: As of January 20^th a host of new political appointees will take up positions in the executive branch.  While some high-profile positions require Senate confirmation, many more do not.  Contractors should get familiar with the new faces and their priorities as soon as possible.  Being proactive on how you can help and showcasing the value you bring to government missions are essential actions.  Never assume that people “know” what you do for them if you haven’t told them lately.

3. Expect Disruptions to Business: Whether because of delayed FY’25 appropriations, the time it takes new leaders to get up to speed, or the impact of new policies on government business, contractors should expect speed bumps.  While some of these may be mitigated by proactive messaging, companies should proceed with caution as some programs supported by the outgoing administration will almost certainly not be supported or continued by new leaders.

Proceed with caution until you know what this means for your specific business.  Contractors can look forward to at least two types of “March Madness” only two months later as action heats up on both the college basketball season and 2025 appropriations.  Happy New Year indeed.