In addition to delays in appropriations contractors can also expect uncertainty from now until at least the January 20th presidential inauguration. Multiple factors are contributing to the haze. One is the FY’25 Defense Authorization Act. That bill is expected to pass prior to the end of the calendar year, but what types of acquisition riders will be attached to it is still unknown. Several bills streamlining procurement or requiring less duplication in software acquisitions have made significant progress and could end up being attached to the NDAA. What this means for contractors depends on which provisions make it. Second is the impact of increased Read more
The Federal Acquisition Regulation (FAR) Council issued a Proposed Rule November 29th that would increase the Micro Purchase Threshold (MPT) to $15,000 and the common Simplified Acquisition Threshold (SAT) to $350,000. The intent of the rule is to have dollar thresholds reflect increases in inflation and enable government buyers to continue taking advantage of streamlined acquisition methods where possible. At the same time, however, Congress may include provisions in the FY’25 Defense Authorization Act that increase the MPT to $25,000 and the SAT to $500,000. While each of these would be a more meaningful increase, it is good to Read more
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.