Summer 2025 Service Contractor Magazine

15 Staying Compliant to Stay Competitive:

SUMMER SHAKE-UP: FEDERAL CONTRACTING TRENDS AND HOW TO RESPOND

Cover photo: adobestock.com/Rao Shafiq

PSC STAFF

James Carroll CEO carroll@pscouncil.org

Stephanie S. Kostro President kostro@pscouncil.org

Tim Brennan Vice President, Technology Policy and Government Relations brennan@pscouncil.org

Paul Foldi Vice President, International Development foldi@pscouncil.org

Steve Harris Vice President, Defense and Intelligence harris@pscouncil.org

Cassie Katz Vice President, Marketing and Communications katz@pscouncil.org

Andrea Ostrander Vice President, Events ostrander@pscouncil.org

Krista Sweet Vice President, Civilian Agencies ksweet@pscouncil.org

Donald Baumgart Director, Vision Federal Market Forecast baumgart@pscouncil.org

Sebastian Herrick Director, Procurement Policy herrick@pscouncil.org

Melissa Phillips, CMP Director, Operations phillips@pscouncil.org

Tomeka B. Scales, Ph.D. Director, Media Engagement & Communications scales@pscouncil.org

Jean Tarascio Director, Member Relations tarascio@pscouncil.org

Janet Jackson Executive Assistant jackson@pscouncil.org

Christian Larsen Director, Emerging Technologies larsen@pscouncil.org

Cierra “Cici” Earl Program Associate, Research Operations earl@pscouncil.org

Alex Fish Sponsorship Associate fish@pscouncil.org

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Gisell Lopez Event Marketing Associate lopez@pscouncil.org

Anna Nestler Marketing Communications Associate nestler@pscouncil.org

Marin Selig Senior Associate, Events selig@pscouncil.org

Luke Shannon Research & Analysis Associate shannon@pscouncil.org

Naomi Coleman Marketing Intern coleman@pscouncil.org

ICEO’S LETTER

t has been a productive few months since I assumed the role of CEO at PSC and I’m excited to share my first update with you in Service Contractor

Throughout my 30-year career—across senior roles in both government and industry, including as Director of the Office of National Drug Control Policy, White House Principal Deputy Chief of Staff, and General Counsel at OMB—I’ve seen firsthand the immense value contractors bring to our country and the American taxpayer. That perspective fuels my commitment every day to advancing the mission of PSC: to provide cutting-edge solutions and services to the government.

Since joining PSC, I’ve been deeply engaged with our team and members to drive results. I’m proud to report that our momentum is strong. Since the last issue of this publication, 22 new companies have joined our growing community.

I’d like to personally welcome the new members, who are spotlighted on page 7.

Members can connect via our PSC Member Directory1—a powerful tool for searching a company’s government customers, business classifications, and more to facilitate new connections and one-on-one interactions.

Our advocacy efforts are also accelerating. On Capitol Hill and across federal agencies, PSC is making members’ voices heard. Turn to page 38 for a snapshot of recent high-impact engagements, including:

• Meeting with Rep. Mike Rogers (Chairman) and Rep. Adam Smith (Ranking Member), of the House Armed Services Committee, to discuss SPEED Act Acquisition Reform.

• Meeting with Sen. Jack Reed, Ranking Member of the Armed Services Committee, to discuss DoD efficiency and emerging technology.

• Welcoming Jacob Helberg, the nominee for Under Secretary of State for Economic Growth.

• Organizing a meeting with the White House Counsel’s Office with representatives from a dozen member companies to discuss key priorities and how federal contractors can best serve our government.

• Meeting with the senior staff at the Department of Transportation and the Department of Defense for upcoming PSC Member briefings with their leadership.

And we’re seeing the good news stories of contractors amplified throughout Washington. In President Trump praised the important role contractors in a July 8 cabinet meeting. Sen. Angus King emphasized the importance of modern federal procurement models and multiyear contracting to the DoD in a Senate Armed Services Committee Hearing to Consider Pending Nominations on June 26. Rep. Robert Aderholt (Alabama-4) also publicly recognized PSC when he announced his new bipartisan Accelerate Revenue for Manufacturing and Sales (ARMS) Act, which will expedite delivery of new defense capabilities.

Beyond policy, PSC remains committed to the broader wellbeing of our community. In partnership with the nonprofit Facing Fentanyl, we are raising awareness about the opioid crisis affecting too many families across America. I was included in a small dinner with White House officials working on this issue along with a group of parents who have lost a child to the scourge of illicit drugs in our community. On August 21, I’ll participate in a national event in Times Square, where I’ll be recognizing PSC member companies that contribute $250 or more to this vital cause. Your support matters—and I thank you in advance for considering it. Learn more at pscouncil.org/FacingFentanyl.

Thank you for being part of PSC and encouraging other companies to join. PSC is shaping public policy, leading strategic coalitions, and establishing communications between government and industry—all with a focus on best outcomes and results for the government and the American taxpayers. Together, we are building the future of federal contracting.

Sincerely,

James Carroll, CEO Professional Services Council

WPRESIDENT’S LETTER

elcome to the Summer 2025 edition of Service Contractor magazine. Summer started with Congress avoiding a government shutdown by passing the Full-Year Continuing Appropriations and Extensions Act of 2025 (CR). Though PSC has historically advocated for enactment of fullyear appropriations bills and highlighted the many challenges associated with a full-year CR, enactment of this bill means that all agencies have appropriated funds for the remainder of the fiscal year. This CR also provides for some new programs (anomalies) that are not typically allowed in a continuing resolution.

Passage of that bill also means that the Administration can finalize and submit to Congress the President’s Budget Request for Fiscal Year 2026. Submission of this request will offer valuable insights into the Administration’s policy, program, and project priorities, allowing contractors to anticipate better where budget proposals might lead to future contract opportunities.

Check out our regular feature “What to Watch in Washington,” on page 32 to gauge when to expect further details on the president’s budget and Congress’s next steps.

PSC Advocacy

PSC maintains ongoing engagement with Congress on legislative developments. To stay informed about key bills, refer to the PSC Bill Tracker on page 34.

Another key PSC advocacy function is to develop and submit written comments on proposed regulations and policies impacting our industry. Since the last edition, PSC comments have included:

•OMB Request for Information: Deregulation [90 F.R. 15481]

•DoD CIO Software Fast Track (SWFT) Tools

•DoD CIO Software Fast Track (SWFT) External Assessment Methodologies

•DoD CIO Software Fast Track (SWFT) Automation & Artificial Intelligence (AI)

•NSF RFI re: 2025 National AI R&D Strategic Plan

In addition to written comments, PSC has also engaged frequently with executive branch agencies, including focused efforts to build stronger relationships among key government and industry officials. Such connections are leading to candid exchanges of ideas, actionable recommendations, and notable improvements on a range of contracting issues. We will continue to represent your interests in these forums—bringing you along when we can— with an eye toward better outcomes for government missions and industrial base vitality.

Events

We look forward to welcoming all PSC members to our Defense Conference on October 30, 2025. Attendees can expect a robust

agenda and ample networking opportunities. Learn more about our events at pscouncil.org/events

Members Only

• Track developments and offer suggestions related to the government’s revisions to the Federal Acquisition Regulations at the PSC Revolutionary FAR Overhaul Action Center (pscouncil.org/far).

• Find relevant Executive Orders and associated guidance documents at the PSC Post-Election Resource Center (pscouncil.org/postelection).

• Visit the Member Engagement Resource Center for information on member benefits and ways to get connected.

New Features

PSC has added two new features: (1) a Congressional Calendar to track when Congress is in session on page 33 and (2) a Lawsuit Tracker, compiled to present high-impact legal cases affecting federal contractors on page 37.

Federal Contracting Spotlights

PSC consistently promotes success stories in the government contracting industry. These stories highlight the value of contractors by showcasing the important work they do.

Articles

Service Contractor magazine has long served as a platform for thought leadership in our industry, and this issue delivers a wealth of timely and insightful content. Featured authors include Jacob Borgeson of Unanet Eric Poppe of Aprio; Chris Gilley of Amentum; Mikhail Grinberg and Emma Kinnucan of Renaissance Strategic Advisors; Steven A. Casazza and Chanel Miller of Defense Trade Solutions; Kathy Stershic of GovBoost, a W2 Communications Business; Dave Archibald, formerly of the Health Resources and Services Administration; Jennipher Rosecrans of Morgan Business Consulting, LLC; Sebastian Herrick of PSC; and Paul Foldi of PSC.

As the federal landscape shifts through executive actions, regulatory overhauls, and evolving agency priorities, PSC remains focused on equipping contractors with the insights, tools, and advocacy they need to succeed.

We welcome your input, feedback, and engagement in our efforts. Thank you for your continued support of PSC and our collective mission to help the government be a smarter customer and better buyer.

Stephanie Sanok Kostro, President

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Navigating Change: AI, Strategy, and Relationships for GovCon Growth

by Jacob Borgeson, Senior Product Marketing Director of Government Contracting, Unanet

While the government contracting world has generally experienced stable growth for decades, this year has brought rapid shifts and growing uncertainty. In Unanet and CohnReznick’s 9th annual GAUGE report1—featuring benchmarks and trends from a survey of over 1,200 government contractors across the spectrum—respondents remain optimistic about the future. However, for the first time ever, political uncertainty ranks as their top concern.

For more insights from the report and how they can be leveraged to drive your growth strategy, read more below.

Although this period feels different, it is not the first time government contracting has undergone rapid change—not even the first time this decade. Dynamic markets present real, existential challenges as we have already seen. They also present incredible opportunities for growth.

By staying agile and leveraging strategies to strengthen relationships with government officials—while proactively adjusting to new opportunities—contractors can stay competitive and thrive, even in uncertain times.

1. Stay Agile by Refining Your Business Development Strategy

Rapid changes in government policies and priorities mean that being able to pivot quickly is vital. Here’s how:

• Monitor procurement trends regularly: Areas like IT modernization and cybersecurity often see consistent investment, even amid broader cutbacks. Artificial Intelligence (AI)-backed market intelligence tools that summarize vast amounts of government data and learn your search patterns can help ensure you don’t miss any valuable opportunities.

• Focus on quality over quantity in opportunities: Prioritize contracts that align with your company’s strengths and capabilities. Use AI to evaluate which request for proposals (RFPs) or request for quotation (RFQs) are worth pursuing based on your past performance. Tools like GovIntel can also analyze past teaming performance and competitive trends to help inform better decisions and stronger proposals.

• Prepare for fourth-quarter competition: The federal fiscal year often ends with a surge of RFPs. Start planning now to ensure your proposal teams are ready for a high-volume, competitive season. AI-powered proposal generators can turn market intel and past performance data into high quality Pink-team drafts in hours instead of weeks.2 Agility isn’t just about reacting—it’s about anticipating and planning changes ahead.

2. Build and Maintain Strong Relationships with Government Officials

In government contracting, trust and relationships are everything. Strengthening your connections with government procurement decision-makers helps you stand out and gets you involved in the right opportunities as early as possible.

• Showcase your value to agencies: Attend agency-hosted events, webinars, and matchmaking sessions. Use these interactions to learn about their challenges and position your company as a solutions provider. Ask questions about where they are struggling, and offer support where you can to build trust.

• Collaborate with small business offices: Federal agencies often have Offices of Small Business Programs and other initiatives designed to help contractors grow and meet specialized contract needs. Reach out to these offices, as they play a key role in identifying contract opportunities for small firms. At the very least, they can help connect you with key personnel involved in contract development who may be able to assist in other ways.

• Leverage former government personnel: Hiring former agency employees brings valuable institutional knowledge and insight into procurement processes and decision-making. With many experienced individuals transitioning out of government roles, now is a great time to recruit this expertise.

By building authentic one-on-one connections, you’re not just building relationships; you’re also increasing your chances of winning contracts when opportunities arise.

3. Seize New Opportunities Through Intelligent Positioning

Shifting government budgets may result in some program cuts, but they also introduce new areas of funding. The key is identifying and adapting to these emerging opportunities.

• Pivot to high-priority areas: If programs like workforce training or DEI initiatives face cutbacks, consider pivoting to adjacent areas such as regulatory compliance, project management, or data integration.

• Harness AI-driven insights: Predictive analytics can identify market trends and emerging funding opportunities. Platforms like Unanet can help contractors align their services with what agencies need most in real time.

• Prepare for increased staffing contracts: Workforce transitions in federal agencies—such as early retirements— often lead to staffing shortages. Contractors can step in with program management, administrative support, and operational continuity.

Pair agility with proactive positioning to discover new growth paths in times of transition.

4. Make AI Your Competitive Advantage

The increasing complexity of federal contracts and rising competition makes efficiency crucial. AI tools designed for government contracting are becoming a necessity, not a luxury. According to the GAUGE Report, adoption of AI has been increasing, but still lags behind most other industries.

The increasing complexity of federal contracts and rising competition make efficiency crucial. AI tools designed for government contracting are becoming a necessity, not a luxury.

Specifically, GovCons see the highest potential impact from AI in content generation (e.g., proposals) and data analysis.

Here’s how AI can support your agility and growth:

• Boost proposal efficiency2: Automate compliance checks and generate high-quality proposal drafts quickly, freeing up resources for strategic refinement.

• Leverage past performance: Use AI to analyze historical contract wins and optimize your value proposition in proposals.

• Enhance forecasting: Predict emerging opportunities and align your resources accordingly.

AI, combined with ERP, CRM, and market intelligence, accelerates decision-making, improves win rates, and keeps you ahead of the curve.

5. Act Now to Turn Challenges into Opportunities

Here are actionable steps your team can take today:

• Evaluate AI tools and modernize your proposal process before peak season hits.

• Track federal spending changes and continuously monitor adjacent markets for new opportunities.

• Develop an engagement plan to strengthen relationships with key government stakeholders.

• Leverage workforce changes by recruiting skilled former agency professionals with insider knowledge.

By adopting a proactive and agile mindset, you can turn shifting priorities and budgets into a springboard for long-term success in the government contracting space. 3

1 https://www.indeed.com/career-advice/career-development/how-to-transition-from-remote-to-onsite-work

2 https://www.indeed.com/career-advice/career-development/stressed-about-work

Summer Shake-Up: Federal Contracting Trends and How to Respond

by Eric Poppe, Partner—Government Contracting, Aprio

As federal contractors face the realities of a new administration, navigating shifting priorities, evolving procurement methods, and a dynamic budget environment has never been more complex—or more critical. From the renewed emphasis on commercial acquisition strategies and the deployment of artificial intelligence (AI) tools to the longanticipated rollout of FAR 2.0 and the Revolutionary FAR Overhaul, the federal contracting environment is undergoing substantial transformation. To stay competitive, contractors must remain agile and responsive on multiple fronts.

Agility begins with strategic realignment. Contractors must quickly assess and adjust their service offerings in line with changing agency priorities and ensure they are equipped with the appropriate procurement vehicles. At the same time, maintaining robust forecasting and financial management capabilities is essential to optimize cost recovery, preserve margins, and meet compliance expectations—all while positioning to win future business.

Understanding the Shifting Landscape

With each administration comes a reorientation of federal spending priorities. In recent months, changes have occurred at a rapid pace. Federal investments are being recalibrated. The administration has shifted spending from civilian agencies, moved away from DEI initiatives and renewable contracts, and reevaluated the applicability of consulting and IT contracts while elevating priorities in areas such as national security, cybersecurity, and modernization. Additionally, agencies are increasingly being encouraged to utilize GSA Multiple Award Schedules (MAS) and commercially focused acquisition strategies.

To succeed in this evolving environment, contractors should focus on the following key priorities:

• Follow the Funding – Stay informed on the President’s Budget Request and its implications.

• Track Congressional Appropriations – Understand where final budget decisions are made and how they may shift.

• Engage with Industry Events – Gain insights into agency strategies and evolving procurement trends.

• Diversify Your Customer Portfolio – Reassess your strategic footprint across federal agencies.

• Evaluate Organizational Readiness – Ensure your business can quickly adapt to policy and funding changes.

• Assess Systems Agility – Make certain your infrastructure and platforms support responsive action.

Aligning with Procurement Shifts

As agencies refine their acquisition strategies, contractors must understand preferred buying mechanisms. Several recent Executive Orders emphasize the use of commercial pathways and streamlined processes, including:

• EO 14271 – Ensuring Commercial, Cost-Effective Solutions in Federal Contracts

• EO 14275 – Restoring Common Sense to Federal Procurement

Having access to the right contract vehicles minimizes delays when funding becomes available and increases your ability to act on opportunities. If your firm is not currently aligned with relevant vehicles, begin the acquisition process now.

• EO 14240 – Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement

These directives reinforce a broader shift toward commercially driven acquisitions, including GSA MAS, Other Transaction Agreements (OTAs), and similar vehicles. To remain competitive, contractors should consider the following:

• Leverage IDIQs and GWACs – Indefinite Delivery/ Indefinite Quantity contracts and Government-Wide Acquisition Contracts enable faster, more flexible responses to task orders.

• Maintain GSA Schedule Readiness – Ensure your schedule contracts are up to date, and allow time for processing updates.

• Adapt Pricing and Offerings – Adjust pricing structures and line items to reflect agency priorities.

• Explore Subcontracting and Joint Ventures – Partner with firms already positioned under key contract vehicles to maintain momentum.

• Monitor Emerging Vehicles – Stay informed about new or revised agency-specific and government-wide contract opportunities.

Having access to the right contract vehicles minimizes delays when funding becomes available and increases your ability to act on opportunities. If your firm is not currently aligned with relevant vehicles, begin the acquisition process now. Given current demand and reduced federal processing capacity, timelines can be lengthy—this is a multi-month process.

Strengthening Financial and Operational Agility

With evolving procurement methods, budgeting and forecasting must also be aligned to reflect the new reality. Contractors should:

• Update Revenue Forecasts – Incorporate new funding streams and anticipate how changing priorities may impact revenue.

• Plan for Volatility – Maintain flexibility in budgeting and develop contingency plans to mitigate mid-year funding shifts.

• Invest Strategically – Prioritize growth areas based on current and projected demand.

• Account for Indirect Cost Impacts – Understand how funding adjustments affect overhead, rates, and cost recovery.

• Track Contract Modifications – Stay proactive in responding to evolving agency requirements.

A sound financial strategy will enable contractors to manage uncertainty, preserve cash flow, and allocate resources where they are most effective. This is also a timely opportunity to review your back-office functions and consider outsourcing where efficiencies can be gained.

Ensuring Compliance in Proposal Season

As the government fiscal year-end and proposal season approach, contractors must ensure there are no compliance issues that could derail proposal efforts or contract awards. Regulatory compliance remains non-negotiable and is foundational to successful federal contracting.

Stay current with updates to FAR 2.0 and the Revolutionary FAR Overhaul. While some requirements are being simplified, the emphasis on supplemental guidance and enforcement is increasing. Understanding these shifts is vital to submitting responsive, compliant proposals that avoid scoring penalties or disqualification.

Key compliance considerations include:

• CMMC Readiness – The Cybersecurity Maturity Model Certification is a growing priority, especially for contractors engaging with DoD.

• Accounting System Adequacy – Ensure your system meets SF1408-Preaward Survey of Prospective Contractors (Accounting System) criteria and is DCAA audit-ready.

• Estimating Systems – Align with DFARS 252.215-7002 requirements.

• Purchasing Systems – Comply with DFARS 252.2447001 and relevant DCMA guidance.

• Government Property Management – Adhere to DFARS 252.245-7003 and FAR 52.245-1.

Final Thoughts

Successfully navigating the months ahead will require federal contractors to remain nimble, informed, and strategic. From aligning to evolving budget priorities and securing the right procurement instruments to maintaining rigorous compliance and refining financial forecasts—those who embrace agility will be best positioned to lead through the transition and gain a competitive advantage. 3

To learn how Aprio is helping contractors nationwide prepare for shifts in federal contracting, visit aprio.com/government-contractingcompliance or contact Eric Poppe directly at eric.poppe@aprio.com.

Staying Compliant to Stay Competitive: Navigating New Regulations in Federal Contracting

by Chris Gilley Vice President of Government Finance & Compliance, Amentum

In today’s federal contracting environment, compliance has evolved far beyond a back-office function. It has become a strategic partner in navigating a landscape transformed by executive orders, regulatory updates, and operational shifts within oversight agencies. Government contractors are facing heightened scrutiny, evolving rules of engagement, and unexpected changes in their long-standing compliance relationships. To remain competitive—and protect revenue, profit margins, and business development pipelines—contractors must prioritize a proactive, integrated compliance strategy.

Executive Orders Reshaping the Landscape

A series of recent Executive Orders under the current administration have created significant ripple effects throughout the federal contracting community. From labor policy reversals and procurement reform to artificial intelligence (AI) advancement initiatives and oversight realignments, these directives are fundamentally reshaping the regulatory environment in which government contractors operate. Each of these changes carries both compliance obligations and competitive implications, requiring contractors to remain agile, informed, and proactive in aligning business strategies with evolving federal expectations. Notably:

• Restoring Common Sense to Federal Procurement: Executive Order 14275 initiates a sweeping overhaul of the Federal Acquisition Regulation (FAR), targeting the simplification and streamlining of federal procurement processes. By eliminating outdated, duplicative, and unnecessary regulations, this order aims to reduce compliance burdens that have historically slowed contract awards and increased costs. This directive coincides with the ongoing FAR rewrite, which promises comprehensive updates across critical areas including cybersecurity requirements, labor standards, and supply chain risk

Those who treat compliance as a strategic partner will avoid harmful oversight but will outmaneuver competitors still treating it as a paperwork exercise.

management. Together, these reforms demand that contractors remain vigilant and agile, proactively adjusting their compliance frameworks and internal controls. Staying ahead of these regulatory changes is not only essential for mitigating risk and avoiding costly compliance violations but also offers a strategic advantage that can improve competitive positioning. Contractors who effectively integrate these new requirements into their business development and operational strategies will enhance their ability to win contracts and sustain profitable growth in an increasingly complex federal marketplace.

• Rescission of Labor Mandates: Executive Order 14236 rescinds several prior labor-related directives, including the Biden-era Executive Order 14026, which had raised minimum wages for federal contractors. This rollback significantly impacts contractor labor cost structures and compliance obligations, requiring companies to carefully reassess and realign their wage policies, subcontractor relationships, and workforce management strategies. Navigating these changes is critical for contractors aiming to maintain pricing competitiveness while ensuring compliance with evolving labor standards. By proactively updating their compensation frameworks and employee classification practices, contractors can better control costs, avoid labor disputes, and position themselves favorably in competitive procurements where labor expenses weigh heavily on proposal evaluations.

• Ensuring Commercial, Cost-Effective Solutions in Federal Contracts: Executive Order 14271 reinforces the government’s preference for commercially available products and services, aligning with the Federal Acquisition Streamlining Act (FASA). It directs agencies to review all open solicitations for non-commercial requirements within 60 days and submit detailed applications justifying any deviation—complete with market research and price analysis. Approval authorities then must act within 30 days, advancing only those procurements that are truly non-commercial. For contractors, this means enhanced opportunity if your offerings qualify as commercial but added barriers and documentation if they don’t. Proactively demonstrating that your products or services meet commercial standards—along with solid market and pricing data— can give you a commerciality win that becomes a key competitive differentiator while avoiding delays and unnecessary agency scrutiny.

• Removing Barriers to American Leadership in Artificial Intelligence: Executive Order 14179 prioritizes the advancement of artificial intelligence innovation by removing previous policies viewed as ideological constraints on AI development and deployment. For contractors delivering AIenabled solutions, this shift introduces evolving compliance expectations around data privacy, ethical AI use, and transparency in supply chains. Meeting these requirements demands comprehensive AI governance frameworks, including risk management, ethical guidelines, and verification processes that align with national competitiveness and security priorities. Contractors who anticipate and integrate these compliance elements into their operations will be better positioned to respond to government solicitations that increasingly emphasize trustworthy and responsible AI practices, creating a distinct market advantage.

Compliance as a Strategic Business Partner

In this dynamic environment, the smartest contractors are repositioning compliance as a business enabler—not a business obstacle. A well-integrated compliance team doesn’t just enforce the rules; it actively partners with business development, program operations, and finance to:

• Identify regulatory risks early in capture efforts

• Shape proposals to avoid disqualifiers or post-award pitfalls

• Advocate for realistic pricing, schedules, and deliverables

• Proactively manage audits and agency relationships

• Safeguard profitability and prevent revenue disruption

When compliance functions are siloed or reactive, the company risks noncompliance penalties, delayed contract starts, or profit-eroding corrective actions. But when compliance sits at the table with business development, pricing, and program leadership, it becomes a competitive advantage—ensuring proposals are both aggressive and executable.

Conclusion

Federal contractors are operating in one of the most active regulatory environments in recent history. Executive Orders, regulatory rewrites, and agency personnel shifts require a compliance function that’s agile, forward-thinking, and integrated with business strategy. Those who treat compliance as a strategic partner will avoid harmful oversight but will outmaneuver competitors still treating it as a paperwork exercise. In this new era, staying compliant is staying competitive. 3

Reform, Realignment, and Opportunity in the Resilient Federal Civilian Services Market

by Emma Kinnucan, Principal and Mikhail Grinberg, Senior Partner, Renaissance Strategic Advisors

President Trump returned to Washington for his second term intent on making the federal government more streamlined, transparent, and accountable. The resulting set of executive orders and proposed budget cuts has startled even the most experienced government leaders. Federal civilian agencies are facing significant challenges, including reductions in force (RIF), contract terminations, and the broad elimination of long-term missions.

New leadership will continue to circumscribe civilian departments and put pressure on contractors. Yet many critical missions—and the professional services firms that support them—will persist. In fact, history suggests that new requirements for these agencies are certain to emerge. Within these resilient missions, reform efforts will reshape the playing field, shifting the mix of capabilities, technologies, and acquisition approaches that customers demand.

Periods of dramatic change invariably provide new avenues for growth. This is a time to stay engaged and adapt boldly to support the agencies that depend on the services industry.

The Expansion of the Federal Civilian Market

Efforts to curtail non-defense discretionary spending are not new. The inflation-adjusted discretionary budget authority of federal civilian agencies has doubled over the past 40 years, from approximately $400 billion in the early 1980’s to more than $800 billion in 2024. Citing responsibility to taxpayers, both Democrats and Republicans have periodically introduced sweeping plans to shrink government.

Promises for reductions, however, typically lead to selective contraction and volatility in some missions, outstripped by growth in others, as shown in Figure 1

Figure 1

President Ronald Reagan, a stalwart budget hawk, oversaw significant funding reductions for many domestic programs. Yet public pressure and his own policy agenda ultimately led him to increase discretionary non-defense spending to support Vietnam and World War II veterans, implement immigration legislation, and respond to the HIV/AIDS crisis.

President Bill Clinton came into office promising to “reinvent government” by dramatically reducing the size of the federal workforce. He cut more than 300,000 federal positions, but the desire to improve the nation’s schools, respond to the crime wave of the 1990’s, and modernize infrastructure drove the growth of the Departments of Education, Justice, and Transportation. Federal civilian spending expanded in key missions even after the bipartisan Congress introduced sequestration. Veterans required medical care, disaster victims required relief, and agencies needed protection from cyberattacks.

Policy, legislation, and crises will continue to contribute to the resilience of many parts of the federal civilian market, which grows in step with the needs of our evolving democracy. Non-defense discretionary spending has held steadfastly at 3% to 4% of gross domestic product (GDP) since the 1980s, as shown in Figure 2, suggesting a proportionality that may be inherent.

An Enduring Requirement for Outside Support

Where desire to streamline government intersects with growth in requirements, contractors fill the gaps. Under Reagan, agencies outsourced many administrative functions to contractors, spurring firms’ transition from merely supporting agency missions to executing them end to end. During the height of the Clinton administration’s reinvention of government in the mid-1990’s, payroll for federal employees decreased by 1% while spending on contracts with private companies rose by nearly 4%.

Beneath flat or declining toplines, new and expanded contractor requirements remain a consistent theme. Despite what the stock market might suggest, contraction for today’s federal civilian

services firms is far from guaranteed. Short-term losses can be offset by tracking the administration’s priorities, finding islands of bipartisan agreement, and applying relevant capabilities.

This adaptation will need to take place in an environment of enhanced scrutiny.

Spotlight on Contractors

Previous administrations touted private sector partners as an efficient and cost-effective alternative to the federal civilian bureaucracy. The current questioning of consulting and services firms reflects a culmination of increasing skepticism of this concept.

Wary of waste amid a contracting boom in the 1990’s, the Clinton administration promoted performance-based contracting to tie payment to outcomes. Under Presidents George W. Bush and Barack Obama, the Commission on Wartime Contracting identified $30 billion in fraud, waste, and abuse in contracts supporting work in Iraq and Afghanistan. Problems in the initial rollout of Healthcare.gov after the passage of the Affordable Care Act (ACA) intensified perceptions that the federal government was ineffective at managing its contractors.

Countless Government Accountability Office (GAO) reports, Offices of Inspector General (OIG), and congressional hearings over the past decade have spotlighted perceived failures in contractor performance.

The Trump administration’s approach to the government services industry has been more direct and impetuous than that of its predecessors. However, criticisms of real or perceived inefficiencies in contracting are not new.

Looking to the Future: Strategies for Growth in an Evolving Market

Growing in step with federal civilian agency missions will demand more from contractors than ever before. Earning trust will require delivering demonstrable value, measurable outcomes, and operational efficiency. With intensified scrutiny on contractor

2

Figure

performance and accountability, the mandate is clear: incumbency, capacity, and good marketing are not enough.

We are entering a period that will prioritize differentiation in professional services—measured by technology execution and business model flexibility.

Under Trump, IT is viewed primarily as a force multiplier for streamlining operations, increasing transparency, and enhancing accountability. Agencies will prioritize investments that provide cost savings through automation, ensure program integrity through data analytics, and build trust and security through cybersecurity, surveillance, and monitoring tools. As outsourced shared services replace in-house administrative teams across the federal civilian market over the next 12 to 18 months, firms that can deliver these capabilities will be well positioned for opportunities.

They can also expect demand for their services to directly support missions in border and immigration, financial enforcement and fraud detection, and public safety and threat monitoring.

Contractors must also substantially increase focus on how they are quantifying and communicating outcomes to customers and oversight bodies. With more procurement consolidated under the General Services Administration (GSA), the government’s negotiating power will increase.

Fewer vehicles and contracting offices will result in more competition for a smaller set of larger opportunities. In a performance-based environment, companies must design delivery models that make outcomes inevitable. Capabilities, metrics, and incentives must align to the mission, not just the terms of the contract. Figure 3 illustrates how professional services firms must adapt to meet the needs of a changing federal customer. Disruption tests commitment. Many in the federal civilian services industry are standing by, waiting cautiously for conditions to stabilize. But building strategy now will pay dividends. By embracing shared objectives such as efficiency, scalability, and enhanced service delivery, leading contractors in this new era in Washington will not only stay relevant but will also shape demand and grow with the essential missions they support. 3

About

Emma Kinnucan leads the firm’s Healthcare practice, where she supports strategic and financial sponsor clients on their growth and corporate development initiatives. Mikhail Grinberg leads the firm’s government services practice area and overall growth initiatives. He advises corporate and private equity clients on strategy and M&A due diligence across a breadth of industry segments.

Diversifying Defense Sales with Export Compliance Strategy

by Steven A. Casazza, President and Chanel Miller, Director, Defense Trade Solutions

The federal services industry is no stranger to transition. But as we move deeper into the 2025 fiscal year under a shifting U.S. administration, defense contractors are navigating more turbulence than usual. For U.S. government services firms, especially those in the defense sector, staying resilient means rethinking how and where business is conducted.

Budget Realignment: The Catalyst for Diversification

The Department of Defense (DoD) is undergoing a significant 8% year-over-year budget realignment. This reshuffling presents challenges for firms traditionally reliant on steady domestic contract vehicles. Reduced predictability in DoD spending is pushing many U.S. companies to diversify into Foreign Military Sales (FMS) and Direct Commercial Sales (DCS).

However, this pivot is not without risk. DCS introduce a more complex environment for U.S. exporters. Unlike FMS, where the U.S. government manages many aspects of the transfer, DCS places greater responsibility on companies to ensure compliance with all export control regulations. This includes complying with the International Traffic in Arms Regulations (ITAR), restrictions under the Missile Technology Control Regime (MTCR), and U.S. government policies governing how sensitive technologies can be shared with foreign partners, often referred to as Technology Security and Foreign Disclosure (TSFD). For companies that have invested in export compliance programs, navigating these complexities can become a significant strategic advantage for their international defense sales, resulting in greater market access, streamlined operations, and faster sales cycle timelines.

Security Cooperation Cuts Fueling DCS Growth

Additionally, reductions in U.S. Security Cooperation funding—which traditionally supports partner nations’ defense purchases and U.S. advisory personnel—are prompting many foreign buyers to move away from the government-managed FMS system. Under FMS, the U.S. government serves as the intermediary in defense transactions, assuring compliance, logistics, and sustainment support. In today’s environment, buyers are increasingly turning to DCS, where they contract directly with U.S. companies and fund the purchases with

their national budgets. DCS is well-known within the defense industry and with international customers as a faster process overall, but it comes with a significant “cost to entry” for U.S. international defense contractors in the areas of risk management and compliance infrastructure.

As a result, there is growing demand for U.S. companies that can navigate the complexities of international defense sales, including but not limited to, export strategy and licensing, compliance infrastructure requirements, and the creative structuring of export authorizations for agile and comprehensive trade. Government services contractors with expertise in this evolving space have a unique opportunity to bridge gaps, supporting both U.S. exporters/contractors and their international partners in executing timely, secure, and compliant defense sales.

European Reliance and Global Reprioritization

Recent U.S. defense trade reports and international security analyses indicate that while European nations are investing heavily in rebuilding and modernizing their own defense industries—especially in the wake of the Ukraine conflict—they remain reliant in the near term on U.S. technologies, platforms,

and sustainment support. This reliance presents strategic opportunities for U.S. firms through joint ventures, industrial partnerships, and foreign subsidiaries that align with NATO priorities while reinforcing transatlantic ties.

Similarly, U.S. defense contractors are increasingly looking beyond Europe to pursue growth in strategically complex but high-potential markets such as the Middle East, Africa, and the Indo-Pacific. These regions offer expanding demand for advanced defense capabilities, but also bring heightened political sensitivities, varying degrees of regulatory maturity, and greater scrutiny of export authorizations. For firms that can navigate this complexity, these markets represent not just risk, but compelling opportunities to lead.

Export Complexity and Enforcement on the Rise

Export authorization and compliance complexity are escalating due to ongoing reforms of the FMS process, ITAR, TSFD, and MTCR policies. Whether through new requirements for “differential capability” exports or enhanced scrutiny over third-party transfers, these changes require U.S. firms to deepen their technical and operational readiness for international business.

Compounding the challenge, the renewed Trump administration has signaled stronger export control enforcement, with growing alignment in Congress to penalize export violations and streamline foreign arms sales to benefit U.S. industry. This alignment provides a window of opportunity, but one that demands diligence, agility, and sophisticated program design.

The Rise of Multinational Operating Models

In this evolving landscape, many U.S. defense firms are establishing overseas subsidiaries to build stronger relationships with foreign customers, better align with in-country requirements, and respond more quickly to local demand. Simultaneously, non-U.S. firms are opening U.S. operations to gain access to DoD contracts and participate in Security Cooperation programs administered by the Defense Security Cooperation Agency (DSCA).

Multinational operating models are no longer optional; they are becoming essential for growth and competitiveness. In today’s environment, physical presence matters. Being in the buyer’s country can be a prerequisite for winning contracts, navigating host-nation licensing requirements, and ensuring timely delivery. Similarly, U.S.-based presence is often required to participate in U.S. defense procurement or co-development initiatives. Companies that embrace this dual footprint are better positioned to manage compliance, build trust, and execute at the speed international defense markets now demand.

Government contractors should proactively shape these models, partnering with advisors who understand how to operationalize global licensing mechanics, manage host-nation transfer issues, and meet evolving end-use monitoring expectations.

Strategic Takeaways for Federal Services Leaders

With global defense dynamics rapidly shifting, from funding uncertainty to increased competition abroad, defense contractors and suppliers must adapt their growth strategies accordingly.

Below are five key actions companies can take to stay competitive and compliant in the evolving landscape of U.S. and international defense trade:

1. Plan for Budget Volatility: Don’t assume the domestic pipeline will remain steady. The DoD budget is facing increased scrutiny, continuing resolutions, and shifting priorities toward emerging technologies and Indo-Pacific deterrence. Delays in U.S. funding, especially in services contracts, can leave federal firms exposed. Proactively diversifying into foreign markets through FMS or DCS helps reduce dependency on a single funding source and opens growth opportunities, particularly in NATOaligned, Indo-Pacific, and Middle Eastern markets.

2. Double Down on Export Compliance: Fines, enforcement actions, and export license denials are increasing, with the U.S. State Department and Department of Commerce signaling tighter oversight. A strong strategy for complying with the ITAR, TSFD policies, and the MTCR is not just a legal obligation, it’s a differentiator.

3. Meet Buyers Where They Are: Physical proximity matters more than ever. International buyers increasingly prefer (or require) local presence, whether through joint ventures, offset obligations, or in-country subsidiaries, when awarding contracts. Establishing or partnering with localized entities not only builds trust and responsiveness but also helps meet host-nation licensing and security requirements.

4. Educate Your Team: Export control regulations are not static; they’re evolving with shifting U.S. national security interests and geopolitical realities. Recent reforms under both the Trump and Biden administrations have reshaped export licensing timelines, compliance expectations, and country-specific policies. Equipping your program managers, compliance Empowered Officials, and business development leads with regular training ensures your firm stays ahead of these changes and avoids costly missteps. Embedding this knowledge into your proposals and operations enhances credibility with both U.S. and foreign stakeholders.

5. Advocate for Policy Change: Too often, export policy reform is shaped without input from the companies most affected by it. Participating in trade associations, such as the Professional Services Council (PSC), ensures your company’s voice is heard on issues like license modernization, TSFD transparency, or FMS reform. Advocacy not only influences policy outcomes; it builds relationships with policymakers and reinforces your firm’s thought leadership.

As the U.S. administration accelerates foreign sales reforms, defense contractors have an opportunity to lead with adaptability, foresight, and global requirement awareness. Those who invest early in export strategy, compliance, and international presence won’t just navigate these changes, they’ll help define the next era of global defense collaboration. 3

Steven A. Casazza leads strategy and client services related to Foreign Military Sales, Direct Commercial Sales, and U.S. export control compliance. He can be reached at scasazza@defense-trade.com. Chanel Miller runs company infrastructure evolution, business development, and the visibility of DTS. She can be reached at cmiller@defense-trade.com. Learn more about Defense Trade Solutions at www.defense-trade.com.

Strategic Storytelling in a Shifting Federal Market

by Kathy Stershic, General Manager of GovBoost, a W2 Communications Business

We are all living in an unpredictable government contracting environment. With fluid agency priorities, staff reductions and budget uncertainties, it’s a challenging time for those who have centered their business on federal service.

In the words of Dwight D. Eisenhower, “Pessimism never won any battle.” It’s more important now than at any period in recent years—perhaps even decades—to stay focused, do what you do best and not go dark. The government will continue to buy technology from trusted sources that demonstrate a clear understanding of current information technology (IT) requirements and policies. IT acquisitions will likely increase once priorities are clarified. Technology will be essential to fulfilling agency service delivery requirements—not only for modernization but also to augment a reduced labor force. Service providers will still be needed to implement it.

The good news is there is tremendous focus on improving efficiency, which likely means more opportunity for and openness to transformative technology innovation. That’s encouraging for newer technologies and vendors, especially those integrating artificial intelligence (AI) in a meaningful, measurable way. The critical task is to develop and promote a compelling narrative that positions your company and its offering in the context of true mission requirements.

Demonstrating Knowledge and Proving Results

It’s important to double down on a positive message about how your solution benefits agency missions, but with some hard proof behind the claim. Credible testimonials, accurate metrics and demonstrated use cases will all support your story. Federal CIO Greg Barbaccia said last month that his office will only work with vendors who speak clearly to how their product or service addresses known problems and who build and deliver actual solutions. He encourages agency CIOs to do the same 1 That requires contractors to deliver strategic guidance and educate customers on how their solutions can improve operational efficiencies and support mission optimization.

Where and how you tell your story matters. Getting a credible outlet to publish your thought leadership increases your visibility. Recent research from GovExec’s annual Media Engagement Study shows that agency executives consume and trust government-focused news outlets more than other communication channels,2 so prioritize those in your promotional mix.

That does not mean trying to publish an advertisement veiled as a byline. Editors will see right through it and reject your piece. It does means offering high-value, authoritative and expert insights into ways to address real agency problems. Earned media also provides critical third-party validation of your differentiation in the buy cycle—it can reach those only-between-colleagues Discord and Slack communication messages where customers talk but we can’t see or measure what is being said.

Other channels like sponsored content, social media (LinkedIn and Facebook are most used by government employees), and even podcasting offer ways to present a more promotional message. However, be sure to keep those focused on true mission requirements as well. Depending on your audience, it’s okay to mix in a little light-heartedness; we all appreciate that in these uncertain times. The Transportation Security Administration (TSA) does this very well with its “Travel Tips and Dad Jokes” Instagram series.3 Some clever writing—within the bounds of respect and good taste—can be very effective.

The Power of Partnerships

Large government contractors are not immune to the current uncertainty, with some major contracts cancelled, many on hold, and an indeterminate budget picture for FY27. While these heavyweights have well-known brands built over decades of government business, some may be on the threshold of a ‘reinvent or die’ moment as contracts start shifting away from big IT customization efforts to more flexible off-the-shelf solutions. CIO Barbaccia noted, “We’re not paying to be told

Drive a story that truly differentiates your company’s value. Go beyond the narrative of “our people are great/ really care”–everyone in the government contractor ecosystem should be that, or they shouldn’t be in this business.

what our problems are…we already know the major challenges we face, the job of today…is to fix them.”1

Large companies that have something truly innovative need to tell that story loudly and clearly, with proof. For those that do not, partnering with newer, more agile and innovative companies offers an expedient path forward. Newcomers seeking these mentors need to laser-target their communications to capture attention and stand out. Large and small businesses need each other, and can capitalize on the symbiosis in a changing government market.

Don’t forget about your own people. In a time of high stress and possibly lower morale, communicating internally is just as important as storytelling externally. Arm employees with your approved messaging and insist everyone uses it to ensure consistency. Keep staff informed with facts to overcome rumor and speculation. Ask them not to comment or post publicly about any government business your company has, wants or just lost. The last communications effort you need to be

undertaking is crisis management—even minor issues can quickly escalate through social media gossip.

Navigate Change with a Compelling Narrative

In the recent months, many clients and prospects have been asking for our guidance on the right approach to communications during this transitional period. Our sincere advice? Drive a story that truly differentiates your company’s value. Go beyond the narrative of “our people are great/really care”–everyone in the government contractor ecosystem should be that, or they shouldn’t be in this business.

You need to prove your unique worth. To stand out and stand strong, position yourself as a trusted and viable agency partner. Then elevate that trust through strategic messaging, credible thought leadership, targeted media relations, and especially third-party validation. Your company, and our country, deserve no less. 3

1 https://federalnewsnetwork.com/cio-news/2025/06/federal-cio-wants-problem-solvers-not-problem-describers/

2 https://events.marketconnectionsinc.com/media-engagement-report/?promo_source=AprilGMM

3 https://www.instagram.com/tsa/

Building Resilience in an Evolving Federal Acquisition Environment

by Dave Archibald, Former Contracting Officer, Health Resources and Services Administration

According to the Government Accountability Office (GAO), the federal government has awarded well over $700 billion in contracts annually over each of the past three fiscal years, with that number continuing to rise. However, changes in presidential administrations and shifts in congressional leadership consistently lead to new fiscal policies and evolving priorities. For contractors operating within the federal space, it is critical to remain agile and strategically positioned to respond to these changes and ensure continued competitiveness.

Diversifying Federal Contracting Channels: A Strategic Imperative

Many firms engaged in federal contracting rely on welldefined pipelines to access opportunities—commonly through mechanisms such as Indefinite Delivery/Indefinite Quantity (IDIQ) contracts or Blanket Purchase Agreements (BPAs). Others maintain geographically based relationships with specific agency offices. While these targeted approaches can be effective, they also present a risk. A narrow customer base is vulnerable to shifts in political leadership, evolving budget priorities, or—as seen in the current fiscal climate—funding reductions.

To mitigate this risk, contractors must proactively expand their reach across multiple agencies and departments. The Executive Branch alone comprises 15 departments, each with numerous sub-agencies. Some, such as the Department of the Army, operate on a scale comparable to major federal entities. Broadening your customer base not only enhances resiliency but positions your firm to pursue a more diverse range of contracting opportunities.

Tools such as SAM.gov and FPDS-NG (Federal Procurement Data System - Next Generation) are vital resources for analyzing historical procurement trends and identifying where your company’s products or services align with agency needs. While conducting this research can be timeintensive, it need not be overwhelming. A phased approach— exploring one opportunity or agency at a time—can provide a manageable and strategic entry point into new markets.

For small businesses, particularly those navigating current economic challenges, this process is especially critical. Federal acquisition strategies include numerous small business setasides, offering competitive advantages to firms that meet specific socio-economic classifications. These designations

can position your business as a preferred solution for agencies seeking to fulfill specific requirements.

From an acquisition standpoint, it’s important to understand what resonates with federal contracting officers. Generic capabilities statements sent without clear alignment to agency needs often go unanswered. Instead, contractors should focus on building informed, targeted relationships. Begin by researching historical contract awards, identifying the contracting personnel aligned with relevant requirements, and initiating meaningful engagement. Relationship-building—whether through direct outreach or attending agency events—is key.

Once a contracting office recognizes your firm as a credible solution provider, they are more likely to facilitate connections between your capabilities and upcoming needs. While this does not guarantee an award—except in limited instances such as 8(a)

Once a contracting office recognizes your firm as a credible solution provider, they are more likely to facilitate connections between your capabilities and upcoming needs.

sole-source contracts—it significantly increases your visibility and the likelihood of being invited to compete within a more focused pool of vendors.

In today’s dynamic federal marketplace, strategic agility, datadriven targeting, and relationship cultivation are essential for sustained success.

Strategic Partnerships and Industry Collaboration

Developing strong relationships with other firms across the federal contracting ecosystem is essential to long-term competitiveness. Small businesses frequently engage larger firms as subcontractors to enhance their technical capabilities, meet project requirements, or increase proposal strength. Additionally, many small businesses pursue joint ventures—particularly when combining different socio-economic classifications—to leverage complementary strengths and compete more effectively for setaside and unrestricted opportunities.

From the perspective of large businesses, partnership with small firms is not merely strategic—it is often a contractual necessity. Federal acquisition regulations frequently require the inclusion of small business subcontracting plans as part of proposal submissions or project execution, underscoring the importance of inclusive collaboration.

As such, proactive networking, identifying the right teaming partners, and cultivating mutually beneficial relationships are not just advisable—they are critical strategies for scaling capacity, enhancing competitiveness, and positioning your firm to succeed in a complex and evolving procurement environment.

The Growing Influence of GSA and the Strategic Importance of Classification Systems

For years—if not decades—the General Services Administration (GSA) has served as a streamlined acquisition channel for many federal contracting offices. Its influence continues to grow, particularly as category management policies are increasingly implemented across executive departments and cascading down to agency-level procurement strategies. Notably, these policies were being operationalized well before any shifts in executive leadership, indicating a long-term structural trend in federal acquisition.

Under current policy directives, agencies are expected to prioritize existing government-wide acquisition vehicles when fulfilling procurement requirements. GSA houses the largest and most versatile of these vehicles, encompassing a vast network of IDIQs and Blanket Purchase Agreements (BPAs). Through its established framework, GSA offers access to thousands of commercial goods and services, streamlining both compliance and procurement efficiency.

At my agency, the impact of this shift has been tangible. As internal ordering vehicles reached expiration, reauthorization

was not permitted. Instead, those requirements were recompeted through GSA channels. Unfortunately, numerous contractors—despite holding valid agency-specific IDIQs or BPAs—were unable to compete because they lacked contracts within the GSA system. As a result, these firms missed out on nearly a year’s worth of opportunities, underscoring the risk of maintaining overly narrow contracting pathways.

To compete effectively within this environment, it is essential for businesses to strategically manage both their NAICS codes (North American Industry Classification System) and their GSA Special Item Numbers (SINs). While each federal requirement is assigned a single NAICS code, this designation reflects the most appropriate—not the only—applicable classification. Contractors must understand how secondary or related NAICS codes can align with their core capabilities and connect them to a broader array of solicitations.

Similarly, expanding SIN coverage within the GSA Schedule can significantly enhance market access. A firm’s ability to recognize and align with the nuanced relationships between NAICS and SIN codes is a key factor in maintaining agility and ensuring sustained competitiveness in a rapidly evolving federal marketplace.

Conclusion: Positioning for Long-Term Success in a Dynamic Federal Market

The federal contracting landscape is inherently dynamic— driven by shifting priorities, evolving fiscal policies, and administrative transitions. In such an environment, success is not guaranteed by past performance or a single contracting vehicle, but by a company’s ability to remain strategically agile, well-connected, and forward-looking.

To thrive amid this change, contractors must broaden their agency reach, leveraging data-driven insights to identify and pursue opportunities across the Executive Branch. Building strong partnerships and teaming strategies, particularly among small businesses with diverse socio-economic classifications, enhances competitiveness and opens new paths to market.

Equally critical is the need to maintain and expand a presence within the GSA ecosystem, where procurement trends increasingly favor established government-wide acquisition vehicles. A deliberate approach to managing NAICS and SIN codes, paired with an understanding of how these classifications intersect with agency needs, can significantly increase visibility and eligibility for upcoming opportunities.

Ultimately, long-term success in federal contracting requires more than just compliance—it demands adaptability, collaboration, and strategic positioning. Firms that invest in expanding their networks, understanding procurement systems, and aligning with evolving agency requirements will be best positioned to compete and grow in the years ahead. 3

45-Day Relationship Reset: Immediate Steps for Contractors Navigating the New Administration

by Jennipher Rosecrans, Co-CEO, Morgan Business Consulting (MBC)

The recent presidential transition has triggered a cascade of leadership changes across federal agencies, presenting immediate challenges for government contractors. Federal contractors are facing cancellations across the board, with legally required notices coming from 13 companies and nearly 2,500 people losing jobs in Virginia and Maryland alone.1

Unlike past transitions, however, today’s challenges are compounded by unprecedented turnover among career officials—General Schedule (GS)-14s, GS-15s, and Senior Executive Service (SES) leaders—who have historically provided continuity across administrations. These departures, accelerated by the Department of Government Efficiency’s (DOGE) restructuring initiatives and early retirement incentives, have left contractors navigating an agency landscape where many longstanding points of contact no longer exist. The result is a more fluid federal environment, where even established partnerships require active renewal and recalibration.

If you’re finding your carefully cultivated agency relationships suddenly disrupted, you’re not alone. The magnitude of current organizational flux has created relationship voids that demand immediate attention and decisive action. The reactive mindset of previous transitions won’t meet the demands of today’s dynamic environment.

This article provides a 45-day action plan to help contractors rebuild disrupted agency relationships and position themselves for success in rapidly changing federal landscape.

When we discuss “transition” in this context, we’re not simply referring to Inauguration Day or the initial 100 days of a new administration. Rather, we’re addressing the extended 12–18-month period during which leadership appointments filter down through agencies, policy priorities shift, budgets realign, and career staff adjust to new directives. This comprehensive transition cycle affects contractors at all stages, whether you’re experiencing disruption now or anticipating changes in the coming quarters.

This moment of unprecedented institutional realignment offers both substantial risk and strategic opportunity to strengthen agency partnerships through three proven strategies: expanding multi-dimensional agency networks, reinforcing mission alignment, and increasing active engagement.

Strategy 1: Build Your Network Now – The 30-Day Expansion

Even if your key agency contacts are departing—or have already departed—it’s not too late to develop a diversified network that spans across the organization. Contractors who maintain relationships exclusively with political appointees experience significantly more disruption than those with broader relationship portfolios that include career civil servants 2

If you’ve relied primarily on connections with now-departed officials, now is the critical time to expand your agency relationships both horizontally and vertically. Consider extending your relationship-building deeper into organizational layers than you might normally pursue, as decision-making authority often shifts downward during significant restructuring.

Begin with an immediate relationship audit:

• Which functional areas and organizational levels lack strong connections?

• Which career officials will remain influential during this transition?

For gaps identified, develop targeted outreach strategies within the next 30 days. Request introductions from remaining contacts, attend agency-sponsored events where career staff will be present, and proactively schedule operational meetings with implementation teams.

Contractors who diversify their network across hierarchical levels (from leadership to operational staff), functional areas (program management, contracting, technology), and temporal continuity (balancing political appointees with career officials) show better program continuity during transitions than those who wait for new leadership to ‘settle in’ (FEMA Continuity Risk Toolkit).3

Strategy 2: Realign Around Mission – The 2-Week Reset

If your agency relationships and communications have centered on the priorities of the previous administration, now is the crucial moment to reframe them around enduring agency missions. Program initiatives explicitly connected to statutory agency missions are significantly more likely to survive administration changes than those tied exclusively to administration-specific priorities 2

This realignment requires immediate action. Within the next two weeks:

• Analyze your current programs against the agency’s authorizing legislation, recent appropriations history, and strategic plans that span multiple administrations.

• Identify where your work directly supports enduring mission elements that transcend political cycles.4

• For each major program, develop a “mission continuity brief” that explicitly connects your work to these statutory foundations rather than to previous administration initiatives.

• Update all materials, talking points, and positioning to emphasize these mission connections.

• Train your customer-facing team to articulate these relationships consistently in all agency interactions.

Contractors who quickly reframe their value propositions around mission continuity after leadership changes demonstrate their understanding of what truly matters to agencies beyond political cycles.4 This repositioning isn’t just about survival—it’s about demonstrating your value as a longterm, mission-aligned partner.

Strategy 3: Engage Immediately – Don’t Wait for Stability

While it might seem prudent to adopt a “wait and see” approach during this transition uncertainty, experience suggests

this may not be optimal. Now is precisely the time to increase engagement. In fact, the current environment demands more proactive outreach than any transition in recent memory. Contractors who strategically increase engagement during transitions generally experience less relationship disruption than those who reduce activity.5

Three Critical Actions for Immediate Implementation

1. Position yourself as a transition source.

Develop a concise (2-3 page) brief that provides objective program history, current status, and decision points. Offer these resources to departing officials and incoming teams. This support demonstrates your value while strengthening relationships with both outgoing and incoming leadership. Contractors providing structured transition support develop stronger relationships with new leadership than those who reduce engagement 6

2. Intensify operational engagement.

While strategic decisions may stall during transitions, operational work continues.

• Schedule additional working-level meetings in the next two weeks.

• Document and circulate recent operational accomplishments.

• Identify barriers that can be resolved without new leadership decisions.

Maintaining operational engagement during transitions helps demonstrate continued value to agency partners 5

3. Begin adapting to emerging priorities immediately.

• Review public statements, congressional testimony, and background information on incoming leadership.

• Within 30 days, map these emerging priorities to your existing programs and prepare updated materials that highlight these connections while maintaining mission alignment.

• Schedule introductory briefings with new leadership as soon as they arrive, emphasizing how your work supports both their priorities and the agency’s enduring mission.

For maximum impact, implement these multi-dimensional strategies within the next 45 days—the critical window when new relationship patterns and perceptions are forming. The most successful contractors understand that relationship resilience during today’s extraordinary transition isn’t about waiting for stability to return; it’s about taking immediate, strategic action that demonstrates your value as an enduring mission partner— regardless of who occupies leadership positions. 3

MBC, LLC is a small government consulting firm based in Washington DC, specializing in security cooperation/security assistance, digital transformation, and advisory services. Jennipher can be reached at jennipher.rosecrans@mbc360.com.

1 https://federalnewsnetwork.com/contracting/2025/04/contractors-feel-like-theyre-on-the-edge-of-an-abyss/

2 https://www.brookings.edu/articles/the-risks-of-schedule-f-for-administrative-capacity-and-government-accountability/

3 https://www.fema.gov/emergency-managers/national-preparedness/continuity/documents

4 https://www.businessofgovernment.org/blog/making-decisions-time-transition

5 https://ourpublicservice.org/our-solutions/presidential-transition/

6 https://www.mckinsey.com/industries/public-sector/how-we-help-clients/us-federal-government-transitions

TUnderstanding the FAR Overhaul: History, Impacts, and Industry’s Role

by Sebastian Herrick, Director of Procurement Policy, PSC

he U.S. Government is the largest buyer of goods and services in the world, and the Federal Acquisition Regulation (FAR) generally governs how the government goes about those purchases and sets competitive business guidelines for the federal contractors.

The FAR is currently undergoing a Revolutionary FAR Overhaul (RFO)—spurred by Executive Order (EO) 14275: Restoring Common Sense to Federal Procurement,1 issued on April 15.

The EO’s use of the word “Revolutionary” is no exaggeration. Led by the Office of Management and Budget’s (OMB) Office of Federal Procurement Policy (OFPP) and administered by the General Services Administration (GSA), Phase 1 of the overhaul— revising the FAR part by part through “model deviations”—is well underway. Eight of 53 FAR Parts have already been pared down to reflect the administration’s stated goal: to contain only provisions that are “required by statute or that are otherwise necessary to support simplicity and usability, strengthen the efficacy of the procurement system, or protect economic or national security interests.” During PSC’s 2025 Federal Acquisition Conference,2 Larry Allen, Associate Administrator of GSA’s Office of Government-wide Policy said, “GSA leadership wants to emphasize the ‘Revolutionary’ aspect of FAR,” to create a better system that reduces burdens on industry.

GSA’s engagement is clearly reflected in the new RFO website, housed at acquisition.gov, which chronicles each overhauled FAR Part, pairs them with respective agency deviations, and includes helpful practitioner tools like “albums” with line-out documents (text removed from the FAR) and summaries of the changes made.

While GSA and the administration are emphasizing what may indeed be a generational, 360-degree revolution back to the basics, this is not the first time the government has acted to streamline its acquisitions. The great Samuel Clemens— Mark Twain—said, “History doesn’t repeat itself, but it often rhymes,” and a brief history of acquisition reform, and its similarities to today’s efforts, may be essential in ensuring this revolution doesn’t result in different—but historically rhyming—burdens and inefficiencies.

The Armed Services Procurement Act (ASPA) of 1947 initiated the thematic processes that built today’s FAR. Intended to standardize government purchasing, the ASPA created a committee to develop uniform purchasing methods across

military branches, resulting in the Armed Services Procurement Regulation (ASPR), the predecessor to the Defense Acquisition Regulation (DAR). This committee, along with President Truman, faced the challenge of balancing contracting officer flexibility, costs, timeliness, quality, and methodology with the need for procurement standardization. Their recommendations to centralize acquisition efforts influenced the formation of the General Services Administration in 1949.

Similarly, this year’s Executive Order 14240, Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement,3 returns “the General Services Administration to its original purpose,” by, in part, designating GSA as the executive agent for all government-wide acquisition contracts and emphasizing commercial product and service purchases. For example, the current FAR Part 104 model deviation drives market research to prioritize commercial products and services first, and directs that research toward large, government-wide vehicles.

It will be the responsibility of industry—throughout the rulemaking period—to ensure that migration to large contracts preserves the government’s flexibility in vendor selection. Government-wide contracts can be successful and efficient, but they may also create barriers to entry for many businesses.

In 1959, GSA, the Department of Defense, and the Small Business Administration created the Federal Procurement Regulations (FPR), which applied to 45 civilian agencies. Due to the diversity of agencies covered, each was given flexibility in how to apply high-level guidance. However, in 1974, the OFPP was created to unify procurement rules. Its 1979 study of 19 agencies found 64,600 pages of procurement regulations, 29,900 of which were promulgated or revised annually—83% issued from levels below agency headquarters.

To address this, Congress passed the Office of Federal Procurement Policy Act Amendments of 1979, which directed OFPP to issue policies promoting a uniform procurement system. In response, the Federal Acquisition Regulation System was established in 1983, and the FAR took effect in 1984, codified in Title 48 of the Code of Federal Regulations.

Today’s overhaul effort echoes that historical consolidation. Agency-specific FAR supplements have created flexibilities— but also inconsistencies—that burden contractors unevenly. The new FAR Part 104 model deviation appears to reduce this by eliminating the DAR Council and the Civilian Agency Acquisition Council, and by consolidating governing frameworks and guiding principles.

However, early analysis shows that while some language has been removed from the FAR, it is merely relocated elsewhere in the Code of Federal Regulations (CFR) or referenced indirectly. PSC also has no visibility into how OFPP-approved agency buying guides—intended to replace most non-statutory regulations—will be developed or enforced. This is particularly important in light of the new FAR Part 1.109 regulatory sunset clause, which states that all FAR provisions not required by statute must expire four years after their effective date unless renewed by the Federal Acquisition Regulatory Council. Therefore, it is up to industry—through its feedback during Phase 2 of the rulemaking process—to ensure that:

1. the paring down to statutory basis is helpful, not harmful; 2. critical non-statutory FAR provisions are retained; and 3. that the government has a mechanism in place to prevent regulatory proliferation, so that the FAR will not need another revolution in the decades to come.

PSC welcomes your feedback throughout the RFO process at its Revolutionary FAR Overhaul Action Center: www. pscouncil.org/far 3

1 https://www.whitehouse.gov/presidential-actions/2025/04/restoring-common-sense-to-federal-procurement/

2 https://acquisition.pscouncil.org/

3 https://www.whitehouse.gov/presidential-actions/2025/03/eliminating-waste-and-saving-taxpayer-dollars-by-consolidating-procure

4 https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-10

OMobilizing Private Sector Innovation to Advance U.S. Interests Overseas

by Paul Foldi, VP of International Development Affairs, PSC

n May 29 the Trump Administration introduced its muchawaited proposal for a State Department reorganization, including an organizational chart with a new Under Secretary for Foreign Assistance and Humanitarian Affairs (F). This new role would oversee three pre-existing State Department bureaus — Democracy, Human Rights and Labor (DRL); Population, Refugees and Migration (PRM); and the Office of Foreign Assistance — along with the Office of Global Food Security, that was transferred from USAID.

At the same time, the White House and “Foggy Bottom” (State Department) are also considering how to restructure and redirect U.S. foreign engagement towards economic opportunities —mobilizing capital through existing structures such as the U.S. International Development Finance Corporation1 or possibly through a new sovereign wealth fund.2 As these efforts advance, it is imperative to ensure that potential partner nations have transparent and accountable financial, regulatory, and governance structures in place. These systems are essential to unlocking economic growth, attracting private capital, and ensuring American taxpayer dollars are used appropriately. Thanks in large part to years of collaboration with American experts in these fields, many countries already have such systems well-established. However, other crucial economic and strategic partners still need our help, and U.S. private development contractors can play a vital role to help advance these goals.

The American private sector offers unparalleled mobilization capable of advancing U.S. priorities abroad. Private sector contractors serve as force multipliers by responding to overseas needs identified by the U.S. government through the deployment of technical experts who address specific challenges and possess years of regional, cultural, and linguistic expertise that help ensure long-term results. These technical experts also collaborate with host-country partners to address market reforms, prepare and implement infrastructure projects, streamline processes, and optimize resource utilization — ensuring that projects are completed on time and within budget.

Additionally, U.S. contractors offer competitive bid cost savings, greater flexibility in workforce size and duration, and access to specialized skillsets as needed — maximizing the impact of these initiatives. By facilitating the development of key regulatory frameworks, these efforts will lay the foundation for sustained increases in bilateral and multilateral trade. Similarly, infrastructure projects such as transportation networks, energy grids, and digital connectivity not only drive economic growth but also enhance trade capacity and regional integration. Likewise, private-sector enabled economic development offers American businesses new international partners and markets that operate using familiar business and accounting norms — creating more confident and long-lasting business relationships.

1 https://www.dfc.gov/

As the Department of State takes over humanitarian programs, it is worth noting that targeted development programming complements these efforts as well by providing a pathway out of the cycle of crisis. Studies show significant returns on investment, with every dollar spent on building resilient communities potentially saving up to $3 in future humanitarian response costs. For example, improved agricultural practices, better water and energy management, and community preparedness can significantly reduce reliance on emergency food imports in the future by strengthening local production and trade capacity.

Analogous success stories abound in the global health sector, where American development firms have worked to combat malaria, tuberculosis, HIV/AIDS, and other diseases that respect no borders. Health systems, strengthened by U.S. development experts, played an indispensable role in mitigating recent outbreaks, reducing local mortality, and helping to prevent the spread of diseases.

Development efforts are not a panacea and require significant buyin from foreign governments and civil society leaders. This work can be especially challenging in war-torn areas or where our competitors, whether nation states or non-state actors, can exert undue influence. As President Trump and his team pursue their goals, I am confident that American development contractors will remain top-tier partners in tackling the global challenges ahead, opening markets, preventing crises, and ensuring greater worldwide prosperity. 3

Paul Foldi serves as lead for PSC’s Council of International Development Companies (CIDC), focused on the U.S. Agency for International Development and the Department of State.

2 https://www.whitehouse.gov/presidential-actions/2025/02/a-plan-for-establishing-a-united-states-sovereign-wealth-fund/

The federal government can enhance operational efficiency by effectively leveraging contractors. The following success stories highlight how contractors have helped achieve better outcomes.

FROM THE FIELD

Modernizing the Small Business Administration’s Disaster Lending Program

In April 2022, the Small Business Administration (SBA) launched a bold initiative to modernize its disaster lending program, aiming to streamline assistance for communities impacted by natural disasters. At the heart of this transformation is MySBA, an intuitive, accessible, and efficient one-stop-shop user-interface platform powered by Allocore. Allocore’s innovative technology has transformed the disaster lending process, reducing disbursement times from over 105 days to under 18 days through the MySBA platform.

Supporting the Environmental Protection Agency’s Superfund Program

At environmental emergencies and complex long-term cleanups, oil spills and natural disasters, EPA is on the ground, working with its partners to make sure people can live and work in healthy, vibrant places. Skeo supports the policy, guidance and technical resources that have helped the EPA transform their business projects.

Developing a Global Compensation System for the Department of State

Working alongside the U.S. Department of State, SOSi developed a comprehensive global compensation system for expatriates, foreign nationals, and third-country foreign nationals. Using commercial off-the-shelf Oracle/PeopleSoft software, SOSi designed, developed, and implemented a solution that consolidated eight legacy payroll and timekeeping solutions into one.

Read more at federalcontracting.pscouncil.org

What To Watch in Washington - Member Exclusive

by Stephanie Kostro, President, PSC

As the nation passes the six-month mark of President Donald J. Trump’s second term in the Oval Office, federal contractors continue to experience uncertainties, especially tied to new contract review processes, Federal Acquisition Regulation (FAR) changes, and contract consolidations. And while June and July brought answers to some sector-specific questions—such as “How will Congress fund the President’s stated priorities on border security, immigration, and the military?”—the specter of a possible government shutdown is beginning to loom.

How should we think about this range of issues?

View the full article by scanning the QR code or visiting pscouncil.org/what_to_watch

What to Watch as of 7/8/25

What to Watch in Washington provides a concise and authoritative overview of the most significant legislative, regulatory, and policy developments impacting the government contracting sector. This regularly issued update highlights emerging issues under consideration by Congress and federal agencies, offering PSC members timely insight into the evolving policy landscape. Designed to support informed decision-making, this resource underscores PSC’s commitment to keeping the federal contracting community apprised of key actions and trends in Washington.

2025 CONGRESSIONAL CALENDAR

119th Congress Bill Tracker 2025

Information as of 7/4/25

BECAME LAW:

H.R. 1968

Full-Year Continuing Appropriations and Extensions Act, 2025

Introduced 3/10/2025

Sponsor: Rep. Cole (R-OK-4)

Cosponsor: N/A

Summary: Full year continuing resolution for FY2025

Status: Became Law 3/15/2025

PASSED THE HOUSE:

H.R. 818

SPUR Act, Small Business Procurement and Utilization Reform Act of 2025

Introduced: January 28, 2025

Sponsor: Rep. Stauber (R-MN-8)

Cosponsor: Rep. Cisneros (D-CA-31), Perez (D-WA-3), Goodlander (D-NH-2), Meuser (R-PA-9), LaLota (R-NY-1)

Summary: Requires federal agencies to include on the annual scorecard for small business contracting the number of small businesses that receive a prime contract for the first time and are owned and controlled by service-disabled veterans, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, or small business concerns owned and controlled by women.

Status: Passed House on February 24th, 2025; referred in the Senate to the Committee on Small Business and Entrepreneurship

H.R. 856

Safe and Smart Federal Purchasing Act

Introduced: January 31, 2025

Sponsor: Rep. Donalds (R-FL-19)

Cosponsor: Rep. Connolly (D-VA-11)

Summary: This bill requires the Office of Management and Budget (OMB) to evaluate the procurement activities of federal agencies to determine whether provisions of the Federal Acquisition Regulation related to the lowest price technically acceptable source selection process have created any national security risk and report to Congress.

Status: Passed House 3/4/2025

H.R. 1166

Decoupling from Foreign Adversarial Battery Dependence Act

Introduced: January 31, 2025

Sponsor: Rep. Gimenez (R-FL-28)

Cosponsor: Rep. Green (R-TN-7), Rep. Moolenaar (R-MI-2), Rep. Pfluger (R-TX-11), Rep. Meuser (R-PA-9)

Summary: Bill prohibits DHS from using funds to procure a battery produced by certain entities, particularly six specific companies owned and operated in China. Prohibition begins on October 1, 2027.

Status: Passed House 3/11/2025

H.R. 1692

PATHS Act

Introduced: January 31, 2025

Sponsor: Rep. Guest (R-MS-3)

Cosponsor: Rep. Thanedar (D-MI-13)

Summary: This bill extends through FY2028 the authority of the Department of Homeland Security (DHS) to use other transactions (OT) to carry out research and prototype projects when the use of contracts, grants, and cooperative agreements is not feasible or appropriate. (OTs, in contrast to traditional procurement contracts, are exempt from many federal procurement laws and regulations.)

DHS must notify Congress within 72 hours of using or extending this authority for research and development projects related to artificial intelligence technology and must offer to brief Congress on the rationale for such a decision.

The bill also lowers from $4 million to $1 million the minimum value of contract awards that DHS must publicly report on its website.

Status: Passed House 3/12/2025

H.R. 1

One Big Beautiful Bill Act

Introduced: May 20, 2025

Sponsor: Rep. Jodey Arrington (TX-19)

Cosponsors: N/A

Summary: It is known as a reconciliation bill and includes legislation submitted by 11 House committees pursuant to provisions in the FY2025 congressional budget resolution (H Con. Res. 14) that directed the committees to submit legislation to the House Budget Committee that will increase or decrease the deficit and increase the statutory debt limit by specified amounts. (Reconciliation bills are considered by Congress using expedited legislative procedures that prevent a filibuster and restrict amendments in the Senate.)

Status: President signed on 7/4/2025

H.R. 787

Plain Language in Contracting Act

Introduced: January 28, 2025

Sponsor: Rep. LaLota (R-NY-1)

Cosponsor: Rep. Tran (D-CA-45), Rep. Thanedar (D-MI-13), Rep Goodlander (D-NH-2)

Summary: Referred in the Senate to the Committee on Small Business and Entrepreneurship

Status: Passed House 6/3/2025

PASSED THE SENATE:

S. 524

Coast Guard Authorization Act of 2025

Introduced: February 11, 2025

Sponsor: Sen. Cruz (R-TX)

Cosponsor: Sen. Cantwell (D-WA), Sen. Sullivan (R-AK), Sen. Baldwin (D-WI)

Summary:To authorize appropriations for the Coast Guard and for other purposes.

Status: Passed Senate 3/10/2025

119th Congress Bill Tracker 2025

Information as of 7/4/25

INTRODUCED IN HOUSE OR SENATE:

S. 79

Allowing Contractors to Choose Employees for Select Skills Act or “ACCESS Act”

Introduced January 13, 2025

Sponsor: Sen. Lankford (R-OK)

Cosponsor: Sen Peters (D-MI)

Summary: Prohibits solicitations from minimum education requirements for proposed contractor personnel.

Status: Referred to Committee on Homeland Security and Governmental Affairs

H.R. 519

Federal Subaward Reporting System Modernization and Expansion Act

Introduced January 16, 2025

Sponsor: Rep. Langworthy (R-NY-23)

Cosponsor: Reps Houlahan (D-PA-6), Lawler (R-NY-17), Davis (D-NC-1), Craig (D-MN-2), Guest (R-MS-3), Hageman (R-WY)

Summary: 180 days after enactment inspector general of GSA shall submit a report containing a review of the FFATA subaward reporting system, with recommendations for improvement.

Status: Referred to House Committee on Oversight and Government Reform

H.R. 675

Domestic SUPPLY Act of 2025

Introduced: January 23, 2025

Sponsor: Rep. Morgan (R-VA-9)

Cosponsor: N/A

Summary: HHS Secretary in collaboration with Assistant Secretary for Preparedness and Response and CDC shall establish a program of entering into partnerships with eligible domestic manufacturers to ensure the availability of qualified personal protect equipment for preparing for and respond to public health emergencies.

Status: Referred to Committee on Energy and Commerce and Committee on Oversight and Government Reform

S. 202

Helping Small Businesses THRIVE Act

Introduced: January 23, 2025

Sponsor: Sen. Shaheen (D-NH)

Cosponsor: Sen. Cassidy (R-LA)

Summary: SBA administrator shall establish a pilot program to assist eligible entities in limiting the risk from rising input costs from commodities.

Status: Referred to Committee on Small Business and Entrepreneurship

H.R. 767

Fast-Track Logistics for Acquiring Supplies in a Hurry Act of 2025 or “FLASH Act of 2025”

Introduced: January 28, 2025

Sponsor: Rep. Garcia (D-CA-42)

Cosponsor: N/A

Summary: Amend the Public Health Service Act to authorize BARDA to award follow-on production contracts or transaction, procure supplies for experimental or test purposes, and acquire innovative commercial products and commercial services.

Status: Referred to House Committee on Energy and Commerce

H.R. 1036

Ensuring Accountability and Dignity in Federal Contracting

Introduced: February 5, 2025

Sponsor: Rep Valadao (CA-22)

Cosponsors: Rep. Turner (OH-10), Rep. Krishnamoorthi (IL-8), Rep. Magaziner (RI-02)

Summary: To provide for modifications to ending trafficking in government contracting and for other purposes.

Status: Pending committee review by House Committee on Foreign Affairs

S.1573

SBIR/STTR Reauthorization Act of 2025

Introduced: May 1, 2025

Sponsor: Sen. Markey (MA)

Cosponsor(s): N/A

Summary: To amend the Small Business Act to reauthorize and modify the Small Business Innovation Research and Small Business Technology Transfer Research programs.

Status: Referred to Committee on Small Business and Entrepreneurship

H.R. 3169

SBIR/STTR Reauthorization Act of 2025

Introduced: May 1, 2025

Sponsor: Rep. Velazquez (NY-07)

Cosponsor(s): N/A

Summary: To amend the Small Business Act to reauthorize and modify the Small Business Innovation Research and Small Business Technology Transfer Research programs.

Status: Referred to Committee on Small Business and Committee on Science, Space, and Technology

S. 1591

ARCA Act of 2025, Acquisition Reform and Cost Assessment

Introduced: May 9, 2025

Sponsor(s): Sen. Moran (KS)

Cosponsor: N/A

Summary: To reorganize the acquisition structure of the Department of Veterans Affairs and to establish the Director of Cost Assessment and Program Evaluation in the Department.

Status: Awaiting committee markup

119th Congress Bill Tracker 2025

Information as of 7/4/25

S. 1956

Strengthening Agency Management and Oversight of Software Assets Act

Introduced: May 9, 2025

Sponsor(s): Sen. Peters (MI)

Cosponsor: Sen. Cassidy (LA), Sen. Ernst (IA), Sen. Tillis (NC), Sen. Lankford (OK), Sen. Wyden (OR)

Summary: To improve the visibility, accountability, and oversight of agency software asset management practices.

Status:Referred to Committee on Homeland Security and Governmental Affairs

S. 1775

Protecting AI and Cloud Competition in Defense Act of 2025

Introduced: May 15, 2025

Sponsor: Sen. Warren (MA)

Cosponsor(s): Sen. Schmitt (MO)

Summary: To provide for certain requirements relating to cloud, data infrastructure, and foundation model procurement.

Status: Referred to Senate Committee on Armed Services

H.R. 3434

Protecting AI and Cloud Competition in Defense Act of 2025

Introduced: May 15, 2025

Sponsor: Rep. Fallon (TX-4)

Cosponsor(s): Rep. Jacobs (CA-51), Rep. Deluzio (PA-17)

Summary: To provide for certain requirements relating to cloud, data infrastructure, and foundation model procurement.

Status: Referred to House Committee on Armed Services

S. 1899

Federal Contractor Cybersecurity Vulnerability Reduction Act of 2025

Introduced: May 22, 2025

Sponsor: Sen. Warner (VA)

Cosponsor(s): Sen. Lankford (OK)

Summary: To require Federal contractors to implement a vulnerability disclosure policy consistent with NIST guidelines.

Status: Referred to Committee on Homeland Security and Governmental Affairs.

S. 1978

Defense Technology Hubs Act of 2025

Introduced: June 5, 2025

Sponsor(s): Sen. Schmitt (MO)

Cosponsor: Sen. Hickenlooper (CO)

Summary: To enhance national security and technological superiority by requiring the Secretary of Defense to establish a network of regional defense technology hubs to foster innovation, collaboration, and rapid development of defense-related technologies to attract talent from across the United States.

Status: Awaiting committee markup

H.R. 3838

SPEED Act, Streamlining Program Efficiency & Expedited Defense

Introduced: June 9, 2025

Sponsor(s): Rep. Rogers (AL-3)

Cosponsor: Rep. Smith (WA-9)

Summary: To authorize appropriations for fiscal year 2026 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe military personnel strengths for such fiscal year, and for other purposes. SPEED is the base text for NDAA which handles acquisition reform across the Department of Defense.

Status: Base bill that will be marked up in House Armed Services committee in July 2025

Compiled by Tim Brennan, Vice President, Technology Policy and Government Relations

PSC Lawsuit Tracker Tracking Legal Developments that Matter to Federal Contractors

With support from JustSecurity.org, PSC is monitoring key lawsuits affecting federal contractors, focusing on issues such as DEIA policy changes, the dissolution of USAID, legal challenges to executive orders, and emerging contract eligibility risks.

1. DEIA Changes are Unlikely to be Reversed

Just Security’s tracker currently lists 15 cases under the category of ‘Diversity, Equity, Inclusion, and Accessibility,” several of which have hit recent roadblocks.

• On April 4, what initially appeared to be a win for plaintiffs was clouded when the Supreme Court transferred the State of California v. U.S. Department of Education case to the Court of Federal Claims.

• On April 14, plaintiffs voluntarily dismissed their case in Erie County, New York v. Corporation for National and Community Service.

• On May 2, plaintiffs in Doe v. Collins had their temporary restraining order (TRO) motion denied, and plaintiffs in National Urban League v. Trump were denied a preliminary injunction.

• On May 7, a major plaintiff, the National Association of Diversity Officers in Higher Education, voluntarily exited its case against the Trump administration.

Defendants appear increasingly willing to stall and escalate DEIA-related legal battles to delay enforceable decisions.

2. DOGE Faces Legal Trouble — But Will Rulings Be Enforced?

• On March 18, J. Does 1–26 v. Musk, the court ordered DOGE to halt its dismantling of USAID and obtain express authorization from USAID officials for all related future actions. However, defendants appealed on March 21, and DOGE and Musk continued closing operations in the following weeks.

• Now that USAID has been dissolved, the court’s initial ruling is functionally moot. Even if the plaintiffs eventually win, enforcement remains unclear–raising critical questions about legal remedies and the limits of judicial authority during agency shutdowns.

3. Executive Orders Face Growing Legal Opposition

Several executive orders (EOs) issued since President Trump’s return have faced intensive legal pushback:

• EO 14168–Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal–has been challenged on the grounds that it discriminates based on gender ideology in federal funding.

• EO 14169–Reevaluating and Realigning United States Foreign Aid–has been criticized as an unconstitutional overreach of federal power.

• EO 14160–Protecting the Meaning and Value of American Citizenship–is now subject to at least 10 lawsuits.

• EO 14171–Restoring Accountability to Policy-Influencing Positions Within the Federal Workforce–reinstates Schedule F for political/ policy employees and has triggered at least four suits. Many more cases are emerging.

Compiled by

4. ‘Lack of Subject Matter Jurisdiction’ is a Frequent Delay Tactic Defendants are frequently arguing that courts lack subject matter jurisdiction to delay rulings in contractor-relevant cases. This tactic has been used in:

• Doctors for America v. Office of Personnel Management, concerning removal of health information from federal websites.

• J. Does 1–26 v. Musk, challenging DOGE’s cuts to USAID.

This “delay through appeal” strategy–used effectively by Trump’s legal team in 2024–is increasingly deployed to stall enforcement while new policies take hold.

As seen in National Job Corps Association v. Department of Labor, plaintiffs (including contractors) have tried to halt Trump administration actions. But such efforts are undermined when delay tactics prove effective, allowing contested policies to proceed unchecked.

5. Susman Godfrey LLC: A Sign of Future Risk for Contractors?

On April 9, EO 14263–Addressing Risks From Susman Godfrey–ordered all federal contractors to disclose any business with Susman Godfrey LLC, and instructed agencies to “re-evaluate” contracts involving them–effectively blacklisting the firm.

Susman Godfrey had previously represented Dominion Voting Systems in high-profile defamation suits against Trump allies who promoted false 2020 election claims.

Though the firm has received broad support from the legal community, no ruling has been issued. Still, the implications are serious: Will private business dealings affect your ability to win federal contracts?

Conclusion

The legal landscape for federal contractors under the current administration is shifting rapidly. From aggressive executive actions and the dismantling of established agencies to selective enforcement and targeted contract restrictions, the range and intensity of legal challenges are unprecedented. While many of these cases are still unfolding, a clear pattern is emerging: contractors must remain vigilant, adaptable, and legally informed.

Delay tactics, jurisdictional disputes, and politicized contract oversight are not just legal abstractions—they directly affect operational continuity, compliance obligations, and future eligibility for federal work. In this volatile environment, even private business affiliations can impact public contracting opportunities.

For federal contractors, legal awareness is no longer optional—it is a strategic necessity.

PSC will continue to monitor these developments and provide timely updates to help members anticipate risk, respondeffectively, and continue delivering mission-critical services.

Luke Shannon, Associate, Research and Analysis

Key Meetings, Leadership Updates, and Industry Engagement

April through June, PSC engaged with senior lawmakers, federal officials, and industry leaders to advance acquisition reform and showcase the vital role of its members in supporting federal missions. Highlights included Capitol Hill meetings, a White House discussion with member companies, PSC’s Board Meeting with key leadership announcements, and a Reverse Industry Day with NASA—each reinforcing PSC’s commitment to advocacy, partnership, and impact.

APRIL 24: PSC hosted a reverse industry day for NASA, sharing with acquisition staff across the agency how industry makes bid decisions and what it’s like doing business with NASA.

JUNE 11: PSC announced at its Board Meeting the promotion of Stephanie Kostro from Acting President to President, and the appointment of Steve Harris as Vice President for Defense and Intelligence.

JUNE 17: PSC CEO James Carroll attended a small reception in Washington, DC, where Jacob Helberg, the nominee for Under Secretary of State for Economic Growth, shared his goals for his role.

JUNE 23: Representatives from a dozen member companies, ranging in size from small to large, met with the White House Counsel’s Office to discuss key priorities and how federal contractors can best serve our government. They were joined by PSC CEO James Carroll and President Stephanie Sanok Kostro.

JUNE 26: PSC CEO James Carroll met with Representatives Mike Rogers (left) and Adam Smith (right)—the Chairman and Ranking Member, respectively, of the House Armed Services Committee—to discuss SPEED Act acquisition reform and the critical role PSC members play in delivering positive and efficient outcomes for the American taxpayer.

JUNE 25: PSC CEO James Carroll met with Senator Jack Reed, Ranking Member of the Armed Services Committee, to discuss DoD efficiency and emerging technology.

Event Highlights

PSC welcomed more than 350 attendees to its Annual Conference at The Greenbrier Resort in West Virginia, held April 27–29. Industry leaders from across the federal contracting community engaged with government officials and peers on key issues facing the sector, including the federal budget outlook, navigating federal AI policies, advancing IT modernization, and evolving approaches to acquisition data.

Monday’s Opening and Welcome featuring Zach Parker, PSC Board Chair, and President, CEO, and Board Director, DLH Corp.

Keynote featuring The Honorable Bill Evanina, Founder and CEO of the Evanina Group, LLC, former Director of the National Counterintelligence and Security Center.

Driving Successful IT Modernization: Structuring Agency Transformation and Industry Collaboration Panel featuring Michael Palmer, Former Associate CIO and CXO, Bureau of Industry and Security, U.S. Department of Commerce, Scott Cooper, Vice President, Government Relations, Peraton (moderator), and Jennifer Freese, Former Deputy Executive Officer for the Department of Health and Human Services OCIO Operations (not pictured but participated thru zoom)

Understanding Opportunities Outside of the FAR featuring Mike Pullen, Vice President, Strategic Operations, CGI Federal (moderator), Karla Smith Jackson, Senior Procurement Executive, Deputy Chief Acquisition Officer, Assistant Administrator for Procurement, NASA, and Lisa Canini, Subcommittee Director, House Homeland Security Committee.

Chair’s Banquet featuring

Government Approaches to Acquisition Data: Using, Sharing, and Protecting Industry Information Panel featuring David Berteau, Former President & CEO, PSC (moderator), John Tenaglia, Principal Director, Defense Pricing, Contracting, U.S. Department of Defense, Karla Smith Jackson, Senior Procurement Executive, Deputy Chief Acquisition Officer, Assistant Administrator for Procurement, NASA, and Jeff Koses, Senior Procurement Executive, GSA (not pictured but participated thru zoom).

Keynote featuring Leslie Beavers, Principal Deputy CIO, Department of Defense

State of the M&A Market: Recent Trends and 2025 Forecast Panel featuring Mikhail Grinberg, Partner, Renaissance Strategic Advisors (moderator), Ellen Grady, Partner, Pillsbury, Bob Kipps, Managing Director, KippsDeSanto, and Jason Rigoli, Partner, Enlightenment Capital.

Tuesday’s Opening and Welcome featuring LaJuanna Russell, President & CEO, Business Management Associates, 2025 Planning Committee Chair

Keynote featuring LTG Karl Gingrich, Deputy Chief of Staff, G-8, U.S. Army

Different Government Approaches to Allowable Teaming Arrangements featuring John Roman, Vice President, Contracts and Procurement, ECS Federal (moderator) and Mike Parrish, Former Chief Acquisition Officer, U.S. Department of Veterans Affairs.

M&A: Lessons Learned Panel featuring David Berteau, Former President & CEO, PSC and The Honorable Dr. John Hillen, DPhil, Professor, Duke University, former PSC Chairman and former CEO of Everwatch Corporation and Sotera Defense Systems.

Besa Pinchotti, CEO, National Military Family Association

Event Highlights

PSC welcomed more than 200 federal health leaders from both industry and the government in North Bethesda,

The event featured networking and engaging sessions that addressed the changes in the policy and acquisition landscape across federal civilian and military health agencies.

Opening Remarks featuring Jim Carroll, CEO, PSC & Stephanie Kostro, President, PSC

The COO of the FDA, Dr. Barclay Butler, participated in a fireside chat.

What to Expect in FedHealth Procurement Panel featuring Katie Webb, Executive Vice President, Public Health, Tria (moderator), Kathleen Berst, Acting Assistant Director Support, Component Acquisition Executive, DHA, Katrina Brisbon, Former Deputy Assistant Secretary for Acquisitions/Senior Procurement Executive, U.S. Department of Health & Human Services, Larry Stubblefield, Deputy Associate Administrator, Office of Government Contracting & Business Development, SBA & Chris Hamm, Former Director for FEDSIM, GSA

Future of Digital Health Panel featuring Jordan Parsons, CEO of GovAllies (moderator), Walter Harris, President, Harris W Consulting, LLC & Chandra Mohan, Former CIO and CTO, SAMHSA & Nadia Smith, Acting Chief Digital Health Officer, VA (not pictured but participated thru zoom)

Congressional Perspectives on Veterans’ Health Policy Panel featuring Adam Peters, Account Executive for Military and Veterans Health, Brian Newbold, Senior Policy Advisor, ManTech (moderator) Steve Gonzalez, Deputy Staff Director, Committee on Veterans Affairs, House of Representatives, Ally Cimino, Staff Director for Oversight and Investigations, Ranking Member Takano, House Veteran Affairs Committee & Chairman Jerry Moran, Senate Committee on Veterans’ Affairs

Maryland.

Event Highlights

PSC welcomed more than 200 attendees to its 9th annual Federal Acquisition Conference on June 5, 2025, at the Westin Arlington Gateway. The event brought together acquisition leaders from across the federal and private sectors to discuss how best to navigate the transforming federal marketplace and foster resilience and growth in government contracting.

Executive Actions: Impacts and Implications for Industry Panel featuring David Berteau, Former President & CEO, PSC (moderator), Emily Murphy, Former Administrator, GSA & Dr. Allan Burman, Former Administrator, OFPP

conference.

Keynote Remarks: Incorporating Supply Chain Risk Management into Acquisition Innovation featuring Stacy Bostjanick, Chief Defense Industrial Base Cybersecurity, Office of the DoD Chief Information Officer, DoD

Federal Funding Uncertainties: Dealing with the Appropriation Rollercoaster Panel featuring Jim Carroll, CEO, PSC (moderator), Jennifer Welham, Senior Vice President, Health, People, and Human Services, ICF, Baris Yener, Chief Growth Officer, Abt Global & Jill Bruning, Chief Technology Officer, Amentum

The Weakest Link: Supply Chain and IT Risks Panel featuring Tim Brennan, Vice President, Government Relations, PSC (moderator), Alexis Lasselle Ross, President, Apex Defense Strategies, LLC, Cameron G Holt, Maj Gen, USAF (Ret), President, Strategic Markets, Exiger, Peter Battaglia, Deputy Director, Mission Assurance Division, DLA & Greg Bowman, Chief Strategy Officer, Siemens Government Technologies

Keynote Remarks: What Service Contractors Can Expect from FAR Reform and Acquisition Consolidation featuring Larry Allen, Associate Administrator of the Office of Government-wide Policy (OGP), GSA

Opening Remarks featuring Jim Carroll, CEO, PSC & Stephanie Kostro, President, PSC

PSC offers a variety of high-visibility opportunities for your company throughout the year, including event sponsorships, advertising, and year-long partnerships.

Advertising options include: View all options at:

Member Meetings

Service Contractor Magazine

The PSC Daily e-Newsletter

Social Media Council Spotlight e-Newsletters specific to Acquisition and Business Policy, Civilian Agencies, Defense and Intelligence Agencies, International Development & Technology

PSC offers sponsorships for key events at a variety of levels so they’re accessible for small, mid-sized, and large companies: