Tips for GovCons in 2025

There’s a lot of uncertainty and changes in 2025 for government contractors. However, the changes don’t have to be scary. Although government clients can seem a little tight or more discerning than usual, there are ways to adapt despite the challenges. Learning the policy changes that affect the industry can help you position your business for success.

From diversifying potential services to improving your network and building relationships, explore government contracting tips to help you navigate the year ahead.

Challenges Faced by GovCons in 2025

The world of government contracting can seem different due to the recently established Department of Government Efficiency (DOGE). Before you plan for this year, take note of the challenges you can expect and how you can prepare for them.

As a government contractor, watch out for:

• Stricter budget usage: DOGE increases management oversight regarding federal contracts and grants, which can affect government contractors’ ongoing projects. Expect your contracts to be reviewed and modified if the government deems it necessary. Staff cuts and other internal changes can also affect the government’s budget.
• Delayed payments: While the proper authorities review contracts, you might experience a delay in payments. You may also experience changes in future payments if your contract gets modified. Prepare to justify the payments you require, as agencies are also required to provide payment justifications to DOGE.
• Contract terminations: If your contract is deemed unnecessary by a responsible agency, it can be terminated. Contracts may also be terminated for convenience. However, you can review your contract carefully to spot any clause that addresses such a situation. Communicate with your contracting officer for clarification and further actions to take.
• Shifting contract priorities: Because the executive order that established DOGE shakes up parts of the industry, it leaves room for new, emerging opportunities. Preparing yourself for this shift is challenging, but it can also work in your favor if you adapt.

Keep in mind that your contract is still a contract, regardless of new executive orders. Ensure you’re not failing to comply with the terms on your end and risk termination. If you think the government has breached your contract, the FAR Disputes clause may help you.

6 Tips for Government Contractors

2025 can be a challenging and yet rewarding year, and to succeed, you must be clear, adaptable and reliable. These three qualities can drive your success in providing your services.

Here are a few tips to help you adapt to the ongoing changes.

1. Evaluate Your Past Year’s Performance

The past year may have been filled with successes. You can showcase these achievements as you portray your expertise to prospective clients. You should also reflect on what made your previous bids successful and what your effective strategies are. Ask for feedback from your team on areas for improvement as well. These will all be handy when updating your capability statement.

Also, ensure all your documents are up to date to continue your operations smoothly. You may have ongoing contracts from the previous year that can be scrutinized. Accurate and updated documents will work in your favor. Plus, it’s wise to develop contingency plans if your contract gets terminated or delayed. Note that the executive order for DOGE does not specify specific standards on which contracts need to be terminated.

Lastly, review your cash flow and capabilities. Evaluating your financial health is necessary to understand what projects you can take on this year. If you find yourself with delayed payments from the government, try extending payment deadlines with your suppliers, too.

2. Look Out for In-Demand Government Contracts

Winning new government contracts can get a little tricky due to ongoing contracts being reviewed by relevant agencies. It’s extra important to express the value of your services and justify their cost. That said, you might have a smoother experience if you belong to essential industries or those with increasing demand.

The following divisions are not affected by the executive order:

• Federal criminal enforcement or immigration law
• Uniformed services
• U.S. Customs and Border Protection (CBP)
• U.S. Immigration and Customs Enforcement (ICE)
• Classified information systems
• Other exemptions by relevant agencies

Additionally, new markets are opening up, which can help your business if you’re ready to diversify.

The following services are in demand:

• Auditing and compliance
• Consulting
• Automation and AI
• IT modernization
• Cybersecurity

Ask yourself what services you can offer to make the agency’s life easier. What problems can you solve? Proposing smaller contracts and services may also be more relevant during this time. Remember that only the contracting officers can modify contracts, regardless of executive orders.

3. Network for More Opportunities

Good relationships can provide a good foundation for your business during times of uncertainty. Networking allows you to meet more potential clients and build new, continuing relationships. You can attend events and webinars. You can also interact with fellow contractors. Engaging with more people in the industry can increase the chances of new projects coming your way.

Also, try to get better with your pitches by researching who your target client really is. By interacting with potential clients, you can better understand their problems and what solutions they need.

4. Stay Updated With New Technologies

Artificial intelligence and automation are on the rise in 2025. By staying updated with new technologies, you can upgrade your business processes and offer more relevant solutions to potential clients. For instance, staff cuts can create shifts in staffing levels, which can be helped by automation services. If your business can offer workflow automation, for example, you may gain an edge over other government contractors.

5. Improve Your Team’s Performance

Training your subcontractors should be an ongoing process. It’s especially essential if you’re diversifying your services, since your subcontractors must learn the new ropes. When hiring, consider subcontractors with expertise.

Also, don’t leave your subcontractors in the dark when communicating with your contracting officer. Your team can get more motivated if they know what they need to do and why. Clear communication can also be helpful with everyone on the team during times of uncertainty.

6. Outsource Work With Experts

When working with the government, consider focusing on what you do best as a business and outsource the other tasks to experts. Experts can work on organizing and managing your contract file. They can also offer executive-level consulting, audit support and compliance reviews. By handing some or all of the administrative tasks, you can free your team for other tasks only you can perform.

Make Government Compliance Easy With BOOST

These tips for government contracts can help you run your business smoothly in 2025. That said, working with BOOST can make your goals more achievable. We make government compliance easier with our team of experienced professionals in government contracting. You can outsource some of the work to us, whether it involves accounting, procurement, recruitment, compliance training or senior-level advisory tasks like business planning and risk assessment.

This time of uncertainty and changes shouldn’t hinder your growth and success. Schedule an appointment today to learn more about how we can help!