Navigating Change: The Potential Impact of a New Administration on Federal Contracting
by Julian Setian, CEO, SOSi
Government leadership changes are a constant force shaping federal contracting, much like the wind that bends a tree. While each political shift can alter the industry’s landscape, it rarely uproots it completely. However, this time things might be different. President elect Trump has unequivocally pledged a radical departure from the past, promising a complete overhaul of the system. The incoming administration’s mantra is clear: no more business as usual. Every aspect of federal contracting, from procurement processes to contract terms, is expected to undergo intense scrutiny as the new leadership takes charge.
The impact of elections on federal contractors can be profound and far-reaching. Shifts in political priorities often lead to changes in budgets and spending, which significantly affect government contractors. A recent example underscores this impact: the abrupt withdrawal of U.S. troops from Afghanistan following the 2020 presidential election resulted in the cancellation of numerous contracts. This sudden shift forced many companies that had supported U.S. military and diplomatic efforts in the region for years to abandon unfinished projects, leading to significant financial losses. The prospect of a fundamental overhaul can be daunting. The forecasted winds of change might create turbulence for the contracting community. Should contractors brace themselves? Probably. However, it is crucial to remember that the government will always rely on the private sector to fulfill
its mission—and with uncertainty often comes opportunity.
Read the entire article in the Winter 2025 edition of Service Contractor magazine.