Government Contracting: New Admin Challenges & Strategies 2025

New Administration, New Challenges: How to Stay Ahead in Government Contracting

In the latest FedBiz’5 podcast, host Bobby Testa sat down with senior government contracting specialist Frank Krebs to discuss the changing landscape of government contracting under the new Trump administration. With small businesses wondering what 2025 holds, Frank provided key insights and strategies to stay competitive.

What Small Businesses Should Expect

With the administration’s first 100 days underway, many agencies like the Department of Education and the EPA are facing potential budget cuts, creating uncertainty. However, Frank emphasized not to panic—billions in government contracts will still be available, particularly in stable sectors like the Department of Defense and Homeland Security.

Additionally, businesses should anticipate a slowdown in new government contract awards as agencies reassess budgets and priorities. While this may seem like a setback, it also presents an opportunity to refine strategies and establish stronger relationships with contracting officers.

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Key Strategies for Success

Reassess Your Position – Review your SAM.gov and DSBS profiles to ensure accuracy and relevance. Make sure they align with your current business goals and capabilities.
Update Your Capability Statement – Your capability statement is often the first impression contracting officers get of your business. Ensure your NAICS codes, past performance, and contact details are up to date.
Increase Government Marketing – Now is the time to reach out to contracting officers before they get overwhelmed. Building relationships now will keep you top-of-mind when contracts become available.

Why Market Now?

Although new contract awards may be slow, contracting officers are preparing for an influx of work. They are currently reviewing potential vendors, making this the perfect time to establish connections. By reaching out now, sending capability statements, and scheduling briefings, businesses can position themselves ahead of the competition.

Another key factor is the expected reduction in available contracting officers due to hiring freezes and potential agency restructuring. When contracts begin flowing again, many officers will be handling the workload of multiple people. If your business has already established a relationship with them, you’re far more likely to be on their radar when they need vendors quickly.

What are the final recommendations for optimizing government contracting?

Frank advises small businesses to stay informed through the FedBiz Access website and continue positioning themselves for upcoming opportunities. Being proactive, staying compliant, and refining marketing efforts now will put businesses in a prime position for future government contracts.

If you haven’t already, start optimizing your government contracting strategy today. Need help navigating government contracting? Schedule a free consultation with a FedBiz Specialist today! Call 888-299-4498

Frequently Asked Questions

1 How will the new administration impact government contracting for small businesses?

The new administration may bring potential budget cuts to some agencies, creating uncertainty and a slowdown in new government contract awards. However, billions in contracts will still be available, particularly in stable sectors like the Department of Defense and Homeland Security.

2 What key strategies should small businesses adopt to stay competitive in this changing landscape?

Small businesses should reassess their SAM.gov and DSBS profiles for accuracy, update their capability statements to reflect current goals, and proactively increase government marketing to build relationships with contracting officers.

3 Why is it important to increase government marketing efforts now, even with a potential slowdown in contract awards?

Contracting officers are currently preparing for future work and reviewing potential vendors. Building relationships now will ensure your business remains top-of-mind when new contracts become available, giving you a competitive edge.

4 Are there specific government sectors that small businesses should focus on during this period of change?

Yes, despite potential budget cuts in some areas, stable sectors like the Department of Defense and Homeland Security are expected to continue having billions in government contracts available. Businesses should explore opportunities within these departments.