Practical Advice for Government Contractors: Managing Executive Orders, Policy Changes & Presidential Transitions

Embracing Change in the 2025 Trump Administration

The recent shifts in federal priorities under the 2025 Trump Administration have created an environment of uncertainty for some government contractors. While there is a lot of emphasis right now on the “contract stops” and footing may seem unstable, there are still indications of “contract starts” and certain elements contractors know to be true:

• We know the federal government will always be remarkably stable compared to other industries.
• We know diversification is an effective protective measure.
• We know some industries are more insulated than others right now.
• We know for over 40 years Deltek has supported customers through many market changes, which is why government contractors look to Deltek for solutions, services and educational resources to navigate today’s evolving landscape.

Understanding the Current Market Environment

With new executive orders and changes in federal priorities, it's essential to stay informed. GovWin IQ by Deltek provides comprehensive market intelligence to help you stay up to date on changes that may impact opportunities in your pipeline, connect with government decision-makers and potential teaming partners, and uncover new markets to expand into. Here are some key areas to focus on:

Terminated Contracts

Stay updated on the types of delayed, modified or terminated contracts and understand the reasons behind these decisions with analyst-backed updates. This knowledge can help you understand when you may need to pivot strategies.

Executive Orders

Monitor new executive orders and their implications for your business. Understanding these changes will enable you to adjust your approach and remain compliant. Executive orders often create opportunities for companies to assist agencies in their implementations.

Funding Shifts

Track how federal funding is being reallocated, especially towards defense technology, immigration, border security, technology modernization, and the flow down to state and local municipalities. This can help you identify new agencies and markets of opportunity, should you need to adjust your business strategy.

Policy Changes

Stay informed about policy changes that could affect your contracts. This includes understanding new regulations, compliance requirements, and reduced regulations that may impact your operations.

The Government is Always Open for Business - Historical Resilience

Throughout history, moments of significant change and uncertainty, especially during presidential transitions, have tested the resilience and adaptability of government contractors. Here are some notable examples:

• Franklin D. Roosevelt's New Deal (1930s): Focused on economic recovery and social reform, leading to increased government spending on infrastructure projects.
• Ronald Reagan's Administration (1980s): Emphasized deregulation and tax cuts, creating opportunities for contractors in defense and technology sectors.
• Barack Obama's Administration (2009-2017): Prioritized healthcare reform and renewable energy investments, opening new markets for contractors in these fields.
• Donald Trump's First Administration (2017-2021): Focused on immigration policies and economic deregulation, creating opportunities for contractors involved in border security, defense and infrastructure projects.

“While today’s environment may seem on the surface to be quite different from the past, adapting to new priorities and diversifying your portfolio are still the top strategies needed in our ever-evolving landscape of government contracting. At Deltek, we support government contractors in navigating these changes confidently with GovWin IQ’s market intelligence and over 150 research analysts." - Kevin Plexico, Senior Vice President of Information Solutions at Deltek

Exploring the SLED Market as a Diversification Strategy

As federal priorities shift, it's an ideal time to consider diversification with the U.S. State, Local, and Education (SLED) government market. The SLED market offers $2 trillion worth of opportunities for government contractors. Here are some reasons to consider this market:

Diverse Opportunities

The SLED market comprises a wide range of projects, from infrastructure development to education initiatives. This diversity allows you to explore various sectors and find niches that align with your expertise.

Stable Funding

With some federal funding flowing to states and localities, the SLED market remains a strong option.

Lower Entry Barriers

There are lower barriers to entering the SLED market than in federal. With often fewer requirements and complexities, it can be a strong market to recoup some lost federal revenue and diversify your portfolio.

Whether pursuing federal, SLED, or even Canadian government contracts, winning public sector work is about building trust, understanding the agency's needs, and positioning yourself as a partner in their success. These best practices will help protect your firm from shifts in federal priorities to remain competitive no matter the market change. For more detailed insights and resources to navigate the SLED market, review the SLED Government Contracting 101 Guide.

High-Demand NAICS Codes: Where to Focus Your Efforts

In addition to exploring more state and local business, some industries will provide a bit more insulation during these market changes and are receiving signs of future federal investment from this administration such as technology modernization, advanced defense technology and mission-critical professional services. Partnering with other firms as a sub-contractor is a great way to get exposure into new industries and diversify your footprint. Use this primer to learn more about how to build your network of partners.

The North American Industry Classification System (NAICS) codes are a standardized method to classify business establishments based on the type of economic activity they engage in. These codes are crucial in government contracting as they help agencies identify potential vendors, categorize procurement opportunities and in the federal market determine small business classifications. By focusing your efforts on high-demand industries, you can strategically position your business to find and secure new opportunities in the government contracting market. If you are a GovWin IQ customer, you can search on these NAICS codes to identify best-fit opportunities. The following list highlights just a few of the industry areas GovWin's analysts see continued strong federal spending and growth:

Strategize Your Next Move with Deltek by your Side

In these changing times, it's crucial to have the right solutions to help you navigate the complexities of government contracting. GovWin IQ by Deltek is designed to support your business in all market conditions with solutions and expertise, regardless of whether you need to stay the course or pivot agencies, industries, offerings, or markets.

Frequently Asked Questions

• What are the key challenges contractors face during a Presidential Transition? Contractors must contend with changing budget priorities and contracting strategies and establish relationships with new agency leadership. There are often delays in new RFPs and/or awards that may impact contractors’ timelines.
• What strategies can contractors use to adapt to shifting federal priorities? Contractors should evaluate several aspects of their strategic plans to assess alignment with the new administration’s budgetary and policy agenda. This includes evaluating solution offerings, changes to new agency leadership priorities, teaming strategies, and pipeline composition and health.
• How can contractors leverage tools like GovWin IQ to stay updated on federal market changes? Contractors must stay strategic and agile amid uncertainty, using GovWin's market intelligence to adapt. GovWin can help you reexamine opportunity pipelines, understanding changing priorities, tracking agency restructuring, and aligning pricing to maintain margins. Contractors should also focus on top-tier performance to navigate increased scrutiny while supporting evolving agency needs and priorities.
• How can contractors identify new opportunities during periods of political change? Finding new opportunities in a new administration requires contractors to assess the tactical and operational requirements of new or changing program priorities. Whether it's emerging technology enablers, sought-after expertise or other innovations, contractors should position themselves to partner with government to address evolving priorities.