Good Morning, Folks! It’s Tuesday May 06 ! – What’s the May plan for your Govcon?
🎉Today, we’re diving into top government contract strategies, the latest opportunities, and all the news you didn’t know you needed. First time reading? Join with other curious minds – because who doesn’t want to stay ahead of the game? 😎 Sign up here
And as always, send us feedback at info@govcondigest.com
The “Skinny Budget” Is Here!! Can You Ride the GovCon Wave ?
Hey fellow, wake up to this new morning! If you’re in the government contracting game, especially on the civilian side, you’ll want to pour a fresh cup of coffee and pay attention. Because the Trump administration just dropped the outline of FY26 “Skinny Budget”. Let’s know what’s happening ,the White House wants to slash non-defense discretionary funding by a whopping $163 billion!
Yes, that’s 23% less than FY25. And no, mandatory programs like Social Security aren’t touched here. This budget isn’t just about numbers , it’s about priorities. And make no mistake, the administration is drawing hard lines. Climate initiatives, diversity programs, and federal disinformation efforts are out and defense, border security, AI, and fossil fuels are in. The Department of Homeland Security and FAA are seeing bumps in funding, but if you’re tied to agencies like the IRS, Department of Commerce, or CISA (Cybersecurity and Infrastructure Security Agency), you might want to start revisiting your contract pipeline because the axe is coming for some familiar programs.
CISA’s disinformation programs? Labeled as part of a “Censorship Industrial Complex.” That line alone is enough to tell you which direction things are headed. CISA’s entire budget is getting chopped by nearly half a billion dollars. The same goes for the National Institute of Standards and Technology (NIST). The budget slashes $325 million, accusing the agency of promoting a “radical climate agenda.” If your GovCon niche has been built around climate data tools, clean energy analytics, or equity-focused programs, it might be time to shift gears or at least diversify.
But there is a source for technology! While the budget slashes many civilian programs, it protects funding for emerging technologies, specifically AI, quantum computing, fusion energy, high-performance computing, and critical minerals research. The Social Security Administration even got a shoutout for its use of generative AI to boost employee productivity. But don’t get too excited, as their new chatbot wasn’t trained on SSA data and could end up being more of a liability than a triumph. Experts are already sounding the alarm about rolling out AI without testing it properly, especially when staff are being cut.
And can you think fossil fuels are back! In a bold turn from the previous administration’s priorities, the FY26 budget wants to reroute Department of Energy funds toward fossil fuels, nuclear reactors, and mineral extraction. Green energy? Not so much. In fact, funding tied to the Biden-era Infrastructure Investment and Jobs Act has been canceled, though a federal judge is now ordering that money be reinstated. So if your business was aligned with clean energy grants or sustainability programs? This is your warning.
No wonder there is space for the old friend Elon Musk ! The administration has appointed a new entity the Department of Government Efficiency (DOGE) to “review and streamline” major tech projects.DOGE is already calling the shots at the Department of Veterans Affairs, where it’s pausing procurement and reviewing a $2.2 billion Electronic Health Record Modernization project, while cutting $493 million from the VA’s IT budget. NASA’s IT services and workforce are also getting “streamlined.”
So what do you think? Some are on the chopping board and some are getting attention. This budget proposal is still in its early stages, and many will have a lot to say. But one thing’s for sure: the rules of the game are changing and fast.
📜 COMPLIANCE AND REGULATION UPDATES
A new day a new newsflash in government contracting world. Well FAR is getting a major rewrite—dubbed the “FAR Overhaul”, as we covered in our previous editions. According to the new updates contractors are no longer just vendors, they’re officially part of the Acquisition Team. This is a game-changing moment in government contracting compliance. The newly released FAR Part 1 recognizes contractors and stakeholders as active contributors, not passive participants.
Well that’s a promotion-With Parts 1, 34, and 52 already live, the opportunity to influence this historic change in government contracting is now. Public feedback is encouraged even before the updates hit the Federal Register. Whether you handle proposals, compliance, or manage a prime contract, your voice matters. Don’t miss this chance to shape the future of government contracting. Review the draft rules, put your valuable opinion that can change the face of the industry.This FAR Overhaul is more than a policy update—it’s a call to action for everyone in government contracting.
Federal Contracting Disputes Aren’t Do‑Overs: The High Plains Computing Lesson
In the court room world full of federal contracting disputes, just hitting replay on a failed protest won’t earn you a win. Just ask High Plains Computing, whose request for reconsideration (B-422934) was tossed out by the GAO for rehashing old claims. The rules under 4 C.F.R. § 21.14 are clear: you need fresh facts or a clear legal error. Only a fresher dispute is worth the attention not just louder crying. HPC’s case lacked both. In federal contracting disputes, alleging bias without solid proof won’t cut it either. The GAO doesn’t deal in gut feelings. This case is a humorous but firm reminder that federal contracting disputes are not a place for déjà vu. If you’re coming back for round two, bring new evidence or a different legal lens. Otherwise, you’re just shouting into the void. Bottom line: federal contracting disputes require strategy, not reruns.
🔓 Small Business to Unicorn: How a Handshake Builds Federal Contracting Superheroes!
Would you believe me if I said you need only one handshake to land a massive project? Small business contractors stand at the edge of great opportunities in the vast world of federal government contracting. Building B2B partnerships is like setting a cornerstone for success. It is a strategy that transforms a small firm into a trusted ally in a competitive market. As Federal Compass (2023) advises, “Network, put yourself out there, and build your company’s and your personal brand.”
Trust is the root of all strong partnerships. For small business contractors, trust is the cornerstone that supports future growth. A reliable business builds confidence quickly. Federal agencies and larger contractors prefer partners known for their integrity. This approach is like planting a seed that later grows into a strong tree. Federal Compass (2023) emphasizes that cultivating these relationships is essential. Without trust, no sustainable partnership can thrive.
Aligning strengths is the next step in building successful partnerships. When companies join forces, they combine unique skills that benefit both parties. For contractors, teamwork can mean the difference between a winning bid and a missed opportunity. As SelectGCR (2024) notes, “Establishing strong connections with government agencies is fundamental to success in government contracting.” Aligning strengths not only fills gaps in knowledge but also increases the chances of securing contracts in a challenging market.
B2B partnerships also serve as gateways to broader networks. For small businesses, having access to the right people is priceless. A single well-placed partnership can connect a company with key decision-makers in government agencies. This opportunity is like receiving a golden key that unlocks a door to exclusive resources and markets. As SelectGCR (2024) advises, understanding and nurturing these connections gives small contractors a competitive edge. By widening their professional network, small firms can rise to meet larger challenges.
Collaboration fuels innovation and drives success. Working together is like mixing two vibrant paints to produce a richer hue. For small business contractors, this kind of collaboration can lead to improved proposals, efficient resource sharing, and innovative project management techniques. A combined effort reduces risks and spreads costs. With partners, small companies can tackle projects that would otherwise be too complex. It also means learning from each other’s experiences.
In conclusion, building B2B partnerships is a strategic pillar for success in federal government contracting. For small business contractors, each partnership is a critical step toward seizing larger opportunities in the federal arena. The wisdom of experts from Federal Compass (2023) and SelectGCR (2024) reminds us that every relationship, every handshake, and every shared idea can transform a modest enterprise into a driving force in the competitive world of government contracting. Are you ready to build that bridge and unlock your federal future?
💰 Applied Solutions Logistics wins $114M DLA Warehousing Contract !
Hey GovCon champs! Applied Solutions Logistics just nabbed a five-year, $114 million deal from the Defense Logistics Agency(DLA) ! Yes, over the next five years, this Kansas City-based powerhouse will be running warehousing and operations support in North Carolina, helping make sure the U.S. military gets the gear it needs when it needs it. From now through April 2030, they’re the name behind the boxes, forklifts, and mission-critical supply chain muscle. They are the ones who will keep the military’s warehouses humming.
You must be thinking how’d They Pull It Off? DLA put out the call for proposals and got four competitive bids. Applied Solutions Logistics came out on top, landing an IDIQ hybrid contract which is just a fancy way of saying they’ll get paid through a mix of pricing models firm-fixed-price, cost-plus-fixed-fee, and cost-reimbursement. They’ll be paying for it using defense working capital funds through FY2030.
Think of DLA Distribution as the ultimate military Amazon but for bombs, boot and everything in between. With over 9,200 people on the team, they store, move, and manage inventory that keeps the warfighter ready. If it’s on a battlefield, DLA helped get it there.
With this $114 million score, Applied Solutions Logistics isn’t just moving boxes they’re moving up! Not a small win, right?
🎯 Full Repayment Now the Standard in Federal Government Contracts !
Big news in the world of federal government contracts: the General Services Administration (GSA) is providing the Technology Modernization Fund (TMF) a bold new direction. Full repayment is now the industry standard. The TMF, a veteran in federal government contracts, was signed into law by President Trump in 2017.
It’s been a major tool for funding IT modernization projects without relying on the annual budget scramble.
The TMF has backed everything from cloud migration to cybersecurity upgrades. They assisted agencies to invest smartly through federal government contracts. In 2021, the previous administration loosened the rules after a $1 billion injection from the American Rescue Plan. That resulted in partial or minimal repayment. A 50% repayment floor was later set, but now GSA is emphasizing full repayment “whenever possible,” while keeping partial options open for selected federal government contracting.
Repayment Rules Shift Could Reshape Federal Government Contracts
So far, the TMF has channeled $1.05 billion into 69 projects across 34 agencies. Quite impressive for a funding model within federal government contracts. Federal CIO Gregory Barbaccia sees this step as a way to make TMF a lasting application for tech debt, not just a one-off effort. This change could potentially restructure the expectations across federal government contracts, making repayment central to the process in the way.
Future of Federal Government Contracts Tied to TMF Reauthorization
However, there’s a clock ticking: the TMF sunsets in December unless Congress steps in. Representatives Nancy Mace and Gerry Connolly are pushing to reauthorize the fund and solidify reimbursement rules for federal government contracts. Meanwhile, with acting TMF leader Jessie Posilkin has his say after Larry Bafundo’s exit and staffing levels shrinking.This pivotal tool for federal government contracts still faces a question mark!
Will the TMF evolve into a permanent fixture in how federal government contracts support digital transformation? Stay tuned—and let’s keep rooting for smarter, more secure federal tech systems!
🎯 How the DoD Is Rewriting Government Contracts !
In a move that can be labeled both genius or common sense, the U.S. Department of Defense is adding “right to repair” clauses to its Army government contract. The reason? why should a $60 million tank be any harder to fix than your neighbor’s lawnmower? Thanks to Secretary of Defense Pete Hegseth’s April 30 memo, soldiers may soon be printing replacement parts with 3D printers. The goal? Make the military less dependent on mega-vendors like Lockheed Martin, Boeing, RTX and more like a high-tech DIY force.
These government contracts mean the Army gets direct access to the tools, software, and all the important technical data needed to fix their own gear. Without having to void warranties or calling a random help desk in Virginia.
More Wrenches, Fewer Bureaucrats
Sure, there’s a serious side to all this. The Pentagon clearly wants to improve readiness, cut costs, and make sure troops aren’t stuck. Even Senator Elizabeth Warren is onboard. Which means it’s officially a big deal. The reform fits into the DoD’s broader effort to bring government contracts into the modern age—engaging more with commercial innovators. Plus, it’s not just about fixing stuff. Hegseth also called for ramped-up investment in everything from missile defense and cybersecurity to counter-space operations (yes, space battles). Bottom line: the next generation of government contracts is about being street smart. For contractors, it’s time to brush up on your repair manuals and make sure your tech’s open-source enough to play ball.
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🗣️UPCOMING EVENTS
Event: Government Contracting Series 1 – Doing Business with the Government;
Deadline: May 15, 2025 / 10:00 am ET
Event: Shaping Opportunities in the New GovCon Climate;
Deadline: May 08, 2025 / 10:00 am ET
