When we use the word DOGE, we aren’t talking about the cryptocurrency named after a meme. We’re talking about the Department of Government Efficiency (DOGE), which is going to take the place of the U.S. Digital Service (USDS), a team of tech and design consultants in the White House. Led by Elon Musk, the purpose of DOGE is to streamline federal government by reducing inefficiencies, cut wasteful spending, and restructure federal agencies.
Since this initiative will affect spending, it’ll inevitably affect the public sector world. President Trump signed an Executive Order (EO) his first day in office establishing DOGE as part of the Executive Office, so let’s talk about DOGE and what changes it could bring to government contractors.
What is the Department of Government Efficiency (DOGE)?
The Department of Government Efficiency (DOGE) is replacing the former U.S. Digital Service, which was established by Obama in 2013. It'll now be called The United States DOGE Service (USDS). DOGE’s mission is to focus on regulatory changes, administrative reductions, and cost savings. DOGE will be led by CEO of Tesla and SpaceX, Elon Musk. Vivek Ramaswamy, who was the original co-leader, has left due to his plans to run for Ohio governor.
Establishment of a Temporary Organization
Trump has stated in the Executive Order establishing DOGE that there will be a USDS administrator established in the Executive Office of the President. They will report to White House Chief of Staff. The EO also establishes a temporary organization called "the U.S. DOGE Service Temporary Organization." This organization will be led by the USDS administrator and will be dedicated to advancing Trump's 18-month agenda. This organization will be terminated on July 4, 2026.
DOGE Teams
The Executive Order gives agency heads 30 days to assign teams of at least four employees to be a part of "DOGE teams" reporting to USDS. Most of these teams will consist of a team lead, an engineer, a human resources specialist, and an attorney.
The End of Remote Work
One of their first plans of action is to take a closer look at telework at the federal workforce, and require federal employees to return to the office 5 days a week. An Executive Order signed on January 20th, 2025 orders all federal agency department heads to make arrangements for terminating remote work.
Trump has also ordered a hiring freeze on all federal civilian positions. After the 90 day hiring freeze is up, the USDS administrator, and heads of the Office of Management and Budget (OMB) and Office of Personnel Management will submit a plan to reduce the size of the workforce.
Trump has also stated his plans to move some of these jobs outside of Washington D.C. to cheaper locations. This could affect the General Services Administration (GSA), as the federal government may be looking at using GSA's Public Building Service to acquire more office space and furnishings.
How DOGE Could Impact Government Contractors
The burning question here is how might the Department of Government Efficiency impact federal contracting? Scrutiny over government efficiency is not a new concept. Teddy Roosevelt’s Keep Commission, or the Private Sector Survey on Cost Control under Regan both were created to monitor government spending. But in the past, it was mainly looking at cost effectiveness. DOGE plans to look at more than just spending, and review what the government should be doing and how effective it is currently.
Let’s dive into ways DOGE could affect government contractors.
Increased Scrutiny of Federal Contracts
In line with evaluating efficiency, DOGE plans to closely examine federal contracts to identify and eliminate areas where they see waste. Current contracts that produce a lot of inefficiencies or are non-essential may be reduced or canceled.
Technology and Software Opportunities
One of the actions of DOGE in the EO is to launch a software modernization initiative to improve the quality and efficiency of government-wide software, network infrastructure, and IT systems. This is not a relatively new concept in the public sector world, but now that it's official within DOGE, and more specifically, the U.S. DOGE Service, we can expect to see an increase in solicitations for cutting edge technology and efficient technology solutions.
This could open doors for contractors offering innovative solutions that align with DOGE's objectives. Companies capable of providing cost-saving technologies or services may find new opportunities within DOGE's mission.
GSA Public Building Service and Other MAS Program Needs
As mentioned above, Trump has signed an EO aimed to have all federal employees return to the office full time. This will most likely impact GSA's Public Building service as they assist in finding real estate and office space, as well as the Multiple Award Schedule (MAS) Program, because the government will be looking for more facilities services, office supplies, and furnishings.
The hiring freeze and subsequent plan to reduce the federal workforce could also cause an uptick in Professional Services spending through the MAS Program. If there are vacancies that need to be backfilled, they could be filled by federal contractors, fulfilling DOGE's plan to make cuts in the federal workforce.
Regulatory Changes
To streamline government operations, DOGE may recommend altering or removing certain regulations. The idea here is to reduce the administrative burden by rescinding certain regulations. This could prove to be helpful for contractors who are restricted by legislation or reduce compliance burdens for them. Simplifying government processes could also make it more accessible for small businesses to enter the public sector. Alternatively, it could require small businesses to comply with new standards and requirements that they may not currently be in line with.
Emphasis on Cost Efficiency and Performance
This is not new in the GSA world--there is always a push to reduce prices, increase value, and enhance performance for government agencies. With DOGE’s mandate to eliminate waste, it could lead to more stringent evaluations of contractor efficiency, resulting in increased competition and pressure to reduce costs. While reducing costs could be difficult for contractors, increased competition could favor small businesses. DOGE could be reevaluating the larger contracting giants that traditionally dominate certain contracts and redirect spending efforts, potentially opening up more opportunities for small businesses.
Potential Reduction in Contracting Programs
DOGE plans to cut spending, so there will have to be trimming or elimination somewhere in the budget. To accomplish this, DOGE may recommend cutting certain federal programs, which could lead to a decrease in certain government contracting programs and contract vehicles.
Staying Updated on Government Policies
The new administration has already led to a whirlwind of Executive Orders and department updates. It’s important to stay up to date on any future changes like the addition of DOGE to see what could affect your contract and your business. To stay in the know on government contracting insights, check out our blog and monthly newsletter. If you have questions about your GSA Schedule contract or are interested in acquiring one, one of our consultants is here to help you.
