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), a presidential advisory commission that President-elect Trump will make a reality when he gets into office. Led by Elon Musk and Vivek Ramaswamy, 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. 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 is intended to serve as an advisory or consulting commission, which would provide recommendations or strategies for government leaders. 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, and the founder of Roivant Sciences, Vivek Ramaswamy. This commission will not have official government powers, but will identify issues and make recommendations, having a strong influence on government leaders’ decisions. The House Oversight and Accountability Committee announced their intentions to create a subcommittee that would work with DOGE.
One of their first steps to action will be taking a closer look at telework at the federal workforce, and require federal employees to return to the office 5 days a week.
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.
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 General Services Administration (GSA) world, there is always a push to reduce prices, increase value, and enhance performance. 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.
Opportunities for Innovation
The initiative's focus on efficiency 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 the potentially restructured government programs.
Staying Updated on Government Policies
A change in administration will inevitably lead 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.
