With the new administration in full swing now, we are all navigating a slew of changes from Executive Orders, to new regulations, and spending habits. One change we are seeing affecting contractors right away is the government terminating a specific task or delivery order through GSA Multiple Award Schedules (MAS) and other contract vehicles, as part of the Department of Government Efficiency's (DOGE) initiative to cut spending. Why does this happen and when could it happen to you? It’s important to plan for all different types of scenarios with your federal contracts so you aren’t caught off guard and know how to handle each situation. Here’s what you need to know about order terminations and settlements.

In the past year, we’ve seen several changes to government contracting regulations that affect small businesses specifically, including updates from the Small Business Administration (SBA) and amendments to the Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS). Many of these changes benefit small business government contractors by increasing their government contracting opportunities and streamlining the acquisition processes.

There are a lot of burning questions surrounding the buyout Trump offered to the federal workforce, like: how many employees will accept, or will we see major dips in retention? While there’s still more change to come, let’s focus on what we’ve seen with federal workforce attrition rates in the past, and what it looks like so far under the Trump Administration.

The push to favor domestic items over foreign materials and products dates back to the early 1930s when the Buy American Act (BAA) was established. Since then, presidential administrations from both parties have worked to strengthen and revise the act. The BAA is an important piece of legislation for GSA contractors because it impacts the purchasing habits of federal agencies.

The rapid evolution of information technology has shaped virtually everything in today’s world, including how the federal government functions. For years, the government has lagged behind industry advancements for various reasons. As the Office of Management and Budget (OMB) puts it:

A change in the presidential administration can bring shifts in federal priorities, policies, and budgets—all of which can impact federal government contractors. If you are keeping up with the news, you have seen articles cropping up every day about a new Executive Order (EO) and a change in spending or initiatives. Although it can seem overwhelming right now, this isn’t necessarily new. Every time an administration switches over, there will inevitably be a lot of updates as they work to modify the landscape to fit their vision. The question is: what are you doing to adapt to these changes and maximize your success as a contractor in this new administration?