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?

The Trump Administration has produced a flurry of Executive Orders (EOs) since the inauguration just over 2 weeks ago. If you do business with the federal government, you may be wondering how some of these executive actions will impact your contract. You’re certainly not alone.

Federal contractors are likely familiar with the numerous rules and policies they must follow to receive a contract award and throughout a contract’s period of performance. The Federal Acquisition Regulation (FAR) regulates the rules for agencies’ procurement of products and services and is managed by the Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). In November of 2022, these agencies, or the “FAR Council,” proposed an amendment to the FAR requiring mandatory climate disclosures for federal contractors, such as reporting greenhouse gas (GHG) emissions publicly. However, this proposal was recently withdrawn mid-January.

The Trump Administration recently released Executive Order (EO) “Ending Illegal Discrimination and Restoring Merit Based Opportunity” which aims to remove all Diversity, Equity, and Inclusion (DEI) policies and programs within the federal government. In response to the EO, the General Services Administration (GSA) released a memo saying they intend to take immediate action eliminating the enforcement of all contract clauses, provisions, and terms and conditions related to DEI.

In his first day as President of the U.S., Trump wasted no time—he signed 12 Executive Orders (EOs), one of them placing a hiring freeze on the federal civilian workforce. This is not a first time a hiring freeze has been instituted, and not the first under Trump either. Many federal employees as well as federal contractors are wondering what this means for the future of the federal workforce. In this blog, we’ll discuss the current freeze, what we’ve seen in past hiring freezes, and ways this could impact the world of government contracting.