2025 Government Contractor Trends

How New Administration Guidelines Are Reshaping CRE Strategy

The presidential administration has begun significantly reshaping government contracting through a mix of executive orders, budget cuts, and procurement reforms. Broad cost-cutting efforts, terminating thousands of contracts and grants, particularly in education and research, have led agencies to prioritize off-the-shelf commercial solutions over custom-built services. A review of the Federal Acquisition Regulation (FAR), known as FAR 2.0, is underway, consolidating procurement under the GSA umbrella, eliminating redundancies. Despite overall spending restraints, the administration has invested heavily in national defense, cybersecurity, and AI, securing many large-scale contracts. Companies with government contracts will need to stay compliant with evolving policies, diversify contract exposure, and strengthen internal controls and documentation. 

GOVERNMENT CONTRACTOR TRENDS

Supply Chain Resilience

The federal government is pushing to rebuild domestic manufacturing capacity, particularly for semiconductors, medical supplies, and energy technologies, through grantsthat give U.S.-based contractors a competitive edge.

Defense, Cybersecurity, and AI

The FY 2025 federal budget includes significant boosts to defense and national security, which have resulted in contractors in these sectors seeing strong growth.

Digital Modernization & Cloud Migration

With many federal agencies transitioning to cloud-first infrastructure, contractors with FedRAMP-certified platforms are in high demand.

Focus on Small Business

The Small Business Administration (SBA) and federal agencies have expanded set-aside targets for women-,minority-, and veteran-owned businesses.

Download the full report for more information.