Paul Debolt, government contracts practice group co-leader with Venable LLP, offers a look into how policies and requirements for selling to the federal government will be impacted by the new administration.

Expect, with the incoming Trump Administration, a reduction in the regulations that oversee government contracting, Debolt says. It will be driven by a sentiment that American businesses are over-regulated, and that “something needs to change.”

The creation of a Department of Government Efficiency will work to fulfill the mandate to restructure government and even eliminate some agencies. “There’s going to be a strong push to take what’s perceived to be handcuffs off businesses that work with the federal government,” Debolt says.

Notwithstanding an expected reduction in red tape, the slashing of government spending could also serve to lessen opportunities for government contractors. But Debolt sees several key agencies, including the departments of Defense, Homeland Security and Customs and Border Protection, as continuing to receive “a big chunk of money.”

In response, government contractors that had previously relied on supplying civilian agencies will need to shift their sales focus. One way to do that might be through a merger or acquisition, to which the new administration will be more predisposed than its predecessor, Debolt says. In addition, companies that had previously declined to do business with the government, out of a feeling that the process was too burdensome, could now enter the arena as contractors.

What won’t change are the strict requirements for selling to DOD and the military. Debolt says there will be a greater emphasis on doing business with American suppliers, although a “rigorous enforcement mechanism,” especially with regard to cybersecurity, will remain in place. 

Debolt says prospective government contractors need to start with “some basic blocking and tackling” in ensuring that their supply chains are in compliance with government requirements.