How Changes in 2019 are Affecting the Federal Contracting Community

January 17, 2020


2019 saw many changes to federal contracting that have proven difficult to adjust to. The government shutdown last year affected several areas of government and federal contractors were among those it affected the most. The shutdown cost government contractors an estimated $3.5 billion.

According to a recent article by nextgov.com:

“The year was defined by one big, controversial procurement; the ongoing shift to buy more IT products and services through the General Services Administration; that agency’s consolidation of its major contracts on the Multiple Award Schedules; and a new cybersecurity standard that has the defense contracting community holding its breath.”

Nextgove spoke to federal contracting experts to get their take on 2019. For analysts at The Pulse, the unstable leadership across the government was the biggest trend affecting federal contractors.

“In the less than three years since President Donald Trump took office, he has had no less than 28 acting Cabinet secretaries and carries more than five acting secretaries right now,” they pointed out. “The turnover rate since this administration has taken office is higher than the last five administrations.”

That instability at the top has trickled down to the federal contracting community as changing, unclear or entirely unstated priorities, the analysts said.

For other analysts, the big instability was in funding with an estimated $3.5 billion loss to contractors during the partial government shutdown.

However, one thing that analysts agreed on was the upcoming Cybersecurity Maturity Model Certification (CMMC).

“As the DOD prepares to unveil the Cybersecurity Maturity Model Certification, the hundreds of thousands of firms it will affect will be looking on nervously,” Cornillie said. “The cost of complying with the CMMC will no doubt cause a share of the defense industrial base to exit the market and force others to solidify their supply chains.”

As of now, the CMMC program is for defense contractors only, but civilian officials are watching to see what happens.

To read more about the changes the federal contracting community is facing, click here.