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How to Stay Compliant and Competitive in Federal Contracting in 2025

The information in this article originated at the Tribal Edge Summit.

 

The federal contracting environment is undergoing rapid transformation. Regulatory shifts, executive orders, procurement consolidation, and evolving interpretations of long-standing programs are introducing both uncertainty and opportunity. In a recent panel discussion at the Tribal Edge Summit, attorneys Meghan Leemon of PilieroMazza and John Mattox of Schoonover & Moriarty offered a pragmatic and nuanced analysis of this moment in federal acquisition—urging contractors to remain vigilant, informed, and proactive.

 
The 8(a) Program: Still Standing 

Amid speculation regarding the fate of SBA’s 8(a) Business Development Program, Lehman and Maddox emphasized that the program remains intact and legally grounded. The Ultima decision, which removed the presumption of social disadvantage, has altered how eligibility is demonstrated but has not dismantled the program. The takeaway is clear: the 8(a) program is statutory and cannot be nullified by executive fiat. Moreover, the removal of presumption arguably repositions the program outside the framework of diversity, equity, and inclusion (DEI), reinforcing its accessibility to any applicant who can substantiate both social and economic disadvantage. 

 
Executive Orders and the Limits of Their Reach 

Contractors should be acutely aware that executive orders do not automatically alter existing contractual obligations. As Lehman and Maddox noted, your governing document is your contract. Unless changes are formally incorporated through a bilateral or authorized unilateral modification—typically executed by the contracting officer—executive policy shifts have no immediate legal bearing on performance requirements. 

Furthermore, recent executive orders have created confusion in the field, particularly regarding payment obligations. Under Executive Order 14222, some contractors report delayed payments without formal stop work orders or justifications. The recommendation is unequivocal: push back. The Prompt Payment Act remains in effect, and interest begins accruing on late payments. Legal recourse, including formal claims and demand letters, may be necessary to secure what is rightfully owed. 

 

Contract Modifications, Terminations, and Risk Mitigation 

The increase in administrative modifications, stop work orders, and terminations for convenience underscores the importance of active contract management. Contractors must: 

  • Closely examine any modification language for waivers of future claims; 
  • Track and document all costs associated with winding down work; 
  • Communicate with authorized contracting officers on all contract matters; 
  • Promptly flow down changes to subcontractors and ensure subcontract terms are enforceable.

Contractors are also encouraged to revisit and strengthen their subcontract agreements, particularly around payment terms and scope delineation, to avoid exposure in the event of disruption. 

 

The Shift to GSA and Strategic Adaptation 

Procurement consolidation under GSA is accelerating. As more agencies move toward schedule-based contracting and large GWAC vehicles, contractors without a GSA Schedule may find themselves sidelined. Now is the time to consider schedule acquisition, explore strategic teaming, and evaluate where your capabilities fit within the evolving procurement ecosystem. 

 

Engage in the Regulatory Process 

Perhaps the most overlooked opportunity lies in public participation. Regulatory agencies are actively soliciting comments on burdensome or outdated FAR provisions. Contractors have a real chance to shape the rules that govern their industry—but only if they engage. Tools like Regulations.gov and recent Federal Register notices are open conduits for thoughtful commentary and advocacy. 

 

A Word of Caution on AI 

Finally, both panelists offered a clear warning: do not rely on AI tools like ChatGPT for legal advice or contract drafting. Misinterpretations and fabricated citations are common. When the stakes involve multimillion-dollar task orders and regulatory compliance, expert counsel is indispensable. 

 

Conclusion 

In a time marked by executive churn and shifting acquisition strategies, federal contractors must lead with precision, not panic. Understanding your rights, protecting your position contractually, and participating in the regulatory process will be critical to remaining both compliant and competitive in 2025 and beyond. 

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Bill Powell

VP of Growth

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