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

There’s no question—2025 has brought rapid change to the federal contracting space. With a flurry of Executive Orders and shifting procurement priorities, it can feel like there are “little fires everywhere.” But as seasoned contractors know, times of disruption often come with hidden opportunities. The key lies in understanding the landscape, staying proactive, and strategically positioning your business for success. 

The Current Climate: Uncertainty and Centralization 

Recent Executive Orders have introduced uncertainty around key programs many small businesses rely on. There’s been scrutiny of set-aside initiatives and pushback against DEI (diversity, equity, inclusion)-related efforts. This raises important questions: Are programs like 8(a) or WOSB being viewed as “woke”? What’s the future of targeted support for small and disadvantaged businesses? 

At the same time, there’s a broader push for efficiency, with talk of centralization—particularly within the GSA—and a shift toward closed, limited-access contract vehicles. While buying more efficiently makes sense on paper, it raises real concerns: How do small businesses break in? And how do we protect the infrastructure that has historically supported small, diverse, and veteran-owned firms? 

It’s Not All Doom and Gloom 

Despite the turbulence, the federal government still needs to buy. It may buy differently—perhaps more competitively, with leaner budgets and a greater focus on price—but procurement isn’t going away. For contractors who are paying attention, this is a time of opportunity. 

Here’s how smart firms are adapting: 

1. Track changes proactively.
   
   Stay informed—but don’t get overwhelmed. Executive Orders are coming fast and furious, but not all will materialize into regulatory change. Understand what’s in statute and what’s not. Recognize that implementation matters more than headlines. Your strategy should be based on real shifts, not fear. 
   
   
2. Engage early with buyers.
   
   We’re seeing more contracts go without options being exercised. That makes it critical to have open communication with your contracting officer, KO, KOTAR, or program office. Ask questions like:
   
   

• What is the acquisition strategy moving forward? 
  
  

• Will the option on this contract be exercised? 
  
  

• What support does the agency need to justify this procurement? 
  
  

When you help buyers advocate for their requirements, you become a partner—not just a vendor. 

3. Advocate for set-asides.
   
   With shrinking acquisition workforces and fewer small business specialists, set-aside programs are under pressure. Now is the time to step up:
   
   

• Engage during the acquisition planning stage—before the solicitation drops. 
  
  

• Collaborate with your Procurement Center Representative (PCR). 
  
  

• Consider engaging your congressional delegation to protect and promote small business priorities. 
  
  

Set-asides won’t preserve themselves. Advocacy from the contractor community is essential. 

4. Partner strategically.
   
   Teaming and joint ventures have never been more important. Whether you’re woman-owned, 8(a), service-disabled veteran-owned, or HUBZone, now is the time to seek out strategic partners.
   
   

Consider: 

• Forming small-to-small joint ventures with complementary designations. 
  
  

• Structuring deals where you alternate as the managing member depending on the opportunity. 
  
  

• Leaning into the federal focus on veterans by aligning with SDVOSBs when appropriate. 
  
  

Partnerships give you multiple “tools in your toolkit” to respond to shifting procurement priorities. 

5. Join the conversation.
   
   This is not the time to go it alone. Attend matchmaking events. Show up at industry days. Participate in professional associations. The more you engage with peers and agency representatives, the better positioned you are to anticipate and respond to change.

Yes, we’re in a challenging moment. But this is also a strategic moment. For those willing to track the changes, engage with buyers, advocate for small business, and build intentional partnerships, this season can become one of growth—not decline. 

The marketplace is shifting—but with the right mindset and strategies, small businesses can thrive.