2025 — A Year of Change in the GovCon Industry

2025 — A Year of Change in the GovCon Industry

December 29, 2025

One must look back to the original codification of the Federal Acquisition Regulation (FAR) in 1984 to fully appreciate the magnitude of today’s changes in federal procurement. The impacts are significant, and both industry and government are feeling some unease. Yet amid all this change, a few constants remain: you must adapt, stay nimble, and be prepared. 


As with most administration transitions, the incoming leadership typically places a temporary freeze on regulatory activity. This pause allows them to review existing statutes and regulations and set policy direction. Usually, the resulting adjustments are targeted and incremental. Each administration aims to ensure that its procurement policies reflect its priorities, whether those priorities emphasize diplomacy over defense, reducing wasteful spending, or pursuing social policy objectives. 


In 2025, however, the industry saw a major shift with Executive Order 14275, “Restoring Common Sense to Federal Procurement,” issued on April 15, 2025. The order directs the FAR Council and agency acquisition leaders to amend the FAR within 180 days, ensuring it contains only provisions required by statute or necessary for simplicity, usability, procurement effectiveness, or the protection of economic or national security interests. According to Acquisition.gov, the goals are faster acquisitions, increased competition, and better outcomes. 

U.S. Capitol representing change in the government contracting industry

The next stage of the FAR overhaul will move through the rulemaking process, ultimately leading to a newly codified FAR. Agencies will still retain the ability to issue deviations to any FAR part as needed. Beyond the FAR overhaul itself, other Executive Orders are also reshaping the landscape for government contractors, particularly in cybersecurity, personnel policies, and commercialization. Contractors must also remain vigilant regarding False Claims Act enforcement. The Trump Administration’s Department of Justice has continued to investigate and prosecute FCA cases, with heightened focus on cybersecurity compliance. In 2025, both research universities and private companies faced FCA scrutiny related to securing and reporting on cybersecurity requirements. 


Since 1984, the federal procurement community has navigated multiple administrations, economic highs and lows, wartime demands, and periods of relative peace. Through it all, the government contracts industry has adapted, survived, and often thrived. 


At FPS, we have weathered these changes alongside the industry since the 1960s. We continue to provide training and education to professionals and businesses committed to succeeding in federal contracting through winning, performing, and complying, no matter who is in power or how the rules evolve. 


FPS Government Contracts Year In Review Conference - A Landmark Year 


FPS’s Annual Year in Review, will be held December 9–11 at the Westin in Tysons, Virginia.  More than 300 government contracts professionals—C-suite leaders, attorneys, analysts, administrators, and industry specialists—joined us for 2.5 days of discussion, analysis, and forward-looking insights. 


The 2025 event helped attendees make sense of a tumultuous year marked by a change in administration, regulatory shifts, enforcement actions, new technology challenges, and evolving acquisition priorities. All sessions from the event will be available for viewing through CeriFi LegalEdge. 


Highlights from this year’s agenda include: 

  • Executive Orders: A review of the major orders issued, their flow-down implications, and their real-world impact on contractors. 
  • Mergers & Acquisitions: After a slow start to 2025 due to uncertainty around the administration shift, M&A activity increased, especially for small businesses exploring acquisition or merger opportunities. 
  • False Claims: Robust enforcement continued as the DOJ under both administrations signaled a firm stance toward fraud and compliance failures. 
  • GSA & the FAR Overhaul: GSA is leading the modernization charge, with significant changes to acquisition policy on the horizon. 
  • Subcontracting Responsibilities: Subcontractors faced new expectations, reinforcing their responsibilities not just to primes but to federal agencies. 
  • Contract Disputes: FY25 offered fresh case law and practical lessons for navigating disputes in 2026. 
  • Commercial Products & Services: The Department of War highlighted its priority to acquire more commercial solutions to speedy procurement cycles. 
  • Artificial Intelligence: AI-assisted proposal development became a major issue as several AI-generated proposals were protested—and those protests were unsuccessful. 
  • SBA 8(a) Program: Ongoing audits and DOJ investigations reshaped expectations for participants and applicants. 
  • Supply Chain: International sourcing friction and tariff pressures remained front-of-mind for both primes and subcontractors. 
  • Bid Protests: As always, protest decisions offered critical insights into source selections and legal interpretations. 
  • Corporate Counsel & Compliance Panels: Senior industry counsel discussed FY25 changes, CAS updates, and the operational impacts of compliance requirements moving into FY26. 
  • Cost/CAS/TINA: Shifts in cost principles, CAS matters, and TINA obligations challenged contractors to adapt quickly. 
  • Construction Law: End-of-administration funding waves, delays, and regulatory adjustments shaped the construction contracting landscape. 
  • Labor & Employment: Changes to SCA, DBA, and FLSA guidance, common with administration transitions, continued to impact contractors. 
  • Cybersecurity & CMMC: With average compliance timelines stretching to 18 months, cybersecurity remained a central concern for organizations preparing for upcoming requirements. 


FPS and CeriFi - Continued Content Partnership for the Federal Contracting Industry  


For over two decades, FPS has been proud to partner with CeriFi LegalEdge to deliver trusted, practical, and timely government contracts training. As we enter 2026, we are excited to continue that partnership and to provide CeriFi LegalEdge customers interested in the government contracting industry with the high-quality education, analysis, and insight they rely on. 

For more than 65 years, FPS has served as the industry leader in government contracts training—supporting professionals across the public and private sectors with courses, conferences, certificate programs, live and on-demand webinars, virtual and in-person learning, and comprehensive subscription solutions. Our mission is to equip contracting professionals, attorneys, compliance experts, financial managers, and executives with the knowledge and tools needed to succeed in a complex, rapidly evolving regulatory landscape. Whether the need is foundational training or advanced, specialized instruction, FPS provides a full spectrum of learning options, across the entire contracting lifecycle, that meets professionals where they are and assists them to “Win. Perform. Comply.” in the government contracts industry. 


This article is provided by one of our content partners, Federal Publications Seminars. Visit the link below to find their programs in the CeriFi LegalEdge catalog.  


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