Plenty of Federal Procurement in the Post-DOGE World
4/4/2025
Mainstream media may be doom and gloom, however, don’t allow that to obscure the observable reality. Our analysts have a close eye on procurements hitting the street daily. While things were slow from late January to late February after the DOGE disarray, we are now seeing very healthy numbers in March that are just slightly below last year’s federal procurement.
March had contract quantities of roughly 1,000 daily, with many days matching high-activity months like April 2024, yielding 1,500 – 1,600 opportunities a day. Procurement dollars for these solicitation opportunities are currently somewhat opaque as 92% of the solicitation postings don’t denote a value in their supporting documents or are a brand-new requirement. Though, we do find this to be quite positive overall. We will continue to monitor the forecasts and values will be updated at that time to get a better sense of actual spend values.
As most government contractors noted, information technology opportunities were light in February and March. This was due to DOGE’s mainly IT focus on consolidation, furloughs, and/or rerouting procurement through a GSA consolidated MAS schedule. We are now noting procurement in the IT world has elevated dramatically over the past week outside of the GSA MAS schedule.
Please note that Washington Technology (a great resource for GovCon updates) produced a relevant article on April 1st and it was thankfully not an April’s fool joke. Hundreds of terminated contracts have been re-instated with the previous awardee.
To date, just over 7,000 contracts and/or individual task orders from the US Federal government have been terminated, with many being reinstated over the past two weeks. The major hit by the DOGE actions are mostly grants with over 10,000 terminated, at least at this time. To place things in proper perspective, 4,000 contracts/task orders on GSA schedules took place in 3 days last week alone. To place the severity of the DOGE actions in a better light, the government contracting community should just picture losing 5 days out of their calendar year regarding procurement activity after 3.5 months of DOGE activity.
As always, when folks retreat from the market due to uncertainty, that is when others thrive. Don’t forget that agencies still must reach their set-aside targets. We recommend using this as an opportunity to prevail when others retreat.
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