Happening Now in Federal Procurement

The Request for Proposal (RFP) landscape is evolving rapidly, fueled by technological advances, policy shifts and strategic priorities across the government and private sectors. Whether you are a seasoned contractor or new to the market, understanding the latest trends in RFPs can help stay competitive and maximize opportunities.

1. Policy Changes Redefining Compliance

One of the most significant changes impacting federal RFPs is the introduction of Executive Order 14173. Issued in January 2025, this order rescinded several affirmative action and equal opportunity requirements. It removed mandates against segregated facilities and protections for gender identity, significantly altering compliance obligations. Contractors must be aware of meeting new agency-specific requirements and navigating an increasingly complex regulatory environment.

2. Cost-Cutting and Contract Restructuring

Federal agencies are aggressively renegotiating contracts to save taxpayer dollars and are demanding substantial cost savings. Leading consulting firms are under pressure to deliver up to $20 billion in combined savings, often by scaling back project scopes, offering free AI-based services, or terminating non-essential projects. This environment demands that contractors present highly efficient, value-driven proposals to succeed.

3. Surge in AI and Automation Adoption

Federal procurement offices increasingly rely on artificial intelligence and automation to streamline operations and enhance service delivery. Contractors offering AI-powered tools, digital procurement solutions, and cybersecurity innovations have a strategic advantage. Expect more RFPs that explicitly seek vendors with cutting-edge technology solutions.

4. Greater Emphasis on Small Business Participation

Small businesses are more integral to federal contracting strategies than ever before. The expansion of
policies like the “Rule of Two” is compelling agencies to prioritize small business contracts when two or more capable small firms can meet the requirements. Large contractors are also encouraged to establish teaming agreements and subcontracting relationships with small businesses to meet evolving participation goals.

5. Focus on Infrastructure and IT Modernization

Federal agencies heavily invest in infrastructure upgrades and IT modernization following national priorities. This includes significant funding for cybersecurity, cloud migration, broadband expansion, and construction projects. Contractors specializing in these fields will find ample opportunities in the coming months.

Key Takeaways for Contractors

• Stay Informed: Monitor ongoing regulatory changes and understand how they affect contract eligibility and proposal requirements.
• Leverage Technology: Incorporate AI and automation into your service offerings to align with government modernization initiatives.
• Proofread version: Pursue partnerships: Form alliances with small businesses to access set-aside opportunities and diversify contract portfolios.
• Proofread version: Align Capabilities: Focus on infrastructure and IT modernization projects receiving significant federal funding.

Sources

• Wall Street Journal: Consulting Firms Offer Up to a Combined $20 Billion in Savings to Federal Contracts
• Wikipedia: Executive Order 14173
• FedBiz Access: 2025 Government Contracting Trends
• Winvale: 5 Federal Contracting Trends to Follow in 2025
• Deltek: Top Federal Contracting Opportunities for FY2025