An executive order proposing to bring more transparency and efficiency to federal contracting could undermine any efficiency gains by putting additional compliance burdens on an already-strained acquisition workforce that is set to shrink further under the Trump administration.
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"It is adding significant, perhaps, cost, time and complexity to the procurement system at a time when we are bleeding employees," said Blank Rome LLP partner Dominique Casimir.
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Also, given that the jobs of federal acquisition staff are potentially on the line if their justifications are considered inadequate or wrong, those workers are going to be extremely careful and thorough in putting together their explanations, Blank Rome associate David Bodner said.
"I was a former [federal] contracting officer, and any little extra thing that you have to do, and especially when you know that there'll be such public visibility to it, you're going to take that extra time to make sure that you got it right," he said.
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In the meantime, there are several steps contractors can take in response to the order, such as making sure they are closely tracking related costs that can be recovered if their contracts are terminated.
Given that the executive order places authority in the hands of agency heads for deciding which contracts will be cut and whether payment justifications are adequate, contractors will also want to develop an understanding of what those leaders prioritize, and the perception of their work within that agency, according to Blank Rome's Casimir.
"And they need to be prepared to advocate, if and when the time comes, that the work that they do is acute or critical, and perhaps does fit within the exemptions that exist, that takes them out of the space for covered contracts," she said.
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"Strict Mandates in Contracting Order May Undercut Efficiency," by Daniel Wilson was published in Law360 on February 28, 2025.
