The Federal Procurement Landscape: Themes to Watch in 2025
Federal procurement in 2025 is poised for significant evolution, guided by five dominant themes: procurement reform, modernization, artificial intelligence, supply chain resiliency, and cybersecurity. Roger Waldron’s insights highlight the trends and implications that will shape this year and beyond, making it pivotal for stakeholders in the federal acquisition space to adapt and innovate.
Procurement reform will take center stage with efforts aimed at reducing regulatory burdens and encouraging commercial firms to engage in government contracts. The FY25 National Defense Authorization Act and Senator Wicker’s proposed FoRGED Act underline the government’s commitment to streamlining acquisition processes. These measures will address challenges posed by near-peer adversaries and ensure that regulatory frameworks enable efficiency and innovation. Communication between industry and government is emphasized as a cornerstone for implementing reforms that deliver the best value to the public.
Modernization is another critical area, focusing on aligning IT systems with organizational processes. The General Services Administration (GSA) leads this effort through its Federal Catalog Platform (FCP), a tool aimed at enhancing vendor catalog management. However, the transition to modernized systems must avoid unintended consequences, such as reduced competition, by maintaining open communication with contractors. GSA’s reorganization and the establishment of the Department of Government Efficiency (DOGE) provide a strong foundation for optimizing contracting structures and leveraging advancements like artificial intelligence to improve performance across government operations.
Artificial intelligence continues to revolutionize procurement processes. From proposal preparation to evaluation, AI is expected to play a more significant role in streamlining operations. While AI offers efficiency, it raises critical concerns about data security, bias, and conflicts of interest. Transparency in AI usage by both contractors and the government will be essential to address these challenges effectively. Furthermore, 2025 will see increased investment in AI tools for data management and modernization, accompanied by the development of contractual frameworks to address data rights, security, and ethical considerations.
Supply chain visibility and resiliency remain paramount, with a focus on bolstering the domestic industrial base. Investments in domestic production, particularly for munitions and pharmaceuticals, will be prioritized. Additionally, the government continues to enforce restrictions on acquiring products from adversarial nations, such as China, through mechanisms like the Trade Agreements Act (TAA) and Section 889 restrictions. These efforts aim to enhance national security while fostering a robust domestic manufacturing ecosystem.
Cybersecurity will underpin all procurement activities in 2025. The Department of Defense is advancing the Cybersecurity Maturity Model Certification (CMMC) compliance regime, and new Federal Acquisition Regulation (FAR) rules are anticipated. However, the cybersecurity framework faces potential changes with the upcoming administration, raising uncertainty about compliance requirements. Regardless, the emphasis on cybersecurity as a critical component of federal and commercial markets will remain steadfast.
Roger Waldron’s analysis underscores that these themes are not exhaustive but form the foundation for the federal procurement landscape in 2025. As the year progresses, stakeholders must remain agile, leveraging common-sense policies to achieve best-value mission support for the American people.
Disclaimer:
This blog post does not guarantee accuracy or provide legal advice. Always consult official resources or legal professionals for detailed guidance.
