The presidential election has passed and some federal contractors are anxiously awaiting the new administration. The Republican win could have significant positive implications for federal contracting, potentially leading to an increase in contract awards. Here’s why:

Pro-Business Platform

Republicans have traditionally been associated with pro-business policies. These include lower taxes, deregulation, and a generally more favorable business environment. A Republican president would likely seek to reduce regulatory burdens, making it easier for companies to operate and bid on federal contracts.

Increased Defense Spending

Republicans have historically supported higher defense spending. This could lead to a surge in contract awards from the Department of Defense (DoD), benefiting defense contractors. Even those not traditionally in the defense space may see opportunities, as the DoD often invests in cutting-edge technologies.

Emphasis on Private Sector Solutions

Republicans often favor private sector solutions to government problems. This could lead to more contracting opportunities as the government looks to the private sector to provide services and solutions. This might be particularly true in areas like IT, where the government has struggled with in-house solutions.

Potential for Privatization

A Republican administration might seek to privatize some government functions, similar to the 1990s and early 2000s. This could create new contracting opportunities as the government looks to the private sector to provide these services.

Past Trends

Historically, federal contracting has grown under Republican administrations. According to a Bloomberg Government analysis, contract spending rose 15% under George W. Bush and 12% under Donald Trump (1^st term), compared to a 10% decrease under Barack Obama. While past performance is no guarantee of future results, it suggests a potential trend.

Conclusion

While a Republican presidential win does not guarantee an increase in federal contract awards, it suggests a potential shift in favor of contractors. The pro-business policies, increased defense spending, emphasis on private sector solutions, and potential for privatization could all contribute to a more favorable environment for federal contractors. Those looking to grow their federal business would be wise to monitor the election closely and be prepared to capitalize on potential opportunities.