Compliance in 2025: Future-Proof Your GovCon Business

Focusing on Compliance in 2025: Investing in Future Competitiveness

Government contractors are facing unprecedented challenges as we approach 2025. With the recent presidential transition and efficiency initiatives, the landscape for GovCons is growing more complicated each day. Preparing for compliance and adapting to contract changes has never been more critical.

In our last article, I listed eight actions GovCons can take in this environment. We’ll dive into item #2 from that list today – compliance.

Why compliance is critical in a shifting landscape

The complexity of compliance

Navigating compliance in government contracting is no small feat. The sheer number of regulations and agencies, like DCAA, FAR, CMMC, CAS, EVMS, CPRS, can overwhelm anyone.

The key to mastering compliance lies in understanding which systems, frameworks, and agencies apply to your target contracts now and in the next three years. You can’t hit them all, but if you can be focused and check your ship for leaks today, you’ll be better prepared for stormy weather and potentially sail through awards faster than boats that are logged down with water.

Procurement consolidation = contract consolidation

As the “efficiency” initiatives shrink the number of Contracting Officers (KO), whether they are centralized in GSA or not, the reality is the trend towards GWAC, IDIQ, and BPA will continue. This not only means more competition, but also more compliance. Increasingly, solicitations and Section M for scoring criteria are giving more weight to compliance. This means preparing for compliance is no longer just about avoiding penalties – it’s about creating a competitive edge in the bidding process.

Compliance as a strategic advantage

Here’s the growing reality in government contracting: regulatory compliance isn’t just something you need to “check off the list.” And risk is the #1 thing that KO’s want to avoid now more than ever.

For many KOs, the top priority is ensuring that contracts are awarded to businesses with a proven track record of meeting compliance standards. And when in doubt, the more regulations they can rely on, the less risk they have.

What you can do today to stay ahead

Proactive planning is the best way to prepare for the increasingly stringent compliance landscape. Here are actionable steps you can take today to secure your place as a competitive government contractor in 2025 and beyond.

Plan ahead with Adequate Business Systems

Review your current compliance processes to ensure your systems meet federal requirements. Focus on critical Adequate Business Systems, including these key areas:

• Accounting systems to segregate direct and indirect costs clearly and produce auditable data.

• Estimating systems to produce accurate, reality-based cost proposals that align with FAR standards.

• Timekeeping systems to ensure your labor costs are tracked correctly, minimizing billing errors.

Strengthen cybersecurity

Cybersecurity is no longer optional for government contractors. Requirements like NIST 800-171 and the CMMC are non-negotiable for Defense contracts and on the horizon for Civilian.

• Conduct a gap analysis to see where your current cybersecurity program falls short of government standards.

• Engage with an RPO or C3PAO today if you haven’t already and have your SSP ready.

Stay audit-ready

Invest in the tools and systems that help you maintain and generate compliance documentation effortlessly. The ability to generate forms like ICE (Incurred Cost Electronically) models or separate allowable and unallowable costs automatically can save hours during audits and increase your team’s confidence.

Focus on compliance training

Make compliance part of your company culture. Provide training for your workforce to ensure they understand the importance of compliance and how they can contribute. This includes employees responsible for timekeeping, financial reporting, and cybersecurity.

The second-best time to start…

The challenges facing GovCons in 2025 are real, but so are the opportunities. Organizations that make compliance a priority today will build the foundation they need to thrive in an increasingly rigorous contracting landscape.

Unanet also offers plenty of opportunities for you to stay informed about your industry. We have an online customer community and meet up groups for existing customers. We also have a deep resource library with best practices and guidance on how to succeed as a GovCon. For more on how we can help, check out our website and reach out with any questions