What Every Government Contractor Should Do to Stay Ahead in Uncertain Times

Everything going on in the new administration is bringing economic and regulatory unpredictability while giving government contractors a myriad of challenges. Political transitions, compliance demands, and changes in federal contracting priorities have made this an inflection point for how we do business.

But here's the truth: uncertainty creates opportunity for those prepared to confront it head-on. The question is, are you ready?

At Unanet, we’ve spent over 30 years working with government contractors to weather storms like this – from shutdowns to pandemics, we’ve seen a lot and learned some lessons. Below, we’ll outline the critical steps you can take now to secure your future, supported by actionable insights and tools designed specifically for your needs.

The challenges facing government contractors

The government contracting space is anything but predictable. The latest shifts create both opportunities and risks for contractors, especially in an unprecedented environment of redefined spending and compliance mandates. These industry challenges affect every aspect of operations, including cash flow, customer relationships, and workforce management. Key challenges include:

1. Contract unpredictability: Transition periods always create ripple effects, and shifting priorities can result in halted, terminated, or renegotiated contracts.

2. Compliance pressures: The new focus on efficiency comes with intensified regulatory requirements, from cybersecurity (CMMC) to changes/simplification of financial reporting (FARS/DFARS compliance).

3. Financial strain: Delayed awards, payments, inflation, and rising indirect costs can squeezing margins just when agility is most critical.

4. Evolving priorities: "Buy America" policies, changes to diversity, equity, and inclusion (DEI) activities, reshoring initiatives, and agency reorganizations can impact your contract pipeline overnight.

5. Talent retention: People frustrated with the unpredictability can choose to leave for greener pastures if you aren't careful.

The stakes are high, but so are the rewards if you can position your business correctly.

What you can do right now to protect and strengthen your GovCon business

1. Improve your cash flow

Without a flexible cash flow strategy, even the most successful contracts can feel like a liability. Here's how you can safeguard your finances while preparing for new opportunities:

• Renegotiate payment terms with primes, vendors, and subcontractors

• Leverage SBA loans, credit lines, or bridge loans when necessary. Consult with APEX accelerators if you're a new business or various commercial banks like Bank of America, or the 7(a) loan program if you are an 8(a) company.

• Re-evaluate your indirect rates to maintain profitability during high-margin pressure.

Using a connected financial system like Unanet GovCon ERP can help you forecast cash cycles, track indirect rates daily, and automate compliance reporting to keep your operations running smoothly.

2. Prep for contract and compliance changes

Compliance is a make-or-break component for government contractors. In fact, Compliance becomes more important as a scoring criteria as more contracts move to IDIQ, BPA, and GWACs as a part of the Schedule M in the solicitation docs. Falling behind puts your ability to win and maintain contracts at serious risk. Here’s what you can do to prepare:

• Review all active contracts for clauses that could result in stop-work orders or terminations.

• Ensure certifications like CMMC and FARS/DFARS are up to date, and move toward full compliance proactively.

• Automate compliance documentation and generate accurate government-approved forms (e.g., ICE models) to stay ahead of audits.

With Unanet’s compliance-first ERP, you’ll reduce audit time and risk—allowing you to focus on mission-critical tasks.

3. Strengthen workforce adaptability

Agility is a strategic advantage and a way to retain good employees who like to develop their careers. Keeping your team motivated and aligned is critical for long-term success.

• Offer a learning and development program so you can cross-train and upskill your existing staff to handle multiple roles, enabling a quick pivot to new work.

• Communicate changes empathetically to boost morale but take action decisively when it’s needed.

• Retain top talent by streamlining time and expense tracking with mobile technology, ensuring employees focus on billable work while staying engaged.

Unanet’s resource management tools allow real-time visibility and help align workforce allocations with financial projections.

4. Refocus business development

Do you truly understand how agency priorities are shifting? Success depends on aligning your business pursuits with government goals.

• Update your pipeline based on potential terminations, agency reorganizations, or new cooperative alliances.

• Use AI-driven insights to ensure your proposal investments are focused on high-win-rate opportunities.

• Use AI to create proposal drafts from existing RFI/RFP and past proposal and performance to see if it aligns with your business BEFORE you decide to pursue.

Uncover the right contracts faster with Unanet CRM, a fully integrated tool designed to streamline pipeline management and tighten business development efforts.

5. Rethink your go-to-market strategy

If federal business is tightening, diversify without delay.

• Seek out state and local contracting opportunities to broaden your customer base.

• Automate your back-office processes to reduce costs, freeing resources to target new markets.

• Position your business for reshoring opportunities in manufacturing or supply chain resilience.

6. Optimize messaging for federal agencies — promote yourself

Agencies need assurances that you're mission-critical. Are you ready to communicate that clearly?

• Refine your website and marketing collateral to reflect federal priorities, particularly in cybersecurity, technology modernization, and sustainability.

• Justify your value in terms of agency impact—how do you make their lives easier or their missions more successful?

Unanet offers intuitive dashboards and data insights that showcase your project outcomes in real time, arming you with compelling metrics for every agency pitch.

7. Engage with Trusted Peers

Don’t make these decisions in isolation. Reach out to industry peers who understand the complexities of government contracting. Fresh eyes can give you an unbiased assessment of your strategy, identifying blind spots and sharpening your focus.

You can find new partners by attending professional association events and conferences. Some examples of organizations like this include PSC, SECAF, AFCEA, NDIA, and others.

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