With every election year comes a great degree of uncertainty, particularly for those who deal in government contracts. Because each candidate gets to choose how they use federal resources, newly elected officials can have a direct and significant impact on such contracts and their provisions. That’s why it’s important for government contractors to stay informed of what a presidential change could mean for their industry. As US residents prepare to head to the polls in just a few short months, here’s what you need to know.
What Candidates Could Eliminate or Create
Some candidates aim to eliminate certain government agencies while others look to create new ones, and some want to do both. When an agency is eliminated, contractors who work with that agency may eventually find themselves out of a job. In contrast, when a new agency is established, it’s likely to provide the opportunity for additional work. For instance, John Kasich intends to eliminate federal oversight of highways and the Department of Education while Bernie Sanders is focused on increasing government intervention in the areas of health care and higher education. Meanwhile, Hillary Clinton has pledged to conduct a complete “top to bottom review” of all government agencies if she’s elected.
Staying abreast of each candidate’s tendencies and proposed changes and being well prepared ahead of time is essential.
Changes to Regulations
Anyone in the government contracting field is already well aware of the plethora of regulations that must be adhered to when bidding or working on various contracts. It’s important to note that these regulations are subject to change, and likely will to some degree, depending on which candidate ultimately wins the election in November. Additionally, there are still a number of new executive orders that have been issued but have yet to take place. These pending changes must also be accounted for.
Increased Security and Enforcement
With the importance of cyber security at an all-time high, government contractors should expect an uptick in regulations surrounding the area of information sharing, particularly from the Department of Defense. Additionally, industry experts anticipate an increase in enforcement of any regulations that remain in place, especially in the case of data security violations. It is absolutely critical that anyone in the contracting business stay on top of these security regulations and strictly adhere to them.
Funding to Agencies
Even though candidates may decide to keep a government agency intact, they may subsequently choose to change the funding to that agency. This could result in fewer government contracts, or it could result in an overall increase. Relatively speaking, this particular election season has been somewhat “calm” according to industry experts. Regardless, contractors need to be aware of each candidate’s stance on governmental change.
In any of the above cases, contractors should be well-prepared to handle any financial impact that such a change may result in. Being wise and keeping alternative funding options in mind, such as government invoice factoring, can help ensure financial security even during a time of serious transition.
If you are a government contractor and would like more information about what government invoice factoring is and, more importantly, how it can help keep your business running strong despite the changing landscape, click here or contact us today.