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Stay ahead in the dynamic world of government contracting with our roundup of the top five must-know updates from this week.
- GovConIndex Report: The latest GovConIndex report details the performance of government contractors as of February 7, 2025. The index, which tracks the stock performances of 30 major government contractors, started February on a losing note, ending lower at $4,805.44 following a fourth daily loss in five trading sessions. The week also saw breakouts of individual constituents and steep losses by defense stocks. The index lost -1.83% week-on-week for its third consecutive weekly loss since the last two weeks of January. Despite the losses, some stocks like Palantir Technologies shone brightly with significant gains. Learn more
- Federal Employee Buyout Offers: A U.S. judge has recently approved a buyout offer for federal employees. This move is expected to impact a significant number of workers, providing them with an option to leave their positions voluntarily with financial incentives. The buyout offer, part of President Trump’s effort to trim the size of the government, requires employees to resign by February 6th to take advantage of the offer. Employees who accept the terms are also offered the chance to stay on administrative leave through September 30, 2025, and will still receive their federal salary. However, they must waive their right to take legal action against the agency regarding their employment or the deferred resignation offer. Learn more
- Return to In-Person Work: Thousands of federal workers are expected to return to in-person work this week. This transition marks a significant shift from the remote work policies that have been in place since the onset of the pandemic. The U.S. Office of Personnel Management (OPM) has issued guidance to agencies regarding President Trump’s Presidential Memorandum on returning to in-person work. The memorandum directs agency heads to terminate remote work arrangements and require employees to return to work in-person at their respective duty stations on a full-time basis as soon as practicable. Learn more
- Impact of U.S. Foreign Aid Pullbacks: The recent pullbacks in U.S. foreign aid are affecting contractors who deliver these services. The Trump administration’s pullback on foreign assistance and its near-total shutdown of U.S. aid mean contractors are feeling the pinch. This reduction in aid is likely to have a ripple effect on the operations and financial stability of these contractors. Many contractors are facing challenges as they navigate the swift, large-scale cancellation of agreements with the private sector that helps to implement U.S. foreign policy and national security. Learn more
- Pentagon’s New Priorities: The Pentagon is prioritizing homeland defense and warfighting capabilities while slashing wasteful spending. Defense Secretary Pete Hegseth mentioned efforts to modernize the nuclear triad and build an iron dome for the U.S., similar to the one that defends Israel against aerial threats. These priorities will be reflected in the fiscal year 2026 defense budget and future defense budgets. The department is also committed to passing a clean audit across the department to ensure transparency and accountability in defense spending. Learn more
Stay tuned for next week’s edition of “Top 5 Things to Know in GovCon this Week” for more insights and updates from RSM on the ever-changing government contracting industry!
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Susanna Hoffpauer
Susanna Hoffpauer is a dedicated member of RSM's GovCon team, specializing in the implementation and sale of RSM's tailored government contracting services. With a focus on Dynamics 365 Finance & Operations (D365 F&O), Susanna brings a wealth of expertise in streamlining financial and operational processes for government contractors. In today's rapidly evolving regulatory landscape, Susanna ensures clients remain compliant with critical standards, including the Cybersecurity Maturity Model Certification (CMMC). Her commitment to excellence and deep understanding of compliance requirements makes her a trusted advisor in the government contracting space.
