In December 2016, Jones Day issued “ Government Contracts Ramifications of the Trump Election,” a Commentary in which we discussed several likely impacts of the Trump Administration in the government contracts arena. Specifically, we discussed that the new Administration would:
- Seek repeal of numerous Executive Orders affecting government contractors.
- Reject some Obama Administration procurement policies, such as: the preference for fixed-price type contracts; the preference for lowest-price technically acceptable (“LPTA”) evaluation schemes; and the preference against outsourcing government jobs to private companies.
- Embrace Commercial Item contracting.
- Increase government spending for defense, cybersecurity, infrastructure, and immigration-related activities.
- Decrease spending by many agencies, including the Department of Education, Environmental Protection Agency, and Internal Revenue Service.
- Focus on compliance issues such as rooting out fraud, waste, and abuse, and ensuring compliance with the Buy American Act and Trade Agreements Act.
- Withdraw from, or renegotiate America’s participation in, certain trade relationships, which could affect companies’ supply chains.
- Decrease the federal workforce, which could result in understaffing and undertraining within the acquisition workforce.
- Appoint the members of the FAR Council, including the Office of Federal Procurement Policy (“OFPP”) Administrator, Secretary of Defense, Administrator of National Aeronautics and Space Administration, and the Administrator of General Services Administration.
Since the issuance of our earlier Commentary, President Trump has taken several actions that provide additional insight into the impact his Administration will have on government contractors.