Survival Mode: Winning in DOGE’s Ruthless New Era

Government contractors and grant recipients are experiencing a seismic shift as the Department of Government Efficiency (DOGE) continues to cut government spending and eliminate government contracts. As of March 18, 2025, DOGE claims it has saved $115B in government spending by eliminating 5,356 contracts, 7,488 grants, and 793 leases. According to DOGE’s website, the General Services Administration and the Departments of the Interior, Education, and Agriculture have been most impacted. In contrast, NASA and the Departments of State, Energy, and Transportation have been least affected.

For the bid and proposal community, these cuts aren’t just numbers; they represent lost opportunities, intensified competition, and a new reality where efficiency and strategic positioning matter more than ever.

The Immediate Impact: A Shrinking Pie

With $115B cut from federal spending, the federal procurement landscape, including contractors and grant recipients, faces:

• Increased competition for remaining opportunities as businesses scramble to replace lost revenue.
• Fewer long-term contract renewals as agencies consolidate services and eliminate underperforming contracts.
• Higher compliance expectations as agencies demand greater accountability for every federal dollar spent.

For proposal professionals, RFPs will be scrutinized more aggressively, evaluations will be more challenging, and price-to-performance ratios will take center stage.

The Shift Toward High-Value, Low-Risk Contracting

While DOGE’s cuts have created turbulence, they also signal a shift toward high-value, low-risk contracting models:

• Best-value awards will dominate as agencies justify selections based on strengths and return on investment rather than the lowest price.
• Consolidated contract vehicles like GWACs and IDIQs will become more attractive, favoring firms with established past performance.
• Agencies will prioritize automation and solutions to drive cost savings, pushing contractors to modernize their service offerings.

What Can Proposal Teams Do to Adapt?

With fewer contracts and heightened competition, proposal professionals must adjust their strategies to remain competitive:

• Sharpen Strength-Based Proposal Writing – Articulate strengths and differentiators to maximize evaluation scores against every evaluated criterion.
• Diversify Opportunity Pipelines – Don’t rely on a single contract or agency; pursue multiple avenues, including state and local opportunities.
• Leverage GWACs and IDIQs – Focus on multi-award contract vehicles that provide long-term stability.
• Invest in Process Optimization – Efficient proposal development will be key to handling an influx of bids while maintaining quality.
• Skills Will Take Center Stage – Proposal professionals must ensure their skills and certifications are updated as they face greater competition in the job market. 

Conclusion: Efficiency Cuts Both Ways

DOGE’s cuts are a wake-up call: Only the most adaptable, efficient, and strategic businesses will thrive in this new landscape. While some will see loss, others will see opportunity. By evolving with the changing environment, proposal professionals can help their companies not only survive but win smarter in this new age of government efficiency.

Is your team ready for the new reality? Contact Lohfeld Consulting to learn more.

Relevant Information

• How to do more with less – and win more!

• Top 10 tips for doing more with less

By Brenda Crist, Vice President at Lohfeld Consulting Group, MPA, CPP APMP Fellow

Lohfeld Consulting Group has proven results specializing in helping companies create winning captures and proposals. As the premier capture and proposal services consulting firm focused exclusively on government markets, we provide expert assistance to government contractors in Capture Planning and Strategy, Proposal Management and Writing, Capture and Proposal Process and Infrastructure, and Training. In the last 3 years, we’ve supported over 550 proposals winning more than $170B for our clients—including the Top 10 government contractors. Lohfeld Consulting Group is your “go-to” capture and proposal source! Start winning by contacting us at www.lohfeldconsulting.com and join us on LinkedIn, Facebook, and YouTube^(TM).