The Latest in Fed: Additional Workforce Reductions, Possible Contracting Changes and an Update to Zero Trust
Workforce Updates and Implications
Last month, I discussed workforce reduction as it began to play out across agencies. Since then, we’ve seen an acceleration of additional cuts, as departments have been tasked with providing the White House their intended comprehensive plans for a reduction in force by the week ending March 14, while further federal guidance has more recently directed the Department of Education and VA to lay off additional personnel as well. And while we’ve now seen this play out over a month, it’s important to emphasize and note the additional potential IT implications to be aware of as a vendor or partner in this space.
A reduced workforce suggests the need for IT to step in with a larger footprint in areas like automation, data management and transfer, AI, user access and security needs, as well as changing storage demands, IT support, an increase in endpoint devices and additional IT hardware. Vendors and partners can play an active role in the reorganization of agencies in real-time, speaking to their strengths in capabilities to officials as the above listed needs increase.
Contracting Centralization Possible
Also new to federal news this month, the GSA released communication noting the potential for the Federal Acquisition Service (FAS) to “stand up a new organization to take on civilian agency contracting work. For example, [the Office of Personnel Management] previously did their own contracting activities. It looks like their contracting needs (and other civilian agencies’ contracting needs) will likely transition to GSA.”
Vendors and partners should know GSA may provide contracting functions for OPM, the Dept of Education, Small Business Administration and the Department of Housing and Urban Development. These agencies were identified as those that would be incorporated into a pilot program of more streamlined contracting efforts.
IT companies with contracts across the agencies will want to remain aware of these organizational changes, keep record of their contract transactions and modifications and be prepared to pivot resources adjusting to any future contracting reorganization.
Zero Trust Advancements
Also of note recently to the GovCon space is the DoD’s work toward its new Zero Trust Strategy for Operational Technology (OT), anticipated to be available in August of 2025.
Zero Trust of course has been part of an evolving conversation now for several years, with targets for contractors working with the DoD to meet their guidelines by 2027. The DoD’s Zero Trust Portfolio Management Office Director, Randy Resnick, recently announced the update specifically to OT, as a separate need from the existing guidance, in effort to “…stop lateral movement, to stop privilege escalation, to stop breaking out of the micro segment.”
The DoD will be looking to IT companies to aid in upgrading legacy systems, as well as continued training service needs for required courses for any DoD employee involved in the effort.
March has brought change and opportunities for IT companies, and we don’t anticipate seeing a slow down anytime soon. Stay tuned for more as spring approaches and federal agencies continue to navigate workforce shifts, contracting reforms and evolving cybersecurity requirements.
To get more TD SYNNEX Public Sector Market Insight content, please visit our Market Intelligence microsite.
About the Author:
Susanna Patten is a senior manager on the TD SYNNEX Public Sector Market Insights team covering tech trends across the Public Sector. Susanna has over 15 years of experience in public sector IT procurement. Her responsibilities at TD SYNNEX Public Sector include driving market intelligence asset production, ensuring the quality and relevance of deliverables from the Market Insights team, and aligning these insights with sales opportunities.
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