Capital Edge’s Tip Line #6: Tariffs, Executive Orders, and DOE Workforce Reductions

Capital Edge Tip Line – May 2, 2025

Navigating Government Contracting Updates with Chad Braley – Edition 6

From tariff volatility to sweeping federal procurement reforms, this week’s Capital Edge Tip Line dives into urgent updates that could affect how your contracts are priced, managed, and reimbursed. CEO Chad Braley breaks down how contractors should respond to shifting agency expectations and regulatory guidance.

Key Updates from This Week’s Tip Line

Tariff Impacts on Federal Contracts

???? What’s happening? Contractors are facing uncertainty as new tariff percentages are debated and implemented. While rates may shift, the focus is on how contracts handle these costs.

???? What it means for you:

• Review FAR 52.229-3 for coverage of duties alongside taxes.
• Explore waiver and exemption options under FAR 25.9, DFARS 225.9, and associated clauses like DFARS 252.225-703.
• Anticipate potential adjustments in proposals or modifications if costs rise due to new duties.

???? Action item: Immediately assess relevant contract clauses and prepare internal guidance on how to account for tariffs during budgeting and cost disclosure.

Executive Order on Ensuring Commercial Cost-Effective Solutions

???? What’s happening? A recent Executive Order mandates agencies to justify any ongoing or planned purchases of non-commercial goods and services.

???? What it means for you:

• Agencies are under a 60-day deadline to review existing contracts and solicitations.
• All non-commercial procurements must be certified with price analysis and documentation of no commercial alternative.

???? Action item: Contractors should evaluate their current offerings and explore repositioning them as commercial solutions where possible. Monitor solicitations for updated compliance requirements.

DOE Workforce Reductions & Project Risk

???? What’s happening? The Department of Energy is undergoing significant personnel losses. Over 2,700 staff have opted into voluntary separation programs, with further reductions expected.

???? What it means for you:

• Contractors are being advised to invoice immediately due to looming operational slowdowns.
• Over 40% of DOE’s workforce has been deemed non-essential, creating gaps in contract, grant, and payment processes.
• 30+ major energy projects—including hydrogen hubs and clean energy initiatives—are now under review.

???? Action item: Engage your DOE points of contact frequently. Prepare invoices proactively and clarify funding timelines to avoid disruptions.

Looking for Expert GovCon Guidence?

Whether you're navigating tariffs, agency mandates, or payment delays, Capital Edge is here to help you mitigate risk and maintain compliance.

???? Have Questions? Need Help?
If any of these changes impact your business, don’t hesitate to reach out to Capital Edge Consulting for guidance.

???? Contact us today to discuss your specific challenges and compliance needs.

Stay informed. Stay compliant. Stay ahead.