The shuttered halls of federal procurement are slowly reopening—after weeks of funding stasis, the 2025-2026 federal government shutdown appears to be nearing its end. The 2025 United States federal government shutdown has been the longest in U.S. history, closing doors not only on federal employees but on contracting vehicles, agency procurements and small business opportunities alike.
If you’re a business pursuing federal contracts— especially through GSA or other contracting platforms — this period of pause is your cue to readjust and prepare. Below, we unpack the key updates, the ripple effects for contractors, and how Capitol 50 can help you position for the rebound.
1. Status Check: Where We Are
- The Senate passed a motion advancing a continuing resolution (CR) to fund the government until January 2026, including a handful of full-year appropriation bills for military construction, Veterans Affairs and agriculture.
- Federal contract awards had largely stalled. According to economists, more than $800 million of new federal contracts per day were at risk amid the shutdown.
- While the deal signals reopening, the process
For federal contractors, this means that your pipeline paused—but it’s not over. You now need to lean in, not sit back.
2. Implications for Government Contractors & the GSA Marketplace
Here are three crucial take-aways for contracting firms:
2.1 Acceptance of Awards & Delays
Because of the shutdown, many awards were delayed or frozen. If you’re waiting on an award under a GSA schedule or other vehicle, assume there will be a backlog and you may need to revisit timelines, staffing commitments and cash flow planning.
2.2 GSA-Specific Effects
As you know, a contract with General Services Administration (“what is a GSA contract?”) allows firms to sell to the government via pre-negotiated terms. If you have a GSA contract or are in process (“how to obtain a GSA contract”), you should pay particular attention to:
- Contracts issued just before or during the shutdown: expect performance, invoicing and compliance delays.
- Modification deadlines: In some cases, contract changes or option exercise notices may have been postponed. It’s prudent to check your contract for such provisions and confirm with your contracting officer.
- SIN numbers (Service / Item Numbers): If you operate under a particular GSA SIN number (or “gsa sins”), you may face delayed award opportunities because agencies pulled back on new solicitations.
- “Most favored customer GSA” clauses: If your contract stipulates MFN-type discounts or pricing commitments tied to GSA commercial platforms, the fact of delayed or cancelled procurement by agencies can affect your overall pricing strategy.
2.3 Risk Management & Contract Administration
If your performance was affected by the shutdown (e.g., delays, staffing or subcontractor issues), you should evaluate whether you will need to claim excusable delay, seek equitable adjustment, or revisit contract modifications once the funding resumes.
For firms with a GSA schedule, this is the moment to lean into contract administration, audits of compliance, and portfolio review so you’re ready when awards resume.
3. What Smart Firms Should Do Right Now
Think of this lull as a “quiet before the storm” of federal opportunity rewinding. Here’s what to do:
- Review your pipeline: Identify which opportunities were paused and which are still active. Contact your contracting officers or agency points of contact to verify status.
- Audit your GSA schedule (if applicable): Check your SIN assignments, compliance with “most favored customer” clauses, pricing commitments and modifications. Make sure you’re ready when solicitations resume.
- Update your internal contract-administration systems: Ensure you track deadlines, billing systems, subcontractor commitments, and change orders so you aren’t scrambling when things pick up.
- Contact experts: For firms needing support with GSA schedules, modifications, compliance or bid readiness, Capitol 50 offers targeted services like GSA Contract Assistance and Contract Administration Services. You can request a free audit here: https://Cap50.com/request-a-free-audit/
4. How Capitol 50 Can Help
At Capitol 50, we specialise in federal contracting vehicles and strategies. For this moment of transition, we recommend the following:
- Contract Qualification Review: Get a clear assessment of where your business stands relative to government contracting minimums, past performance, registrations, and readiness.
- GSA Contract Assistance: If you’re holding or pursuing a GSA schedule and need help with compliance, SIN strategy, modifications and audit readiness, we provide consulting tailored to this environment.
- Contract Administration Services: When contract awards resume, you’ll need strong internal systems to manage performance, invoicing, modifications and compliance.
If you’d rather start with a rapid overview, request a free audit here
Looking Ahead
While the shutdown is navigating its way to an end, uncertainty remains: agencies will play catch-up, new solicitations will lag, contracting officers will be stretched, and firms that were idle may struggle to scale quickly. But savvy firms that used the downtime to sharpen their GSA schedule foundations, revisit their SIN strategy, confirm their “most-favoured-customer” obligations, and streamline contract administration will be ahead of the pack.
In short: the moment of stillness is ending, prepare for acceleration. This is your chance to turn pause into proactive readiness.
