How Will the New Trump Administration Impact Government Contracts?

President Donald Trump has indicated a willingness to spend in the private sector around defense, homeland security, and a variety of other areas, including a potential $1 trillion in infrastructure spending.  This presents both tremendous opportunities and possible fallbacks for the industry and government contracts and public procurement space.

President Trump has expressed his readiness to call contractors to the carpet for perceived inefficiencies or court costs overruns. As president-elect, Trump called out Boeing for perceived cost overruns associated with the Air Force One procurement, which is still in design phase. This Twitter storm was followed by an effort involving Lockheed Martin over the joint strike fighter. Both of those blowups had a billions of dollars impact on Boeing’s and Lockheed’s stock prices.

CEO’s are left wondering, “How do you deal with a Commander-in-Chief who’s negotiating 24/7, sometimes using social media?”

As long as contractors are willing to strike a bargain to demonstrate value efficiently, there’s a lot of value to be had in the year’s ahead.