For Government Contractors, DOGE is a Four Letter Word

03.06.2025

Whether you view DOGE’s efforts to reduce federal spending as essential and long overdue, or, instead, as helter-skelter, cost-cutting vandalism (or something in between), one thing is clear:  many government contracts have been terminated and many more terminations are to come.   DOGE now has a website which lists all of the contracts it has terminated (www.doge.gov/savings) – the schedule goes on for pages and includes contracts with a wide array of agencies and departments.  DOGE promises that the list will get longer with each bi-weekly update.  This is a daunting time to be a federal government contractor. 

The administration’s determination to assess and trim the government’s contractual portfolio has left many (now former) contractors in trouble.  Many contractors are modest enterprises built around only a few, or even just one, contract.  Even larger companies with many contracts (and non-federal contracts unaffected by DOGE’s work) still may have limited resources to address an unexpected loss in revenue and future profits. 

Hirschler has highly experienced and sophisticated government contracts and bankruptcy & workout teams.  Together, these teams have decades of experience assisting federal contractors in financial distress, including those with claims against the government arising from the termination of federal contracts. 

If your enterprise is facing immediate or anticipated financial distress from the loss of one or more contracts, Hirschler is here to help.  Our workout and government contracts attorneys are ready to consult about your options going forward, including financial reorganization, downsizing, and pursuit of claims arising from the government’s decision to cut ties.  Please do not hesitate to contact Kristen Burgers, head of our bankruptcy & workout group, at kburgers@hirschlerlaw.com, or Ambi Biggs, head of our government contracts team, at abiggs@hirschlerlaw.com. 

And a final note:  while the focus of this Alert is federal contracts, DOGE and the Government Services Administration are scrutinizing, and terminating, a number of federal real estate leases.  Hirschler has extensive experience in real estate workouts and bankruptcies from both the owner and lender side of the process.  If the government’s efforts to trim its physical footprint is leaving your enterprise at risk, we welcome the opportunity to discuss your legal and reorganization options and prospects.