Federal Workers: Exploring the Shift to Contractor Roles

The recent federal workforce reductions have left many dedicated public servants facing uncertainty about their future career paths. While these layoffs are primarily aimed at reducing government size and spending, there is ongoing speculation about whether more government services will be outsourced to private contractors. If this happens, private firms may seek individuals with federal experience to help navigate government regulations and operations. However, since no widespread outsourcing has happened yet, the best thing federal employees can do now is stay informed, build transferable skills, and establish credibility in their field.

How Federal Employees Can Stay Prepared for Potential Privatization

While there is no immediate large-scale outsourcing of federal jobs, staying ahead of potential changes can help federal employees position themselves as experts and remain competitive if private companies begin hiring individuals with government experience.

Step 1: Monitor Federal Contracting Trends

To understand whether outsourcing is happening in your field, start tracking which private firms are winning federal contracts and which agencies are cutting positions but still need work done.

• Check contract award announcements – Agencies post contracting opportunities on SAM.gov and USASpending.gov, where you can see which companies are securing federal contracts and what roles they may need to fill.
• Follow industry news – Websites like GovExec, Federal News Network, and the Partnership for Public Service report on workforce changes and potential privatization efforts.
• Connect with former federal employees – Many have transitioned into government contracting roles. Search LinkedIn for past colleagues now working for federal contractors and reach out for insights.

Step 2: Establish Yourself as a Subject Matter Expert (SME)

If privatization increases, private companies will value employees with deep knowledge of government regulations, compliance, and processes. Becoming known as a federal SME can give you a competitive advantage.

Here’s how to get visibility as a federal SME:

• Contribute articles to GovLoop or federal industry newsletters to share expertise on agency processes, compliance, or best practices.
• Speak at government-focused panels or offer to present at federal association events like those hosted by ACT-IAC or NCMA.
• Volunteer to mentor younger federal employees through professional organizations. Contractors often seek federal professionals who are respected in their agencies.

Step 3: Strengthen Your Private Sector Marketability

Even if you plan to stay in government, building skills valued by both federal agencies and contractors can serve as a backup plan.

Pursue certifications relevant to government contracting, such as:

• Project Management Professional (PMP) – For program and project managers.
• Certified Federal Contracts Manager (CFCM) – For those with experience in acquisitions or procurement.
• Certified Information Systems Security Professional (CISSP) – For cybersecurity professionals.
• Lean Six Sigma (LSS) – For process improvement and operational efficiency.

Attend networking events that bridge federal and private sector work

• ACT-IAC (American Council for Technology & Industry Advisory Council) and NCMA (National Contract Management Association) frequently hold government-industry collaboration events where contractors and federal employees discuss trends.
• Federal career transition panels often feature former government employees who successfully moved into contracting.

Federal employees have highly specialized skills that could be in demand if outsourcing increases – but the shift is not guaranteed. The best way to prepare is to monitor workforce trends, expand professional networks, and strengthen credentials that are valuable in both federal and private sector roles.