The Department of Government Efficiency (DOGE) is here—and it’s already disrupting the federal contracting landscape. From surprise terminations to increased audit pressure and AI-based language filtering in proposals, contractors are feeling the heat.
In this episode of The Optimize Podcast, Jeff Shapiro, Government Contracting Advisory and Regulatory Assurance Partner at CohnReznick LLP, and Blaine Klusky, founder and principal of Harkin Advisors, dive into what contractors need to know about DOGE’s policies. They also explain how contractors can stay protected, using Blaine’s expertise in financial strategy, compliance, and audit readiness. Blaine shares strategic insights on surviving audits, defending contracts, and navigating political language in proposals.
AI is Watching: Are Your Proposals Putting You at Risk?
Under DOGE, AI tools are reportedly scanning contracts and proposals for politically sensitive keywords and NAICS codes. That means certain terms—like “transitioning” or even standard consulting descriptors—may now trigger contract scrutiny or terminations.
“We’re seeing NAICS codes like 5416XX—management consulting—caught in this net of ‘dead on arrival.”
For proposal managers and capture teams, this means focusing on bid language, especially when using AI-powered drafting tools. Blaine urges teams to treat proposal language as a compliance asset—not just a sales tool. Review past submissions, check for sensitive phrases, and consult legal or compliance teams to ensure alignment with current executive directives.
Additionally, Update your boilerplate content and SAM.gov profile to highlight outcomes, mission value, and regulatory awareness. It’s not about hiding—it’s about speaking DOGE’s language without triggering unintended scrutiny.
How to Defend the Spend
In this environment, meeting performance metrics isn’t enough—you must demonstrate tangible value to justify your contract. Agencies and auditors must justify every dollar, potentially to political or departmental leadership
“Are you saying phrases and themes that the current administration wants to steer away from? Re-look at your value proposition.”
Blaine advises GovCon leaders to develop quick-response narratives for every major contract. These narratives should be clear, compelling summaries that highlight impact, cost-effectiveness, and alignment with agency goals. This is about preparing your stakeholders to defend your work on your behalf.
Examples include: how many service members you’ve helped, the efficiencies you’ve introduced, or cost savings achieved. Equip your program officers and contracting partners with facts they can elevate quickly if a termination is being considered. It’s not just BD—it’s advocacy.
Surviving the Audit Surge
Contractors are also facing intensified audit activity from DCAA and DCMA. Blaine recounts a recent experience with six auditors assigned to a standard audit for a small business—something he’d never seen before.
“Every audit has an audit program. These are not just wanderlust where you get to decide what you want to do today. Understand the rules if you want to win the game.”
Audit success now hinges on preparation, clarity, and control. Contractors must understand the evaluation program, prepare accordingly, and treat kick-off meetings as strategic communication opportunities.
Blaine also emphasizes mock interviews and role-play training with staff who may be pulled into audit conversations. He recommends showing auditors empathy, not resistance, and framing internal weaknesses as learning moments—documented, remediated, and improved. This builds trust and helps shift auditors into collaborator mode, rather than adversary.
Empathy Over Emotion: The New Leadership Mandate
Whether you’re dealing with auditors, contracting officers, or internal teams, emotional intelligence is more critical than ever. Stress levels are high across the board—and poor communication can escalate a fixable issue into a crisis.
“Be a partner to your auditors and regulators. Maybe they’re not your friend, but don’t make them your enemy."
Blaine and Jeff both highlight the human side of GovCon. Be mindful of tone in internal Zoom calls, show appreciation in audit kick-offs, and avoid frustration-filled LinkedIn posts. In a world of AI flagging and political sensitivity, every interaction counts.
Leaders should model calm, empathetic communication, and coach teams to operate from shared understanding—not panic. Remember: your counterparts in government are under pressure too. Respect, patience, and a cooperative mindset are strategic assets in this environment.
Listen Now: Learn How to Stay Ahead of DOGE
This episode covers AI-flagged language, proactive audit strategies, and contract-saving messaging—essential for government contractors in the post-DOGE environment.
In addition to risk management and compliance, Jeff and Blaine also discuss:
- Rethinking your pricing models and indirect rate strategies.
- Exploring alternative contracting pathways like OTAs.
- Balancing risk tolerance when submitting incurred cost submissions.
- Managing team communication and public messaging during a crisis.
The episode offers practical steps and strategic insights for C-suite leaders, compliance officers, BD professionals, and proposal teams.
Listen now on your preferred platform:
Want a deeper dive into DOGE policies, audit tactics, and proposal defense? Don’t miss this conversation between two trusted experts in the GovCon space
Enjoyed the episode?
If you found it helpful, consider leaving a quick rating or review on your preferred podcast platform. It helps others in the GovCon community discover and benefit from these conversations.
