Federal Contracts Must Now Justify Degree Requirements: New Skills-Based Hiring Kicks In After 15 Months

The new Skills-Based Federal Contracting Act is here to challenge the government’s long-standing obsession with degrees when hiring outside help. Simply put, this bill changes the rules for federal agencies looking to contract work out to the private sector. From now on, they can’t just slap a minimum degree requirement—like needing a bachelor’s—onto a contract solicitation unless they can provide a detailed, written justification for it.

This justification has to clearly explain why that specific level of education is absolutely necessary to meet the agency’s needs. If they can’t prove the degree is essential, they are expected to look for alternatives, focusing on actual skills and experience instead. This new rule is added as Section 3313 to title 41 of the U.S. Code, but don't hold your breath just yet: the changes only apply to contract solicitations issued 15 months after the law is enacted.

The War on Credentialism in Contracting

For years, federal contracting has often defaulted to requiring degrees, even for jobs where proven experience might be far more valuable. This bill is a direct hit on that practice, forcing agencies to prioritize competence over credentials. Think about a self-taught cybersecurity expert or a construction manager who started in the trades—people with high-demand skills but no four-year degree. Under the old system, they or their companies might have been automatically screened out of federal work. This bill opens the door for those individuals, leveling the playing field for skilled workers who learned on the job, in the military, or through non-traditional training programs.

However, this introduces a new administrative burden. Federal contracting officers now have to write and review these justifications every time a degree is required. While the Office of Management and Budget (OMB) has 180 days to issue guidance on how to write these justifications and encourage alternatives, the requirement for a "written justification" is a subjective standard. If officers use vague or boilerplate language, they could easily circumvent the spirit of the law, keeping the degree requirement in place without truly proving its necessity. This means the real impact will depend entirely on how strictly the OMB enforces the quality of these justifications.

The Fine Print and Future Oversight

Beyond the immediate changes, the bill also repeals an existing rule from the Federal Acquisition Regulation (FAR) related to defense contracting education requirements, which is a detail worth noting, as it removes one of the existing standards. The bill also builds in a check on its own effectiveness: three years after enactment, the Government Accountability Office (GAO) must report back to Congress on how well executive agencies are actually following these new rules. This mandated review suggests Congress is serious about tracking whether agencies are truly shifting to a skills-based approach or simply adding another bureaucratic hurdle to the paperwork pile.

In short, this legislation is a win for the skilled workforce that lacks traditional academic credentials, pushing federal agencies to focus on what a contractor can do rather than where they went to school. But the 15-month waiting period and the reliance on strong administrative oversight mean we’ll have to wait to see if this truly breaks the government’s degree habit or just adds an extra signature line to the contracting process.