The Department of Energy’s (DOE) recent reorganization creates more questions for contractors and contracting officials – questions that may be unanswered for some time. Nevertheless, the headquarters acquisition forecasts through December 2027 indicate continued opportunities, especially under contract vehicles.

Reorganization Highlights

The agency’s new organization chart, published in November reflects the Administration’s shifting priorities from clean energy and energy efficient programs to achieving American energy dominance and independence, strengthening the economy and enhancing grid reliability. The realignment impacted 15 offices. Five were renamed, eight were moved and/or consolidated and nine were eliminated, including those whose functions were dispersed to other offices. The Department also created two brand new offices.

The Office of Energy Efficiency and Renewable Energy (EERE) was restructured as the Office of Critical Minerals and Energy Innovation with functions under the Office of the Under Secretary for Energy. Most of the Grid Deployment Office grant and technical assistance portfolio functions were transferred to the Office of Electricity, which was moved to the Office of the Undersecretary for Science. The Fossil Energy and Carbon Management’s geothermal energy requirements were reconfigured within the Hydrocarbons and Geothermal Offices while minerals projects became a part of the new Office of Critical Minerals and Energy Innovation. Aligned with the Administration’s goals for nuclear energy development, the Fusion Energy Office will oversee the research, discovery, development and commercialization of fusion energy. The new Artificial Intelligence and Quantum Office will integrate quantum research, supercomputing development and AI technologies into the department’s mission. The chart below highlights the changes.

 

 

 

 

 

 

 

 

 

 

 

 

 

The following offices were eliminated:

• Office of Energy Efficiency and Renewable Energy
• Office of Clean Energy Demonstrations
• Grid Deployment Office
• Office of State and Community Energy Programs
• Office of Federal Energy Management Program
• Office of Manufacturing & Energy Supply Chains
• Office of Enterprise Assessments
• Office of Hearings & Appeals and Office of Energy Justice & Equity
• Fossil Energy and Carbon Management

CONTRACT TERMINATIONS:

The reorganization follows the termination of more than 500 contract and final assistance awards worth nearly $15B since January. As of September 30, 166 federal prime contracts valued at $3.2B had been terminated. Professional service contracts accounted for 70% and information technology (OT) represented 25%.

Secretary of Energy Chris Wright terminated 24 Office of Clean Energy Demonstration (OCED) awards totaling $3.7B in May with plans to review 179 additional awards valued at $15B. Similarly, he cancelled an additional 321 Science and Innovation awards worth $8B in October, including 51 expiring this calendar year. These were issued under OCED, the Office of Energy Efficiency and Renewable Energy (EERE), Grid Deployment (GDO), Manufacturing and Energy Supply Chains (MESC), Advanced Research Projects Agency-Energy (ARPA-E) and Fossil Energy (FE), agencies that were eliminated under the new organization. Note: The eliminations in May and October represent grants and financial assistance awards and are therefore not included in Deltek’s Terminated Contracts list.

FUTURE OUTLOOK:

Nevertheless, Energy contractors can expect continued opportunities through 2027. Opportunities continue emerging as the agency pursues innovative technologies, infrastructure modernization and new energy exploration. Energy’s Headquarters Acquisition Forecast lists 983 opportunities valued between $25K and more than $100M. A total of 261 included IT requirements based on NAICS codes and do not include embedded IT work. Recompetes account for 97%, including 397 delivery/task orders, 314 prime contracts and 244 task orders. Within these, the agency anticipates 340 small business set-aside contracts, including 71 sole source awards.

And this is only one forecast list. The agency forecast site also lists 47 additional forecast links, including those for the 13 national laboratories and contractor-managed facilities. These provide a myriad of subcontracting opportunities with contact information.

Close monitoring of these sites and Deltek's GovWin IQ, combined with proactive communication with contracting officers and program managers, is critical for contractors seeking to work with the DOE, although challenging. Seeking work in more supportive roles instead of the prime position can also enable companies to remain competitive. And, finally, maintaining compliance and contract performance will be crucial in the coming months.

Note: The new organizational structure was not incorporated into the U.S. Senate Subcommittee on Energy and Water Development (SEWD) S.3293 - Energy and Water Development and Related Agencies Appropriations Act, 2026, which proposes $57.3B in discretionary funding. Future continuing resolutions and final FY 2026 budgets could include allocations aligned with the revised department.

Watch for my upcoming blog on the Department of Energy appropriations under the Senate Farm, Water and Energy Bill.