Normally government contracts are steady work. The work is done by contractors that have long (~5 year) contracts. This leads to more stability for both the client and the contractors. However the contracts get put up for rebid approximately every 5 years as well.
Nobody can say for sure why my company has lost the recompete for the contract. Maybe our bid cost too much for the client. Or maybe it was because during the current contract we botched a port to a web version of our client server application. A buddy told me sometimes the government changes contractors just to shake things up. The bottom line is I need to make sure I still have a steady paycheck coming in 2 months from now.