#government-contracting — Public Fediverse posts

A company is not prohibited from incurring unallowable costs, but they CANNOT BE RECOVERED either directly or indirectly under federal government contracts.
https://rosecoveredglasses.wordpress.com/2026/05/08/unallowable-costs-under-federal-government-contracts/
#GovernmentContracting #UnallowableCosts

Techniques to PROFILE YOUR GOVERNMENT CONTRACT COMPETITION by performing risk analysis and making related judgments in the final submission of your proposal.
https://rosecoveredglasses.wordpress.com/2026/05/05/techniques-to-profile-your-government-contract-competition-2/
#GovernmentContracting #CompetitionProfiliing

ESTABLISHING CREDIBILITY AND CAPTURING MARKET SHARE - Key tactics to create a high-impact presence on LinkedIn.
https://rosecoveredglasses.wordpress.com/2026/05/04/linkedin-has-become-the-critical-channel-for-establishing-credibility-and-capturing-market-share-2/
#MarketShare #GovernmentContracting #LinkedIn

Tips For Small Business In Teaming With Prime Contractors

“WASHINGTON TECHNOLOGY” – By Mike Lisagor

Adapted from the book: How to Win in the Government Market (co-authored with Mark Amtower)

“There are plenty of pitfalls and possible mistakes when you form partnerships.There is no such thing as a risk-free proposition as a subcontractor. But here are eleven guidelines that can increase your chances of picking the winning prime contractor.”

_______________________________________________________________________________________________

1. While established relationships often influence teaming decisions, business associates can be re-assigned or leave their company. Having a definitive teaming agreement is one of the few ways you can mitigate this risk.
2. Your company’s technical role and work percentage should be clearly defined in a written teaming agreement (usually Attachment A). Avoid terms like “best efforts” or “goals.” These rarely pan out. On IDIQ and GWAC bids where work content is guaranteed, get an agreement on which technical areas you will lead…something like “all the work in our core competency.”
3. It is a good practice to request a Dun & Bradstreet credit report on a potential small business prime contractor to assess whether they will be deemed financially credible in the eyes of the client. I’ve seen the government throw out bids because the small business prime couldn’t pay their bills. This was incredibly frustrating for subs.
4. Ask the client what they think of potential teammates – the worst that can happen is they’ll decline to comment.
5. Most acquisitions require either the prime contractor or the entire team to provide a certain number of project citations. Confirm that the prime has the necessary past performance and relevant projects to cite in the proposal.
6. Look for a prime that has subject matter experts who meet the key personnel requirements. Negotiate having some of these be from your company.
7. Many government acquisition re-competes assume the winning team will hire some or all the incumbent contractor’s staff. This will need to be considered as part of your teaming and win strategy.
8. Make sure the potential prime contractor has the resources and ability to develop a professional winning proposal. Find out up front how much effort you will be expected to expend.
9. Discuss pricing strategy up front so you know whether the rates you will have to bid will fit within your company’s pricing model. This means you need to know whether the target agency has a history of best value or lowest price ‘barely’ technically capable awards. And the prime’s ability to be competitive.
10. Avoid companies that have a reputation for treating their subcontractors unfairly especially when negotiating a subcontract after the award and sharing the resulting work. Query your industry partners for their experience teaming with the prime. And, just as you should when hiring someone, trust your instincts. It won’t get better after the award.
11. One final suggestion — use a decision matrix to evaluate the teaming landscape for each specific new business opportunity. This will take some of the emotion out of the selection process. First, develop the important win strategy criteria (column 1). These should be based on both stated and perceived procurement needs as a result of client discussions and reading procurement documentation. Next assess your own company’s ability to meet these criteria and any gaps you can’t fill (column 2). Then, evaluate each candidate prime against the same criteria using colors; high, medium, low; or a numerical score to determine the best fit (one column for each company).

And, above all, avoid teaming just because it’s someone you already know…team to win!

Tips On Teaming With Prime Contractors

ABOUT THE AUTHOR:

Mike Lisagor

A (usually) retired writer, gov’t contractor BD & PM expert, and blues musician, Mike Lisagor is the founder of Celerity Works and a co-founder of GovFlex.com. His books include the just released, How to Win in the Government Market (with Mark Amtower), The Essential Guide to Managing a Government Project, and How to Develop a Winning SBIR Proposal (with Eric Adolphe). He can be reached at LinkedIn.com/in/mikelisagor and [email protected]

Government contracts, subcontracts and purchase orders must contain provisions for the PROTECTION OF INTELLECTUAL PROPERTY AND PROPRIETARY DATA.
https://rosecoveredglasses.wordpress.com/2026/04/28/protecting-intellectual-property-and-proprietary-data-in-federal-government-contracting-2/
#GovernmentContracting #IntellectualAndProprietaryDataProtection

Making an ASTUTE BID/NO BID DECISION in small business federal government contracting.
https://rosecoveredglasses.wordpress.com/2026/04/22/making-an-astute-bid-no-bid-decision-in-small-business-federal-government-contracting-2/
#SmallBusiness #GovernmentContracting #BidNobidDecision

Making An Astute Bid/No Bid Decision In Small Business Federal Government Contracting

“SMALLTOFEDS” – By Ken Larson

“When considering submitting a proposal to a given government solicitation, conduct a bid/no bid exercise. By going through that process you will begin formulating your win strategy or you will discover that you should not bid this job for lack of such a strategy.“

___________________________________________________________________________________________________________

“Government contract proposal preparation is time consuming and can be costly. Meeting the agency Request for Proposal (RFP) requirements with a responsive proposal can be well worth the effort if a winning strategy can be formulated. “

The elements of the process are discussed below in the form of questions to ask yourself against topics for key consideration.  Affirmative or non-affirmative answers to the topical questions and ability to fill in the blanks below will drive your decision to bid or not bid a solicitation.

A. Customer:
Do you know this customer? Yes ___ No ___

Does this customer know you? Yes___No ___

Do you have any idea of the available funding for which the customer has obtained authorization? Yes____No ____

Specify the marketing contacts which have been made with the customer thus far:
Date:
Contact:

B. Supplies and Services:
Specify the supplies and services to be delivered in the prospective contract:

Line Item (s):

Description:

Are supplies and services in the RFP Statement of work a good match for what the company sells? Yes__ No__

Is the RFP Statement of Work specific enough to identify risks? Yes____No _

Is the RFP schedule specific enough to determine the delivery requirements? Yes____No___

Can the delivery schedule in the RFP be met? Yes___ No ___

Specify the delivery schedule for the prospective contract:

Line Item:

Delivery Date:

C. Contract Type/Value/Start/End Date:

Does the proposed contract type (FFP, CP, T&M, etc) suit the nature of the work? Yes___ No ___Specify the contract type for this program: __________________________,

Are there any unusual terms and conditions specified in the government RFP? Yes____ No______

Specify any unusual terms and conditions: ________________________________

What is the Rough Order of Magnitude (ROM) value of the prospective contract? $___________.
What is the anticipated start date of the contract? ______________
What is the anticipated end date of the contract? ______________

D. Company Strengths: 

Is this prospective contract for effort in which the company has strong skills? Yes____No __
Specify the strengths the company will utilize in meeting the product specification or statement of work:

E. Company Weaknesses:

Are there any company weaknesses in meeting the product specification or statement of work? Yes______ No______

Specify any weaknesses for which the company must compensate and manage associated risks:

F. Teaming Arrangements (If any):
Does company plan to team with other companies in the performance of the prospective contract? Yes____No_______

Identify the other team member companies:

Will your company be a prime or a subcontractor? Prime___Subcontractor ____ Have NDA’s and Teaming Agreements been executed? Yes____No _______

G. Competition:
Is this a sole source set-aside procurement to your company? Yes____No____

If this is a competitive procurement, identify the prospective competition and their associated strengths/weaknesses:

H. Win Strategy:
Identify the proposal features and themes which will be utilized in the proposal as discriminators to win this program:

Management:

Technical:

Cost:

I. Proposal Budget:
Estimate the man hours and dollars for proposal labor, any travel expenses, shipping, packaging, samples and other expenses associated with preparing the proposal. The government does not reimburse the contractor for proposal preparation under the subsequent contract. Proposal expenses must be included in the cost center overhead or G&A and accounted for as marketing expense allocated across the cost center or the company.

Labor Hours _ Labor Dollars $_____
Material ________
Travel __________
Reproduction ________
Samples (if any)_______
Packaging/Binding/Ship ______
TOTAL $______

J. Analysis: 

If you can answer “YES” to at least 5 of the questions under paragraphs A through D above, it is likely you should bid this procurement.

If the answers to 7 of the 10 “YES” or “NO” questions under paragraphs A through D above are “NO” it is unlikely you should bid this procurement unless the answer to G is “YES”. Even then, examine your answers and carefully review whether this business is suitable for your company. 

If the answer to E is “YES”, it is unlikely you will bid this procurement successfully unless the answer to G is “YES”. Even then, determine how you will overcome the weaknesses you have identified in your company associated with doing this work before you decide to bid it. 

Carefully compare the competitive analysis under Item G to the win stratagy under H before you make your final decision.

K. Decision: 

BID _______

No Bid __________

https://www.smalltofeds.com/2014/10/making-astute-bidno-bid-decision.html

Industry must explain COMMERCIAL BEST PRACTICES to government agencies. Don't assume they know what those practices are according to the GSA’s Chief Acquisition Officer.
https://rosecoveredglasses.wordpress.com/2026/04/21/industry-must-explain-commercial-best-practices-to-government-agencies-2/
#GovernmentContracting #CommercialBestPractices

SIMPLIFIED ACQUISITION PROCEDURES and fast payment on contracts are a flexible tool when conditions are right, accounting for most of the purchases the government makes.
https://rosecoveredglasses.wordpress.com/2026/04/17/the-merits-of-fast-payment-on-government-contracts/
#GovernmentContracting #SimplifiedAcquistion #PromptPayment

Simplified Acquisition Procedures And Fast Payment On Government Contracts

By Jennifer Jones 

“Simplified Acquisition Procedures (SAP) are a flexible tool when conditions are right. They are low visibility and not “sexy” like weapons systems. But they account for most of the purchases we [the government] make, and a substantial amount of the money we spend.”

______________________________________________________________________________________________________

“New contracting professionals often start out using these procedures. So, I feel it is warranted to spend some time discussing them. An often misunderstood or over-looked aspect of SAP leveraged by the government contracting workforce endeavors to balance government risk with a contractor’s need for cash flow—namely, use of Fast Payment procedures.

As discussed in previous articles in this series, cash flow is a major motivator for industry (see “Prompt Payment Act” article, July-August 2025 issue of Defense Acquisition magazine). It can increase the size of the industrial base, enhance competition, and otherwise encourage participation in our mission success. And if we can reassure vendors about timely payment, their prices may be lower. 

Enter Simplified Acquisition 

SAP means the procedures covered in parts 12 and 13 of the Federal Acquisition Regulation (FAR) are designed to reduce administrative costs, improve opportunities for all types of small businesses, promote efficiency and economy in contracting, and avoid unnecessary burdens for both government and industry. 

These goals are accomplished by designing procedures and processes that are less formal than those used in other parts of the FAR. Documentation requirements are reduced; timelines can be compressed. Detailed steps are reduced or eliminated and great discretion is afforded the government when using SAP. Also, certain statutes and clauses do not apply to SAP [e.g., the Competition in Contracting Act—SAP (Simplified Acquisition Procedures | Acquisition.GOV)]will be a topic for another article. 

But in brief, the procedures in question include use of the governmentwide commercial purchase card, Blanket Purchase Agreements, and purchase orders. For purposes of this article, note that an entire FAR subpart 13.4 was dedicated to Fast Payment. With the Revolutionary FAR Overhaul (RFO), this topic has been moved to RFO FAR subpart 32.12. 

The Uniqueness of Fast Payment 

To understand how unique (to the government) Fast Payment procedures are, we first must discuss normal receipt and payment processes. We normally issue a contract; the vendor delivers and invoices the government. The government receives supplies or services, inspects and accepts them. Only then will the seller get paid in accordance with the Prompt Payment Act, which generally establishes a payment due date 30 days after the acceptance of supplies/services or receipt of invoice. This can create hardship for vendors carrying those costs, sometimes for months, until we (eventually) make payment. This is especially problematic when delivery occurs at distant locations with limited communications (e.g., to a war zone or remote area). When we elect to use Fast Payment procedures, the entire process changes. 

When using these procedures, we are allowed to pay the contractor prior to the government receipt, inspection, and acceptance of the supplies! This could cut weeks if not months off the payment timeframe. So, it is very beneficial for the vendors. 

But do you see any risk involved? What if we never receive the items or the vendors are not vetted? Since we have already paid, we have no recourse, right? That is not so! Herein lies the beauty of Fast Payment procedures. The government is willing to take some risks to help the vendor with its payment timeframes. But in return, we put some of that risk back on the vendor. Specifically, when we include that clause in our purchase orders, it means that by submitting an invoice, the vendor is certifying the supplies have been delivered in accordance with the contract (to post office, common carrier like UPS, or first point of government receipt [like a transshipment point for things going overseas]). 

The clause also requires the vendor to replace, repair, or correct any supplies the government does not receive—or receives damaged—or that are not in accordance with the contract. Therefore, while the government assumes some risk, we mitigate that risk by the language of the Fast Payment clause at RFO FAR 52.232-90.

Conditions for Use 

Well, this is a good deal, right? Why don’t we use it all the time? The answer lies in our willingness to accept risk, in terms of contract/project performance and dollar exposure. So RFO FAR 32.1202 establishes parameters to balance risk equitably. The language specifies the following conditions when and where we may use the Fast Payment procedures: 

a. The transaction cannot exceed the Simplified Acquisition Threshold (currently $350,000 in normal circumstances) per the FAR. However, the DoW FAR Supplement (DFARS) 232. 1202(a) states an individual order may exceed the Simplified Acquisition Threshold for brand name commercial subsistence products for commissary resale and for medical supplies being shipped directly overseas. 

b. Delivery will be to a distant, remote location where communications may limit the use of normal receipt processes. (Use of these procedures enhances our ability to find suppliers willing to ship to overseas locations, to ships at sea, and to war zones.) 

c. Title to the supplies passes to the government upon delivery to the post office, common carrier, or initial point of government receipt. 

d. The supplier agrees to replace, repair, or correct supplies not properly received. 

e. The purchase is made as a firm-fixed-price purchase order or contract.

f. A system is in place to ensure the documentation of delivery, timely feedback to the contracting officer in case of problems, and verification that the supplier in question does not have a record of poor integrity with prior fast payment orders.

Procedures 

Once we meet the conditions noted above, we must take a few more steps when issuing our purchase order or Blanket Purchase Agreement per RFO FAR 32.1203. The items must be shipped with prepaid transportation included. The vendor must send invoices directly to the payment/finance office clearly marked “FAST PAY” per the clause to ensure that the invoices are not held pending documented acceptance. Also, per the clause, outer shipping containers must be marked “FAST PAY.” (This ideally will trigger the receiver’s recall of their duties under the next bullet.) The copy of the contract sent to the receiving office (consignee) must include the following statement: 

Consignee’s Notification to Purchasing Activity of Nonreceipt, Damage, or Nonconformance

The consignee shall notify the purchasing office promptly after the specified date of delivery of supplies not received, damaged in transit, or not conforming to specifications of the purchase order. Unless extenuating circumstances exist, the notification should be made not later than 60 days after the specified date of delivery. 

This notification is intended to ensure that we “close the loop” with the contracting officer in the event of any issues so that they may demand correction, replacement, or repair within the 180 days allowed by the clause. 

The government is willing to take some risks to help the vendor with its payment timeframes. But in return, we put some of that risk back on the vendor. Specifically, when we include that clause in our purchase orders, it means that by submitting an invoice, the vendor is certifying the supplies have been delivered in accordance with the contract. 

I was curious about how this all works considering DoW’s use of Wide Area Workflow (WAWF). Well, the Defense Federal Acquisition Regulation Supplement (DFARS) 252.232-7006 Wide Area Workflow Payment Instructions specifically state that “Fast Pay requests are only permitted when FAR 52.213-1 (sic) is included in the contract.” So Fast Pay is considered and allowed when using WAWF. 

I also was curious about the Government Accountability Office (GAO)’s take on Fast Payment procedures. In 1968, the GAO issued an appropriation act decision in B-155253. In this decision, GAO opined on the legality of Fast Payment procedures as included in the Armed Services Procurement Regulation (predecessor to the Defense Acquisition Regulation, predecessor to the FAR/DFARS). GAO stated that initially they disapproved of using such procedures unless the DoD included reviews and internal audits as outlined in their letter to DoD. The revised Fast Payment procedures included such internal controls, so they were approved. This emphasizes how critical it is to “close the loop” on items paid for as discussed in the procedures. Also, to avoid an illegal advance payment, you will recall that the government takes title to the supplies at the same time that the vendor is allowed to invoice. 

Later GAO decisions, often motivated by savings, followed. In B-158487, the concern about advanced payments was addressed, and documented savings swayed the GAO to approve a similar procedure for the General Services Administration. In B-205868, GAO addressed the use of similar procedures by the former Veterans Administration (VA) to enable the VA to take prompt payment discounts. In all of these decisions, a main concern of the GAO was risk and the need for internal controls to ensure that the government actually receives the supplies and services it purchases. The safeguards established in Fast Payment procedures provide those internal controls. 

I refer you to the purposes for using SAP as noted at the beginning of this article. Clearly, the use of Fast Payment procedures contributes to at least two of those purposes: It improves opportunities for small businesses (who find it more difficult to carry the finance costs) and it avoids the unnecessary burden doing so imposes on vendors. Missions accomplished! 

When I was an intern, my first real assignment was working in an office entitled “Special Purchase Urgent Requirements.” We were running fast and hard, with minimal time for on-the-job training. I will never forget preparing my first purchase order and wondering whether to include the Fast Payment clause. I asked my mentor, and she said I should use it whenever the delivery location was far away from the vendor’s facility. So, I took that advice and ran with it. I did not understand what it meant until at least 15 years later, when I started teaching the then-called “small purchase” course. And in fact, a student (AP) in a recent class is working in a similar office now, which prompted me to write this article.   

To summarize, if you are purchasing supplies for delivery to a remote location and you meet the conditions, consider using Fast Payment procedures unless there is evidence to the contrary. This is especially valid if your order includes shipping items overseas, to a ship afloat, or to a deployed unit, and experience difficulty finding suppliers willing to wait for payment.”

ABOUT THE AUTHOR:

JENNIFER JONES is an intermittent professor of Contract Management in the Warfighting Acquisition University South Region. She has worked in the warfighting contracting field for 46 years and holds a B.S. from the College of William and Mary. The author can be contacted at  [email protected].

How Veterans can master the SPOKEN AND UNSPOKEN RULES of government contracting. Basic rules to gain your first foothold with the customer.
https://rosecoveredglasses.wordpress.com/2026/04/11/how-veterans-can-master-the-spoken-and-unspoken-rules-of-government-contracting/
#GovernmentContracting #VeteranOwnedBusiness #Marketing

PROVISIONAL INDIRECT RATE RISK in government contracting is managed by balancing company-unique product & service lines, work location, forecasts, competitive factors and contract status.
https://rosecoveredglasses.wordpress.com/2026/04/09/managing-provisional-indirect-rate-risk-in-government-contracting/
#GovernmentContracting #ProvisionalRateRiskManagment

The First 100 Days of CMMC And What Comes Next

NATIONAL DEFENSE MAGAZINE By Ryan Heidorn

“The first 100 days of CMMC were never meant to be dramatic. The signal lies not in what happened immediately, but what is now unavoidable.

In its first year, expect imperfect translation, conservative interpretation and inconsistent execution. These are not signs of failure; they are signs that CMMC has moved from policy theory into operational reality.”

____________________________________________________________________________________________________

“Following a multi-year rulemaking process, the Defense Department’s Cybersecurity Maturity Model Certification program crossed the regulatory finish line on Nov. 10.

For much of the defense industrial base, that moment carried a simple question — now that CMMC had moved from concept to reality, what would change first?

In the weeks that followed, there was no sudden surge of solicitations carrying CMMC requirements and no visible disruption to contracting operations.

Immediate disruption, however, was never the signal to watch. Nov. 10 was not a switch-flip moment where every contract suddenly changed, but the final regulatory step that collapsed uncertainty into inevitability, transforming CMMC from a long-debated future requirement into a permanent feature of defense acquisition.

The absence of visible disruption in the first weeks of CMMC was not surprising. What had changed was certainty — that a verified cybersecurity posture is now a condition of doing business with the department, not a sudden wave of enforcement actions.

For organizations that had already leaned into existing cybersecurity requirements, this marked a shift from designing for compliance to collecting, validating and organizing objective evidence in preparation for assessment.

For those that had maintained a wait-and-see approach, November carried a tangible cost. Qualified service providers and third-party assessors were already in high demand, and the timeline to move from minimal readiness to assessment-ready — often 12 to 18 months — remained unchanged. Organizations that delayed action risked entering 2026 at a competitive disadvantage.

Those early weeks began to expose which organizations had established effective operational governance, and which had deferred ownership decisions or assumed accountability would come later.

By the second month, pressure began to surface. This didn’t stem from deadlines, but from supply chain dynamics.

Prime contractors began communicating expectations to their supplier bases, asking whether organizations were prepared and what actions were underway. Under Defense Federal Acquisition Regulation Supplement 252.204-7021, primes must ensure that subcontractors handling federal contract information or controlled unclassified information hold a current CMMC certificate or status at the required level prior to award.

An unprepared supplier base can undermine performance or expose the prime to risk, driving urgency well before solicitations appear. Because primes do not know in advance which contracts will include CMMC requirements or at what level, ensuring preparation for all potential suppliers must happen ahead of demand.

Organizations that move the fastest prioritize repeatable processes and clear ownership rather than one-time remediation. One-off fixes may satisfy a checklist, but repeatable processes are what stand up to verification.

By the 96-day mark, a clear divide began to emerge between organizations that could say they had implemented the requirements and those that could withstand scrutiny. Proving compliance is not a step that occurs after implementation — it is a permanent operating condition.

In practice, CMMC readiness is rarely constrained by technology. Documentation, consistency and governance are more often the limiting factors. Security tooling without evidence of governance becomes invisible during assessment.

Critics of CMMC 2.0 have pointed to its shift away from maturity levels toward more blunt enforcement of existing requirements. But demonstrating conformity to the many perform-type assessment objectives in Level 2 requires operational maturity, not just tools.

Self-attestation has repeatedly failed to produce durable cybersecurity outcomes. Verification is therefore inevitable, and it is quickly becoming the standard currency of trust.

This model is not unique to defense and will propagate into other regulated ecosystems. The scale of this shift is significant.

The next phase will test operational discipline. Rather than a single enforcement trigger, the final rule embeds CMMC into acquisition through multiple discretionary decision points exercised by program offices and requiring activities. This structure makes uniform application unlikely and accelerates urgency unevenly across the market as the rule integrates into real acquisition workflows.

Some organizations will face intense pressure quickly, while others may feel little immediate impact. That inconsistency is not evidence of failure, but it reflects a program being applied inside day-to-day acquisition activity with varying levels of risk tolerance, mission criticality and data sensitivity.

Supply chain pressure will continue to concentrate where mission impact is high, data sensitivity is significant and the pool of qualified suppliers is limited. This asymmetry determines who feels pressure first and who has time to adapt.

Demand for third-party certification assessments will continue to grow, exposing capacity constraints not only among assessors but also across the broader implementation ecosystem. Organizations that wait to see a Level 2 certification requirement in a solicitation may find themselves competing for limited resources on timelines that cannot be compressed.

CMMC shifts accountability away from point-in-time compliance events toward continuous operational discipline. The pre-CMMC mindset no longer holds. Discrepancies between paperwork and practice are already the most common reason for those “Not Met” determinations during assessment.

Friction in the early rollout is already acting like a sorting mechanism, distinguishing organizations that operationalize compliance from those that rely on static documentation.

The first 100 days of CMMC were never meant to be dramatic. The signal lies not in what happened immediately, but what is now unavoidable.

In its first year, expect imperfect translation, conservative interpretation and inconsistent execution. These are not signs of failure; they are signs that CMMC has moved from policy theory into operational reality.”

Ryan Heidorn is chief technology officer at C3 Integrated Solutions.

DON'T OVERLOOK impact of the Government Contract Data Requirements List (CDRL). Your negotiated contract must contain the costs to prepare and submit contractually required data items,
https://rosecoveredglasses.wordpress.com/2026/04/07/dont-overlook-the-impact-of-the-government-contract-data-requirements-list-cdrl/
#GovernmentContracting #DataItemPricing #CDRL

FREE GOVERNMENT CONTRACT DATABASES and how to search for market targets, companies that may be open to industry teaming and other vital information.
https://rosecoveredglasses.wordpress.com/2026/04/06/free-government-contract-databases-and-how-to-search-for-federal-contracts-step-by-step/
#GovernmentContracting #MarketResearchTools

How smart government contractors INCREASE WIN PROBABILITY before the draft RFP drops by early positioning to become, not one of many bidders, but the preferred partner.
https://rosecoveredglasses.wordpress.com/2026/04/01/how-smart-government-contractors-increase-win-probability-before-the-draft-rfp-drops/
#GovernmentContracting #WinByEarlyPositioning

SDVOSB Contract Opportunities: Where $28.6 Billion Actually Goes

“FEDSPEND”

“Service-Disabled Veteran-Owned Small Business contracts hit $28.6B in FY2025. Here’s the agency-by-agency, NAICS-by-NAICS breakdown — and why 35% of those dollars went sole-source.“

______________________________________________________________________________________________________

“$28.6 Billion. The Veteran Advantage Is Real — If You Know Where to Look.

The federal government’s SDVOSB (Service-Disabled Veteran-Owned Small Business) program is the second-largest set-aside category by dollar volume, behind only general small business. In FY2025, agencies awarded $28.6 billion across approximately 52,000 contract actions to SDVOSB firms.

But the distribution is brutally uneven. A small percentage of SDVOSB firms capture the majority of those dollars. The difference is not capability or service quality — it is business development discipline and knowing where the money flows.

Which Agencies Award the Most SDVOSB Contracts?

The top 8 agencies account for over 82% of all SDVOSB dollars:

| Agency | FY2025 SDVOSB Awards | % of Total |

| Department of Defense | $12.8B | 45% |

| Department of Veterans Affairs | $5.2B | 18% |

| Department of Homeland Security | $2.1B | 7% |

| General Services Administration | $1.8B | 6% |

| Department of Health & Human Services | $1.4B | 5% |

| Department of Energy | $1.1B | 4% |

| Department of Interior | $890M | 3% |

| Department of Agriculture | $680M | 2% |

The VA Advantage

The VA deserves special attention. Unlike other agencies, the VA operates under the Veterans First Contracting Program, which gives SDVOSB (and VOSB) firms priority over all other set-aside types for VA contracts. This is not just a goal — it is a statutory mandate under 38 U.S.C. 8127.

What this means practically: when a VA contracting officer has a requirement, they must first consider SDVOSB firms before opening it to 8(a), HUBZone, or general small business. If two or more SDVOSB firms can perform the work, the contract must be set aside for SDVOSB competition.

If you are an SDVOSB firm not actively pursuing VA contracts, you are leaving your strongest legal advantage on the table.

Top NAICS Codes for SDVOSB Awards

| NAICS Code | Description | FY2025 SDVOSB Awards | Competition Level |

| 541512 | Computer Systems Design | $3.9B | Very High |

| 561210 | Facilities Support Services | $2.8B | High |

| 541330 | Engineering Services | $2.4B | High |

| 236220 | Commercial Building Construction | $2.1B | Moderate |

| 561612 | Security Guards | $1.6B | Moderate |

| 541611 | Admin Management Consulting | $1.3B | Very High |

| 541519 | Other Computer Services | $1.1B | High |

| 238220 | Plumbing/HVAC/AC Contractors | $890M | Low |

| 562910 | Remediation Services | $780M | Low |

| 237310 | Highway/Street Construction | $720M | Low |

Where the Smart Money Competes

The pattern from 8(a) data repeats here: IT services (541512) attracts the most competition per dollar. But look at the bottom of the table — Plumbing/HVAC (238220), Remediation (562910), and Highway Construction (237310) have significantly fewer competing SDVOSB firms relative to award volume.

Construction-related NAICS codes perform disproportionately well in the SDVOSB program. Veteran-owned construction, environmental remediation, and facilities maintenance firms have roughly 4x less competition per dollar than IT services firms.

If you hold SDVOSB certification and a construction or trades-related NAICS, your competitive position is stronger than you think.

The Sole-Source Advantage: $5 Million Threshold

The SDVOSB sole-source threshold is $5 million for both services and manufacturing — higher than the 8(a) threshold of $4.5M.

FY2025 Sole-Source vs. Competitive Split

~35% of SDVOSB dollars were sole-sourced ($10B)~65% were competitive SDVOSB set-asides ($18.6B)Sole-source average value: $1.4MCompetitive average value: $640K

The math is clear: sole-source contracts are worth more than double the average competitive award. And they require zero competition — just a contracting officer who knows your firm can perform the work.

How to Position for SDVOSB Sole-Source Awards

Target agencies behind on SDVOSB goals. When an agency is under its 3% SDVOSB statutory goal heading into Q4 (July-September), contracting officers are motivated to sole-source to SDVOSB firms to close the gap. This creates a predictable annual window.

Build PM relationships, not just CO relationships. Program Managers define requirements. Contracting Officers execute paperwork. The decision to sole-source happens at the PM level.

Register in VetBiz (VA) and SAM.gov. VA sole-source awards require VetBiz verification. All federal sole-source awards require active SAM.gov registration. Sounds obvious — but expired registrations are the #1 reason SDVOSB firms miss sole-source opportunities.

Submit unsolicited capability statements. Target agencies in your NAICS codes 6-12 months before contract expirations. Include past performance, key personnel, and specific relevance to the agency’s mission.

VA vs. DoD: Different Strategies Required

VA Strategy (Veterans First Program)

*SDVOSB firms get statutory priority over all other set-aside types

*VA must set aside for SDVOSB competition if two or more SDVOSB firms can perform

*VetBiz certification required (separate from SAM.gov SDVOSB self-certification)High concentration in healthcare IT (541512), facilities management (561210), and medical staffing

*Attend VA OSDBU National Veterans Small Business Engagement events

DoD Strategy (Standard SDVOSB Set-Aside)

*DoD follows standard FAR set-aside rules (no Veterans First priority)

*SDVOSB competes alongside 8(a), HUBZone, and general small business for set-aside goals

*Massive volume in engineering (541330), IT services (541512), and construction (236220)

*Security clearances dramatically narrow the competitive field — cleared SDVOSB firms have a significant advantage

*Pursue IDIQ vehicles: OASIS SB, STARS III, Alliant 3 SB

Recompete Opportunities: The Predictable Pipeline

Approximately 32% of FY2025 SDVOSB awards were recompetitions of expiring contracts. These are not surprises — they are predictable events with known timelines.

What recompete tracking gives you:

Contract expiration dates — know exactly when an incumbent’s period of performance endsCurrent contract value — understand the budget envelope before you bidIncumbent identity — research their past performance to identify vulnerabilitiesHistorical set-aside type — if it was SDVOSB last time, it is likely SDVOSB again

The Timeline Advantage

Most SDVOSB firms discover recompete opportunities when the solicitation posts on SAM.gov. By then, the incumbent has been positioning for months. The firms winning recompetes:

Identified the opportunity 12-18 months before solicitation

Submitted capability statements to the contracting office

Met with the Program Manager to understand evolving requirementsTeamed with complementary firms to strengthen their proposal

Fed-Spend tracks 85,000+ recompete opportunities with automated alerts when contracts in your NAICS codes approach expiration. 

The SBA Certification Change: What SDVOSB Firms Must Know

As of January 2023, SDVOSB certification transferred from VA’s VetBiz to SBA’s VetCert program. Key changes:All SDVOSB firms must now be certified through SBA (not just VA contractors)Self-certification is no longer sufficient for most contract opportunitiesSBA VetCert uses the same portal as 8(a) and HUBZone certificationsProcessing time: approximately 90 daysRe-certification required annually

If you are relying on self-certification alone, you may be ineligible for an increasing number of SDVOSB set-asides. Check your certification status at vetcert.sba.gov.

5 Mistakes That Cost SDVOSB Firms Contracts

Mistake 1: Ignoring the VA

The Veterans First program is the strongest legal advantage any set-aside category has. SDVOSB firms that skip VA contracting are leaving their best card unplayed.

Mistake 2: Competing Only in IT

NAICS 541512 has the highest award volume but also the highest competition density. Firms in construction, environmental, facilities, and trades NAICS codes face dramatically less competition per dollar.

Mistake 3: Letting Certifications Lapse

Expired SAM.gov registration, expired VetCert, expired GSA Schedule — any of these kills your eligibility. Set calendar reminders 90 days before every expiration.

Mistake 4: Waiting for SAM.gov Postings

By the time a solicitation is posted, the positioning phase is over. The winners identified the opportunity months earlier through recompete tracking and agency engagement.

Mistake 5: Going It Alone on Large Contracts

Mentor-protege agreements and joint ventures allow SDVOSB firms to pursue contracts above their individual capability. The SBA’s All Small Mentor-Protege Program and the VA’s Mentor-Protege Program both allow SDVOSB joint ventures to maintain SDVOSB status for set-aside eligibility.

FAQ: SDVOSB Contract Opportunities

How much does the federal government spend with SDVOSB firms?

In FY2025, federal agencies awarded approximately $28.6 billion to SDVOSB firms across ~52,000 contract actions. The statutory goal is 3% of all federal contracting dollars.

What is the SDVOSB sole-source threshold?

$5 million for both services and manufacturing contracts. Below this threshold, a contracting officer can award directly to an SDVOSB firm without competition, provided the price is determined to be fair and reasonable.

Do I need SBA certification to bid on SDVOSB contracts?

Yes. As of January 2023, SBA VetCert certification is required. Self-certification is being phased out. Apply at vetcert.sba.gov. Processing takes approximately 90 days.

What is the difference between SDVOSB and VOSB?

SDVOSB requires the owner to have a service-connected disability rated by the VA. VOSB requires only veteran status. SDVOSB firms receive sole-source and set-aside preferences that VOSB firms do not. Under the VA’s Veterans First program, SDVOSB firms receive priority over VOSB firms.

Can I search SDVOSB contract opportunities for free?

Yes. SAM.gov lists active solicitations filterable by SDVOSB set-aside type. USAspending.gov shows historical SDVOSB awards. Fed-Spend offers a free tier with 10 searches per month across all set-aside types and full contract data.”

SDVOSB Contract Opportunities: Where $28.6 Billion Actually Goes

FREE GOVERNMENT CONTRACTING BOOKS. Contract agreements, incorporation instructions for US states, guidance on marketing and business planning are all included.
https://rosecoveredglasses.wordpress.com/2026/03/13/free-small-business-federal-government-contracting-books-and-supplements-2/
#SmallBusiness #GovernmentContracting #FreeBooks

SMALL BUSINESS PRIME CONTRACTOR MANAGMENT through purchase orders to independent contractors as individuals and negotiating subcontracts with firms subcontracting to you.
https://rosecoveredglasses.wordpress.com/2026/03/09/managing-subcontractors-and-independents-as-a-small-business-prime-contractor/
#SmallBusiness #GovernmentContracting
#SupplierManagement

MANAGING RISK in small federal government contracting business system development - Rules of thumb to insure wise business system development decisions.
https://rosecoveredglasses.wordpress.com/2026/03/05/managing-risk-in-small-federal-government-contracting-business-system-development-2/
#SmallBusiness #GovernmentContracting #ManagingRisk

Budgets for many federal agencies are being realigned and participation by small business is under review. Strategic planning tips for SMALL VETERAN-OWNED ENTERPRISES given present realities.
https://rosecoveredglasses.wordpress.com/2026/02/21/5-strategies-for-veteran-owned-small-business-government-contractors/
#VeteranOwnedSmallBusiness #GovernmentContracting

Contractors racking up BIG FINES FOR CYBERSECURITY VIOLATIONS. Four recent settlements provide valuable guidance for federal contractors looking to avoid government scrutiny.
https://rosecoveredglasses.wordpress.com/2026/02/20/contractors-racking-up-big-fines-for-cybersecurity-violations/
#GovernmentContracting #Cybersecurity #ViolationFiines

A framework for a small GOVERNMENT SERVICE CONTRACTOR business system is useful in advance of a contract award in evolving a business system to perform on the contract and submit a billing.
https://rosecoveredglasses.wordpress.com/2026/02/19/a-framework-for-small-government-service-contractor-business-systems/
#SmallBusiness #GovernmentContracting #BusinessSystem

NEW CIA TECH ACQUISITON FRAMEWORK demands a radical shift towards a culture of speed, agility and innovation.
https://rosecoveredglasses.wordpress.com/2026/02/18/cia-announces-new-acquisition-framework-to-speed-tech-adoption/
#GovernmentContracting #AcquisitionSpeed #CIA

The CHANGING DYNAMICS OF COLLABORATION in small business contracting require designing collaborative efforts that maximize the best possible efficiencies in service solutions
https://rosecoveredglasses.wordpress.com/2026/02/09/the-changing-dynamics-of-collaboration-in-todays-small-business-contracting/
#GovernmentContracting #SmallBusinessTeaming

Federal Government Contracting PAST PERFORMANCE RECORD. Information for future source selection purposes, regarding a contractor’s actions under previously awarded contracts.
https://rosecoveredglasses.wordpress.com/2026/02/04/your-federal-government-contracting-past-performance-record-2/
#GovernmentContracting #PastPerformanceRecord
#CPARS

LINE ITEMS are the heart of your government contract. Review (CLIN) relationships to other critical elements of your contract for consistency before proposing & signing your deal.
https://rosecoveredglasses.wordpress.com/2026/01/14/contract-line-item-structure-the-heart-of-your-federal-government-business-deal/
#GovernmentContracting #ContractLineItems #CLINS