A Federal Policy Update That Signals Higher Expectations for Contractors
The Technology Modernization Fund (TMF) has updated its repayment policy, prioritizing full repayment for all future awards. This change is set to influence how agencies choose projects, how vendors craft proposals, and how the federal government plans long-term IT modernization. Contractors offering technology, cybersecurity, or shared services will need to adapt quickly to stay competitive.
Federal construction projects require expert design, planning, and oversight before any work begins. Architect-engineer (A-E) contracts provide opportunities for firms specializing in engineering, architecture, and surveying to contribute to government infrastructure.
For small businesses, these contracts offer high-value projects, but competition is steep, and businesses must qualify based on technical expertise rather than the lowest price.
A new executive order, "Ensuring Commercial, Cost-Effective Solutions in Federal Contracts," is changing the rules for federal buyers. Agencies are now required to prioritize commercial products and services over custom-built solutions. That means small businesses with ready-to-sell offerings are in the best position they have been in years.
Top 14 NAICS Codes for Disaster Relief Contracts: Get found fast when disaster strikes.
Federal agencies move quickly when responding to hurricanes, wildfires, floods, and other emergencies. That means they rely on businesses that are already properly registered, listed with the right NAICS codes, and ready to act.
Hurricane season officially starts June 1, but it’s already looking like we’re in for an early start this year. That means the window to prepare is closing fast.
FEMA, the Army Corps of Engineers, and the U.S. Forest Service prioritize vendors with pre-approved contracts and complete SAM registrations. FEMA also maintains an ILP Vendor Profile system and uses pre-awarded contracts to speed up procurement. If your business falls under one of the following NAICS codes, you may already be eligible for emergency contracts, but incomplete registrations or mismatched codes can disqualify you.
The Hidden Risks of Multi-Entity Contracting
Federal contracting opens the door to major growth, but it also comes with a long list of responsibilities that can quietly stack up, especially for businesses operating across multiple locations or working with subcontractors.
For many, the challenge isn't winning work. It’s staying compliant once the work begins.
Each registered entity tied to a federal contract must meet very specific conditions: active SAM registration, accurate business listings, proper set-aside certification (if applicable), and consistency across government-facing systems like DSBS and capabilities statements. If just one location falls out of step, or a subcontractor isn’t properly registered, it doesn’t just slow things down. It can bring the entire contract to a halt.
This isn't theoretical. It happens more often than people think.
How Federal Buyers Use DSBS for Market Research and Why Your Profile Matters
Why Contracting Officers Use DSBS
When agencies consider setting aside a federal contract for small businesses, they are required to use DSBS. This is not optional. According to FAR 19.203(d) and SBA regulations at 13 CFR 125.2, contracting officers must search both SAM and DSBS to find eligible vendors.
This requirement is tied to the Rule of Two. If they find at least two responsible small businesses that can perform the work, the contract is set aside for small businesses. If they do not, it can be released for full and open competition. That initial market research starts with a DSBS search.
The federal government is raising the bar again. Starting in 2025, all manufactured products and construction materials used in federally funded projects must meet a 65 percent domestic content requirement under the Buy American Act. This rule runs through 2028 and rises to 75 percent in 2029. If you're not auditing your supply chain now, you're risking more than a missed bid; you could be disqualified before you even get started.
If your business offers tree care, lawn services, or landscaping, you might be missing a major revenue stream. The federal government spends billions every year maintaining outdoor spaces, and most of that work falls under NAICS Code 561730. These contracts cover everything from tree removal and mowing to erosion control and fire mitigation. And many are reserved for small businesses.
If you’ve been in construction for years, you already know how to manage crews, estimate jobs, and deliver results. However, when it comes to federal contracting, it might feel like a completely different world. That’s normal. Plenty of experienced business owners run into that same feeling.
Government agencies often purchase goods and services from the same marketplace as private-sector businesses. Commercial item contracts simplify the process, allowing small businesses to sell their standard products to federal buyers with minimal modifications.
