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.

The Executive Order at a Glance
On April 15, 2025, a new executive order directed federal agencies to stop defaulting to custom-built, government-unique solutions. Instead, they are now required to prioritize commercially available products and services. The goal is to reduce waste, speed up procurement, and make better use of taxpayer dollars.

This policy enforces the Federal Acquisition Streamlining Act of 1994 (FASA), which has long required agencies to consider commercial options first. Now that requirement is being actively enforced. That is big news for small businesses already selling in the commercial market.

Why It Matters to Small Businesses
Many small businesses already offer off-the-shelf solutions. Until now, they were often overlooked in favor of complex, custom contracts that were more expensive and slower to deliver. With this order in place, agencies must now prove there is no viable commercial option before approving a non-commercial buy.

This change benefits businesses that:

• Sell widely used commercial products

• Offer services that do not need full customization

• Can slightly adjust their offering to meet government needs

If you meet any of those criteria, you are exactly the type of vendor that agencies will be looking for.

What Counts as a Commercial Solution?
The government uses a broad definition. If your product or service is sold to the public or used in the private sector, it likely qualifies. You can also offer a slightly modified version to meet an agency’s needs.

Examples include:

• Training programs sold to private businesses

• Standard hardware or equipment

• Janitorial, maintenance, or landscaping services sold commercially

• IT support packages with set service levels

Real Example: Dig Defence
Dig Defence, a pest prevention hardware company, secured a GSA Schedule contract by offering an existing commercial product. Their solution was already in the market and required no redesign for government use. That made them a low-risk choice, which is exactly what this executive order encourages.

What Agencies Are Now Required to Do
The order sets firm timelines and responsibilities for federal buyers:

• Within 60 days of the order: Agencies must review all open solicitations for non-commercial products or services

• Within 30 days of receiving proposals: Approval authorities must review and assess whether commercial alternatives are available.

• Within 120 day: Agencies must report to the Office of Management and Budget (OMB) on their compliance with FASA and this order

• Going forward: Agencies must get written approval before issuing any non-commercial contract. OMB may weigh in on these decisions

These new requirements mean more oversight and paperwork for non-commercial buys. That gives commercial vendors a strong edge.

How to Position Your Business
If you sell something that fits the commercial definition, now is the time to make sure agencies can find you and choose you. Here is how to get ready:

• Register in SAM: You must be registered to compete for any federal contracts

• Create a capabilities statement: Show what you offer, who you help, and why your solution meets commercial needs

• Get certified if eligible: Programs like WOSB, SDVOSB, and HUBZone can open additional set-aside opportunities

• Show up where buyers look: Make sure your business appears in DSBS, SBA profiles, and the Advanced Procurement Portal

• Support their market research: Make it easy for contracting officers to identify you as a commercial solution

Where USFCR Can Help
USFCR helps small businesses get into federal contracting and stay competitive. Our team supports:

• SAM registration and renewals

• Capability statement creation

• Small business certifications

• Access to our Advanced Procurement Portal

• Training through the USFCR Learning Center

Like filing your taxes, you can do it yourself, but mistakes cost you time and money. With government buyers under pressure to avoid errors, presenting your business as a clear, compliant commercial option helps you stand out and win.

What’s next?
Federal buyers are looking for commercial solutions right now. If your business fits the profile, USFCR can help you get in front of them. To speak with a Registration and Contracting Specialist, Call (866) 216- 5343. We can help make sure your products and services are seen as the easy, approved choice.

FAQ

What is a commercially available solution?
It is any product or service commonly sold to the public or used by private businesses. Slight modifications to meet government needs are allowed.

How does this executive order help small businesses?
It removes the preference for costly custom contracts. Agencies now need a solid reason to avoid commercial vendors, which gives small businesses a better shot.

What is the first step to getting noticed by buyers?
Have a compliant SAM Registration, build a strong capabilities statement, and make sure your business appears in key procurement systems. USFCR can help with all of these.

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