USFCR Blog

The Hidden Convergence Reshaping Federal Contracting

Written by USFCR | Aug 26, 2025 3:00:00 PM

The Shift Agencies Won’t Say Out Loud
Right now, federal agencies are quietly rethinking how they deliver mission-critical services. It’s not just about buying better software or upgrading IT systems. The real shift is toward systematizing and industrializing entire service functions that have historically been managed in-house or awarded through one-off contracts.

1. Cross-Agency Service Standardization
Billions are spent every year on duplicate capabilities like HR systems, financial management platforms, and cybersecurity operations. With budgets tightening, there’s growing pressure to move toward government-wide shared services.

For contractors, this means moving away from the “custom build for one agency” mindset. Think in terms of reusable, scalable service platforms that can be deployed across multiple agencies — the equivalent of a “Netflix for government services” rather than a one-off streaming app.

2. Real-Time Compliance as a Service
CMMC was only the opening act. Every major regulation now demands continuous compliance monitoring across multiple frameworks, and agencies are buried in the overhead of keeping all of it straight.

The opportunity lies in building automated compliance orchestration platforms that handle multiple requirements from one place. The winners will own the “compliance operating system” for entire agency ecosystems.

3. Predictive Government Operations
Agencies are moving from reactive service delivery to predictive models. Whether it’s veterans' benefits, immigration processing, or disaster response, the goal is to predict needs before they occur. Contractors who can build these capabilities — not just run analytics — will be at the front of the line for new awards.

What This Means for Contractors
Most vendors still ask, “What does the government want to buy?” The smarter question is, “What does the government want to stop doing internally?”

In the next two to three years, agencies will begin outsourcing operational functions they’ve never contracted out before. These will include not only IT support but also core mission delivery processes. The RFPs aren’t published yet because agencies are still figuring out how to structure them, but the groundwork is being laid now.

What the Big Primes Are Missing
Large primes are chasing mega-contracts. The opening is for specialized operators that multiple primes will need as partners.

If You’re Small or Mid-Tier, Do This Now:

  • Pick a single government function (not an agency) and own it completely

  • Build intellectual property that can be reused, not rebuilt for each contract

  • Design for multi-agency deployment from the start

The contractors who position themselves now will be ready when “Government Operations as a Service” becomes standard.

What’s Next?
If you’re looking to be one of the companies that owns a piece of this shift, now’s the time to specialize, develop multi-agency solutions, and prepare your compliance and operational infrastructure. USFCR has helped small firms like CW Financial and Management win seven VA contracts in under a year by focusing on repeatable, scalable service delivery. We can help you position for this new wave before it hits the market.

FAQ - View full FAQ page

  1. How soon will these “operations as a service” contracts appear?

    We expect the first RFPs within two to three years, but positioning work needs to start now.

  2. Do I need to be a large prime to compete for these opportunities?
    No. Many opportunities will require niche expertise that small and mid-tier firms are better positioned to provide.

  3. Can USFCR help build a multi-agency deployment strategy?
    Yes. We’ve helped contractors develop reusable service frameworks and win awards across multiple agencies.

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