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.
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 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.
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.
Why April Matters in Federal Contracting
Federal agencies don't wait for June to start spending. By the time summer hits, most buyers already have their budgets planned and vendors shortlisted. April is when the planning happens. It’s when buyers clear out Q1 backlogs, prepare their summer acquisition schedules, and move funds to priority projects.
When businesses new to federal contracting hear terms like "Commercially Available Off-the-Shelf (COTS) items," they often think it's just more jargon to memorize. But understanding COTS can actually simplify your entire entry into federal markets, helping you cut through red tape faster.
Imagine taking on a government contract without the risk of losing money on unexpected costs. Cost-reimbursement contracts make this possible by covering your expenses—plus a profit—while you focus on delivering results.
For small businesses, these contracts offer a safety net for unpredictable projects. But to take advantage of them, you need to understand the rules, the risks, and the right strategies to maximize profitability.
The federal government is shifting its focus to state and local preparedness, creating new opportunities for businesses in federal contracting. With an emphasis on risk-informed decision-making and empowering local entities, this policy shift opens doors for contractors who provide infrastructure solutions, emergency management support, cybersecurity services, and public health preparedness resources.
The latest federal directives recognize that disasters—whether natural, cyber-related, or infrastructure failures—impact communities first at the local level. Rather than a one-size-fits-all approach, the government is prioritizing strategies tailored to specific risks faced by different regions. This change means an increased need for expertise in:
For businesses in the federal marketplace, the push toward state and local preparedness means a surge in funding and contract opportunities. Here’s where contractors can find their next big win:
✔ FEMA Grants & Contracts: The Federal Emergency Management Agency (FEMA) regularly awards contracts for disaster response, recovery, and mitigation. Companies offering construction, logistics, and supply chain solutions can benefit from these contracts.
✔ DHS & CISA Cybersecurity Initiatives: The Department of Homeland Security (DHS) and the Cybersecurity and Infrastructure Security Agency (CISA) are ramping up investments in state and local cyber defenses. Contractors specializing in risk assessments, network security, and cloud solutions will find expanding opportunities in this space.
✔ Infrastructure Resilience Projects: With government funding targeting resilient roads, bridges, and public buildings, construction and engineering firms will have access to a growing pool of federally funded state and local projects.
✔ State-Level Procurement: Many federal grants are funneled through state governments. This means businesses that are SAM-registered and positioned as verified federal contractors have an edge when bidding on state-funded projects tied to national preparedness efforts.
✔ Get Certified: Set-aside certifications (SDVOSB, HUBZone, 8(a), WOSB) can help contractors gain access to exclusive federal and state opportunities.
✔ Leverage Market Intelligence: Tools like USFCR’s Advanced Procurement Portal (APP) can help identify and track preparedness-related contract opportunities.
✔ Align with State & Local Needs: Understanding regional risks and tailoring proposals to meet specific state and local requirements can improve competitiveness.
✔ Network with Agencies: Engage with FEMA, DHS, and state emergency management offices through industry days, networking events, and targeted outreach.
With billions in federal funding flowing into state and local preparedness initiatives, now is the time for contractors to align their services with these new priorities. USFCR can help businesses navigate the process—from SAM registration to bid strategy—so they can capitalize on emerging opportunities. Ready to position your business for success?
Don’t let federal opportunities pass you by. Get started with USFCR today—complete your SAM registration and start winning contracts!
To speak with a Registration and Contracting Specialist, Call (866) 216-5343
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