Federal agencies are set to spend over $3.3 billion on artificial intelligence in FY 2025, according to NITRD reporting. But most contractors still struggle to position themselves for this opportunity. It's not just about having a tool that works. Agencies want vendors who can meet mission goals with secure, ready-to-deploy solutions.
October 1 is more than a date. It’s a starting point for smart contractors.
Every year, the federal government resets its budget starting October 1st. The mistake most contractors make is waiting until then to act. The real preparation happens three months before.
From July through September, you can still capture final FY2025 awards while setting yourself up for FY2026. If you wait until Q1 to start thinking about strategy, you’re already behind.
Here’s what we know is coming, and what you should be doing right now.
The U.S. government isn’t launching its own cryptocurrency anytime soon, but it’s already testing and applying blockchain tools across public finance, supply chains, and emergency response. From the state of Wyoming’s own stable token to Navy pilots for parts tracking, crypto isn’t a theory anymore. Its infrastructure is in progress.
Even with political resistance to a central bank digital currency (CBDC), agencies are actively exploring how token-based systems can improve transparency, speed, and verification. These programs aren't just technical experiments. They shape how money moves, how contracts get fulfilled, and how data is trusted.
How Small Businesses Can Win and Manage Requirements Contracts
Winning a government contract can create new growth opportunities, but unpredictable demand makes planning difficult. Requirements contracts solve this problem by guaranteeing that a federal agency will buy all its necessary supplies or services from one vendor, without setting a specific order quantity upfront.
Most government contracts focus on detailed work specifications, but performance-based contracts shift the focus to results. Instead of dictating exactly how work must be performed, these agreements reward businesses for achieving specific outcomes.
Sealed bidding is one of the most structured and competitive methods used by federal agencies to award contracts. It’s designed to ensure a fair process where the lowest-priced, compliant bid wins. While it sounds simple, mastering sealed bidding requires precision, compliance, and an understanding of the process from start to finish.
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.
