You watched War Dogs. Or maybe Lord of War. Or you caught The Pentagon Wars on a late-night streaming binge. Now you think you understand federal contracting.
Here's the problem: Hollywood has been telling stories about government contracts, arms deals, and defense procurement for decades. Some of it is surprisingly accurate. Most of it will get you arrested, bankrupt, or both if you try to replicate it.
Federal contracting isn't about finding loopholes, bribing officials, or stumbling into million-dollar deals through dumb luck. It's about systematic capability building, compliance infrastructure, and strategic positioning. But you wouldn't know that from watching movies.
Let me walk you through what Hollywood gets right, what it gets catastrophically wrong, and what federal contracting actually looks like in 2025.
Government contracts come in various forms, each designed to fit specific needs. Whether you're new to federal contracting or an experienced supplier, knowing the differences between contract types is crucial for success in this complex industry. In this guide, we break down the most common types of government contracts and how they might impact your business.
Firm-Fixed-Price Contracts (Learn more)
Firm-fixed-price contracts are the most widely used in government procurement. In this type of contract, the contractor agrees to deliver goods or services for a set price, regardless of actual costs. It’s often used when the project scope is well-defined and the risk of cost overruns is minimal.
Why It's Used: Fixed-price contracts offer predictability for both parties, making them ideal for projects with clear deliverables.
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Many prime contractors begin identifying teaming partners in July. This timing aligns with Q4 contract deadlines, which peak before the federal fiscal year ends on September 30. August is when capability statements are reviewed, teaming discussions happen, and decisions get made.
The month of May highlights Military Appreciation Month, which plays a crucial role in fostering an awareness and understanding of the challenges service members, veterans, and their families face. [1] Military Appreciation Month celebrates a few of the following observance days:
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.
Billions in Maintenance Contracts Are Available. Is Your Business Ready to Bid?
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.
If you're in federal contracting, teaming up might be your ticket in—but only if you understand the rules of the game.
Many small businesses confuse teaming agreements with subcontracting. They both involve working with other companies. They both can help you win more contracts. But they’re not the same—and mixing them up can cost you opportunities or worse, land you in compliance trouble.
Let’s break it down.
How to Price Your GSA Schedule in 2025 (Without Losing Your Profit Margin)
Pricing under a GSA Schedule isn’t just about winning bids—it’s about protecting your bottom line while staying within the rules. Your GSA rates need to be competitive, but they also need to be compliant. If you don’t understand how GSA views your pricing, you could end up with rates that are unworkable, subject to mandatory reductions, or flagged during an audit. That’s why a strong GSA pricing strategy is more than just a number—it’s a defense plan.
