Federal construction projects require expert design, planning, and oversight before any work begins. Architect-engineer (A-E) contracts provide opportunities for firms specializing in engineering, architecture, and surveying to contribute to government infrastructure.
For small businesses, these contracts offer high-value projects, but competition is steep, and businesses must qualify based on technical expertise rather than the lowest price.
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 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 Hidden Risks of Multi-Entity Contracting
Federal contracting opens the door to major growth, but it also comes with a long list of responsibilities that can quietly stack up, especially for businesses operating across multiple locations or working with subcontractors.
For many, the challenge isn't winning work. It’s staying compliant once the work begins.
Each registered entity tied to a federal contract must meet very specific conditions: active SAM registration, accurate business listings, proper set-aside certification (if applicable), and consistency across government-facing systems like DSBS and capabilities statements. If just one location falls out of step, or a subcontractor isn’t properly registered, it doesn’t just slow things down. It can bring the entire contract to a halt.
This isn't theoretical. It happens more often than people think.
How Federal Buyers Use DSBS for Market Research and Why Your Profile Matters
Why Contracting Officers Use DSBS
When agencies consider setting aside a federal contract for small businesses, they are required to use DSBS. This is not optional. According to FAR 19.203(d) and SBA regulations at 13 CFR 125.2, contracting officers must search both SAM and DSBS to find eligible vendors.
This requirement is tied to the Rule of Two. If they find at least two responsible small businesses that can perform the work, the contract is set aside for small businesses. If they do not, it can be released for full and open competition. That initial market research starts with a DSBS search.
If you're applying for a federal grant, you may come across a requirement to share in the cost of your project. This is called matching or cost sharing. In short, it means that part of the total cost needs to be covered by non-federal sources.
Matching amounts are usually shown as a percentage of the total project cost. These percentages, along with rules about which funds can be used, vary depending on the program. Always review the Notice of Funding Opportunity (NOFO) or other official guidance for your specific grant.
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.
A Cost-Plus-Fixed-Fee (CPFF) contract reimburses a contractor for allowable costs incurred during a project and provides a fixed fee for profit. Unlike Firm-Fixed-Price contracts, where contractors assume the risk of cost overruns, CPFF contracts protect businesses from financial loss while still ensuring a reasonable return.
June 5, 2025 | Clearwater, FL | Hosted by USFCR
Why this event matters:
Federal and commercial business growth is rarely a straight path. Most small businesses hit a point where they need better processes, smarter strategies, or just the right connection to move forward. That’s where Elevate 2025 comes in.
This one-day growth summit is designed for business owners, executives, and federal contractors who are ready to take focused action. You’ll get real strategies from professionals who’ve done the work, and you’ll leave with practical tools you can actually use.
