The Future Of Federal Contracting

The United States Federal Government

The United States government buys many of the products and services it needs from suppliers who meet certain qualifications. It applies standardized procedures by which to acquire goods and services. That is, the government does not purchase items or services in the same way in which private companies might secure business. The procedures used by the government can be found in the  Federal Acquisition Regulation (FAR).

What is FAR?

The FAR is a standardized set of regulations employed by all federal agencies in making purchases. It provides procedures for how to maneuver in the procurement process. It takes you through the need for the product and service to the award of the contract.

The Federal Government Offers Great Opportunities For Many Types Of Businesses

The government actually designates a portion of the contracts for women-owned small businesses, small disadvantaged businesses, companies within historically underutilized business zones (HUBZone), and service-disabled, veteran-owned small organizations. This allows for underserved groups to have a real chance to get awarded lucrative government contracts.

Streamlining and Modernizing Information Technology

Did you know that the Internal Revenue Service, the Veteran’s Affairs Department, Defense Department, and the Transportation Department are operating on computer systems that are over 50 years old? Some are still using 1970 IBM mainframe computers that store information on floppy disks!

This has caused the government to pass the Modernizing Government Technology Act, also known as the MGT. The MGT has authorized that 100 hundred million dollars be allocated to modernizing the federal government Information Technology systems in 2018. Then another 150 million dollars were added to the MGT in 2019. The Consolidated Appropriations Act also then added billions of dollars to upgrade the government’s I.T. systems and update infrastructure.

So small businesses that can help the government reduce redundancies, save money, and streamline government technology have a great chance of obtaining very profitable government contracts in 2020 and beyond.


Blockchain allows for the distribution of data on multiple platforms at the same time. It grows as a new set of recordings, referred to as blocks, are added to it. All the blocks contain timestamp information linking it to previous blocks, thus creating a chain. This allows for no data block to be altered without the alteration of all the blocks that came before it.

The government is interested in blockchain data management because it is decentralized and allows for more security for transactions. This usually also means that operating costs can be lower. The United States government became interested in blockchain technology in 2016 and it should be a very lucrative avenue for many small businesses. 

Innovation OTS is a five-year program that will continue in 2020. It aims to provide opportunities for nontraditional government contractors to work with the Department of Homeland Security developing new technologies to address upcoming threats. In 2020,  small business contractors can take advantage of Innovation OTS to form government partnerships and provide innovative technologies.

Department of Energy

The Department of Energy defines its mission as “…. to ensure America’s security and prosperity by addressing its energy, environmental and nuclear challenges through transformative science and technology solutions.”

The Department of Energy has a network of 36 Facility Management Contracts.  They include the following:

  • Office of Energy Efficiency and Renewable Energy
  • Office of Environmental Management
  • Office of Fossil Energy
  • Office of Nuclear Energy
  • Office of Science
  • National Nuclear Security Administration

This provides many opportunities for contractors that have energy management capabilities and supplies.

Cyber Security

As the world becomes increasingly higher-tech, security breaches are more likely to be in data management than on the battlefields. It is very important for the government to stay several steps ahead of those who wish to exploit undiscovered vulnerabilities in our systems. This is why cybersecurity will be a very lucrative area for government contractors. This is particularly true in 2020, which will be an election year. Cybersecurity will be used to protect voter databases and voting machines.

Cybersecurity is also going to be a big part of government protection when it comes to cyberattacks on supply chains. Contractors that can help manage these constant threats to government security will be in high demand.

The Department Of Health And Human Services

The Department of Health and Human Services states its mission “Is to enhance the health and well-being of all Americans, by providing for effective health and human services and by fostering sound, sustained advances in the sciences underlying medicine, public health, and social services” This is an agency whose need has only increased due to the current pandemic of Covid-19.

This agency is a great contracting source for small businesses that provide healthcare services and products. Go to for more information. This agency also does a lot of partnerships, so it is a great way for a small business to get their foot in the door with many other types of government agencies.

Infrastructure Construction

There are at least 21 billion dollars allocated for infrastructure spending by the federal government. The United States is a vast land of highways, roads, bridges, and dams. All of these structures need to be constantly maintained for safety and to fuel a strong vibrant economy. The country also needs to construct new infrastructure in order to keep up with the needs of a growing population

The Government Will Always March Forward

The Federal government will soon be back on track and in much need of goods and services provided by small businesses. Many agencies, such as the Department of Defense, are fully funded for the year. and will be moving forward with their contracts immediately. 

To do any business with the federal government, you must register your business in the System for Award Management directory. The government will not hire any type of business (large or small) that has not registered in the SAM directory.

Please read one of the helpful blog articles on our site like Everything You Need to Know About SAM for Small Businesses.  These blogs will help give you all the information you need to understand how we can help make the process very easy for you. Sam Directory will happily guide you through this often confusing process. With our help, you will be able to be on the path to government subcontracting quickly and efficiently.