Uncategorized

The Hidden Risk in the New Executive Order Consolidating IT Procurement in GSA

What Happens to Small Federal IT Contractors?

While the big primes will likely adapt—and even benefit—from Trump’s executive order centralizing procurement under GSA, the picture is less optimistic for small and mid-sized federal IT firms. These are the niche players, boutique solution providers, and emerging tech firms that have built strong relationships with specific agencies and often bring the agility and innovation larger integrators can’t match.

For the largest firms like Booz Allen Hamilton, Leidos, Lockheed Martin, Northrop Grumman, and Raytheon, this shift represents an opportunity. On one hand, these companies already operate at scale and have robust contract capture teams, deep relationships with GSA, and experience navigating large IDIQ and BPA environments. They may benefit from consolidated contract vehicles that favor enterprise-level capabilities and pricing.

This EO, if fully implemented, could unintentionally tip the scales even further in favor of the largest incumbents.

Here’s Why Smaller IT Firms Should Be Concerned

  1. Fewer Contracting Gateways
    Many small firms thrive by competing for task orders under agency-specific vehicles or small-business set-asides tailored to mission needs. If those vehicles get swept under GSA’s umbrella—or worse, phased out—access points shrink. Fewer entry points = more competition and higher barriers to entry.
  2. Consolidated Requirements Favor Scale
    When GSA bundles contracts for efficiency, it often means larger, longer-term, enterprise-wide contracts. These typically require a breadth of capabilities, nationwide coverage, and significant financial backing—advantages held by the big guys. Smaller firms may find themselves boxed out or relegated to subcontractor roles with thin margins and less control.
  3. Less Direct Access to Agency Customers
    Smaller firms often win by being close to the mission—building trust with agency stakeholders and tailoring solutions to real-world problems. A centralized procurement model places more decision-making power in the hands of GSA, distancing vendors from the programs they aim to support. That makes it harder to differentiate on value, innovation, or customer relationships.
  4. Increased Cost of Compliance
    GSA contracts typically require a higher level of administrative overhead—pricing rigor, compliance documentation, audits, and reporting. Larger firms have entire departments to handle that. For a 10- or 20-person shop, those costs can become unsustainable.

How Smaller Firms Can Adapt

It’s not all doom and gloom. Smart, nimble players can still compete—but it’s going to require a shift in mindset and strategy:

  • Get on GSA Vehicles Now
    If your firm isn’t already on GSA Schedule, NASA SEWP, or other consolidated vehicles, now is the time. Get your foot in the door before the landscape becomes even more restricted.
  • Find a Strategic Niche
    Agencies and GSA alike will still need specialized skills—cyber, zero trust, AI, agile dev, data analytics, etc. Owning a high-demand niche makes you an attractive teaming partner and keeps you relevant, even in a centralized system.
  • Team Smart
    Proactively build relationships with both large primes and other complementary small businesses. Teaming allows you to participate in bigger bids, gain experience, and build past performance—even if it means taking a smaller cut.
  • Engage Early with GSA
    Don’t wait for the dust to settle. Get involved in industry days, respond to RFIs, and make your voice heard in the shaping of new acquisition strategies. GSA isn’t going to slow down, and small firms need to be part of the conversation.
  • Sharpen Your Value Proposition
    In a centralized, commoditized environment, differentiation matters more than ever. Know what you do best, be able to prove it quickly, and communicate that value in a way that resonates both with agency mission owners and GSA contracting officers.

Final Thought

This executive order could unintentionally crowd out the very innovation the federal government needs most. If GSA doesn’t build in flexibility, and if agency voices aren’t preserved in procurement decisions, we risk turning a diverse, competitive contracting environment into a top-heavy, slow-moving procurement machine.

For small firms, survival will come down to strategy, adaptability, and proactive engagement. The next 12–18 months will be critical.

– Robert Main
Cofounder, RJM Technologies