GSA Contract Consolidation and Best-in-Class Contracts: What Small Businesses Need to Know
By TED ROSE, ROSE FINANCIAL SOLUTIONS
Small businesses in the federal contracting space are facing a pivotal moment. In March 2025, the Trump administration issued an Executive Order—“Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement”—directing the General Services Administration (GSA) to centralize purchasing across the federal government. By August 2025, the GSA will oversee approximately $400 billion in procurement, quadrupling its current portfolio. This includes a push toward Best-in-Class (BIC) contracts, which emphasize pre-vetted vendors delivering high performance and value.
For small businesses, especially those holding set-aside Government-Wide Acquisition Contracts (GWACs) like 8(a) STARS III or VETS 2, this shift presents both major opportunities and serious threats. As Benjamin Franklin said, “By failing to prepare, you are preparing to fail.”
Here’s how to position your company for what’s next.
What’s Changing?
The Executive Order mandates GSA-led purchasing for 10 major government-wide categories—such as IT, professional services, and facilities. This move is meant to eliminate duplicative contracts, increase efficiency, and reduce costs by emphasizing Best-in-Class vehicles already vetted for performance.
Key Impacts:
- Agency-specific procurements are being centralized.
- BIC contracts are becoming the default acquisition method.
- Set-aside GWACs may be phased out or absorbed under this new system.
Opportunities for Small Businesses
1. Access to Larger, Multi-Agency Contracts
If you’re already on a BIC-designated vehicle like 8(a) STARS III, you’re positioned to chase larger, higher-value opportunities across multiple agencies. These contracts will likely consolidate smaller, siloed deals into larger, more impactful task orders.
2. Simplified Procurement Process
BIC contracts reduce red tape. Vendors pre-approved through vehicles like GSA Advantage! can expect a smoother, faster buying process, lowering barriers to entry and increasing deal velocity.
3. Reputation-Driven Growth
This consolidation rewards performance and scalability. High-performing small businesses delivering consistent, efficient results can rise to preferred vendor status and become indispensable to agencies.
Threats to Watch
1. Loss of Competitive Advantage
Set-aside GWACs gave small businesses a protected space. Under a consolidated GSA structure, larger firms may flood the field, competing on price, scale, and capability—especially if GWACs like NASA SEWP or CIO-SP4 are discontinued.
2. Devaluation of Set-Aside Investments
Businesses that spent heavily on legal, compliance, and bidding efforts to secure GWACs may find their ROI diminished. The EO’s call to “rationalize” overlapping contracts suggests fewer set-asides and a shift to open, performance-based competition.
3. Execution Risks from Within the GSA
The GSA’s massive expansion comes amid internal staffing cuts. Delays or administrative missteps could stall procurement activity, disrupting cash flow for small firms reliant on timely contract awards.
Strategic Considerations for Set-Aside GWAC Holders
If you’ve relied on your set-aside GWAC to limit competition, this is your moment of truth. Yes, 8(a) STARS III and VETS 2 are currently BIC-designated—but the field is about to get crowded. And if the GSA standardizes procurement under a single vehicle, non-GSA contracts may become obsolete.
How to Respond
✅ Stay Informed and Agile
Monitor GSA updates and Office of Management and Budget (OMB) guidance expected by mid-2025. If your GWAC is in jeopardy, prepare to pivot—partner with larger primes, and explore GSA vehicles where you’re already positioned.
✅ Double Down on Differentiation
BIC contracts are all about performance, innovation, and value. Make your business case rock-solid—highlight cost savings, customer success stories, and technical superiority.
✅ Expand Your Federal Footprint
Don’t wait for the dust to settle. Register or refresh your profile on SAM.gov, pursue subcontracting roles on BIC contracts, and target high-growth spending areas like... Read more in the ROSE Community.
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Ted Rose
In 1994 Ted Rose founded Rose Financial Solutions (ROSE), the Premier U.S. Based Finance and Accounting Outsourcing Firm. In 2010, the Blackbook of Outsourcing named ROSE the #1 FAO firm in the world based on client satisfaction. As the president and CEO of ROSE, he provides executives with financial clarity. Ted has also acted as the CFO for a number of growth companies and assisted with various rounds of financing and M&A transactions.
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