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Federal Contracting

What’s Next for Federal Acquisition? David Berteau’s Parting Insights for Government Contractors

As David Berteau steps down from his role as CEO of the Professional Services Council (PSC), federal contractors would be wise to pay close attention to the lessons he leaves behind. With over four decades in federal acquisition, from the Pentagon to PSC, Berteau has seen the full arc of government contracting’s evolution and knows exactly where the industry needs to go next. (Federal News Network April 29, 2025)

From Inputs to Outcomes: A Call for Smarter Procurement

“The government used to buy results. Now it buys labor hours and storage capacity,” Berteau said in a farewell conversation with Federal News Network’s Tom Temin. His message to contractors is clear: success in the coming era will depend on shifting the conversation with agencies back to mission outcomes—not just technical specs or cost ceilings. (ibid)

For firms competing in a crowded, compliance-heavy space, being outcome-focused is more than a strategy—it’s a differentiator. “We need to help the government define what success looks like, and tailor solutions to achieve that,” he emphasized. (ibid)

Tech Innovation Has Left the Building—and That’s an Opportunity

Gone are the days when the Pentagon seeded cutting-edge technology. Today, Berteau said, commercial markets drive innovation, and contractors must be fluent in adapting those tools for government use, securely, affordably, and at scale. (ibid)

“Most new technology now comes from the global commercial space. The government’s role is still critical, especially for defense but the dynamic has flipped,” he noted. (ibid)

Contractors that understand how to integrate commercial tech into mission-specific architectures, from cloud platforms to edge computing, are already outpacing those still anchored in legacy systems. (ibid)

The Competitive Edge: Culture and Mission Alignment

For government service providers, Berteau stressed that culture is the real competitive advantage. “You can’t sustain success in this market without a commitment to the mission,” he said. “The red tape is real. If your people aren’t motivated by public service, they won’t last.” (ibid)

This alignment is especially critical in today’s talent market, where attracting and retaining cleared, capable professionals remains a top challenge. Contractors who invest in a strong mission-driven culture, Berteau argued, will win, not just the next bid, but long-term relevance. (ibid)

Politics Matter, But Execution Wins

While policy shifts and partisan changes affect contracting conditions, Berteau reminded industry leaders to stay focused on execution. “The best companies in this space don’t get distracted by politics. They stay grounded in what matters: delivering value, staying compliant, and helping agencies succeed.” (ibid)

With a new wave of acquisition reform always around the corner, staying agile and compliant remains essential. “You can’t perform if you’re not compliant. And if you don’t perform, you won’t be around for long,” he said bluntly. (ibid)

Still in the Fight—Just Not Full Time

Though Berteau is stepping back from day-to-day operations, he made it clear he’s not exiting the federal contracting world entirely. “I’ve got a lot left to say and do. I’ll keep writing, advising, and staying connected.” (ibid)

For government contractors navigating increasing complexity, Berteau’s departure marks the end of an era, but not the loss of insight. His advice to the industry: stay competitive, stay compliant, and above all, stay aligned with the mission. (ibid)

Questions concerning the changing federal acquisition landscape? Give us a call.

GSA Overhauls MAS Program, New SINs in Old SINs out

As part of its Multiple Awards Schedule (MAS) refresh taking effect this month, the General Services Administration (GSA) introduces more defined subcategories under information technology contracting. (MeriTalk April 1,2025)

A new GSA document reveals that starting in April, Special Item Numbers (SINs) under IT contracting will become more specific with the addition of artificial intelligence, cloud, and cybersecurity-related subcategories. These SINs help Federal agencies identify and acquire products and services from pre-approved vendors. (ibid)

One new subgroup, “Incident Handling and Event Management,” falls under the “Highly Adaptive Cybersecurity Services” subcategory.(ibid)

GSA also expands cloud-related services by introducing the “Cloud Services Subcategory,” which includes all IT professional services that support the Government’s adoption of, migration to, or governance and management of cloud computing.(ibid)

Cloud-related vendors now provide services such as legacy system migrations, development operations, cloud-native application development, cloud solution management and governance, and cloud solution assessments.(ibid)

As part of the IT contracting expansion, GSA retires 31 SINs to support its MAS program overhaul, which it announced on March 24.(ibid)

“The retirement of these SINs supports the FAS initiative to optimize the Multiple Award Schedule Program by removing items with insufficient market demand or high administrative costs that outweigh procurement benefits, making them unsuitable for the MAS program,” GSA stated. “Furthermore, many of these items remain available through other procurement channels.”(ibid)

GSA plans to retire 11 SINs in the professional services category, seven in the office management category, and one in the Scientific Management and Solutions category.(ibid)

In addition to the MAS overhaul, President Donald Trump signed an executive order earlier this month to consolidate Federal contracting under GSA, including IT contracts.(ibid)

SIN questions? Give us a call.

GSA is about to get really big

The head of GSA’s Federal Acquisition Service told employees Thursday that the agency will manage about $400 billion in procurement under an expansion set to quadruple the size of GSA. (Next GOV/FCW March 20, 2025)

A new executive order shifts some agencies’ contracting work to GSA, which already plays a key role in government procurement. President Trump reportedly signed the order Thursday, though the text remains unavailable, and the White House has not commented. (ibid)

“We will ingest all domestic and commercial goods and services into GSA. While we won’t handle all $900 billion, we will manage about $400 billion, effectively quadrupling our size,” said Josh Gruenbaum, head of GSA’s Federal Acquisition Service. (ibid)

GSA has already piloted onboarding two to three agencies to evaluate centralized procurement. The Office of Management and Budget is currently onboarding, along with the Office of Personnel Management, which recently laid off its entire procurement team. (ibid)

“We now have a mobilized operational process to absorb procurement across the government,” Gruenbaum said. GSA plans to automate procurement and integrate talent from the agencies it will serve. (ibid)

GSA operates the schedules program, allowing agencies to buy various services and goods, and oversees several major governmentwide contract vehicles. It also serves as the government’s landlord and develops procurement strategies such as category management and best-in-class contracts.(ibid)

GSA’s acting leader, Stephen Ehikian, highlighted potential cost savings by purchasing as “one buyer on behalf of the government.”(ibid)

As GSA expands procurement operations, it continues downsizing its workforce, eliminating entire offices. Last week, the agency cut the Technology Transformation Services’ talent division and market development and partnerships division while offering Voluntary Early Retirement and Voluntary Separation Incentive Payments. So far, contracting officers remain largely unaffected.(ibid)

Employees who remain will utilize a new AI bot, recently demoed. GSA announced plans to offer the tool to other federal agencies. Ehikian has prioritized AI to reduce headcount, tasking some employees with identifying how AI can take over their work. (ibid)

The AI tool includes a chat function and an API, with plans for continuous improvements based on staff feedback. Ehikian described this as part of the agency’s “build back phase” after its “slimming down phase,” emphasizing efficiency. A meeting slide deck outlined goals such as reducing IT systems per job, centralizing data, optimizing cloud spending, and investing in shared services. (ibid)

Next week, GSA will unveil a major FedRAMP program overhaul, according to Nextgov/FCW. (ibid)

GSA also continues efforts to shrink the federal real estate footprint. Ehikian reported that the agency canceled nearly 700 leases but acknowledged instances where it reinstated leases after receiving feedback from senators and stakeholders. (ibid)

Trying to make sense of all of the new changes at GSA, give us a call.

New Leadership for GSA

The White House has appointed new leadership to the General Services Administration (GSA), drawing heavily from the tech and finance sectors. On day one of the Trump administration, GSA welcomed its new team, including Stephen Ehikian as deputy administrator and acting administrator. (Federal News Network January 20, 2025)

Larry Allen, a longtime GSA expert, will become the associate administrator of the Office of Governmentwide Policy. Ehikian also introduced key political appointments: Josh Gruenbaum as commissioner of the Federal Acquisition Service, Mike Peters as commissioner of the Public Building Service, and Thomas Shedd as director of the Technology Transformation Service and deputy FAS commissioner. (ibid)

In an email message, Ehikian emphasized the GSA’s recommitment to its founding purpose of ensuring governmentwide efficiency and maximizing taxpayer value. “I recognize the critical importance of our agency’s mission and look forward to working together in the coming weeks to achieve it,” he stated. (ibid)

Ehikian outlined six guiding principles for the GSA:

  • Foster a culture of performance and accountability across federal government operations.
  • Eliminate waste, fraud, and abuse across the federal budget and processes.
  • Leverage best-in-class technologies to accelerate digital transformation and modernize IT infrastructure.
  • Uphold competitive principles that strengthen America’s economy, including fair and merit-based contract awards.
  • Promote “Made in America” policies to support domestic jobs and businesses.
  • Improve transparency, accountability, and collaboration within the GSA and with external partners. (ibid)

In a separate message, Ehikian detailed the agency’s future direction. He highlighted the GSA’s traditional role as a model of efficiency and pledged to refocus on streamlining government operations. “We will prioritize smarter, faster government services over larger, slower systems,” he explained. Ehikian also committed to aligning GSA priorities with the Trump administration’s objectives, such as:

  • Relocating federal operations from Washington, D.C., to regional facilities to boost economic opportunities nationwide.
  • Transitioning federal employees back to office environments to improve collaboration and accountability.
  • Supporting American innovation and removing ideological mandates, such as Green New Deal and ESG requirements, from construction and procurement policies.
  • Right-sizing the federal office portfolio by disposing of underutilized buildings and improving operational efficiency.
  • Enhancing transparency, accountability, and partnerships across government and industry. (ibid)

Ehikian acknowledged the dedication of GSA employees, attributing the agency’s transformation to their expertise and hard work. He announced plans for a new performance-based reward structure to align employee incentives with the agency’s mission. (ibid)

Ehikian brings extensive private-sector experience to his role, including positions at Salesforce and co-founding Airkit.ai, which Salesforce acquired in 2023. He also led RelateIQ, sold to Salesforce in 2014 for $390 million. Ehikian earned an MBA from Stanford and degrees in mechanical engineering and economics from Yale. (ibid)

Josh Gruenbaum, the new commissioner of FAS, joins GSA after serving as a director at the global investment firm KKR. This marks his first public-sector role following private-sector experience since graduating from NYU with dual MBA and JD degrees. (ibid)

Additionally, Ehikian named Frank Schuler and Michael Lynch as senior advisors in the administrator’s office and appointed Rusty McGranahan as general counsel. (ibid)

Questions concerning the changes at GSA and how your contract might be affected? Give us a call.

New SBA Recertification Rule Brings Major Changes for Small Business Contracting

On December 17, 2024, the Small Business Administration (SBA) implemented significant changes to its recertification rules, affecting small businesses and larger companies involved in mergers and acquisitions (M&A). These changes directly impact eligibility for new contracts and existing work under recertified business size or program statuses. Below are key highlights. (Pillsbury December 23, 2024)

New Terminology Clarifies Certification Status
The SBA’s new rule introduces disqualifying and qualifying recertifications and places them in the new section 13 C.F.R. 125.12. (ibid)

  • Disqualifying recertification occurs when a contractor certifies it is no longer small or eligible for specific small business programs. (ibid)
  • Qualifying recertification confirms that a business remains eligible for set-aside awards. (ibid)

A qualifying recertification allows businesses to compete for new set-aside orders for up to five years unless a disqualifying event follows. (ibid)

Timing for Size Determinations
The Small Business Administration’s (SBA) rule reiterates that size is determined at proposal submission, not at contract award. However, for most unrestricted multiple-award contracts (MACs), size is set at proposal submission for individual orders, except under the Federal Supply Schedule (FSS), where size depends on the latest recertification. (ibid)

Recertification Events (exceptions to the general rule)
Certain events trigger mandatory recertifications:

  • Mergers, acquisitions, or novations require recertification within 30 days of the event. (ibid)
  • Long-term contracts exceeding five years require recertification before the fifth year and each option period. (ibid)
  • Contracting officers may request recertification for specific orders or agreements. (ibid)

Impact on Set-Aside MACs

The new rule will prevent agencies from awarding new set-aside task orders or options after a disqualifying recertification under MACs. However, this prohibition will not take effect until January 17, 2026, giving businesses time to adjust. (ibid)

Transactions Between Small Businesses
If a merger or acquisition involves two small businesses, the contractor remains eligible for set-aside awards and options, though the contract terms may impose additional limitations. (ibid)

New Size Protest Rights
SBA now permits size protests for recertifications under MACs, empowering other contract holders to challenge competitors’ size status. (ibid)

Could you use some guidance navigating the new recertification rule? Give us a call.