OneGov in Action: How GSA Is Rewriting the Rules of Federal IT Contracting!
The General Services Administration (GSA) is turning the tables on decades of federal IT procurement norms with its OneGov strategy and it’s got the whole technology contracting world buzzing. Think if for years, resellers, many of them scrappy small businesses, held the keys to federal technology purchases. They were the gateway between government buyers and corporate giants like Microsoft, Google, and Adobe. These resellers made it possible for major software players to operate in the federal space without needing their own army of contract-savvy salespeople. But now? GSA is flipping the script and putting those tech giants directly in the driver’s seat.
However, GSA is now flipping that model. OneGov is designed to give federal agencies more direct relationships with the OEMs themselves, making them the prime contractors while repositioning resellers as subcontractors. This shift isn’t about removing resellers, it’s about redefining how they contribute. According to Lawrence Hale, assistant commissioner for the IT category at GSA’s Federal Acquisition Service, the goal is to maintain the value that resellers bring, such as onboarding, integration, and training, while giving agencies more direct access to the companies behind the software and platforms they use.
And why all these now? One of the main reasons behind this move is risk management. When cybersecurity issues or software vulnerabilities arise, the government doesn’t want to navigate a maze of middlemen to reach the party responsible. With OEMs now at the forefront of contracts, agencies can hold them accountable for incident response, encryption standards, and data protection measures directly. Hale explained that this approach also removes an unfair burden from small resellers, who under the old model were often expected to answer for flaws in software they didn’t develop. For resellers, the shift presents both a challenge and an opportunity. They may lose their role as the contractual lead, but the door remains open for them to provide high-value services.And the key is adaptation. Yes, resellers need to pivot toward partnership models with OEMs and focus on the parts of delivery where they truly shine. For example, while a global tech company may offer the software, it’s often local or niche resellers who ensure it gets properly implemented, configured, and supported within an agency’s complex environment.Already, GSA has established OneGov agreements with companies like Adobe, Google, and Salesforce, with Microsoft following a similar path. These contracts include clearer terms around compliance and cybersecurity and aim to create consistent pricing and expectations across the federal government.
As OneGov continues to take shape, it’s clear that GSA is not just tweaking its approach, it’s launching a paradigm shift. For those in the federal IT space, this means reevaluating where you stand and how you deliver value. Whether you’re a reseller or a tech OEM, success in this new model will depend on your ability to collaborate, comply, and contribute meaningfully to a more streamlined, secure procurement ecosystem.
📜 COMPLIANCE AND REGULATION UPDATES
Hop on the procurement rollercoaster with multi-year contracts, contractors, and hold tight for a thrilling ride! These powerhouse deals, spanning up to five years, lock in your procurement needs without the hassle of yearly options, delivering a slick procurement advantage in the U.S. contracting scene.
But beware cancellation can derail the fun if funding dries up or notifications miss the mark, tossing a procurement wrench into your plans. No sweat, though! A cancellation ceiling cushions the fall, covering nonrecurring costs like specialized tooling, pre production engineering, or workforce training. Unlike termination, which can strike anytime for any quantity, cancellation hits future program years, making sharp procurement planning your secret weapon. Align with OMB Circular A-11 to secure funds for cancellation charges and ensure procurement compliance that shines. With agency head flexibility and tailored terms, multi-year contracts are your procurement golden ticket. Stay sharp, strategize smart.
AIX Tech’s Procurement Protest Fizzles
In a lively procurement protest showdown, AIX Tech, LLC, a small business from Brambleton, Virginia, took on Defense Solutions Group, LLC (DSG) over a Department of Defense task order for strategic advisory support. AIX challenged DSG’s proposal evaluation and the best-value decision, alleging a juicy procurement conflict of interest. However, the protest was partly dismissed and partly denied. AIX misread a past case, claiming a marital tie between DSG’s owner and a contracting officer automatically taints the procurement process. Not so fast! The agency’s investigation, sparked post-protest, cleared DSG, as no competitive edge was found. In the wild world of procurement, agencies can probe conflicts after protests, as seen in cases like Pioneer Corp. and Visual Connections. AIX’s procurement protest didn’t stick, proving once again that procurement disputes need solid evidence to shake up the game!
🔓 Why Lowering the Threshold of the Miller Act is Necessary for Small Business Owners!
In a small town, a carpenter named Joe built homes with his bare hands. He worked hard, paid his workers on time, and trusted that when he finished a job, he would be paid too. One day, he took on a government project. It was a big deal for him. But when the main contractor failed to pay, Joe had no way to recover his money. He had no bond to protect him. His business suffered. His workers left. His tools gathered dust. Joe’s story is not rare. It is the story of many small business owners across the country.
The Miller Act was created to protect people like Joe. Passed in 1935, it requires contractors on federal construction projects to post performance and payment bonds. These bonds ensure that subcontractors and suppliers get paid, even if the main contractor defaults. But there is a catch. The law only applies to projects worth more than 150,000 dollars. That threshold leaves many small projects, and the small businesses working on them, unprotected.
Over time, inflation has pushed more projects above that 150,000 dollar line. But many still fall below it. And those are often the ones small businesses can realistically bid on. As a result, these businesses are left exposed. They cannot place liens on federal property. If they are not paid, they have no legal safety net. They are forced to absorb the loss or go to court, which is costly and slow.
A report by the [Surety & Fidelity Association of America] estimates that if the threshold is raised from 150,000 to 200,000 dollars, about 1,700 federal contracts each year, worth roughly 300 million dollars, would no longer be protected by bonds. That is a lot of risk for small businesses. And a lot of taxpayer money at stake.
Some lawmakers are pushing back. In a [brief published by NASBP], Congressman Byron Donalds and Chairwoman Nydia Velazquez were praised for introducing legislation to exempt the Miller Act from automatic threshold increases. They argue that the Act is not just a procurement rule, but a protection for workers and small businesses. “The only protection certain subcontractors and suppliers have on federal construction contracts are payment bonds,” said Mark McCallum, CEO of NASBP. “Periodic increases to the Miller Act threshold will subject more subcontractors and suppliers to risk of non-payment, which can cause dire if not catastrophic impacts to their businesses.”
The idea of lowering the threshold, rather than raising it, is gaining attention. Advocates say that reducing the minimum contract value required for bonding would extend protections to more small businesses. It would give them the confidence to bid on federal work. It would level the playing field.
Lee Covington, president of the Surety & Fidelity Association of America, said in a [news release](https://surety.org/news/nasbp-sfaa-strongly-support-miller-act-indexing-exemption/), “Bonding federal infrastructure protects taxpayers’ dollars, ensures project completion, protects local small businesses and workers, and promotes economic growth.” He added that the cost of bonding is low, usually between 1 and 3 percent of the project value, but the benefits are high.
The argument is simple. If we want small businesses to grow, we need to protect them. If we want them to take part in public projects, we need to give them the tools to do so safely. Lowering the Miller Act threshold would be a step in that direction.
Some critics worry that requiring bonds on smaller projects could increase costs or slow down the process. But supporters argue that the cost is minimal compared to the risk of non-payment. And the process of obtaining bonds has become more streamlined over the years.
In a time when small businesses are still recovering from the economic shocks of the pandemic, every bit of support matters. The government has passed several relief measures, but structural changes like this one could have a lasting impact.
The issue also ties into broader conversations about equity and access. Many minority-owned and women-owned businesses are small and just starting out. They often take on smaller contracts. Without bond protections, they are more vulnerable. Lowering the threshold could help close that gap.
The Miller Act was designed to protect the little guy. But over time, the little guy has been left behind. It is time to revisit the law and make sure it still serves its purpose.
Joe, the carpenter, never took on another federal job. He could not afford to take the risk again. But if the rules had been different, his story might have ended another way. He might have grown his business, hired more workers, and built more homes. That is the kind of future we should be building.
Lowering the threshold of the Miller Act is not just a policy tweak. It is a statement. It says that we value small businesses. That we want them to succeed. That we are willing to protect them, just as they help build the country’s infrastructure.
It is a small change with a big impact. And it is long overdue.
💰 Boeing Soars with $49.7M Saudi F-15 Support Deal!
Talk about an old winner flying high? Okay, Boeing just added another major win to its already impressive contract playbook and this one’s going international. On June 18, 2025, the U.S. Air Force Life Cycle Management Center awarded The Boeing Company a not-to-exceed $49.7 million letter contract to provide full-spectrum sustainment services for the Royal Saudi Air Force’s (RSAF) F-15 fleet. But this isn’t an average parts-and-pallets kind of deal. Boeing is stepping in to deliver what amounts to comprehensive air combat support including repair and return of unclassified F-15 components (C, D, S, and SA variants), spares procurement, maintenance services, support equipment, aircraft integration, and even training. That’s right , everything from fixing fighter jet parts to training the folks who keep them battle-ready.
What makes this contract particularly interesting is the scope: work will take place in St. Louis, Missouri, and on the ground in Saudi Arabia. It’s a full logistical, technical, and operational partnership and it reflects Boeing’s deep roots and trusted role in FMS (Foreign Military Sales) deals. The RSAF has relied on the F-15 platform for decades, and this contract ensures that those jets stay mission-ready through 2026 and beyond.Also noteworthy? This contract was awarded through a sole-source acquisition meaning Boeing was the only company considered for the job. That speaks volumes about the company’s technical credibility and longstanding relationship with the RSAF.
At the time of award, over $23.2 million of non-appropriated FMS funds were already obligated, showing just how committed both sides are to fast-tracking this support. From ground equipment refurbishment to fire and safety vehicle maintenance, Boeing’s team will be tackling it all.So, whether you’re tracking big-ticket FMS trends or just watching which defense giants are making waves this summer , Boeing’s latest win is a powerful example of how U.S. contractors continue to play a pivotal role in international security partnerships. So, Eyes on the skies and the contract boards.
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