GSA’s OneGov Strategy Just Changed the Game for Small IT Resellers
If you’re a small business VAR or IT integrator with federal contracts, the GSA’s new OneGov initiative should be on your radar—right now. This isn’t just another policy tweak. It’s a fundamental shake-up of how federal agencies will buy software and IT services moving forward, and the implications for small business resellers are huge.
Let’s break down what’s happening, why it matters, and how you can pivot to survive (and even thrive) under the new rules of the game.
The Big Shift: OEMs In, Resellers Out (Sort Of)
Announced in April 2025, GSA’s OneGov initiative flips the traditional federal software buying model on its head. Instead of buying from resellers acting as prime contractors, agencies will now buy directly from OEMs—think Microsoft, Google, Adobe, Salesforce—under massive, centralized, governmentwide contracts.
The VAR’s role? You’re now the supporting cast, not the headliner. Under OneGov, OEMs become the primes. Resellers and integrators must now plug in as authorized subcontractors or channel partners. GSA’s already signed big-ticket deals to prove it works—like a federalwide Microsoft agreement and a Google Workspace contract with a staggering ~71% discount.
So What? Why Small Contractors Should Care
For small businesses, especially those in IT, cloud, and software resale, OneGov is more than a headline—it’s a structural market realignment that impacts:
Margins: You’ll have less pricing flexibility. OEM discounts are baked in upfront.
Contracts: You’ll need to qualify as an OEM partner, not just a MAS contract holder.
Compliance: New contracts put higher cybersecurity and FedRAMP obligations directly on OEMs—and by extension, their partners.
Visibility: If your business isn’t already on OEM radar, you risk being shut out.
Still, this doesn’t mean you’re doomed. It means you need a new playbook.
Here’s How You Pivot
To remain competitive in this new environment, small business resellers must shift their strategy—and fast.
Join OEM Partner Ecosystems
Get listed in the Microsoft Partner Network, Google Cloud Partner Advantage, Adobe Solution Partner Program—whatever applies.
Get certified in their stacks (Azure, AWS, VMware, Elastic, etc.)
Focus on federal compliance: FedRAMP, ISO 27001, CMMC. OEMs want partners who can help them meet government security mandates.
Lead with Value-Added Services
GSA is clear: resellers who offer training, onboarding, cybersecurity implementation, and system integration still have a role.
Specialize in outcomes: zero-trust network deployments, data migration, multi-cloud orchestration, or AI model support for agencies.
Expand into Adjacent Opportunities
OneGov started with software, but hardware, cybersecurity services, and infrastructure will follow. If you’re strong in these areas, double down.
Look at OEM-led analytics and AI platforms (e.g., Elastic’s Search AI suite, Salesforce AI bundles). These will need integrators.
Get Capture-Ready
Treat OneGov OEM deals like any big contract. Monitor SAM.gov and GSA forecasts.
Build teaming relationships with OEMs and fellow small businesses.
Update your GSA MAS listings and make sure your past performance aligns with these new platforms.
What You Can Do This Week
Pick your OEM lane. Focus on one or two OEMs where you already have customer traction and start building your partner profile.
Audit your capabilities. Are you offering integration, migration, or training services? If not, consider how you can build these in.
Talk to your OEM reps. Many OEMs still need partners for implementation. Make your firm’s value clear now—before the next OneGov deal is inked.
Final Take: Resellers Aren’t Dead—But They Must Evolve
OneGov isn’t the end of the road for small business resellers. But it’s a sharp turn—and those who adapt quickly will gain ground while others stall out. If you position yourself as a niche expert, secure your spot in OEM ecosystems, and stay proactive about compliance and capabilities, you can still win major business.
This is a market-level shift. The question is not whether OneGov will change how the federal government buys IT—it already is. The question is: will your business be ready to play in this new arena?
Want more strategies on staying competitive in a changing federal IT market? Check out “Pentagon’s Tech Overhaul Could Reshape Government Contracting—Here’s What You Need to Know” for a deeper look at trends impacting small business contractors.
If you aren't a Squared Compass partner, what are you waiting for? From getting your business set up with specific government set aside programs at both the State and Federal level, to being empowered by a Fractional Capture team to win government contracts, to receiving tailored government contract opportunities Squared Compass delivers immense value which helps propel our partners to success. Schedule a chat with our team today.
