GSA’s Procurement Power Grab: What Small Contractors Need to Know Now
Something big just happened in federal procurement—and if you’re a small business, you can’t afford to ignore it. The General Services Administration (GSA) just finalized a major expansion of its consolidated procurement authority, backed by new laws, executive orders, and upcoming changes to the Federal Acquisition Regulation (FAR). In plain English: GSA is becoming the government’s central buyer, and if you’re not on a GSA contract, your access to government work could shrink—fast.
Let’s break down what’s changing, why it matters, and what small and midsize contractors need to do right now.
Congress codified a Trump-era executive order in the latest appropriations act, giving GSA formal control over government-wide procurement for commonly used goods and services. OMB followed up with new guidance (M-25-31) that directs agencies to use existing contracts—like GSA’s MAS and Best-in-Class (BIC) vehicles—rather than creating their own. Changes to the FAR are coming soon to enforce this.
At the same time, other executive orders are gutting old rules, rewriting the FAR, and pushing agencies to favor commercial, best-value solutions. It’s all part of a larger push to centralize procurement under GSA’s “One Government” acquisition model.
For small and medium-sized federal contractors, these changes are seismic. Here’s what’s coming:
Mandatory use of GSA vehicles: Agencies will be required to use existing GSA-run contracts for common buys. If you’re not on one, you won’t even see the opportunity.
Huge threshold increases: By 2031, the simplified acquisition threshold will rise to $10 million—and the micro-purchase threshold to $100,000. That opens the door for streamlined awards but also raises the stakes.
Fewer stand-alone contracts: Agencies will stop issuing their own RFPs for standard services and products. Expect more task orders under mega-contracts like OASIS+ and Polaris.
Higher entry barriers: Getting onto these big vehicles isn’t easy—especially for small businesses without past performance or deep proposal teams.
New competition landscape: These changes favor larger, more resourced firms—but GSA is trying to build in safeguards and on-ramps for small business participation.
Whether you’re an emerging 8(a) firm, a veteran-owned service provider, or a nonprofit with niche expertise, here’s how to prepare:
Get on a GSA contract—now
Start with the Multiple Award Schedule (MAS), which covers everything from office supplies to professional services. If you’re eligible, also look at GSA’s Alliant 3, Polaris, STARS III (for 8(a) firms), and OASIS+ vehicles. These are your tickets into the consolidated marketplace.Form partnerships and joint ventures
If you can’t win a spot on your own, team up. Use SBA’s All Small Mentor-Protégé Program, form contractor teaming arrangements (CTAs), or partner with a prime already on a vehicle.Highlight innovation and best value
With GSA moving away from lowest-price-wins toward best-value evaluations, your unique tech, process efficiencies, or past performance can give you a competitive edge—if you showcase it well.Simplify your compliance game
Take advantage of relaxed reporting rules, raised Cost Accounting Standards (CAS) thresholds, and fewer pricing burdens (bye, PRC clause). This can reduce overhead and free you up to focus on growth.Tap into SBIR, CSO, and niche opportunities
Don’t ignore the edges of the market. GSA is expanding its Small Business Innovation Research (SBIR) pipeline and adopting Commercial Solutions Opening (CSO) authority—great for non-traditional or tech-forward firms. Specialized work (like cybersecurity, research, or niche manufacturing) may stay decentralized.Monitor task order activity and engage with GSA officials
Relationships matter—especially now that GSA is driving the bus. Attend industry days, join GSA’s Interact forums, and maintain excellent past performance.
This isn’t just procurement policy—it’s a wholesale restructuring of how the federal government buys. And it’s already happening. Agencies are transitioning contracts now. The FAR class deviation mandating GSA vehicle use is expected by fall. The NDAA will likely make many changes law by the end of the year.
Yes, there are real risks here—especially for small firms used to bidding on standalone agency contracts. But there are also real opportunities, especially if you move fast, align with GSA’s model, and differentiate your business.
Consolidation isn’t going away. The question is whether you’ll be part of the new system—or watching from the sidelines.
Want a deeper dive into GSA’s key vehicles and how to get on them? Check out Major Changes in GSA’s MAS Solicitation Refresh 0026 (April 2025)
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