Inside the Marine Corps’ $17M Sole-Source Contract—and What Small Businesses Should Learn from It
On July 14, 2025, the U.S. Marine Corps handed out a $17 million sole-source contract to Ternion Corporation—and small businesses in the federal contracting space should pay attention. This contract isn’t just another high-value DoD deal—it’s a crystal-clear example of how sole-source awards operate, why certain vendors win them, and how small businesses can position themselves to benefit despite the odds.
Let’s break down what happened, why it matters, and how your business can strategically respond.
The contract is a five-year indefinite-delivery/indefinite-quantity (IDIQ) award, capping at $17 million, to Ternion Corporation of Huntsville, Alabama. Ternion is tasked with maintaining and upgrading the Marine Corps’ FAMETS (Flexible Analysis, Modeling, and Exercise System) Automated Simulation Trainer. This software, known as FAST (FLAMES Automated Simulation Trainer), is a key training simulation integrated into the Corps’ Common Aviation Command and Control System (CAC2S).
This wasn’t a typical competitive bid. The Marine Corps invoked FAR Part 6.302-1—“only one responsible source”—arguing that Ternion’s proprietary software is uniquely tailored to CAC2S training. Bottom line: no other company could perform this work without re-developing the software from scratch, which would be a costly and inefficient use of taxpayer funds.
Here’s why this should be on your radar: even though this specific opportunity was locked down, the dynamics behind it are instructive for any small firm eyeing government contracting opportunities.
For small businesses—especially those pursuing 8a certification assistance, women owned small business certification, or disabled veteran small business certification—sole-source contracts can feel like a closed-door game. This case shows both the challenge and the hidden avenues that still exist:
Sole-source awards aren’t going away: The DoD is increasingly using them, particularly for specialized IT and training solutions. Between FY2016 and FY2021, sole-source 8a contracts over $22M skyrocketed. Understanding how these awards are justified is crucial.
You can influence the process: Small businesses have successfully protested sole-source decisions. In a notable example, Team Wendy, a small helmet manufacturer, forced the Marine Corps to cancel a sole-source award after proving the Corps overlooked qualified suppliers.
You can still participate through teaming: Even when a sole-source award is locked in, primes like Ternion are often required to include small-business subcontracting plans. SBA 8a certification services, SDVOSB programs, and other federal contracting certifications make your firm more attractive for these subcontracting roles.
Don’t just sit on the sidelines. Here’s how you can take action:
Study sole-source J&As: Most sole-source justifications are publicly posted on SAM.gov. Reading these can reveal market gaps and key agency priorities.
Leverage SBA programs aggressively: Mentor-protégé programs, joint ventures, and 8a contracts services can open doors. Small businesses in mentor-protégé relationships can team with primes to access sole-source or set-aside task orders.
Master your contractor NAICS code: Get smart about the naics code for government contractors relevant to your niche. Whether you’re in IT services, simulation, or training support, aligning with the best naics codes for small business is crucial.
Get proactive with primes: Identify major players in your space and pitch your company for subcontracting roles. Highlight your federal contracting certifications and niche skills.
Use protests strategically: While protests aren’t a silver bullet, well-timed challenges—especially when agencies fail to perform adequate market research—can reset the playing field.
Track modernization programs: Contracts like M67854-25-D-0001 are part of larger modernization initiatives (like CAC2S). Understand the big picture to forecast future needs.
Ultimately, sole-source awards are both a challenge and an opportunity. For small businesses in government procurement, especially those navigating the government contracting certification process, it’s essential to be aware of how sole-source deals shape the landscape and to position your firm accordingly—whether through direct advocacy, teaming arrangements, or subcontracting.
If you’re strategizing your next move in federal contracting, especially with your SBA 8a certification, women business certification, or SDVOSB status, this contract is your cue to sharpen your approach.
Looking for more strategies on how to win in competitive and sole-source environments? Check out our breakdown of “The Most Competitive Federal Contracting NAICS Codes of 2024—and How Small Businesses Can Still Win” over at Squared Compass. It’s a great next read if you want to get more tactical.
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