Streamlined Army Acquisition Is a Game-Changer for Small Contractors—If You’re Ready to Move Fast
The U.S. Army is rewriting the rules of the game—literally. In 2025, Army Futures Command (AFC) rolled out a radical shift in how it defines and buys new technology. Instead of bogging vendors down in technical checklists, AFC is now asking for solutions to big, open-ended problems. For small businesses and non-traditional vendors, this is one of the biggest federal contracting opportunities in years—but only if you’re ready to adapt fast.
Let’s break down what’s happening, why it matters, and what you should be doing now to stay ahead of the curve.
The Big Shift: From Rigid Specs to Open Problem Statements
Army Futures Command is tossing out 200-page RFPs packed with prescriptive specs. Instead, they’re putting out broad challenges like: “Deliver 24 hours of unmanned aerial surveillance for a rifle company.” That leaves the “how” up to you—whether it’s a drone swarm, a satellite-based system, or a new AI-enabled sensor suite.
This change is part of a bigger transformation at the Pentagon. Defense Secretary Pete Hegseth ordered the Army to consolidate AFC with TRADOC (its training and doctrine command) into a new Army Transformation and Training Command. The goal? Accelerate modernization and remove bottlenecks in acquisition.
To back it all up, AFC is rolling out tools like the AI-powered CORA system to weed out duplicate requirements and free up budget.
Why This Matters: More Room at the Table—But Also More Competition
For years, small businesses trying to break into defense contracting were stuck. RFPs often required military-specific past performance, niche compliance systems, and highly tailored products. AFC’s new approach breaks that cycle.
Here’s what’s new:
Simplified Requirements = less red tape, more innovation
Faster Awards through OTAs (Other Transaction Agreements) and MTA (Middle Tier Acquisition) pathways
More Open Competition including non-traditional vendors and startups
This isn't just theory—it’s already working. Army OTA usage has skyrocketed, and programs are fielding tech in months instead of years. A drone startup that never held a federal contract now has a shot if it can prove its value quickly.
But Don’t Get Comfortable: The Bar Just Got Higher
While the entry barriers are lower, the performance expectations are rising. Open-ended solicitations mean:
More diverse competitors, from Silicon Valley to big primes
Outcome-first evaluation, where storytelling and mission impact matter more than compliance checklists
The “valley of death” still looms between prototype wins and long-term production
In short: getting your foot in the door is easier, but staying in the room requires proof, persistence, and partnership.
What Small Contractors Should Do Now
To take advantage of the Army’s new acquisition climate, here are your next moves:
Align with Army priorities
Focus your efforts on the Army’s “Big 6” modernization areas:
Long-range fires
Unmanned systems and counter-UAS
Air and missile defense
Tactical networks
Autonomy and AI
Soldier lethality
Find the corresponding Cross-Functional Teams (CFTs)—they’re often the first to roll out OTAs and prototype solicitations.
Lead with a working prototype
Having a demo-ready product is a major advantage. It proves your concept and speeds procurement. If you can’t prototype alone, find a partner that can.Get familiar with OTAs
Join a relevant OTA consortium. These agreements are fast, flexible, and ideal for small business innovation. Unlike traditional FAR-based contracts, OTAs don’t require Cost Accounting Standards or complicated compliance.Build smart partnerships
Don’t try to be everything. If your tech solves one part of the problem, team up with firms that fill in the rest. The Army wants integrated solutions—and teaming with a more experienced vendor can help you scale.Tell the right story
Your proposal should explain the value to the warfighter in plain terms. Use real scenarios, like “This system will cut maintenance time by 40% during Pacific deployments.” Tie your innovation directly to operational impact.
Watch These 4 Trends in the Months Ahead
Formal rule changes are coming. Expect updated requirement guides from the Army and new evaluation language in future solicitations.
PEO (Program Executive Office) restructuring will reshape how programs are managed—possibly reducing the number of decision-makers you need to court.
Budgeting by capability (instead of specific programs) means you’ll see broader, more flexible funding lines like “Counter-UAS” instead of “Program XYZ.”
Tranche-style competitions may become the norm—think fast sprints, not long marathons. If you don’t win the first round, stay ready for the next.
The Bottom Line: Agility Wins
AFC’s requirements reboot is a golden window for small firms with the right mix of tech, hustle, and strategic alignment. But you can’t win playing by old rules. Think faster timelines, tighter partnerships, bolder storytelling, and smarter targeting.
If you’re a small business with federal contracting certifications, consider this your call to act. Government procurement is evolving—and if you move now, you won’t just keep up. You’ll lead.
Want more insight into how certification can boost your readiness for Army opportunities?
Read our related blog:Army’s Bold Overhaul: What It Means for Defense Contractors—Especially the Small and Nimble
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