USA Hire Recompete: A Prime Opportunity for Small Firms in Federal Talent Assessment
The federal government is about to triple down on how it hires its own people, and for small businesses with the right capabilities, this $750 million opportunity could be a foot in the door or a major breakthrough. The Office of Personnel Management (OPM) is recompeting the USA Hire contract, which powers the centralized online assessments used across the federal workforce. The new contract is massive, open to all vendors, and heavily focused on AI integration, user experience, and scale.
If you offer AI, psychometrics, user design, accessibility, or specialized assessment content, this is your moment to step in.
What’s the Deal with the USA Hire Recompete?
USA Hire helps agencies screen applicants through validated online assessments, everything from multiple-choice tests to asynchronous video interviews. Under the current contract, managed by PDRI (now owned by Pearson), usage has grown steadily. But now, OPM and GSA are prepping to take it government-wide. The recompete will likely be a single-award contract (yes, full and open competition, no set-aside), with an estimated value of $750 million over 8 years.
The contract will blend Firm-Fixed-Price and Time-and-Materials tasking and require the selected vendor to handle millions of job applicants annually. It’s not just tech, they want full-spectrum support: psychometric expertise, user accessibility, AI-based scoring, surge hiring capability, and compliance with new federal hiring mandates like the Chance to Compete Act.
Why Small Businesses Should Care
This is not just for the big guys. While the prime contract will probably go to a large integrator or an incumbent like Pearson, the scope is too broad for any one company to handle alone. That opens real subcontracting lanes for small businesses offering:
AI tools that score interviews or detect cheating
Assessment content for technical fields like cybersecurity or engineering
User experience and accessibility design (especially Section 508 compliance)
Data integration, dashboards, or analytics for federal hiring trends
Multilingual or DEIA-focused assessments
Remote proctoring solutions or test center logistics
Government Contract Proposal Writing support for teaming partners
If you're SBA 8a certified, have women owned small business certification, or hold disabled veteran small business certification, you could help primes meet socioeconomic subcontracting goals. These credentials make you more than a vendor, you become a strategic asset in their bid.
Steps You Should Take Right Now
Here’s how to move from bystander to subcontractor:
Sharpen Your Capability Statement
Use the RFI's own language. If you do AI or psychometrics, tailor your pitch to reflect that. Highlight any work tied to government procurement, federal contracting certifications, or online assessment tools. Be specific and brief.Network Like It’s Your Full-Time Job
Identify 3–5 likely prime bidders, think Pearson/PDRI, Deloitte, Leidos, or Booz Allen, and start outreach. Offer a niche skill that strengthens their team. Don’t wait for the final RFP. Most teaming happens before the solicitation drops.Use Your Certifications Strategically
If you're in the 8a program or have a women business certification, mention it early and often. These federal contracting certifications make you more competitive as a sub, especially when large primes need to show commitment to diversity and inclusion.Join a Mentor-Protégé or JV
If you can’t go it alone, join forces. SBA 8a certification services can help pair you with a larger company through the Mentor-Protégé Program, or set up a joint venture with a complementary small business.Stay in the Loop
Watch SAM.gov and GovTribe for updates under Solicitation 47QFMA25K0009. Expect a draft RFP in late 2025 and a final RFP in 2026. There may be an Industry Day or webinars you can join, these are golden opportunities to network and position your brand.Be Audit-Ready
If your tech touches sensitive applicant data, make sure your systems align with FedRAMP and privacy requirements. If you build assessments, know the Uniform Guidelines on Employee Selection Procedures and be ready to defend your methods.
This Isn’t Just About One Contract
USA Hire is the centerpiece of a much larger shift toward skills-based, merit-driven hiring across the federal workforce. The policies behind this recompete, like the Chance to Compete Act and OPM’s Merit Hiring Plan, aren’t going away. This contract may be your entry point, but there’s a whole pipeline of government contracting opportunities coming down the line tied to federal hiring modernization.
If your business fits into talent tech, testing, analytics, DEIA, or IT services, now is the time to lock in teaming partners, build credentials, and show the feds what you can do.
Looking for more ways to get in the door? Check out our blog post: Crafting a Winning Government Contract Proposal: Key Steps and Strategies, it’s a tactical breakdown of how to approach big fish and pitch yourself as the missing piece of their proposal.
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.
