If you’re still waiting for the federal market to go “back to normal,” it’s time to recognize why diversification is key to GovCon growth. This is the new normal. And if your strategy still revolves solely around chasing traditional FAR-based contracts, you’re not just limiting your pipeline, you’re missing some of the most effective tools federal buyers are using in 2025.
Stuck in the Old Model? It’s Holding Back Your GovCon Growth
Over the years, I’ve worked with contractors of all sizes, from fresh startups to mature 8(a) firms, and a clear pattern has emerged. Companies focused only on the Federal Acquisition Regulation, or FAR, are feeling stuck. They’re caught in long proposal cycles, slow award timelines, and heavy compliance obligations that weigh down operations. Meanwhile, firms that understand how to navigate both traditional and alternative pathways are gaining ground quickly.
Why the FAR Still Matters
To be clear, this isn’t a conversation about choosing between FAR and non-FAR methods. FAR-based acquisition is still the foundation of government procurement. It governs most of the dollars, supports major programs across defense, health, infrastructure, and offers the predictability that is critical for certain types of work. But even within the FAR, faster, more flexible options are emerging.
How SWP is Accelerating GovCon Growth Inside the FAR
The Software Acquisition Pathway, or SWP, is a prime example. SWP is a FAR-based pathway, but it operates with greater speed and adaptability than traditional approaches. It was created specifically to streamline software delivery within the Department of Defense by eliminating outdated steps like JCIDS and integrating proven commercial practices such as Agile, DevSecOps, and Lean. As of March 2025, it is mandatory for all DoD software acquisitions, and it is already reshaping how defense agencies buy and build software.
What makes SWP different is not that it sidesteps the FAR, but that it uses it in a way that prioritizes outcomes, user needs, and rapid iteration. In some cases, programs using SWP will also rely on flexible solicitation methods like Commercial Solutions Openings (CSOs) or Other Transaction Agreements (OTAs) to move faster. But those tools support the pathway; they don’t define it. At its core, SWP is still a FAR-based model, designed to function without unnecessary delays.
Diversification as a Strategy for Sustainable GovCon Growth
This is why diversification matters. It doesn’t mean abandoning FAR. It means understanding that the acquisition landscape is broader than traditional requests for proposals and that successful contractors know how to engage in multiple ways depending on their capabilities and the buyer’s needs.
In addition to SWP, federal agencies are using:
- Other Transaction Agreements for prototyping and experimentation,
- Commercial Solutions Openings to quickly onboard innovative commercial technology,
- Broad Agency Announcements for exploratory research,
- Cooperative Research and Development Agreements to support collaboration and tech transfer, and
- Prize competitions to source creative solutions from a wider range of vendors.
Expanding the Toolbox
Many agencies also rely on cooperative agreements and grants, particularly in research-intensive environments like the National Institutes of Health, the Department of Energy, and the National Science Foundation. DHS and NASA regularly use prize-based challenges to evaluate early-stage ideas. New authorities under 10 USC 4023 and 4022(f) now allow the Department of Defense to transition successful prototypes directly into production, eliminating the need for a new competition and giving smaller, agile firms a major advantage.
Don’t Let Legacy Processes Stall Your GovCon Growth
The government is not abandoning the FAR, but it is adapting how it uses it and combining it with other tools to move faster and be more responsive to mission needs.
Since 2016, the Defense Innovation Unit has awarded more than $1.7 billion in prototype OTAs to over 400 companies, many of them small and non-traditional vendors. These projects are not theoretical. They are operational capabilities that are already being deployed. Other organizations, including the U.S. Space Force, Army Futures Command, and DHS Science and Technology, are also using these tools to get new solutions into the field quickly, bypassing years of procedural delays.
Positioning Your Company for Long-Term GovCon Growth
Diversification offers more than speed. It allows your company to remain resilient in the face of budget shifts and award delays. It gives you opportunities to pilot new solutions, work directly with end users, and build lasting agency relationships. But it also requires you to understand the nuances of each method. A winning OTA strategy is not the same as a strong FAR response. A successful CSO brief is not built like a standard technical volume.
Here is what I tell every client: diversify before you are forced to.
Take time to understand each pathway’s structure, purpose, and pace. Learn the difference between direct and consortium-based OTAs. Get comfortable with writing concise, outcome-driven capability briefs. Study how your solution could support a program under SWP or respond to a prize-based competition. Most importantly, be willing to adjust. The government is no longer following the same acquisition trail it did ten years ago.
Embracing the Shift: The Future of GovCon Growth
The federal market is not shrinking, it is shifting. And the contractors who lead in 2025 and beyond will be the ones who understand the full landscape, speak the language of modern acquisition, and position themselves as agile, mission-ready partners.
