With shifting regulations, evolving policies, and tough competition, small government contractors must pivot quickly or risk falling behind. But within this disruption lies opportunity.
In the first episode of Series 3 of The Optimize Podcast, host Jeff Shapiro, GovCon Advisory and Regulatory Assurance Partner at CohnReznick LLP, sits down with Shauna Weatherly. Shauna, a former senior federal contracting officer and now President of FedSubK, shares how small businesses can navigate and succeed in today’s evolving procurement landscape.
The New Landscape: Shifting Rules, Rising Stakes
The federal contracting space is in flux—and small businesses are caught at the intersection of uncertainty and opportunity. Sweeping policy shifts like DOGE (Department of Government Efficiency), along with a broader political reassessment of DEI (Diversity, Equity, and Inclusion) initiatives, are underway. As a result, longstanding assumptions about small business set-asides, certifications, and preferences are being challenged.
At the same time, federal agencies face talent shortages, heavier workloads, and pressure to streamline acquisitions. While this adds complexity, it also creates space for agile small contractors to bring fresh value. Shauna notes that statutory protections for small business programs still stand, even if outreach and implementation have changed.
The key takeaway? This isn’t the time to retreat—it’s the time to evolve. Contractors who understand the shifting priorities and recalibrate their strategies will find new ways to lead.
“Don’t get too reactionary. Sit back and think about who you know, what you know, and what you do. And start building a strategy that branches out.”
Smart Strategy #1: Write Proposals That Actually Win
Proposal evaluation timelines are tightening, and there’s no guarantee you’ll get a second chance. Federal buyers are increasingly seeking clarity, precision, and demonstrated capability—not just boilerplate responses.
This means your proposal must do more than just check boxes. It needs to tell a compelling story of past performance, subject matter expertise, and added value. It’s not enough to echo the RFP language—you need to show how your solution stands out.
“Your best proposal needs to be your first proposal… Don’t think you’re going to get another chance.”
Whether you’re an incumbent or a first-time bidder, simply echoing the RFP language won’t cut it. Show depth, demonstrate capability, and aim for strengths, not “no weaknesses.”
Smart Strategy #2: Diversify or Risk Disappearing
The smartest contractors aren’t relying solely on prime federal awards anymore. They’re actively pursuing alternative pathways, such as subcontracting under large primes. They’re also tapping into state and local opportunities and repackaging their services for commercial buyers.
In today’s climate, diversification isn’t just about growth—it’s about survival. If one door closes, you want three more already open. Building flexibility into your market strategy can shield your business from federal slowdowns or policy shifts. They’re entering subcontracting, state and local markets, and the commercial sector with minimal changes to their offering.
“Subcontracting’s a lucrative business in the federal space. It’s not just prime… there’s a lot of avenues and entry points.”
Shauna emphasizes the importance of turning over every rock—a mindset shift that can uncover surprising new growth path.
Smart Strategy #3: Understand the System, Then Beat It
From SAM.gov scams to NAICS code nuances and GSA schedule myths, success in the federal market requires understanding both the official rules—and the unofficial ones. Knowing how agencies perform market research, choose NAICS codes, and evaluate vendors can give you a strategic edge.
For instance, adjusting your NAICS codes to match evolving acquisition trends can open up new opportunities. And understanding how to properly register and maintain your SAM.gov profile protects you from disqualification and predatory third parties. Master the system, and you can make it work for you.
“Establishing a commercial price list doesn’t mean you have to hold yourself to it… But it’s always a good exercise.”
Smart Strategy #4: Use Tech and Partnerships to Your Advantage
Smart contractors are amplifying their impact through collaboration and innovation. They’re teaming up with fellow small businesses and leveraging technology for proposal writing and market research. Partnering with peers can help fill capability gaps and increase competitiveness.
AI-driven tools like proposal builders and clause logic software are streamlining the most time-consuming parts of contracting. Embracing these resources can significantly reduce your administrative load—freeing you to focus on what you do best. For proposal writing and market research, the tools are out there – you just have to use them.
“There’s room for maybe implementing some of these AI tools… Even something as simple as clause logic would save so much time.”
Your Next Move: Turning Insight into Action
Federal contracting is changing rapidly—and that means your strategy should too. This episode isn’t just about surviving change; it’s about transforming disruption into momentum. Jeff and Shauna break down a wealth of actionable insights for anyone working in proposal management or government sales. They cover everything from talent shortages and commercial acquisition strategies to subcontracting surveillance and GSA schedule myths.
The episode also explores several key trends in federal procurement. These include shifts in FAR policies, changes in market research practises, acquisition thresholds, and the role of AI tools. It’s a packed session so make sure you don’t miss it.
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