The federal government’s approach to acquisition is changing, driven by a push for consolidation, increased efficiency and greater accessibility for a broader range of vendors. Some of these changes are entirely new and others are reminiscent of past policies, but all are reshaping how agencies procure technology and services.
Jay Colavita, CEO of Vertosoft, a value-added distributor specializing in the public sector, highlighted the dramatic evolution of government acquisition over his 25-plus years in the sales arena.
“I remember the days when we would receive paper purchase orders through the mail or through fax machines. And now it’s evolved to a lot more electronic delivery, e-procurement systems, the ability to transact and electronically sign orders. The process got a lot more efficient,” Colavita said.
A changing market drives changing business models
Beyond efficiency, Colavita noted a significant expansion in the number of companies able to participate in government procurement, particularly through a focus on small and disadvantaged businesses. This broadening of the market introduces more technology and solutions to government agencies.
The rise of the value-added reseller (VAR) model is a direct response to the increasing complexity of technology. VARs help the government navigate the vast array of solutions available and find the right fit for their requirements. Vertosoft, as a value-added distributor, supports this ecosystem by ensuring technologies meet rigorous government security and supply chain standards, especially with the proliferation of cloud and subscription-based software.
“We really focus to make sure the technologies that we are presenting to the government and selling to the government meet all those rigorous standards,” Colavita said.
VARs also play a crucial role in helping commercial technology companies adapt their messaging and use cases to resonate with the unique missions and requirements of government agencies. This requires staying acutely aware of procurement policy changes, a task Vertosoft manages by employing experienced experts in the field.
GSA’s centralization efforts spark vendor concerns
The March 20, 2025 executive order aiming to centralize procurement in the General Services Administration (GSA) shifted the conversation. This initiative seeks to consolidate spending and leverage the collective buying power of the federal government rather than treating individual agencies as separate entities.
“The way that vendors typically sell to the federal government is they sell to individual agencies, individual departments,” Colavita said, noting that procurements are often viewed in a “siloed way”. The GSA’s push moves towards treating the federal government as “one entity versus…thousands of individual entities.”
This centralization could lead to more standardized contracting terms and conditions. Vendors, however, are grappling with questions about how this will impact their strategies, including concerns about GSA working directly with them, the potential for fewer contracts in the marketplace, and adapting existing sales teams that are often structured to sell to individual agencies.
Government clients, conversely, are keen to leverage the full buying power of the federal government to secure better pricing that reflects the entire federal market, not just individual agency purchases. GSA is responding by negotiating federal-wide enterprise license agreements (ELAs) to ensure consistent discounts across agencies.
Colavita anticipates a natural consolidation of contracts, with some simply not being renewed. He warned the transition carries risks of disrupting existing procurements and the delivery of essential technology and services.
FedRAMP modernization: A welcome change
Alongside procurement centralization, an expected modernization of FedRAMP, the government’s cloud security authorization program, is poised to significantly impact the market. Historically, FedRAMP has presented a substantial barrier to entry for cloud-based technologies due to its lengthy, expensive process and the requirement for agency sponsorship.
A new pilot program, FedRAMP 20x, aims simplify and automate the application and validation of FedRAMP security requirements. This initiative will reduce costs and dramatically shrink the timeframe for obtaining authorization, and crucially, it no longer requires an agency sponsor.
This modernization is expected to increase the number of FedRAMP-authorized solutions, providing government contracting officers with more choice, fostering competition, and potentially leading to better pricing and solutions. Colavita views this as a “win-win across the board” for government contractors, companies, and suppliers.
AI and the Dual Distribution Strategy
In this uncertain environment, AI is playing a huge role in VAR operations, from quoting and order processing to aligning technology solutions with government requirements and crafting effective messaging. Colavita sees AI as a significant competitive advantage, enabling scalability and reducing the cost of doing business.
While AI adoption on the government side is not yet widespread, Colavita noted its use in the FedRAMP office for accelerating authorization and in analyzing procurement data to make better decisions and create improved contracts. The pace of AI adoption is moving very quickly, driving faster change and decision-making throughout the procurement process.
To navigate these changes, Colavita strongly recommends a “dual distribution strategy” for vendors in the public sector. He explained this approach provides choice to government contractors, customers, and software vendors; reduces risk; and ensures continuity of business operations.
“We want to encourage a dual distribution channel strategy,” Colavita said. He emphasized that this strategy compels distributors to earn business by adding value beyond just fulfillment, such as driving new opportunities and acting as an extension of sales and marketing teams.
Colavita’s advice to vendors is to focus their marketing and government channel strategies on value and ensure partners are aligned with government needs, maximizing return on investment
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