Simpler rules, sharper buyers

Federal acquisition is getting simpler on paper and harder to bluff. Small contractors and IT resellers should stop selling access and start proving delivery.

Three shifts are real. First, the Revolutionary FAR Overhaul is rewriting the FAR in plain language and removing most non-statutory rules, with agency deviations now and proposed rules being released. GSA is doing the same to its own supplement. Second, GSA is consolidating common goods and services under Executive Order 14240, and its OneGov agreements negotiate terms and pricing directly with major software and cloud providers. Third, GSA's AI clause for LLM systems took effect on October 19, 2026 as a class deviation covering GSA procurements where LLM functionality is a material feature and government data goes in or comes out; contracting officers may also add it to existing contracts.

In our view, the middle of the market gets squeezed. GSA says OneGov is not intended to displace other vehicles, but when GSA sets price and terms for common software, a reseller whose value is the paperwork has less to offer. When rules get shorter, contracting officers have more room to judge results, and a vague offer has less procedure to hide behind.

So map where your customers will actually buy next year: which vehicles, which consolidated channels, and which of your lines now overlap a governmentwide agreement. Price outcomes you can measure, not hours you can bill. Team with firms that cover the work you cannot, and put the split in writing. If an LLM touches government data in what you deliver, know whether the clause applies before you bid, and name the person who owns the answer.

None of this removes compliance. The deviations are still in force, and formal rules are still coming. What changes is where the advantage sits: with firms that can show a buyer exactly what they will deliver, who is responsible, and where the data goes.