Leveraging Commercial Solutions to Break into Federal Contracting 

A Strategic Pathway for New Entrants to Gain Credibility and Competitive Edge 

For businesses entering the federal contracting space, one of the most significant barriers is establishing credibility—particularly when it comes to demonstrating capabilities and past performance. While agencies are open to working with new vendors, they also expect technical depth, proven solutions, and a clear understanding of how government acquisition works. Fortunately, there is a strategic pathway that allows emerging government contractors to stand out, even without a lengthy history of contract wins: partnering with established commercial solution providers. 

Here are five actionable steps to help new federal contractors build credibility and capabilities by leveraging commercial partnerships. 

1. Identify a Commercial Solution Not Yet in the Public Sector

Start by researching commercial solution providers in your target industry—particularly those with strong offerings that haven’t yet entered the public sector. These are companies that are thriving in the private sector but have not engaged with federal, state, or local government customers. You’re not just looking for technology or software; this approach applies to logistics, environmental solutions, engineering tools, and even specialized staffing services. 

Ask yourself: 

• Does this solution meet a known or emerging need in the government space? 

• Could this product or service be mapped to existing agency pain points? 

• Is the solution unique or differentiated enough to create a competitive edge? 

This approach lets you tap into innovation that hasn’t yet saturated the federal market—and gives you a compelling reason to be at the table. 

2. Define the Engagement Model

Once you identify a viable solution, the next step is to clearly define how you will represent the commercial provider. Will you serve as a Value-Added Reseller (VAR)? Do you want to formalize a Joint Venture (JV)? Is a simple teaming agreement or reseller agreement sufficient? 

Whatever the model, make sure your government customer understands who is delivering what—and that you retain control of the contractual relationship. You’ll also need to articulate how this relationship enables the government to access a previously unavailable or hard-to-procure capability. 

Internally, your agreement with the commercial partner should outline: 

• Proposal responsibilities and review processes 

• Points of contact for technical questions 

• Pricing controls and margin protections 

• Ownership of the customer relationship 

This clarity will eliminate future confusion and build trust with both your commercial partner and your government customer. 

3. Establish a Transparent Proposal Development Process

Federal proposals are not just about what you sell—they’re about how you’ll deliver. One of the most overlooked risks in these partnerships is assuming the commercial company will be available to support technical writing or solutioning during the proposal process. 

You need to lock down: 

• Will the commercial provider assign subject matter experts (SMEs)? 

• How fast can they respond to Requests for Information (RFIs) or proposal inputs? 

• Do they understand how federal proposals are structured and evaluated? 

Your proposal narrative must be government-ready. You can’t afford delays or miscommunication during submission. So even if the commercial company says, “we’ll help,” assume you’ll be doing most of the work. 

4. Become the Subject Matter Expert—Don’t Rely Solely on the OEM

If you’re proposing a third-party product or service, you must speak about it like it’s your own. Even if the commercial company promises to support you during demos or technical evaluations, you must become the face of the solution. 

Invest in training. Get certified. Set up a demo environment. Build use cases tailored for the government sector. Know the roadmap of the solution, its interoperability with legacy systems, and its potential limitations in a federal context. 

Federal evaluators want to know you can: 

• Implement the solution independently 

• Troubleshoot issues without the OEM’s hand-holding 

• Support the product post-award, especially under tight SLAs 

Ownership of expertise is just as critical as ownership of the contract. 

5. Negotiate Pricing and Protect Small Business Compliance

If you’re a small business, ensure your partnership with the commercial provider is structured to maintain compliance with FAR 52.219-14 (“Limitations on Subcontracting”). That means at least 51% of the total contract value (excluding materials) must be earned by your small business entity. 

You need to: 

• Control the prime contract 

• Deliver the majority of labor (or supply the end item, if applicable) 

• Ensure subcontractor pricing doesn’t erode your margin or small business compliance 

Negotiate pricing early and secure terms that give you both competitive rates and revenue control. If you’re using a GSA Schedule or IDIQ contract, double-check that your proposed pricing fits within ceiling rates and complies with price reasonableness expectations. 

Final Thoughts 

Breaking into federal contracting isn’t easy—but it is achievable when you take a strategic approach to capability building. Partnering with commercial solution providers who haven’t yet entered the government market allows you to offer differentiated value without incurring the cost and time of internal development. 

But the key to success lies in preparation. Know your solution. Own your narrative. Control your margins. And most of all—position yourself as the credible, capable contractor that government agencies want to do business with. 

Need help navigating partnerships or identifying government-ready solutions? 
ProposalHelper | BidExecs offers tailored advisory services to help small businesses build smart alliances, prepare winning proposals, and enter the federal market with confidence.