2025 is proving to be the most challenging year federal contractors have faced in decades. Opportunities are drying up, solicitations are being delayed or cancelled, and many firms are watching their pipelines stall or shrink.
Forecasts indicate these challenges will persist well into 2026, and possibly longer if budget cuts continue or new disruptions emerge. The numbers don’t lie and suggest that this is not a temporary dip.
- 3rd QTR Federal solicitation volume is down 74% from 2024.
- 2024: 56,929
- 2025: 14,807 (Jul-Aug)
- Contract cancellations and terminations are up more than 11%.
- 2024: 39,920
- 2025: 44,415 (with 4 months remaining)
Sources: Bloomberg Government, GovWin, DOGE
What are your options?
Option 1: Wait for Government Contracting to Normalize
Forecasts suggest challenges will last until at least mid-2026, and likely longer if budget cuts continue.
Option 2: Keep Doing BD the Old Way
Nearly 7 in 10 small businesses lost active contracts by mid-summer 2025 and are struggling to identify new opportunities. Pipeline drag is hampering new growth and BD forecasts.
Option 3: Find a Partner That Can Help
Working with the right business development teaming partner gives you trusted human intel, tailored strategies, and measurable results, not just lists of opportunities.
How OST Helps Contractors Win
Most pipeline services simply scrape databases like SAM.gov and provide you with a list of options. OST’s WinMoreBD™ model delivers a full business development strategy backed by real human intel that delivers real, winnable opportunities with measurable ROI.
- Human intelligence from contracting officers, agency insiders, and industry incumbents confirming which opportunities are real and active.
- Opportunities that align with your business model, growth objectives, and past performance. On average our clients see a minimum of 6-10 qualified opportunities every month.
- Pipeline Management across yours and government portals and schedules. We build our clients’ portfolio of GWACs and IDIQs to future proof growth.
- Actionable results by providing capture plans, incumbent analysis, gap assessments, and teaming strategies, which are supported by a trusted team of OST’s experienced BD professionals.
For OST, success is not about the size of your pipeline. It’s about filling your pipeline with high-probability win and high-value opportunities — the kind that drive growth, even in a down market.
Let’s navigate this tough market together and find new ways to grow. I’d be glad to connect and learn more about your BD goals.
Schedule a Meeting: My Calendar
Become a WinMoreBD™ Partner within the next 3 months and receive a free OASIS+ scorecard analysis and assessment with GSA’s upcoming on-ramp.
