Fiscal 2027 brings big opportunities, and big challenges

Government contractors will have a range of large opportunities to pursue in 2027, but the market will not be without its challenges.

Deltek released a pair of reports this week tracking the market's top 20 full-and-open opportunities and top 10 set aside contracts for small businesses.

The full and open side includes LOGCAP VI, which Deltek estimates has an $82 billion ceiling, to the Army’s Marketing and Advertising Program worth up to $4 billion.

The small business side includes the Defense Logistics Agency's $60 billion Special Operational Equipment Tailored Logistics Support Program 6 competition, as well as the General Services Administration's STARS IV with a $50 billion ceiling.

Deltek’s analysis of the large opportunities shows agencies are consolidating more contracts, which increases competition.

For example, LOGCAP VI is folding in the Army Pre-Positioned Stock and the Enhanced Army Global Logistics Enterprise contracts. The Ginnie Mae Master Subservicer Support Services contract consolidates several standalone Single Family Master Subservicer contracts and a previously separate Multi-Family Master Subservicer requirement.

The Homeland Security Department’s Cybersecurity and Infrastructure Security Agency is consolidating how it buys cybersecurity solutions in the Strategic Cyber Tools Buying Support vehicle, which will be open to all civilian agencies and have a $6 billion ceiling.

Fifteen of the large business 20 opportunities have incumbents.

Deltek identified is that more agencies are shifting work to GSA vehicles like the Schedules, OASIS+ and Alliant. For example, DHS canceled its $18 billion Cyber Dome vehicle.

Contractors not on key schedules and vehicles will have to rely on open enrollments, on-ramps and teaming to position for opportunities.

It is also worth noting that the top 20 includes very few of what can be considered pure IT contracts. Only the CISA SCTB vehicle and the Justice Department’s IT Support Services 6 contract are there to deliver IT-related services.

IT is definitely embedded in the other contracts, but is not the primary focus. Instead you have contracts for disability examinations, construction services, pharmacy services, and logistics.

For small businesses, the biggest issue facing that segment of the market is the proposed small business size standards.

Deltek sees increased competition because current small businesses will stay small longer and some current large businesses will qualify as small.

Companies that stay small longer also can continue to compete for their current contracts, a phenomenon Deltek called “increased generational incumbents.”

Current small businesses will likely find themselves competing with larger and more-resourced companies for set-aside contracts.

Deltek also sees a risk of reduced subcontracting opportunities because large businesses that are no longer considered large will not have to submit small business subcontracting plans.

At the same time, there will be more small businesses that can be added to SB subcontracting plans. Deltek sees that as increasing the competition for places in those plans.

One caveat from Deltek’s report is that timing for the large and small contracts could easily slip beyond 2027.

In last year’s opportunity roundup, five of the 20 top opportunities slipped from FY 2026 to 2027. The same could happen again.

“Dates will frequently shift as the government solidifies its acquisition plans,” Deltek says at the start of the full-and-open report.