Securing government O&M contracts requires more than a SAM registration and a template proposal. With shifting regulations, tightened budgets, and increasing competition, operations and maintenance contractors must evolve to stay competitive. In a recent conversation with Sarah Pagona, Director of Business Development at SAS-GPS, we explored exactly what businesses need to know—and do—to win in the current landscape.
What Are Government O&M Contracts?
Operations and Maintenance (O&M) contracts cover the upkeep of government facilities, infrastructure, and systems. These contracts can include everything from HVAC and custodial services to IT systems and base operations support. They’re often long-term and mission-critical, making them attractive (and competitive) opportunities for contractors.
Trends in Government O&M Contracts
Sarah outlines the biggest trends affecting the O&M space this year:
- Performance-Based Contracting: Agencies expect measurable results, optimized systems, and cost control. Simply showing up isn’t enough—you must prove impact.
- AI & Automation: Contractors leveraging AI for efficiency and cost-savings are seeing a competitive edge.
- Cybersecurity Is Non-Negotiable: Compliance with federal cybersecurity frameworks is critical—especially for Department of Defense (DoD) contracts.
- Contract Consolidation: Expect fewer but larger contracts. The rise of IDIQs and GWACs means fewer primes and fiercer competition for set-asides.
- DEI and Compliance Shifts: Executive Order 14173 ends certain DEI programs. Contractors must adapt their compliance strategies accordingly.
- Small Business Participation Goals Are Changing: Individual agency goals are out. A single, government-wide requirement is in—making outcomes less predictable for small businesses.
Who’s releasing O&M Government Contracts?
Key agencies investing in O&M this year include:
- Department of Defense (DoD) – Despite budget reductions, DoD remains a dominant player.
- Department of Veterans Affairs (VA) – Canceling non-essential contracts has opened doors for essential O&M services.
- NASA & GSA – Both continue to modernize federal infrastructure.
- Department of Homeland Security (DHS) – Growing needs in facility and equipment maintenance.
How to Get Started (or Stay Competitive)
Here’s what Sarah recommends for firms pursuing O&M contracts:
1. Register on SAM.gov
No SAM, no contract. This is the first step for all federal contracting.
2. Understand Your Scope
Don’t bid blindly. If you can’t meet the exact scope or requirements, skip the opportunity or partner with someone who can.
3. Invest in Relationships
Network with contracting officers and prime contractors. Industry days, conferences, and proposal debriefs are essential.
4. Focus on Pricing
Your pricing must be competitive and realistic. Build a pricing model that includes direct, indirect, and risk-adjusted costs. A strong technical proposal can’t save a bad price.
5. Get Feedback—Win or Lose
Always request debriefs. Learn what worked, what didn’t, and how to improve future submissions.
The Role of Subcontracting & IDIQs
With contract consolidation rising, subcontracting is more important than ever. IDIQ (Indefinite Delivery, Indefinite Quantity) contracts offer long-term pipelines but come with challenges—uncertain volumes, tough pricing, and intense competition.
Sarah’s advice: if you’re not ready to prime, subcontract. Use that experience to build past performance and relationships.
Key Certifications
Certifications still matter—especially with agencies like the VA:
- Service-Disabled Veteran-Owned Small Business (SDVOSB)
- 8(a) Business Development Program
- Woman-Owned Small Business (WOSB)
- HUBZone Certification
These can make or break your competitiveness depending on the agency and contract.
Compliance, Bonding, and Insurance
Bidding isn’t free. To even be considered, contractors must have:
- Performance & Payment Bonds
- Insurance Coverage (liability, worker’s comp, etc.)
- Cybersecurity & IT Compliance
- Accurate Documentation – Always keep meticulous records of changes, scope, and correspondence.
Common Proposal Mistakes
Sarah sees the same errors again and again:
- Misunderstanding the Scope
- Ignoring Mandatory Requirements
- Submitting Vague Responses
- Underestimating Past Performance Needs
Don’t just say “we’ll do it”—show how you’ll do it, with proof and specifics.
Final Thoughts: The Outlook for Government O&M Contracts
O&M isn’t going away. Federal buildings still need maintenance. Systems still need managing. But how these services are contracted is shifting fast. Contractors that adapt, build smart partnerships, and invest in compliance and strategy will thrive.
Want help writing and winning O&M contracts?
Visit SAS-GPS.com or contact us directly. We’ve helped clients win over $45 billion in contracts—and we’d love to help you too.
