Elodie Collins 
The government is spending more money on small businesses, but the level of participation of such firms in the federal market continues to decline, according to Kevin Plexico, senior vice president of information solutions at Deltek and a seven-time Wash100 winner.
In a new article posted on the Deltek website, Plexico, one of Executive Mosaic’s GovCon Experts, warned that changing policies, cash flow challenges and the increasing cost of compliance could further drive away small businesses from the federal market.
He provided several steps for small business contractors to adapt and grow in the government contracting industry.
Plexico is a speaker at the Potomac Officers Club’s 2026 GovCon Executive Leadership Summit this Thursday. He will moderate the Leading the Shift: CEOs at the Crossroads of Innovation and Integration panel, which will also feature insights from Tom Vecchiolla of QinetiQ, Stephanie Mango of CGI Federal and Parag Thakker of OMNI. Tickets to the event are still available here.
What Steps Can Small Businesses Take to Capture Contract Opportunities?
According to Plexico, small business contractors should review their portfolios to ensure alignment with Government-Wide Acquisition Contracts, Multiple Award Schedule contracts, best-in-class vehicles and agency blanket purchase agreements. Improving response time by updating proposal templates, creating rapid-response playbooks and developing standardized, pre-priced offerings can also help firms compete more effectively, according to the executive.
Small businesses may also need to reevaluate pricing strategies and build contingency reserves into fixed-price bids. Plexico advised contractors to avoid underbidding.
As performance-based requirements expand and compliance frameworks evolve, contractors should emphasize commercial offerings aligned to mission needs and compliance, he added.
Finally, Plexico said small businesses must strengthen teaming strategies and diversify supply chains to improve agency access, financial stability and task order competitiveness.
What Is Deltek?
Founded in 1983, Deltek offers an intelligent platform designed for high-stakes projects. The Herndon, Virginia-headquartered company supports nearly 30,000 customers, including government contractors, globally.
