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Five Federal Programs Designed for Companies That Have Never Sold to Government

Five federal programs—SBIR, DIU, AFWERX, xTech, and GSA Schedule—were designed for companies with zero government experience.

You Don't Need an Incumbent History to Access Federal Money

The federal government has explicitly built pathways for companies that have never sold to government before. These programs exist because the DoD and other agencies know that the best innovation comes from outside the traditional defense contractor ecosystem.

If you're a tech company with something valuable, one of these programs is probably designed for you.

1. SBIR (Small Business Innovation Research)

Roughly $3-4 billion annually in non-dilutive R&D funding. Phases: feasibility ($150-250K), development (~$1M), and production (Phase III, unlimited). No venture capital required. No investor dilution.

Who it's for: Early-stage companies with technology that solves a federal problem.

The catch: Competitive (15-20% success rate). Requires writing good proposals.

2. CSO: Commercial Solutions Opening

DIU's process for buying commercial tech without the FAR compliance burden. Pitch-based, move-fast culture. ~$50M annually.

Who it's for: Companies with mature, commercial-grade tech that solves a DoD problem.

The timeline: CSOs are typically 12-18 months from pitch to contract, much faster than traditional procurement.

3. Other Transaction Authority (OTA)

Authority to contract outside the Federal Acquisition Regulation. Primarily used by innovation offices (DIU, AFWERX, Navy xInnovation). Faster procurement, lower compliance overhead, but limited to prototype/innovative efforts.

Who it's for: Companies with novel tech for specific use cases.

The benefit: You don't need to be FAR-compliant to win. That's massive.

4. GSA Schedule

Pre-negotiated contract that opens the entire federal government as a buyer. Expensive to get on (~$5K legal + SBA review process). But once you're on, any agency can order without re-competing.

Who it's for: Companies with proven, commercial products ready for scale.

The ROI: The cost to get on pays back in the first few orders, especially for SaaS or managed services.

5. Mentor-Protégé Programs

Established vendors (mentors) partner with new vendors (protégés). The mentor wins the contract; the protégé does the work as a subcontractor. This builds your track record without requiring incumbent history.

Who it's for: Companies with excellent technical capability but no federal contracting history.

The strategy: Find an established vendor willing to mentor you. You execute. You build references. Next contract, you prime.

The Way In

You don't need a decade of federal sales history to access federal money. You need capability, persistence, and a strategy. Pick the program that matches your stage, and execute.

The federal government actively funds new vendors through SBIR, OTA, CSO, GSA, and mentor-protégé programs. There's no shortage of pathways in. The question is which one fits your company.
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