As the new fiscal year begins, small and mid-sized government contractors (SMB GovCons) often face a familiar mix of optimism and anxiety, particularly this year in the wake of an ongoing government shutdown. There’s the excitement of new opportunities ahead, but also the pressure of unpredictable budgets, compliance demands, and the challenge of managing growth without overextending.

That tension was front and center during Unanet’s recent LinkedIn Live event, “New Year, New Contracts: SMB GovCon Lunch Live.” The conversation explored how small government contractors can lay the groundwork for a more resilient, data-driven, and compliant future…one built on preparation rather than reaction. 

The pain of outdated infrastructure 

Many small GovCons reach a critical crossroads when growth outpaces their systems. Still reliant on QuickBooks, spreadsheets, or disconnected point solutions, they find themselves juggling compliance, billing, and project tracking in ways that waste time and obscure the bigger picture. 

As one analogy from the session noted, many small contractors are “building a house on sand.” Without a firm operational foundation, even small cracks (like manual reporting or missing timekeeping data) can destabilize the whole structure. 

Establishing a strong infrastructure early is like pouring concrete before construction begins. It creates stability and scalability, freeing up leaders to focus on growth rather than constantly firefighting administrative issues. 

Compliance without chaos 

GovCon compliance has become more demanding with new mandates from DCAA, DCMA, and CMMC. Yet while some businesses rely on patchwork systems and manual checks to “pass” audits, that approach often drains resources and introduces risk. 

Automating key processes, tracking indirect rates accurately, and ensuring audit readiness at any moment helps small businesses operate with the confidence of much larger organizations. 

Visibility that powers growth 

Another recurring theme was visibility. Without centralized, real-time data, many GovCons make decisions reactively. They’re chasing opportunities without clear insight into profitability, cash flow, or resource utilization. 

Companies that integrate financial, project, and operational data in one platform gain a major advantage. They can run “Friday health checks” to see how the business is performing today rather than weeks after closing the books. That kind of agility is essential for forecasting, protecting margins, and responding to changing market conditions. 

The cost of “kicking the can” 

During the discussion, a small business story illustrated the hidden cost of waiting to modernize. A company that delayed upgrading its systems realized years later how much manual work and lost opportunity had piled up. 

When they finally acted, they discovered that every month spent “kicking the can down the road” wasn’t neutral…it was expensive. Manual processes, data errors, and inefficiencies don’t just consume time; they erode margins and weaken competitiveness. 

For GovCons, the best time to strengthen systems and processes isn’t when problems surface, it’s when things are stable.  

Building resilience through partnership 

Finally, the conversation underscored the value of partnership. GovCons should look for vendors who act as true collaborators: organizations that understand federal contracting’s complexity and are invested in long-term success, not just transactions. 

Strong partners provide more than software. They offer community, education, and resources like user groups and weekly knowledge sessions that help companies share insights and best practices. 

Moving forward with confidence 

The new year brings change, uncertainty, and, for many small GovCons, new contracts on the horizon. But success in this landscape doesn’t come from scrambling to react—it comes from proactively building the right foundation: compliant, connected, and data-driven. 

The key takeaway from “New Year, New Contracts: SMB GovCon Lunch Live” is that now is the time to act. Solidify your infrastructure, automate compliance, and embrace real-time visibility. That’s how small businesses can move from simply surviving federal contracting cycles to thriving through them.