The government contracting landscape is shifting faster than ever. Between CMMC Phase 2 enforcement, SEWP VI's mid-year transition, and new AI procurement policies taking effect, VARs and resellers serving government clients face a fundamentally different quoting environment than even 12 months ago.

If you're still quoting government contracts the same way you did in 2024, you're already behind. Here are the five critical capabilities your quoting operation needs to compete and win in 2026.

1. FedRAMP Moderate compliance is now non-negotiable for quoting tools

Any cloud-based quoting platform handling Controlled Unclassified Information (CUI) requires FedRAMP Moderate authorization or documented FedRAMP Moderate equivalency with a third-party assessment.

The stakes got higher in December 2023 when the Department of Defense issued a memo making contractors fully responsible for validating their cloud service provider's compliance status. The memo requires 100% compliance with no open findings for FedRAMP Moderate equivalency claims.

What this means for your quoting process

If you're using spreadsheets in consumer-grade cloud storage or quoting tools without proper authorization, you're creating compliance risk that agencies are increasingly scrutinizing. As federal procurement offices tighten enforcement, contractors using non-compliant tools could face contract challenges or lose opportunities entirely.

How to verify your software's authorization status

Check the FedRAMP Marketplace (marketplace.fedramp.gov) for your quoting platform. If it's not listed, ask your vendor for:

• Their FedRAMP authorization status

• Third-party assessment organization (3PAO) documentation

• System Security Plan (SSP) details

• Continuous monitoring reports

Don't accept vague claims about "government-grade security" or "NIST 800-53 alignment."

FedRAMP authorization is a specific, audited status. It’s not a checkbox.

2. Contract management metrics that separate winners from losers

Win rates across the government contracting industry have dropped significantly. Research shows that 30% is now considered the "new normal" for government contractor win rates, down from 45% historically. Even more concerning, 75% of contractors report win rates of 50% or lower.

The contractors who maintain higher win rates are managing their pipeline with disciplined metrics and structured processes.

Industry benchmarks you should be tracking

Win rate metrics:

• Overall win rate target: 30-35% (industry average)

• Incumbent win rate: 50% average, 70%+ for high performers

• New business win rate: 15-25% (typically lower than incumbents)

Response rate and bid/proposal costs:

• B&P spending: 44% of contractors spend more than 2% of revenue on bids and proposals

• Response volume: High performers can handle 8-10 proposals monthly vs. 2-3 for average contractors

• Time per proposal: 25+ hours for requirement extraction alone without AI assistance

Essential tracking capabilities for 2026

Your quoting system needs to connect to your contract management workflow. At minimum, track:

Pipeline metrics: Probability of win scores for each opportunity, allowing you to focus resources on the highest-value prospects with the best chance of success.

Historical performance: Past quotes with actual win/loss results, margins achieved, and customer feedback. This data informs future pricing strategy and helps identify patterns in successful bids.

Contract vehicle performance: Which GWAC, IDIQ, or GSA Schedule produces your highest win rates and margins? You should be able to answer this instantly.

CPARS monitoring: Your past performance scores directly impact future opportunities. Contractors with "Exceptional" or "Very Good" CPARS ratings see significantly higher win rates than those with "Satisfactory" ratings.

The gap between contractors who can quote reactively versus those who can analyze their quoting performance strategically is widening. The latter group wins more and spends less to do it.

3. SKU management and UNSPSC codes create hidden complexity

If you're a VAR or reseller, you already know that managing thousands of SKUs across multiple distributors is complex. Add government-specific requirements, and that complexity multiplies exponentially.

UNSPSC codes are now essential for SEWP VI

The United Nations Standard Products and Services Code (UNSPSC) provides 8-digit hierarchical classification for products and services. SEWP VI requires UNSPSC codes for all CLIN (Contract Line Item Number) classifications, making this previously optional standard mandatory for one of the largest government contract vehicles.

Version 26.0801 of the UNSPSC covers more than 157,000 distinct items, and agencies use these codes to classify opportunities and analyze spending patterns. If your quoting system can't automatically assign and track UNSPSC codes, you're adding manual work to every SEWP VI quote.

GSA pricing compliance and TDR requirements

GSA Schedule holders face even more stringent requirements. By FY2026, Transactional Data Reporting (TDR) becomes mandatory for all schedule holders. This means monthly reporting of 12-16 data elements for every transaction, including:

• Manufacturer part number

• UNSPSC code

• Unit price and total price

• Customer agency and location

• Discount percentage from list price

TDR compliance requires systems that can track pricing history by SKU, maintain Most Favored Customer (MFC) documentation, and demonstrate compliance with Price Reductions Clause requirements.

The compliance documentation challenge

Beyond classification codes, government IT resellers must maintain compliance documentation for every SKU:

• TAA (Trade Agreements Act) compliance certificates

• NDAA Section 889 compliance for all hardware and telecommunications equipment

• Section 508 accessibility documentation

• Country of origin documentation

When an agency asks for a quote with 50-200 line items, can you instantly provide all required compliance documentation? Or does your team spend days hunting down paperwork?

The best quoting platforms treat compliance documentation as core product data that is automatically attached and updated, not manually searched and assembled.

4. SEWP VI transition reshapes the contract vehicle landscape

NASA SEWP (Solutions for Enterprise-Wide Procurement) represents one of the largest government-wide acquisition contracts for IT products and services. SEWP V generated more than $20 billion in sales and SEWP VI raises the ceiling.

Timeline and what's changing

Awards now expected mid-2026 (delayed from the original October 2024 target). NASA extended SEWP V through April 30, 2026 to ensure continuity, but contractors need to be ready when SEWP VI launches.

Preparing your quoting operation for SEWP VI

Contractors who waited until SEWP V launched to figure out the new requirements missed months of opportunities. Don't make the same mistake with SEWP VI.

Pre-award preparation checklist:

1. ✓ Map your product catalog to the new category structure

2. ✓ Assign UNSPSC codes to all products (required for CLIN classification)

3. ✓ Identify which services you can bundle with products

4. ✓ Obtain ISO 9001:2015 certification if targeting Category A

5. ✓ Build relationships with selected contract holders (once awards are announced)

Other contract vehicles to watch

ITES-4H: The Army's Information Technology Enterprise Solutions contract awarded in September 2025 with a $10 billion ceiling. Ordering began in November 2025 with 49 selected contractors. If you're not a prime holder, identifying teaming opportunities now positions you for subcontract opportunities.

5. Compliant AI transforms quoting productivity (when done right)

Artificial intelligence is delivering measurable productivity gains in government contracting but only for contractors using compliant platforms that handle CUI properly.

The productivity numbers are staggering:

• Requirement extraction: Reduced from 25+ hours to under 5 minutes

• Draft generation: 70% faster than manual creation

• Proposal volume: 2-3 proposals monthly increased to 8-10 without adding staff

• Overall productivity: 30% gains reported without headcount expansion

The compliance framework you need to understand

The April 2025 OMB memoranda (M-25-21 and M-25-22) established strict requirements for federal AI procurement and use:

• December 29, 2025: Agencies must issue detailed AI use and procurement policies

• April 3, 2026: High-impact AI use cases must be compliant or discontinued

• Contractor obligations: Government data cannot be used to train public AI models without explicit consent

For contractors, this means any AI tool processing CUI must be FedRAMP authorized at the appropriate level.

FedRAMP authorized AI platforms for government quoting

Safe vs. risky AI practices for CUI

Safe practices (do this):

• ✅ Use FedRAMP High authorized platforms for any work involving CUI

• ✅ Document all AI usage in proposal development for audit trails

• ✅ Maintain human oversight for all AI-generated content

• ✅ Verify vendor segregates government data from public model training

Risky practices (never do this):

• ❌ Using ChatGPT, Claude, or other consumer AI tools with CUI data

• ❌ Uploading pricing spreadsheets or quotes to non-authorized AI platforms

• ❌ Processing government customer information through consumer AI services

• ❌ Assuming "enterprise" versions of AI tools equal FedRAMP compliance

The contractors who will win in 2026 understand that AI is a competitive advantage but only when implemented with proper compliance controls. Cutting corners with consumer AI tools creates audit risk that could cost you existing contracts, not just future opportunities.

Preparing your quoting operation for 2026

The five capabilities outlined above are the table stakes for competing in the 2026 government contracting market.

Start with a compliance audit: Review your current quoting tools and processes against FedRAMP requirements, CUI handling procedures, and upcoming regulatory deadlines. Document gaps and prioritize fixes based on contract risk exposure.

Implement tracking systems: If you're not currently measuring win rates, pipeline performance, and contract vehicle effectiveness, start now. You can't improve what you don't measure, and the best time to establish baseline metrics was yesterday.

Map to new contract vehicles: SEWP VI awards are coming mid-2026. ITES-4H ordering is already underway. GSA schedules face new scrutiny. Know which vehicles support your business model and prepare accordingly.

Evaluate AI carefully: The productivity gains are real, but compliance risk is equally real. Prioritize FedRAMP authorized platforms over consumer tools, even if they cost more or have fewer features. The cost of non-compliance far exceeds the cost of proper tools.

Build for scale: Win rates are down, meaning you need more pipeline to achieve the same revenue. Your quoting operation needs to handle higher volume without proportional headcount increases. This requires automation, not just harder-working people.

The government contracting market is evolving rapidly. Contractors who adapt their quoting operations to address these five critical areas will win more, spend less effort per quote, and avoid the compliance pitfalls that will eliminate less-prepared competitors.

The question isn't whether these capabilities matter. The question is whether you'll implement them before or after your competitors do.

Frequently Asked Questions

What is CMMC 2.0 compliance and who needs it?

Cybersecurity Maturity Model Certification (CMMC) 2.0 is the Department of Defense framework requiring defense contractors and subcontractors to demonstrate cybersecurity maturity. Phase 2 enforcement begins November 2026, requiring certification for contracts involving CUI. VARs and resellers in the defense supply chain need CMMC Level 2 (NIST SP 800-171 compliance) if handling CUI.

Do resellers need FedRAMP compliance for their quoting tools?

Yes, if your quoting tools process CUI (cost data, pricing, labor rates), they require FedRAMP Moderate authorization or documented equivalency. The December 2023 DoD memo makes contractors responsible for validating their cloud service providers meet this standard.

What are UNSPSC codes and why do they matter for SEWP VI?

United Nations Standard Products and Services Codes are 8-digit hierarchical classifications for products and services. SEWP VI requires UNSPSC codes for all Contract Line Item Numbers (CLINs), making them mandatory for one of the largest government IT contract vehicles.

How can I safely use AI for government contractor quoting?

Use only FedRAMP High authorized AI platforms when processing CUI. Platforms like GovSignals, Microsoft 365 GCC High, and Google Vertex AI provide compliant AI capabilities. Never use consumer AI tools (ChatGPT, Claude, etc.) with government pricing data or customer information.

What's the average win rate for government contractors in 2026?

Industry research shows 30% is now considered the "new normal" for government contractor win rates, with 75% of contractors reporting win rates of 50% or lower. Incumbent contractors average 50% win rates, while new business pursuits typically achieve 15-25%.