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Fairfax, VA, July 8, 2026 — The Greg and Camille Baroni Center for Government Contracting at the Costello College of Business, George Mason University, today announced the publication of a new white paper examining “The Evolving Role of VARs and Resellers in the Federal IT Enterprise: New Challenges in an Emerging Technology Landscape.”
Richard A. Beutel, senior fellow of the center, examines the growing shift from traditional hardware procurement and perpetual software licensing toward cloud computing, subscription-based services, DevSecOps delivery models, and integrated digital capabilities. As federal agencies increasingly acquire technology as an ongoing service rather than as stand-alone products, the study asks a fundamental question: What constitutes “value added” in today’s federal technology marketplace?
At the same time, the roll out of MOSA, the Software Acquisition Pathway and the broader impact of EO 14265 is creating new demand for integration expertise, cybersecurity management, and lifecycle operational support.
“These developments suggest that the reseller ecosystem is not disappearing but evolving,” writes Beutel.
According to the research, the reseller ecosystem is experiencing a significant bifurcation:
- Transactional resellers, whose primary function is product distribution and license brokerage, are facing increased scrutiny, margin compression, and competitive pressure.
- Advanced VARs and technical integrators that provide engineering expertise, secure integration, modular architectures, cloud enablement, compliance management, and continuous operational support are becoming increasingly embedded in federal acquisition strategies.
“The future belongs to organizations that can deliver mission outcomes, not simply product transactions,” Beutel noted. “As agencies seek more agile and secure digital capabilities, the demand for trusted integrators and lifecycle support providers will continue to grow.”
Beutel recommends that a risk-based “Value Verification Framework” grounded in transparent cost attribution, measurable performance outcomes, and enhanced contracting officer analytical tools would allow policymakers to leverage the efficiency benefits of reseller channels while mitigating the fiscal risks associated with excessive pass-through pricing. Such an approach recognizes a fundamental reality of modern technology markets: the value of intermediaries lies not in the simple movement of products, but in the expertise required to assemble, integrate, and sustain increasingly complex digital solutions.
“Federal procurement policy should therefore focus less on eliminating intermediaries and more on catalyzing added value from Resellers and ensuring that intermediary compensation reflects demonstrable value creation.”
About the Baroni Center for Government Contracting
The Greg and Camille Baroni Center for Government Contracting at George Mason University’s Costello College of Business advances research, thought leadership, and practical solutions in public procurement and government-industry partnerships.
Website: https://business.gmu.edu/centers/center-government-contracting
Media Contact:
Rich Beutel
rbeutel@gmu.edu