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Time is running out: How Contracting Officers Can Use Expiring Cybersecurity Dollars to Modernize Fast

Author: Dr. Daniel Sowders

July 14, 2025

As the end of the fiscal year approaches, contracting officers across the federal government are facing intense pressure:

  • Budgets are still tied up in DOGE uncertainty
  • Cybersecurity dollars are about to be use or lose
  • The mission can’t afford delays—and neither can your agency’s IT infrastructure

The reality is clear: legacy systems and manual cybersecurity processes slow down operations, increase risk, and strain already limited resources. But moving quickly doesn’t mean cutting corners. With the right acquisition path, you can modernize at speed, stay compliant, and put unused funds to work before they’re lost.

Fast Path to Cyber Modernization: Small Business Innovation Research (SBIR) Phase III

This is where Alpha Omega comes in. We’ve designed a Fast Path to modernization that allows agencies to bypass traditional procurement delays through our SBIR Phase III contract. This contract vehicle delivers:

  • FAR Compliant (15 U.S.C. § 638(r)(4)) (6.302-5(b)(7)
  • No competition
  • No risk for protest
  • Expedited, simple, and flexible acquisition

With Technology Readiness Level (TRL) 6+ solutions already deployed across multiple federal agencies, our AI-driven cybersecurity and compliance platform is ready to meet your immediate needs.


Real Results from Federal Cyber Modernization

Our proven solutions help agencies:

  • Automate up to 70% of cyber compliance and ATO processes
  • Boost ISSO productivity by 43%
  • Accelerate ATO timelines by 62%

These are more than just statistics – they’re real outcomes:

  • U.S. Navy: Saved $250K per audit cycle
  • State Department: Delivered 18 ATOs in 18 months
  • U.S. Coast Guard: Achieved ATO on 45 systems
  • U.S. Air Force: Modernized 45,000 lines of code in 3 months

What Is SBIR Phase III and Why Should Contracting Officers Care?

SBIR Phase III program offers contracting officers a powerful, FAR compliant, underutilized path to fast-track innovation and mission success.

Here’s how it works—and why it matters to you:

What is it?
SBIR is a government-funded program that helps small businesses develop innovative technologies to meet federal needs. Phase III is the commercialization phase—where agencies can sole-source follow-on work directly to a small business whose solution has been proven in Phase I or II.

Why is it valuable?

  • No Competition: SBIR Phase III is legally exempt from competition requirements (FAR Part 6).
  • Protest-Resistant: Contracts awarded under SBIR Phase III are largely insulated from bid protests, significantly reducing acquisition delays.
  • Flexible & Scalable: There’s no ceiling—you can scale projects or add new scope without re-competing.
  • Cross-Agency Eligible: Even if your agency didn’t fund the original SBIR, you can still use the Phase III pathway.

Why is this perfect for year-end spend?

  • It allows for rapid awards, meaning you can obligate expiring funds without the lengthy lead time of a new competitive procurement.
  • You can address urgent cybersecurity, compliance, or modernization needs immediately—not next fiscal year.

We Help You Move Fast—Without the Hassle

We don’t just provide the technology—we help you navigate the acquisition process to get your project off the ground quickly. Whether you need to automate compliance, accelerate ATOs, or modernize mission-critical systems, Alpha Omega’s Fast Path with SBIR Phase III gives you the speed, security, and flexibility to act before fiscal deadlines hit.

Reach out to me directly at daniel.sowders@alphaomega.com to explore how we could align our capabilities with your current needs or pilot programs.

Dr. Daniel Sowders is a VP of Capture within Alpha Omega’s Technology Solutions Group. He is a federal growth strategist focused on accelerated acquisition and mission impact.