Omani exporters looking to enter the US government contracting market are advised to target existing federal suppliers rather than bidding directly on government tenders, according to officials from the Oman Trade Office US (OTO US). The guidance was provided during a recent presentation at the Oman Chamber of Commerce and Industry in Muscat.

Nasim Sadr-Fala, director of strategy and operations at OTO US, explained that while the US federal government obligated $755 billion in contracts in fiscal year 2024, only $259 billion of that was spent on products. Much of the procurement occurs through the General Services Administration (GSA) Schedule program, which enables government agencies to purchase from pre-approved vendors instead of issuing new tenders for each requirement.

“These purchases include a broad range of items beyond aerospace parts, such as office furniture, metals, and research and development services,” Sadr-Fala noted. According to her, federal agencies often rely on prime contractors who hold existing contracts, and these contractors manage their own supply chains to fulfill government orders. As a result, agencies may not issue new tenders when additional products are needed, favoring continued orders through their current contractors.

For exporters, this means building relationships with prime contractors and existing GSA Schedule vendors is a critical entry point. In cases where suppliers fail to deliver on time, prime contractors must quickly find alternatives to avoid penalties, making delivery speed a key factor. Sadr-Fala emphasized that exporters maintaining inventory within the United States gain a significant advantage, as faster delivery is highly valued and can command premium pricing.

OTO US identifies four main avenues for entering the US government market: competing as a prime contractor, subcontracting under established contractors, selling through government-focused distributors, and supplying current contract holders such as GSA vendors. Of these, indirect routes such as subcontracting or working with distributors are especially suitable for smaller businesses, which may find the regulatory, compliance, and labeling requirements of direct contracts particularly challenging.

The existing US-Oman Free Trade Agreement (FTA), effective since 2009, provides Omani exporters with a recognized status, granting them parity with US entities in federal procurement. However, Sadr-Fala cautioned that eligibility for contracts is still subject to specific solicitation terms, product origin rules, set-asides for US small businesses, and other requirements. While some contracts are reserved for particular groups, these restrictions can be waived if the government cannot find the required products, potentially opening doors for Omani companies.

OTO US shared a case of an Omani manufacturer registered in the federal supplier database (SAM.gov) that initially found no open contracts for its product. The office discovered that the product was often procured via the GSA Schedule system rather than direct agency contracts and assisted the company with relevant industry codes and market entry advice.

Exporters interested in the US federal market are encouraged to first identify GSA contract holders in their sector and introduce their product catalogues, thereby positioning themselves as potential suppliers within existing procurement networks.