Federal contractors frequently face budget uncertainties as Congress relies on short-term funding measures, making it difficult to gauge which opportunities will drive growth.
But ITC Federal Chief Growth Officer Zhenia Klevitsky said there are key ways decision-makers can better assess opportunity risk and likelihood to win, even in a political climate where funding and agency priorities shift quickly. Pipeline diversification across agencies and funding types builds stability, she said, while assessing the funding risk behind pursuits helps teams make smarter commitments.
Klevitsky sat down with WashingtonExec to share her advice built on more than 20 years of experience building and executing business growth strategies for federal professional services. In her current role, she supports ITC’s efforts to help federal agencies connect advancements in automation, AI, IT infrastructure and financial services to mission challenges.
Facing Resilience Challenges
According to Klevitsky, resilience today looks different than it did even a few years ago.
“The biggest shift is the speed and unpredictability of disruption: shutdowns, continuing resolutions and shifting agency priorities can all hit within the same budget cycle, giving contractors far less runway to react,” she said.
In the past, when funding gaps happened, they were more predictable and short-lived. Now, they are more frequent, less predictable and impact a wider range of contract types.
“Contractors can no longer treat resilience planning as a once-a-year exercise tied to the appropriations calendar,” she said.
Navigating Funding Vulnerabilities
Despite uncertainty, Klevitsky said there are a few strategies that help contractors become more resilient to changes in federal funding and agency priorities.
Pipeline diversification is one important strategy and should include diversification across agencies and funding types. During the shutdown, pursuits tied to multi-year or working capital funds kept moving when annually appropriated work stalled, she said.
“Clear and consistent communication with the capture and business development teams is also essential,” she said. “Knowing what pursuits are delayed and which ones are no longer viable supports better business decisions and morale.”
Over-reliance on a single vehicle or contract type is another common vulnerability; heavy dependence on one IDIQ or GWAC means a re-compete loss or vehicle expiration hits disproportionately hard. Companies that don’t track funded versus unfunded backlog closely can also get caught off guard when priorities shift. When a workforce is tied too tightly to specific programs, it’s harder to redeploy staff when a program stalls, driving costly ramp-down and ramp-up cycles, she said.
But there are contract vehicles that are less susceptible to appropriation lapses.
“Multi-year and no-year appropriations are worth prioritizing, since those funds don’t expire at the end of a fiscal year and continue to be obligated even during a lapse in new appropriations,” she said. “Working capital funds, like the Defense Working Capital Fund, operate more like revolving funds and are less tied to the annual appropriations cycle.”
Additionally, mandatory spending programs are another option worth exploring, since that funding isn’t subject to the same annual appropriations fight as discretionary programs, she added.
Weighing Commitment Decisions
Klevitsky recommends contractors look closely at the funding type and appropriation status before committing to opportunities.
“It’s also worth digging into the program’s funding history: has it been funded consistently across past budget cycles, or has it seen cuts, continuing resolutions, or near misses?” she said. “Where the program sits in the agency’s budget priorities matters too; a requirement tied to a named priority in the President’s Budget or a congressional mark is more durable than one that’s more discretionary and easier to reprioritize.”
Timing relative to the fiscal year matters too, since an award or option exercise landing right at a funding cliff carries more near-term risk, she said. Incumbency, sponsor strength, and how the period of performance is structured are all factors that can have an effect.
“An options-heavy contract carries more risk than a fully funded base period, as each option represents a fresh funding decision,” she said.
Converting Late-Stage Losses Into Wins
Klevitsky has a specific lens through which to view late-stage losses. She said they often have a specific, fixable reason that contractors can learn from.
“Debriefs are data,” she said. “For example, if you’re strong technically, but losing on price, the data is telling you to revisit pricing strategy rather than your technical approach. If you’re losing on past performance references, you need to revisit the story you’re telling to ensure evaluators can see themselves in your examples.”
Late-stage losses can call for a reevaluation of oral presentation team and contractor teaming choices, she said. And, she added, it’s worth putting forth a more compelling case up front so your proposal stands out in final rounds.
Positioning for Success
Pipeline diversification, inclusion of vehicles that are less impacted by congressional funding and effective communication with customers and capture teams are core to thriving amid uncertainty, Klevitsky said. But beyond that, contractors should build stronger financial flexibility, through cash reserves or credit access, so a funding gap doesn’t force layoffs or stalled work.
“Continuously modernizing proposal and pricing playbooks, rather than waiting for a bad year to prompt change and strengthening past performance across a broader customer base also position companies to move quickly when one lane slows down,” she said.
Finally, Klevitsky encourages running through what-if scenarios ahead of time so leaders don’t have to improvise when a shutdown or continuing resolution actually hits.