STARS III GWAC: The Small Business IT Contract You Need to Know

STARS III (Streamlined Technology Acquisition Resources for Services III) is a $5 billion, small-business-only Government-Wide Acquisition Contract (GWAC) administered by GSA. It is one of the most valuable IT contracting vehicles available exclusively to small businesses in the federal market.

Unlike vehicles where small businesses compete against large defense contractors, STARS III pools only feature small businesses — dramatically improving your probability of winning task orders and giving agencies a dedicated small business IT procurement pathway.

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What STARS III Covers

STARS III covers a comprehensive range of IT products and services through Functional Areas (FAs):

The breadth of STARS III FAs means virtually any IT services small business can find relevant categories. A cybersecurity firm targets FA7; a software developer targets FA5; a data analytics firm targets FA3.

What is NOT covered: Physical IT products (hardware, software licenses) are the domain of SEWP V, not STARS III. STARS III is a services vehicle, not a products vehicle.

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STARS III Eligibility

To hold a STARS III seat:

• You must be a small business under the SBA size standard for your primary NAICS code at the time of application
• You must have an active SAM.gov registration
• You must demonstrate relevant past performance in the Functional Areas you apply for
• You must have a DCAA-compliant accounting system (or a statement of its adequacy for cost-reimbursement task orders)
• No active debarment, suspension, or exclusion

Size recertification: At contract award and at each NAICS-code-specific task order, you must certify your size status. If you grow above the applicable size standard, you can continue holding your STARS III seat (for existing task orders) but may not receive new small business set-aside task orders.

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Applying for STARS III: The Competition

GSA periodically opens STARS III for new holders. The competition is for a seat on the vehicle — not for specific task order work.

What the Application Evaluates

Past Performance (most heavily weighted):

• At least three past performance references in STARS-relevant IT work
• References valued at $25K or more each (single contract, not cumulative)
• Recency: within the last 5 years
• Relevance: technically similar to the Functional Areas you are applying for

Technical Qualification:

• Demonstration of capability in the FAs claimed (corporate experience narrative, certifications)
• Key personnel qualifications — resumes showing technical depth in relevant domains

Small Business Certification Credits:

• Additional evaluation credit for SDVOSB, HUBZone, WOSB/EDWOSB, or 8(a) certifications

Functional Area Selection: Apply for every FA where you have genuine experience. More FAs = more potential task order opportunities. But do not apply for FAs you cannot support — weak past performance in an FA hurts your overall score.

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Winning Task Orders on STARS III

Once you have a STARS III seat, task orders are competed among STARS III holders within the relevant Functional Areas.

How Task Orders Work

1. An agency's contracting officer identifies STARS III as the vehicle
2. They issue a Task Order Request (TOR) to STARS III holders with the relevant FA(s)
3. STARS III holders submit task order proposals (typically technical + price + past performance)
4. Agency evaluates and awards to the best-value offeror

Fair opportunity: Unlike some GWAC vehicles where agencies can "limit the field" to a subset of holders, FAR 16.505 generally requires all IDIQ contract holders to be given a fair opportunity to compete for task orders above $10M. For smaller task orders, the agency has more flexibility.

Task Order Proposal Keys

Technical specificity: Generic IT consulting language does not win STARS III task orders. Your technical proposal must demonstrate understanding of the agency's specific systems, mission, and technical environment.

Staff qualifications: Most task orders specify required labor categories with minimum qualifications. Your proposed staff must verifiably exceed (or at minimum meet) these qualifications.

Price competitiveness: STARS III task orders are often best-value, but price still matters. Understand the agency's IGCE (if available) and price within 10–15% of it.

Past performance: For task orders, your most relevant past performance wins evaluator confidence. Select references specifically relevant to this task order's scope — not your largest contracts.

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STARS III Set-Aside Pools Within the Vehicle

STARS III has Functional Area-based competition pools. Within each competition, agencies can further restrict to:

• All small business STARS III holders in the FA
• SDVOSB STARS III holders only
• HUBZone STARS III holders only
• WOSB STARS III holders only
• 8(a) STARS III holders only

If you hold an SBA-specific certification, you can be included in the restricted pools — giving you access to task order competitions with even fewer competitors.

Example: A WOSB holding a STARS III FA5 (Software Development) seat can compete in:

• All small business FA5 competitions (hundreds of competitors)
• WOSB-restricted FA5 competitions (dozens of competitors)

Holding a WOSB, SDVOSB, or 8(a) certification with your STARS III seat is extremely valuable.

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STARS III vs. Other IT Vehicles

If you are a small IT services firm, STARS III is your highest-value target GWAC. If you also sell products, add SEWP V for comprehensive market coverage.

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How to Find STARS III Task Orders

Task orders under STARS III do not always appear on SAM.gov as separate solicitations. Some are issued directly to STARS III holders through the GSA eBuy system. Sign up for eBuy notifications in your STARS III Functional Areas to receive TOR notifications automatically.

Also monitor:

• Agency-specific procurement portals (some DoD agencies use their own systems)
• USAID, HHS, DHS direct outreach to STARS III holders in specific FAs

RFxNerd tracks STARS III task order opportunities and alerts you to relevant competitions in your Functional Areas.

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Key Takeaways

• STARS III is a small-business-only $5B IT GWAC — fewer competitors and structural agency demand for small business IT task orders.
• Nine Functional Areas cover all IT services domains — apply for every FA where you have genuine past performance.
• Past performance is the dominant selection factor for STARS III seat competition — three strong, relevant references are more important than anything else.
• SBA certifications earn evaluation credits in the seat competition and open you to restricted task order pools with fewer competitors.
• Task order competition requires fast, specific proposals — generic IT language doesn't win; mission-specific technical approaches do.
• Combine with SEWP V if you also sell products — STARS III covers services, SEWP V covers products.

Discover STARS III task order opportunities with RFxNerd →