In the realm of government services, there’s a seismic shift taking place—one where private equity firms are increasingly becoming the go-to players in mergers and acquisitions. Reminiscent of a boa constrictor swallowing an elephant, IBM Consulting’s acquisition of Octo Consulting for $1.25 billion was a high-profile example of this trend.

The realm of federal contracting has long been a labyrinth of legal, regulatory, and financial complexities. While the focus is often on efficiency and effectiveness, a critical component that sometimes takes a back seat is equity. This article aims to highlight the importance of equitable practices in federal contracting and how the Federal Reserve’s role in capital lending can indirectly impact this essential objective.