Resellers and Value-Added Resellers (VARs) remain a critical—but increasingly scrutinized—part of federal IT acquisition. Traditionally, these intermediaries have provided more than hardware and software distribution, adding integration, configuration, compliance, and lifecycle support. Yet policymakers continue to question whether reseller markups reflect genuine value or simply increase costs through pass-through pricing.

      At the same time, the federal technology marketplace is changing. Agencies are moving away from hardware purchases and perpetual licenses toward cloud services, subscription software, and continuously delivered digital capabilities. As procurement evolves, so does a fundamental question:

      What does “value added” mean when government buys capability instead of products?