Over the past year, we’ve shared industry insights, career spotlights, webinar takeaways, and podcast perspectives that highlight how government contracting is evolving right now.
Looking across everything we published this year, clear themes emerge, trends that are actively reshaping how contractors win, perform, and grow. After a long year of AI hype, consolidation moves, and “twice the work, half the people”, many GovCon and proposal teams feel tired, a little wary, and also sharper than they were in January.
On top of that, you had a major FAR rewrite, OneGov software pricing, and new pressure on GSA to centralize common buying. For a lot of people, that turned “acquisition reform” from a talking point into something you could feel in your daily workload.
Across 2025, our blog articles, leadership career series and Optimize Podcast episodes captured those shifts from several angles. Former SES leaders, lawyers, journalists, and small-business founders talked through what all of this change feels like from their seat.
Below are the key themes that consistently rose to the top, paired with the standout quotes that captured them best.
Trend 1: AI Adoption Is No Longer Optional, But Human Judgment Still Wins
AI is no longer theoretical in GovCon, it’s operational. Without a robust framework to ground AI outputs in verified data and subject them to careful human review, contractors’ risk serious errors and compliance issues.
Executive orders, OMB guidance, and internal memos laid out expectations for responsible use and higher standards for data control. It is now normal to see AI language in RFPs, SOWs, and evaluation factors.
That is why Patricia Fieldson’s message from the VisibleThread Forum in October 2025 landed so strongly.
A real plan goes beyond a slide that says “we use AI”. It maps where AI fits into capture, proposals, protests, and contracts. It spells out what data AI can touch, what it must not touch, and how humans review outputs before they reach a contracting officer, evaluator, or judge.
In her piece on the AI accountability gap, Laura Mathews describes the target state.
In other words, AI is an amplifier, not a decider.
GovCon leaders are learning to balance reliability and risk. AI can accelerate work, but misuse can be catastrophic, especially in legal, compliance, and contract writing. For example, Deloitte in Australia produced a government report using generative AI that included fabricated references and quotes, leading to reputational damage and a partial refund.
Former GSA leader Erv Koehler makes a similar point in this VisibleThread article. He notes that AI can help summarize, fill checklists, and draft content, yet a hallucination in a legal or compliance context still lands you in serious trouble. The tool can do the first pass, but people remain responsible for what leaves the building.
Bid and proposal leader Tan Wilson says much the same in her career interview. She argues that we should welcome better tools, while refusing to let them think for us. In her view, a leader’s job is to keep judgment with humans, even when timelines feel brutal.c
The Optimize Podcast episode with government contracts lawyer Rob Burton shows what happens when those lines blur. He and host Chris Hamm talk about a new pattern in bid protests, where some small businesses lean on AI to draft filings, then send them in with no basic checks. They describe citations that were clearly invented by a model, not pulled from the public record. As Rob puts it:
GAO has already warned that sanctions are on the table for unprofessional filings. That is a loud message to anyone tempted to treat AI as a protest writer or compliance brain.
The message is clear: AI maturity is becoming a key discriminator in proposals and performance, but only with solid human oversight.
Trend 2: Twice The Work, Half The People: Impact Beats Busyness
Federal buyers have changed what they value. The old model, more people equal more capability, is fading fast. Agencies are under real pressure to deliver more missions with smaller teams. Contractors feel that squeeze from both ends. In this VisibleThread article on the GovCon pivot, journalist Ross Wilkers puts the new expectation bluntly.
On the Optimize Podcast, Ross talks about what that looks like in practice. He and host Jeff Shapiro describe agencies reducing headcount and rethinking what an “essential” government workforce should be. Fewer people, more reliance on technology, and more pressure on contractors to plug skill gaps. This shift rewards companies that prioritize impact, efficiency, and adaptability – not just capacity.
On the contractor side, proposal teams face similar stress patterns:
- More complex compliance.
- More moving vehicles.
- Often, fewer people.
That is where Ceri Mescall’s leadership message in her Bid & Proposal Leadership Career Series blog hits home.
GovCon firms that ground their data in accuracy and equip teams with the right tools can harness technology effectively. Defense and cyber-heavy areas may continue to grow. Many civilian segments may not. Chasing everything and wearing your exhaustion as proof of commitment will not age well.
Trend 3: Contracts, Clauses, and Tools That Carry Their Weight
The complexity of federal contracts continues to grow, and tools that were once “nice to have” are now essential. Unlike pure-play generative AI solutions, VisibleThread combines generative AI with deterministic, rules-based software. This foundation delivers accurate, repeatable, and verifiable results every time, even when AI is involved.
At Parker Hannifin Aerospace, for example, contract administrator Jennifer Alvarado describes many different, creative ways the team now uses VisibleThread during review. They run automated comparisons, flag clause changes, and scan for risky language before a human makes a final call.
The value is not only speed. It is fewer missed risks when people are tired, and clearer insight into which issues deserve negotiation effort.
In his Optimize Podcast episode on consolidation and GSA reform, Chris Hamm explains how difficult it is to merge contracts from agencies like OPM into GSA systems. He talks through the logistics of moving awards from one system to another, then figuring out what needs to be extended or modified under new rules. It is a reminder that small errors in old terms can become big problems in a new structure.
On top of that, Laura Mathews’ human-in-the-loop principle applies on the contract side too. AI can help scan and summarise, but it cannot carry the responsibility for interpreting risk or making trade-offs. That still sits with contract professionals.
This reflects a broader maturity in the GovCon tech stack: specialized tools are no longer optional, they accelerate reviews, improve accuracy, and reduce the cost of quality.
Trend 4: Messaging Must Be Audience-First, Not Company-First
As AI use grows, so does word count.
Many evaluators already complain about longer, more repetitive proposals that still skate past the heart of the requirement. That is not just an AI issue. It is a communication issue. Cornelis Klett, in his Bid & Proposal Leadership Career Series profile, gives a useful test.
That line should sit at the center of every section lead meeting in 2026.
Before you sign off on a win theme, ask which evaluator persona it speaks to. Before you accept an AI-generated paragraph, ask which mission outcome or risk it addresses.
Rachel Charlton’s storytelling work shows how this plays out in technical sectors. She helps teams translate dense engineering or infrastructure detail into plain stories about impact, safety, and mission success. The same skill is needed in federal healthcare, cyber, logistics, and beyond.
Think about your evaluator mix:
- A contracting officer wants confidence on risk, compliance, and performance.
- A mission sponsor worries about outcomes on the ground and change fatigue.
- A technical evaluator needs proof that you understand the current stack, constraints, and interfaces.
If your response speaks mainly about your tools, your history, and your favorite features, you leave that group doing extra translation work. That is not what you want at 10 pm on award-memo night.
In 2026, the proposals that stand out will feel shorter, clearer, and more grounded, even if AI helped with first drafts. They will read like they were written by people who understand what keeps each evaluator awake.
Whether it is exploring new contract vehicles, balancing customer portfolios, or adopting new capabilities, strategic diversification and a learning mindset help contractors weather uncertainty and build long-term stability.
Closing Thought: GovCon Success Today Requires Bold Adaptation
2025 raised the stakes with tighter budgets in some pockets, a cautious economic backdrop, larger expectations on AI, and a workforce that feels stretched on both sides of the table.
Yet the themes from our blogs, leadership series, and the Optimize Podcast share a hopeful core.
- Use the tools but keep humans in charge.
- Value impact, not just effort.
- Turn losses into insight.
- Diversify before you are forced to.
- Speak clearly to the people reading your work.
Government contractors must define the problem before chasing solutions.
Whether it is speed, quality, or efficiency, success comes from setting clear goals and using tools intentionally, not chasing buzzwords. The companies that win will work smarter, with purpose, and still have energy left when the next big RFP drops.
