The GovCon Pivot Is Already Happening – Are You Ready?

The federal government is pushing agencies to buy more commercial products, enforce outcome-based contracts, and operate with leaner acquisition teams, reshaping the government contracting environment. Drawing on insights from The Optimize Podcast, this blog explains how GovCon contractors can rethink pricing, improve compliance, manage workforce turnover, and lead through these disruptive changes.
Kees Hendrickx
Published
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4 min read
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Federal agencies are being told to do more with less. From forced commercial buying to shrinking acquisition teams, the rules of engagement for government contractors are changing fast.

In this episode of The Optimize Podcast, Ross Wilkers, senior reporter at Washington Technology, joins Jeff Shapiro. They help GovCon professionals make sense of the disruptive shifts in procurement. From commercial mandates and contract risk to workforce shake-ups and knowledge gaps, it’s a landscape full of pressure points but also possibilities.

Listen to the full episode here 

Commercial First Isn’t a Suggestion Anymore

Let’s not sugarcoat it, this isn’t a polite suggestion from leadership. It’s a directive.

Leadership is telling federal buyers to purchase commercial products whenever possible. And while that might look clean on paper, in practice, it’s messy. Agencies are navigating how to apply commercial buying to massive, deeply entrenched systems. Meanwhile, contractors are scrambling to adjust their offerings simplifying where possible, translating complexity into clarity.

“This time the directive isn’t just, ‘Try to buy commercial.’ It’s: ‘You will buy commercial.’ That’s a big difference in tone and contractors need to be listening.”

The problem? Many firms still pitch like it’s 2017, focusing on features and custom specs that slow procurement instead of speeding it up. It’s not that bespoke solutions are dead but they’ll need a more compelling justification, and fast.

If your team hasn’t reviewed its proposal narratives or pricing strategy in light of this mandate, it’s time. Because contracting officers? They’re under pressure too and they’re looking for the cleanest, fastest path to yes.

Outcomes Over Hours

Outcome-based contracts are rising fast and they’re quietly rewriting the rules of accountability.

At first glance, it seems efficient: agencies pay for results, not who does it or how many hours it takes. On the ground, this shift puts much of the operational and financial risk on contractors.

“We're in a world now where the government says: ‘I want results. I don't care how many people you have on it.’ That’s a shift from how many in the GovCon space are used to operating.”

That means pricing models must evolve. Teams must plan for more than scope creep like delays or staffing issues that agencies used to handle. And contract compliance? It’s tighter. The performance metrics aren’t just being measured, they’re being enforced.

This new dynamic challenges GovCon leaders to rethink everything from staffing strategy and partner agreements to how they define success. If you haven’t run a “what-if” scenario across your most active fixed-price engagements, it’s probably time.

Knowledge Gaps, Not Regulatory Gaps

It’s tempting to point fingers at outdated regulations. But according to Ross, the bottleneck isn’t in the FAR, it’s in how people use it.

“Maybe the fix isn’t changing the FAR. Maybe it’s just training people how to use it better.”

Many acquisition professionals are only confident navigating a small slice of the playbook. That means fast-moving contracts get delayed because the contracting officer isn’t sure how to use the tools available.

And here’s where GovCon businesses can quietly lead.

Smart contractors aren’t just answering RFIs, they’re writing better ones. They’re shaping Q&A periods with substance, anticipating common compliance hurdles, and flagging vague language before it becomes a protest. It’s not about overstepping, it’s about offering clarity and helping your government counterparts do their job more effectively.

Consider your current customer engagement strategy. Are you merely answering questions, or are you helping customers ask better questions? And in this environment, even one misstep can cost you the contract.

Contacts Keep Disappearing

There’s something no one likes to talk about, but everyone’s experiencing: the erosion of relationships inside federal agencies.

Mass retirements, hiring freezes, internal restructures each week brings new names, missing inboxes, and meetings that get pushed indefinitely. And for capture and BD teams, this is more than frustrating. It’s destabilizing.

“People are moving out, people are retiring, and industry doesn’t always know who’s in the chair anymore.”

In the past, it was enough to have “your person.” The program manager who returned calls. The contracting officer who flagged when an RFP was on the horizon. Now, it’s about institutional coverage. Who else on your team has spoken with the agency in the last quarter? Do you know who’s replacing whom and what they care about?

It’s time to stop thinking in terms of relationships and start thinking in terms of continuity. Update your internal contact maps regularly. Develop comms strategies that don’t rely on one voice. And, critically, document what you know. Because what’s institutional to you might be invisible to your new government counterpart.

So Where Does That Leave Us?

Maybe this isn’t a disruption, it’s a reset. The government wants leaner buying. Contractors are expected to deliver cleaner outcomes. And the people in between are working with fewer resources and tighter constraints.

That sounds bleak on paper. But in practice, it presents a strange kind of opportunity.

Contractors who can think like educators who help buyers understand what’s possible and how to get there will thrive. Teams that reduce friction, write clearly, and anticipate risk will outpace competitors still clinging to outdated habits. And the firms that understand contracts are living documents, not static checklists, will move faster and fail less.

The landscape is shifting. But if you’re paying attention, adjusting early, and responding with clarity, there’s room to not just survive but lead.

Hear the full conversation and start planning smarter:

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