The Chertoff Group recently hosted an exclusive discussion about the strategic shift in Federal acquisition and a wave of changes including GSA’s expanding authority, an updated Federal Acquisition Regulation (FAR), the push to consolidate contract vehicles and IT acquisition transformation. These changes present both challenges and opportunities for contracting officers and industry stakeholders.
Our panel participants included former GSA Administrator Emily Murphy; former GSA/FAS Assistant Commissioner Erv Kohler; and former GSA FEDSIM Director Chris Hamm; Chertoff Group Principal and Head of Federal Strategy Aaron Roth moderated the conversation.
These dynamics create both complexity and opportunity for companies delivering on the public sector mission, as traditional approaches to Federal contracting face pressure from competing priorities and policy. We are sharing takeaways from the discussion.
Acquisition Reform and FAR Modernization
The panel examined the ongoing modernization of the FAR, consolidation of contracting vehicles and, and the cyclical nature of reform. In the positive, contracting officers are empowered and have more discretion and there are more and faster ways to buy. Alternatively, a quarter of the workforce is gone the contracting officer is less willing to take on risk. There’s tension balancing agency-specific rules while keeping pace with broader reforms, especially with fewer people inside the government to do the work.
With alternative solicitation methods entering the mix, there’s extra pressure to get alignment across teams. The push for OneGov contracts and schedule consolidation is meant to streamline the purchasing process, but friction could occur if Federal agencies don’t adopt changes at the same pace. Challenges include compliance and keeping teams equipped and agile in a constantly shifting environment.
Commercial Agility and Integrator Dependency
Our experts discussed Federal acquisition’s increasing reliance on systems integrators, and the implications for government and industry roles in procurement. With a hiring freeze and fewer people handling procurement inside the government, agencies must rely more on integrators. But when government’s core capabilities get outsourced, agencies risk vendor lock. That’s a strategic concern especially with a rapidly evolving technology landscape, making it tougher to pivot.
So do procurement leaders increase the use of commercial contracts or rely on integrators? The answer is both. There are not enough contracting officers to assign to every OEM. Commercial companies bidding on government work must establish relationships with everyone, integrators and people in-house to shape solicitations. And commercial company large enough to position as a OneGov contractor, should do it.
The bigger picture is how agencies keep their options open especially when technology evolution is moving fast and requirements keep shifting. Agencies must balance short-term needs with strategic flexibility, being mindful of cost control. If teams get boxed in by legacy tech, it can slow down innovation and drive increased costs.
Non-Traditional Contracting Mechanisms and Market Access
The panel addressed strategies for technology companies to win business through non-traditional contracting mechanisms and covered the limitations and opportunities these approaches present. The normal means for interacting with the government have curtailed in recent months so interaction is a challenge. In this environment contractors must win the PR campaign through awareness and branding – videos and demos were mentioned as ways to that. The government is looking for new and different solutions so that is positive for smaller companies.
When it comes to alternative contracting mechanisms—CSOs, OTAs, SIBRs, the focus is on increasing competition and creating new pathways for technology companies to get a foot in the door. However, experts warned that these vehicles account for a tiny slice of Federal spending. Small and mid-size players must weigh traditional channels against newer options and determine which route builds real credibility with agencies. To position strategically, consider both alternative and traditional contract vehicles and make sure there is a clear business case to win business.
AI Transformation is not a Silver Bullet
Panelists discussed the potential for AI to make life easier for everyone in the Federal government and its current limitations, focusing on process improvements, data management and the need for appropriate controls and training. AI is being positioned as an efficient way to cut procurement timelines by executing market research, conducting technical evaluations and even writing solicitations. However, AI roll out will take time, training and oversight. From a strategic perspective, agencies must balance a push for adoption while maintaining data integrity. Otherwise, models might drift off course or miss regulatory and compliance red flags. That is where human judgment comes in. Panelists stressed that a human must be involved to validate the information AI delivers.
Which reforms might stick in the long run?
Finally, the panel covered the potential for long-lasting change. There’s momentum behind reducing contract clauses and raising commercial award thresholds meant to speed up procurement cycles and trim red tape. Changes to the FAR will stick, as will the adoption of AI and technology.
Even with improved processes, there’s skepticism about how much will truly change. Oversight from Congress and other watchdogs can pull things back to the old regulatory norms, especially when a mistake occurs.
The panel didn’t have a clear answer on how required use contracts and best-in-class criteria will mesh in future procurement. That uncertainty signals a need for more alignment across agencies and could slow down market entry for newer vendors.
Tracking how resource gaps and authority shifts reshape competition and vendor engagement will be important. If policy shifts hold, agencies could see faster cycles and more flexibility. But that hinges on collaboration among government, industry and policy decision-makers.
The Federal Strategy team at The Chertoff Group helps companies accelerate growth and expand Federal business.
