The federal procurement landscape has undergone a seismic shift with the signing of the Executive Order on Promoting Efficiency, Accountability, and Performance in Federal Contracting on April 30, 2026. For government contractors, this is far more than a technical update; it is a fundamental transformation of the business development and marketing playbook.
At Artform Agency, we are helping our clients navigate this new “Fixed-Price First” reality. Here is what you need to know to stay ahead of the curve.
The New Reality: Fixed-Price is the Default
The administration has officially designated fixed-price contracts as the “default and preferred method of procurement”. This move aims to eliminate the “cost-reimbursement” model that the government claims has tolerated unpredictable costs and provided weak performance incentives. In FY 2024 alone, the government spent approximately $120 billion on cost-reimbursement consulting contracts, a figure the new order seeks to drastically reduce by adopting private-sector best practices that dictate fixed costs for well-defined outcomes.
The $10 Million “Wall”
The order introduces significant friction for agencies trying to avoid fixed-price models. For most agencies, any non-fixed-price contract exceeding $10million now requires written approval from the agency head. Higher thresholds apply to the Department of War (100M), NASA (35M), andDHS(25M).
This means your Contracting Officers (COs) are now under immense pressure to avoid the paperwork and senior-level scrutiny associated with cost-plus or T&M contracts. To win, you must make “fixed-price” the easiest and safest choice for them.
From “What You Do” to “What You Deliver”
To thrive in this environment, your internal strategy must pivot across four key areas:
- Marketing: You must stop selling “level of effort” or “highly qualified personnel.” Your value proposition should now focus on demonstrable returns on investment and clearly defined outcomes delivered on predictable timelines.
- Business Development: Agencies are terrified of fixed-price projects that fail. Your BD efforts should focus on “risk-lowering” proof points—showing that your firm has the maturity to meet deliverables without cost overruns.
- Proposals: Expect a rise in performance-based metrics that tie your profit directly to results. You must master risk language that proves you are incentivized to meet deliverables expeditiously to maximize your own margins.
- Positioning: Position your firm as a partner in budget discipline. By offering fixed-price solutions, you are helping your agency customers comply with the new mandate and avoid the need for high-level justifications.
The Clock is Ticking
This is not a “wait and see” situation. Within 120 days of the order, the government will propose amendments to the Federal Acquisition Regulation (FAR) and launch new training programs for the acquisition workforce. Furthermore, agency heads are already tasked with reviewing and potentially renegotiating their 10 largest non-fixed-price contracts to move them toward fixed-price models.
Is your firm ready for a renegotiation?
At Artform Agency, we specialize in helping GovCons transition their messaging from “activities” to “outcomes.” If you’re still selling hours, you’re already behind. Let’s talk about how to reposition your firm for the Fixed-Price Era.