Federal contracting has always had a tension built into it.
On one side, agencies need flexibility. Not every requirement is clean, simple, or easy to price. Some projects evolve. Some involve uncertainty. Some require technical discovery before anyone can confidently define the final outcome.
On the other side, the government wants predictability. It wants to know what it is buying, what it will cost, when it will be delivered, and whether the contractor performed.
The order pushes federal agencies toward a much stronger preference for fixed-price contracting and performance-based outcomes. In plain English: the administration wants fewer contracts where the government absorbs open-ended cost risk, and more contracts where deliverables, pricing, timelines, and contractor accountability are clear up front.
For small business contractors, this is not just another policy memo to ignore. It could affect how opportunities are written, how proposals are evaluated, how contracts are managed, and how much risk a contractor takes on when they say, “Yes, we can do that.”
What the Executive Order Actually Says
The core message is simple: federal agencies should use fixed-price contracts as the default and preferred approach whenever possible.
The order argues that too much federal procurement has allowed unpredictable costs, weak incentives, and limited accountability. It specifically criticizes overreliance on cost-reimbursement contracting, where contractors are reimbursed for allowable incurred costs and may receive profit or fees on top of those expenses. The White House says that model can reduce the incentive to control costs when requirements are not well defined.
The order points to approximately $120 billion obligated in fiscal year 2024 on cost-reimbursement consulting contracts alone as evidence that the government needs stronger cost discipline.
That does not mean cost-reimbursement contracts are disappearing. The order acknowledges that they may still be appropriate in certain situations, especially research, development, and pre-production work tied to major systems acquisition. But it makes clear that non-fixed-price contracts should be the exception, not the default.
Under the order, any non-fixed-price contract, including cost-reimbursement, time-and-materials, labor-hour, or similar structures, must be justified in writing by the contracting officer to the agency head. Larger non-fixed-price contracts require written approval from the agency head if they exceed certain thresholds: $100 million for Department of War contracts, $35 million for NASA, $25 million for Homeland Security, and $10 million for other agencies.
The order also directs agencies to review their 10 largest non-fixed-price contracts within 90 days and, where practical and lawful, seek to modify, restructure, or renegotiate them toward fixed prices and performance-based incentives.
That is a significant signal.
It tells contracting officers, program managers, and agency leadership that the administration wants measurable outcomes, cleaner pricing, and stronger contractor accountability built into federal acquisition from the beginning.
Why the Administration Issued It
The administration’s stated concern is taxpayer value.
In the order’s framing, fixed-price contracts are attractive because they force discipline. The government defines what it wants. Contractors price the work. The contractor then carries more responsibility for managing performance costs and protecting profit.
That is consistent with how the FAR already describes firm-fixed-price contracts. Under FAR 16.202-1, a firm-fixed-price contract is not adjusted based on the contractor’s cost experience, which means the contractor assumes maximum cost risk and full responsibility for profit or loss. The FAR also says this structure gives contractors a strong incentive to control costs and perform effectively while reducing administrative burden.
Cost-reimbursement contracts work differently. FAR 16.301 explains that these contracts provide payment for allowable incurred costs and are generally used when the agency cannot define requirements well enough for a fixed-price arrangement, or when performance uncertainties make accurate cost estimates unrealistic.
So this order is not inventing the concept of fixed-price preference from scratch. Federal acquisition has long recognized fixed-price contracting as appropriate when requirements are clear and pricing can be established fairly. What this order does is raise the pressure. It makes the preference more visible, more political, and more accountable at the agency leadership level.
For small businesses, that distinction matters.
This is not merely a legal change. It is a behavioral change. Agencies may become more cautious about using flexible contract types. Contracting officers may push harder for defined scopes. Program offices may be expected to translate needs into measurable deliverables earlier. And contractors may be expected to price with more precision.
What This Means for Small Business Contractors
The biggest practical impact is risk transfer.
Under a fixed-price contract, if your labor costs rise, your subcontractor pricing changes, your material costs spike, or you underestimated the level of effort, the government generally does not increase the price just because your costs went up. Unless a contract clause allows an adjustment, the contractor owns that problem.
That can be good or bad depending on how prepared you are.
For a well-run small business with strong pricing discipline, clear processes, and a realistic understanding of its costs, fixed-price work can be profitable. You know the deliverable. You know the price. If you perform efficiently, you protect your margin.
For a small business that guesses its way through pricing, relies on vague assumptions, or fails to read the statement of work closely, fixed-price work can become painful fast.
This is where many newer contractors get into trouble. They focus so heavily on winning the award that they do not spend enough time asking, “Can we actually deliver this at the price we proposed?”
That question is about to become even more important.
Small businesses should expect more solicitations to emphasize defined deliverables, measurable performance standards, milestone-based outcomes, and tighter documentation of pricing assumptions. Agencies may also lean more heavily into performance-based structures, where success is tied to objective events, measurable criteria, or defined results. FAR 32.1002 allows performance-based payments based on objective, quantifiable methods, defined events, or other quantifiable measures of results.
Translation: “We worked hard” is not the same as “We delivered what the contract required.”
Contractors need to be ready to show measurable progress, clean documentation, and timely performance.
The Opportunity for Small Businesses
This order does create opportunities.
First, fixed-price contracting can favor small businesses that are nimble, efficient, and specialized. A smaller contractor that deeply understands its niche may be able to price work more accurately than a larger competitor carrying more overhead.
Second, agencies may place greater value on contractors who can help define practical outcomes. If a contracting officer is under pressure to use fixed-price structures, a small business that can clearly explain deliverables, timelines, assumptions, exclusions, and performance metrics becomes easier to buy from.
That is a competitive advantage.
The contractor who says, “We provide IT support,” sounds generic.
The contractor who says, “We can provide Tier 1 and Tier 2 help desk support for 500 users, with response-time metrics, escalation procedures, monthly reporting, and defined service-level outcomes,” is much easier to evaluate, price, and award.
Third, this shift may reward companies with stronger past performance. If agencies want confidence that contractors can deliver under tighter pricing structures, your record matters. SBA’s contracting guidance notes that deficiencies can affect past performance ratings and future ability to receive federal contracts.
That means performance history is not just a nice credential. It is part of your risk profile.
A small business with clean past performance, clear capability documentation, strong references, and disciplined contract management may stand out in a market where agencies are trying to reduce uncertainty.
The Risks Contractors Need to Watch
The obvious risk is underpricing.
When fixed-price contracts become more common, some contractors will try to stay competitive by shaving margins too thin. That may help win the award, but it can create serious problems during performance.
A low price is not a strategy if it does not cover the real cost of delivery.
Another risk is vague scope language. Fixed-price contracts work best when requirements are reasonably definite. FAR 16.202-2 says firm-fixed-price contracts are suitable when the contracting officer can establish fair and reasonable prices at the outset, such as when there is adequate competition, prior purchase comparisons, available cost or pricing information, or identifiable performance uncertainties with reasonable cost estimates.
If the scope is vague and the price is fixed, the contractor may end up absorbing ambiguity that should have been clarified before award.
Small businesses should pay close attention to phrases that sound harmless but can expand the work dramatically. Words like “as needed,” “including but not limited to,” “support all related tasks,” or “other duties as assigned” can create performance risk when paired with fixed pricing.
There is also a cash flow risk. Depending on how payment milestones are structured, a contractor may need to carry more upfront cost before receiving payment. Performance-based payments can help, but only when milestones are clear and negotiated properly.
Finally, there is a documentation risk. If agencies are being told to focus on accountability and performance, contractors should assume that contract files, deliverable acceptance, performance metrics, schedule compliance, and change documentation will matter even more.
A handshake understanding is not enough. An email trail may not be enough. Contractors need organized records that support what was required, what changed, what was delivered, and when it was accepted.
What Small Business Contractors Should Do Now
Start with your pricing.
If you are pursuing federal work, you need to know your actual costs. Not rough guesses. Not optimistic numbers. Actual labor costs, fringe, overhead, G&A, subcontractor costs, material costs, escalation risk, travel assumptions, compliance requirements, and margin.
Then review your capability statement, SAM profile, SBS profile, website, and proposal templates. Do they communicate outcomes clearly? Do they show measurable performance? Do they make it easy for a contracting officer to understand what you do, how you deliver, and why you are a lower-risk choice?
Next, tighten your go/no-go process.
Do not chase every opportunity just because it matches your NAICS code. Ask whether the requirement is clear enough to price. Ask whether you have the staffing, systems, and performance history to deliver. Ask whether the contract type creates more risk than your business should absorb.
Also, get more serious about market research. Look at what agencies have bought before, what they paid, who won, how requirements were structured, and whether similar work was competed as fixed-price, labor-hour, time-and-materials, or something else. SBA notes that federal contracting performance data and procurement trends are available through government contracting scorecards and procurement data resources, which reinforces how important data has become in understanding the market.
Finally, improve your change-management habits.
If the government asks for work outside the original scope, document it. If assumptions change, document it. If a delay is caused by something outside your control, document it. If you submit a deliverable, track acceptance.
Fixed-price does not mean you should silently absorb every change. It means you need to understand the contract well enough to know what is included, what is not, and when a formal modification may be needed.
The Bottom Line
This executive order is part of a broader push toward cost discipline, clearer outcomes, and stronger accountability in federal procurement.
For small businesses, the message is not “panic.” It is “prepare.”
The contractors that will benefit most are the ones that can price accurately, define their value clearly, document performance, and avoid taking on poorly understood risk. The contractors that may struggle are the ones relying on loose estimates, vague capabilities, or the hope that everything can be worked out after award.
Government buyers are being pushed to think harder about performance and cost control. Small businesses should respond by becoming easier to evaluate, easier to trust, and easier to award.
That means stronger documentation. Better market research. Clearer pricing. More disciplined pursuit decisions. And a sharper understanding of what each contract actually requires before signing on the dotted line.
As requirements change, FedBiz Access gives businesses a clearer path to stronger documentation practices and a more competitive performance position. If you need help navigating these changes or need assistance winning in the government marketplace, call today: 844-628-8914 or book a call at your convenience.
Since we’ve had such a positive experience with the team at FedBiz Access in the past, we decided to seek their guidance and support for our nonprofit’s latest project involving government and canine-related initiatives.
Once again, the FedBiz Access team did not disappoint. They directed us to the most effective and efficient way to move forward through the appropriate channels.
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We would highly recommend FedBiz Access.
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John Diaz
2 weeks ago
Mya works very accurately and delivers high-quality work in creating our Capability Statement for the GSA organization. Highly recommend her and her organization, FEDBIZACCESS.
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2 weeks ago
Ashley Futral is exceptionally helpful, knowledgeable, and a pleasure to collaborate with. Her efficiency and swift communication have been invaluable, and I greatly appreciate her guidance throughout the process.
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Jacqueline Winter
3 weeks ago
FedBiz makes renewals so easy and simple which is great as when doing it directly with the gov't is so much more complicated! It was great working with Ashley Futral on on our latest renewal - she saved me so much time! She also helped sort out issues that came up with SAM that I don't think we could have solved on our own. Thank you!
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1 month ago
Ashley Futral was extremely helpful with renewing our sam.gov entity registration. She was always prompt with responding to emails and made the process go smoothly.
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1 month ago
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1 month ago
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Torland Wingfield
2 months ago
I had the pleasure of working with FedBiz on my SBA Disabled Veteran Owned Company Certification. Ashley was simply amazing, using her knowledge and professional approach to get the job done. She checked on me constantly providing weekly updates and worked all issues that came up during the process. I even received a call from her when the certification was approved. This is a great company that I give my strongest recommendation.
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Ice King LLC
2 months ago
Elizabeth Whitaker made our SAM renewal process quick and easy! We enjoyed working with her and the entire FedBiz Team. They have been great folks to work with and took sooooo much drama out of the process. Quick to respond to all our questions and we truly feel they want our business to succeed. Highly recommend !!!
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John Foster
2 months ago
Mya was great with communications throughout the project. She has outstanding graphics and document creation ability.
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Heridel Guadarrama
2 months ago
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Jim Dragon
2 months ago
While working with FedBiz Access to update our cage code was an extremely easy worry-free process. Elizabeth was great to work with.
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Jon Urban
3 months ago
2025/2026 UPDATE: Cassie and her team at FedBizAccess continue to provide us with professional and reliable support for SAM registration and other government contracting needs.
2024 UPDATE: We continue to rely on FedBizAccess to help us stay on top of our SAM registration. Thanks again for making this an easy process for us, Cassie!
Original Review: We hired FedBizAccess several years ago to help us manage our federal contractor profile through the SAM database. Throughout the years they have been quick to respond to our requests. The past few years more of our focus has been outside the federal contracting arena and we hadn’t required their help. This year, though, we hit a snag renewing our SAM profile since we had a slight change in our company name. We reached out to FBA for help, and Cassie Elbanay responded immediately. She has been critical in helping us navigate the process. She is very knowledgeable, personable, and an overall professional. We are confident work will be done correctly and successfully when Cassie and her team are on the case. It has been a pleasure working with her, and I look forward to continuing our firm’s partnership with her and her team at FBA.
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Alfonso Betts
3 months ago
Cassie Elbanay at FedBizAccess was extremely helpful in resolving my issue in SAM. Her knowledge and expertise with the SAM system made the process smooth and efficient—it was handled within minutes. It’s truly a pleasure working with such a knowledgeable and responsive team at FedBizAccess. I greatly appreciate the support and professionalism.
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Milissa Fowler
3 months ago
Cassie Elbanay was extremely valuable and I could not ask for an easier process. The amount of time and frustration she saved me was priceless. Amazing!
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Joyce Kamau
3 months ago
Working with Cassie at FedBiz on our SAM registration renewal was a great experience. She was patient, thorough, and proactive in addressing potential issues before submission. Cassie expertise helped us avoid delays and ensured our registration was completed efficiently. Cassie is not only highly competent but also wonderful to work with throughout the process.
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Brennan Champion
3 months ago
Cassie Elbanay and the FedBiz Access team were exceptional throughout our SAM registration process. Cassie went above and beyond at every step, providing clear guidance that made what can be a complex process feel straightforward. We would absolutely recommend Cassie and FedBiz Access to anyone navigating SAM registrations.
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3 months ago
I had the pleasure of working with Mya, she brought my vision to life and we could not be happier with her work.
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Tamarah
3 months ago
I had a positive experience working with FedBiz and appreciated the guidance and communication provided during the process. Sidney was responsive and supportive, and I’m grateful for the assistance and encouragement along the way.
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Cami Allen
4 months ago
Ashley was super helpful, professional and timely. The support we receive from FebBiz Access is so helpful in helping us keep current and updated in a sometimes difficult to navigate government world.
Chris Merrill
5 months ago
Cassie and Fedbiz were incredibly helpful, knowledgeable, and responsive throughout the entire process from our initial inquiry through the submission. They made the renewal process easy and fast for us to get through.
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5 months ago
I've been working with FedBiz Access for years now. Cassie does a wonderful job of making the process easy and quick. She is the best! Thanks, Cassie!!
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Tommy Bohler
5 months ago
Cassie was very helpful throughout the whole renewal process with our municipality and also followed up with assistance on a change in our bank accounts. She was super responsive and took care of our problem almost immediately.
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John Anderson
5 months ago
Mya did a great job. We completed the capabilities statement in two attempts. On the second attempt, I provided her with some of our pictures, and she embedded them in our statement.
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Rifles Only
5 months ago
Cassie made renewing our SAMS registration quick and efficient, and maintained great communication with us.
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arnoldo renteria
5 months ago
This team is highly professional and truly knows how to get things done. I am very pleased to have achieved my objective thanks to their support.
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5 months ago
Very easy to work with, knowledgeable, and absolutely handled on your behalf. Recommended.
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George Boza
6 months ago
Mrs. Elbanay continues to be consistently efficient and proficient concerning all all SAM matters. We have worked with her for several years and always go back to her with any SAM or government agency matters. She is pleasant person who listens and resolves any situation and/or subject brought to her attention. Summarizing, she is second to none and we look great forward to working her again.
Once again we have the opportunity to work with Cassie Elbany and as expected she surpassed our expectation with her efficient and professional approach and completion of our new registration. It becuase of Cassie above average support that we work with FEDBIZACCESS and will continue to do so.
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Julia Perez
6 months ago
SAM Register (Fedbizz Access) has been a great help every step of the way, Thank you Cassie E. for updating me and checking up on the process every step of the way. You have been a great help.
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cathy deLeon
6 months ago
Ashley was very helpful as always! Easy to register with FedBiz. Ashley took care of our address cheange fast and efficiently. Thank you!
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Meghan Ruth
6 months ago
Cassie has been amazing!!
She is so helpful and such a breeze to work with. I always look forward to talking with her.
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Jessica Sumner
6 months ago
Cassie assisted in making our SAM renewal fast and EASY!!
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Joe Rementer
6 months ago
Cassie was patient and professional in updating my FedBiz account information.
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Warren Gatson
6 months ago
Fedbiz has been the needle in the Haystack! Frank Krebs became Executive Service Contractor's mentor with the information and resources , his professional and friendly approach ESC were awarded a contract with the City of Chapel Hill! Its was a Darn Good Investment!!!
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Shedrick Amin
6 months ago
I recently had the pleasure of working with Fed Bizz Access to renew my SAM.gov registration, and I cannot speak highly enough of the exceptional service I received. From the outset, the process was streamlined, efficient, and handled with the utmost professionalism.
Cassie Elbanay, in particular, was instrumental in guiding me through the renewal process. Her expertise, responsiveness, and attention to detail were evident at every step. She not only addressed my concerns promptly but also crafted a tailored solution that ensured my account was renewed accurately and on time.
What stood out most was Cassie’s proactive approach she anticipated potential issues before they arose and provided clear, actionable guidance that made the entire experience stress-free. Her commitment to client success and her deep understanding of federal registration requirements truly set her apart.
I highly recommend Fed Bizz Access, and especially Cassie Elbanay, to any organization or individual seeking reliable, knowledgeable support with SAM.gov registration or renewal. Their service is a model of excellence in government contracting support.
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Jay Reyes
6 months ago
⭐️⭐️⭐️⭐️⭐️ Outstanding Service & World-Class Expertise
Working with Mya Plant at FedBiz has been nothing short of exceptional. From start to finish, Mya demonstrated professionalism, attention to detail, and a true passion for helping small businesses shine.
She crafted a powerful and polished capability statement for my company, Nonstop Delivery & Logistics, capturing our mission, strengths, and federal value proposition perfectly. She didn’t just design a document — she built a brand asset that commands attention and credibility in the government contracting space.
In addition, the company video she produced was absolutely outstanding. It tells our story with clarity, emotion, and professionalism, truly reflecting who we are as a veteran-owned medical logistics provider. The quality, creativity, and messaging exceeded my expectations.
Mya didn’t just deliver — she partnered with us. She listened, guided, and ensured every detail was perfect. Her expertise in federal contracting marketing is unmatched, and I highly recommend her to any business looking to elevate their image and position themselves for government success.
Thank you, Mya — your work plays a crucial role in our continued growth and mission.
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Terrell Scott
6 months ago
Cassie did a very amazing job with would recommend her services
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Leon Carr
6 months ago
Cassie Elbanay is a consistent and diligent professional when it comes to my business renewal for SAMS!
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Apar Fones
6 months ago
Ashley Futural was a lot of help finishing the process to get registered. She was very knowledgeable and answered any questions I had.
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LaToya Greene
6 months ago
Ashley Futral is very helpful and knowledgeable. She replies to my emails promptly when I have any questions throughout the year. I appreciate her professionalism and customer service.
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Donovan Wright
6 months ago
Very professional and effective service oriented organization and Team guaranteeing the best outcome.
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Debbie Goodin
6 months ago
Ashley Futral is our go-to person for all our Fed Biz needs and questions. We trust her knowledge 100%!
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Heather Kristoffersen
6 months ago
Ashley is amazing. She is always willing to help me walk through the whole process and answer any questions I have along the way!
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https://i0.wp.com/fedbizaccess.com/wp-content/uploads/2026/05/executive-order-govcon.jpg?fit=1920%2C1280&ssl=112801920fedbizadminhttps://fedbizaccess.com/wp-content/uploads/2023/04/fedbizaccess-website-logo.pngfedbizadmin2026-05-07 18:30:542026-05-07 18:31:58What the New Executive Order on Federal Contracting Efficiency Means for Small Business Contractors
