# Federal Government Implements Fixed-Price Contracts

The federal government has adopted fixed-price contracts with performance-based considerations as the standard procurement method, significantly raising the stakes for government contractors. This shift requires contractors to improve pricing accuracy, enhance cost visibility, and develop robust performance forecasting to manage risks effectively and protect profit margins. Early identification of margin risks and integrated financial and operational oversight are essential for success under this contracting approach.

- Contractors must prioritize sophisticated risk management strategies to navigate fixed-price contracts successfully.
- Enhanced cost and performance tracking capabilities are critical to meet government expectations and avoid financial losses.
- Procurement professionals should anticipate increased emphasis on performance metrics and cost transparency in contract evaluations.
- Companies can leverage this environment by investing in integrated financial and operational systems to improve forecasting and margin protection.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Contracting Vehicles
**Published:** September 22, 2026

### Government Entities
- Federal Government

### Vendors
- Unanet (prime contractor)

### Key Quotes
> Fixed-price contracting rewards companies that understand costs, price risk intelligently and identify problems early.
> — Chris Crowder, Executive Vice President, GovCon, Unanet

### Sources
- [How Fixed-Price Contracts Are Raising the Stakes for GovCon](https://www.govconwire.com/articles/chris-crowder-unanet-govcon-expert-fixed-price-contracts-risk-margin-management) - GovCon Wire