# Federal Agencies Prioritize Outcome-Based Contracting

Executive Order 14402 directs federal contracting toward defined outcomes, emphasizing fixed-price contracts with performance-based considerations rather than payment primarily for effort. The Federal Acquisition Institute (FAI) webinar and related training playlist explain the policy’s goals and the importance of well-defined requirements, giving acquisition teams and contractors material to use as they adjust requirements development and proposal strategies.

- Acquisition teams should review the FAI materials when developing requirements so desired outcomes and performance considerations are clearly defined.
- Contractors should evaluate how to describe measurable outcomes and performance in proposals for opportunities shaped by this direction.
- The shift has implications across federal procurement; the signal identifies no specific contract, funding amount, or implementation deadline.

**Jurisdictions:** federal
**Topics:** Policy
**Published:** October 15, 2026

### Government Entities
- Federal Acquisition Institute (FAI)
- Office of Federal Procurement Policy (OFPP)
- Federal Acquisition Regulation Council (FAR Council)
- General Services Administration (GSA)

### Sources
- [Hear “The Why” Behind EO 14402 | FAI.GOV](https://www.fai.gov/node/41882) - FAI