A value-focused framework for agencies to evaluate contractors in fiscal 2026
As the U.S. government takes its first uncertain steps into the new fiscal year, here are a few things we know about the federal contracting landscape heading into 2026: Consolidating agency procurement to carry out Executive Order 14240 remains a top priority, as does investing in and deploying artificial intelligence. And, with constrained budgets, shifting mission priorities, and heightened oversight on performance, agencies have never faced higher stakes in selecting the right contractors.
The bottom line for federal agencies in today’s procurement environment is that they can’t afford to select government contractor partners based solely on price or past relationships. While price and experience remain important, they must also focus on value by identifying contractor partners that bring something more to the table, namely innovation, adaptability and integrity, all baked into their delivery model.
So, what exactly should you look for when vetting and selecting contractors in the fiscal 2026 contract award cycle? Let’s zero in on five qualities that suggest a government contractor is well positioned to deliver extra value. Then we’ll discuss incorporating these qualities into a framework for evaluating contractors.
1. Innovating with AI and automation — and doing so responsibly
Given how aggressively government agencies are pushing to implement AI and intelligent automation into their operations — the U.S. Department of War is investing heavily in AI, while the U.S. General Services Administration (GSA) this summer launched USAi, a program encouraging agencies to adopt generative AI — it’s critical that the contractors with which agencies partner have a working knowledge of AI, too. Indeed, if a contractor isn’t at least experimenting with AI or automation, that could raise a red flag about their ability to innovate on an agency’s behalf and drive efficient project delivery.
Nowadays, the most forward-thinking firms are already embracing intelligent tools to uncover bid opportunities, scan solicitations, flag compliance gaps, draft proposal outlines, and monitor project performance. We are at the point where AI is no longer a “nice-to-have.” It has become the baseline for efficient and accurate delivery of government projects.
Simply deploying AI is no longer the differentiator it once was. Increasingly, what matters is the maturity of a contractor’s AI program — its scalability, governance, transparency, and demonstrated results. Agencies are paying closer attention to how contractors operationalize AI, from early pilots to enterprise implementations, including whether appropriate oversight, human-in-the-loop practices, and governance structures are in place. Across the market, there is a growing emphasis on transparency: understanding how models are developed and managed, how AI integrates with broader systems, and how decisions are monitored and audited. This visibility helps agencies assess not just innovation, but reliability, accountability, and mission alignment.
2. Doing compliance the right way
Agencies can also look for maturity in a contractor’s approach to compliance, where it’s clearly embedded in the organization’s culture and treated as a strategic enabler rather than a procedural obligation. Every contractor you review should be able to clearly articulate their approach to FAR, DFARS, and CMMC, their internal audit readiness, and their experience with DCAA/DCMA. Ask:
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- Do they maintain an audit-ready documentation library?
- Are expense, billing, and timekeeping systems built to facilitate real-time compliance review?
- Do they use internal or third‐party assurance teams to stress-test or audit their compliance posture?
As pervasive as cyber threats are today, it’s also critical to ascertain how advanced they are from a cybersecurity standpoint, including the measures they have in place for data protection, secure cloud practices, cyber hygiene, supply chain security, and responsible AI use. Clear progress toward achieving CMMC is a must. For example, have they completed and submitted their CMMC self-assessment, and do they have a recent passing grade in the Supplier Performance Reporting System?
Too often we see an awardee’s questionable indirect cost rates or pass-through logic lead to negotiating strife after a contract is awarded. To avoid unnecessary friction and minimize surprises later, seek contractors that offer transparent, well-documented indirect cost bases and predictable pass-through accounting.
3. Real-time transparency, real-time oversight
Look for partners that provide clarity and a unified near-real-time view into financials performance metrics, staffing, compliance flags, and risk indicators. You don’t want to waste time chasing down contractors for data. So, ask them:
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- Do they offer visibility into burn rates by work break down structure?
- Are compliance exceptions surfaced automatically?
- Can I drill down to subtasks or staffing trends?
Armed with this kind of information, agency teams can be more proactive in dealing with potential issues like budget overruns and staffing gaps before they escalate into problems. Align reporting cadence to your decision rhythm, whether weekly, monthly or otherwise. Look for contractors that can adapt reporting and automate delivery, and that make it easy for your team to view data from multiple angles (by CLIN, cost type, technical area, and more). The most effective partners are those that provide financial and operational transparency.
4. Efficiency and digital maturity: two non-negotiables
Process automation is another big plus when evaluating contractors. Beware of red flags like repeated manual reconciliations, duplicate data entry, legacy file sharing (spreadsheets and email), and lengthy turnaround in fulfilling requests for a change, refresh, or new data slice. Instead look for digital workflows: e-approvals, timekeeping apps, etc., that reduce overhead, human error, and bottlenecks with ad hoc slice-and-dice, self-service dashboards, API connections, etc.
On the data front, you want confidence that a contractor prioritizes data hygiene, security, and governance. So, ask:
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- How do they ensure data accuracy (validation rules, reconciliations)?
- How do they manage data governance (stewards, owners, audit trails)?
- How are security roles/permissions managed?
5. Culture, collaboration, and capacity
Ideally, contractors should view their role as not just vendors but enablers of your mission. Those that consistently demonstrate humility, curiosity, and mission focus tend to deliver the best outcomes. So, consider:
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- Did they ask questions about what success means for your agency?
- How adaptable are they to changing priorities?
- How willing are they to bring ideas and not just execute instructions?
A focus on people is another trait that should carry weight. Prioritize firms that demonstrate they invest in continuous learning (AI, cybersecurity, domain training), that have a robust resource management discipline to flex into changing circumstances, and that have low turnover.
Another source that can be used to better understand a firm’s intangibles: CPARS (Contractor Performance Assessment Reporting System) comments, not just scores. Look for themes that speak to responsiveness, handling change orders, communication, and risk management.
Putting it all together
Now that we’ve outlined the qualities that a government contractor can bring to a project, let’s incorporate them into a framework, adding in any other qualities your agency might covet based on its mission and priorities. We’ll call it a “Contractor Readiness Framework,” where an agency can score companies on a three-tier scale, from “lagging” at the bottom end, to “emerging,” to “leading” at the top end.
You can weigh each area as your agency sees fit (say, 20% each) and score contractors accordingly. Instead of relying on gut calls, now you have a structured, defensible approach to evaluating contractors.
Ultimately, a framework like this should give you an edge in uncovering best-value contractors in fiscal 2026 — companies that lean into modernization, transparency, and partnership, which demonstrate adaptability and accountability, and that have a clear roadmap to digital maturity.
By asking the right questions early, rewarding the right signals, and demanding clarity, your agency can build a contractor bench that’s ready for today’s demands and tomorrow’s surprises. After all, your job isn’t just oversight, it’s mission success. With the right contractors, that’s far more achievable.
Chris Crowder leads Unanet’s GovCon business unit. He is responsible for collaborating with Unanet customers, partners, key industry stakeholders, and his colleagues in product, sales, customer success, and marketing to grow and enhance our GovCon customers’ experience with Unanet. https://unanet.com/
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