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Speed vs. Control: What Top Contractors Are Getting Right and How They’re Evolving in 2026 · The Leading Edge

• 0:03
  SPEAKER_00: Well, hello and welcome back to the Leading Edge, a series offering in-depth insights into the key challenges, innovations, and evolving dynamics of the contract and commerce landscape.
• 0:16
  SPEAKER_00: I'm your host, Nikki Mackay, Chief Development Officer of the Commerce and Contract Management Institute.
• 0:22
  SPEAKER_00: Now, in today's special edition, we are recording live in Florida from NCMA's World Congress from a very busy expo floor, just minutes after a big panel that tackled one of the sharpest tensions in government contracting right now: speed versus control.
• 0:40
  SPEAKER_00: I'm joined by Denise Peterson, Vice President of Market Analysis at Dell Tech, where she leads the analyst team behind GovWin, the go-to source for federal, state, local education, and Canadian government market intelligence.
• 0:56
  SPEAKER_00: Denise and her team track the budgets, policy shifts, and business development trends that shape how contractors compete and win.
• 1:05
  SPEAKER_00: Now, Denise was just on stage discussing the findings from the 2026 Government Contracting Clarity Benchmark, exploring how top-performing contractors are moving faster through AI adoption, accelerated proposals, evolving procurement without losing their grip on pricing and defensibility, compliance and execution risk.
• 1:28
  SPEAKER_00: So, Denise, thank you so much for jumping from that panel to this conversation.
• 1:32
  SPEAKER_00: Welcome.
• 1:32
  SPEAKER_00: Thank you.
• 1:33
  SPEAKER_00: Thank you for having me.
• 1:34
  SPEAKER_00: Wonderful.
• 1:34
  SPEAKER_00: So let's dive straight in because I want to go into this 2026 government contract and clarity benchmark because that's really the backbone of the panel you just came from.
• 1:44
  SPEAKER_00: For listeners who weren't in that room, tell us about the report and what's the single most surprising or counterintuitive finding in this year's data.
• 1:54
  SPEAKER_01: Well, thank you for having me again.
• 1:56
  SPEAKER_01: So the Clarity Report, this is the 17th year that we have done this report and it's evolved considerably over time.
• 2:03
  SPEAKER_01: And the goal of the report is really to provide, as the title suggests, a benchmark for contractors to kind of see how others in the market are handling the different market conditions as a whole, but also in their specific roles.
• 2:18
  SPEAKER_01: And so we do a survey every year asking folks in about eight different roles from business development and contract management to IT and finance and compliance what their top concerns are, how they're addressing them, how they're dealing with market conditions, what they have just experienced in the past year, and what they're expecting for the upcoming year, and how all that is impacting their win rate.
• 2:41
  SPEAKER_01: So the report, you know, we have a survey out for a couple of weeks.
• 2:47
  SPEAKER_01: We got almost a thousand responses this year, which is the highest that we've ever had.
• 2:51
  SPEAKER_01: Incredible.
• 2:53
  SPEAKER_01: And so it was a really good um snapshot of what contractors are dealing with right now, especially, you know, coming out of the first year of a new administration with a lot of a lot of change.
• 3:03
  SPEAKER_01: A lot of change.
• 3:04
  SPEAKER_01: Yeah, and I would say something that surprised me was that um almost, I want to say about almost 60% of our respondents expected their um win rates and their revenue to increase.
• 3:17
  SPEAKER_01: Right.
• 3:17
  SPEAKER_01: So coming out of the administration, like I said, with lots of policy changes, executive orders, um, you know, changing administration priorities and budgets and all of that, um, you know, their the sense of the market was that it was very volatile and a little scary for folks.
• 3:34
  SPEAKER_01: So it was really um encouraging to see how, you know, the bulk of respondents were like, okay, lots of change, but we're going to figure this out.
• 3:43
  SPEAKER_01: We're in for the long haul.
• 3:44
  SPEAKER_01: And they actually had a positive outlook on what you know the market was going to look like in 2026.
• 3:49
  SPEAKER_01: So that was really great to see.
• 3:51
  SPEAKER_00: That that's awesome to hear.
• 3:52
  SPEAKER_00: Um, I I wanna I wanted to zoom in now on on what truly distinguishes the top performers because the benchmark distinguishes those top performers from the rest.
• 4:02
  SPEAKER_00: So, what what does the data actually show separates them?
• 4:06
  SPEAKER_00: Is it specific capability?
• 4:09
  SPEAKER_00: Is it a mindset or something structural in how they're organized?
• 4:14
  SPEAKER_00: What separates them?
• 4:15
  SPEAKER_00: Um, it's all of that.
• 4:16
  SPEAKER_01: Yeah.
• 4:17
  SPEAKER_01: Yeah.
• 4:17
  SPEAKER_01: So you have companies that, especially the mature ones, that have ridden these ups and downs over administrations for many years.
• 4:24
  SPEAKER_01: And so although this is kind of an unprecedented environment we're in right now, um, you know, there there is a mindset of like we just have to be agile, we have to meet the government where they are, yeah, and we have to kind of figure out how we can pull levers and and readjust our resources in order to basically just maintain, you know, margins and and revenue and cash flow and things like that.
• 4:49
  SPEAKER_01: Um and then you have some some folks that um really look at their their teams and labor and talent.
• 4:58
  SPEAKER_01: Yeah um and so the top performers are really focused on finding the best people that they can get that are have the experience to navigate this this market.
• 5:08
  SPEAKER_01: I always say, you know, you know, public sector contracting is not for the faint of heart, it's not for choice.
• 5:13
  SPEAKER_01: You also yeah, so they are really looking at where they can make really strategic investments.
• 5:20
  SPEAKER_01: Um another thing that separates them is that um, you know, in in public procurement, there's all kinds of compliance requirements, a lot of data collection, a lot of reporting.
• 5:30
  SPEAKER_01: And these companies, and it's of course the big ones have the resources for this, but a lot of smaller ones too are very deliberate about integration.
• 5:38
  SPEAKER_01: Right.
• 5:38
  SPEAKER_01: So you have all these data silos.
• 5:41
  SPEAKER_01: Yeah.
• 5:41
  SPEAKER_01: Um and in an environment like we have right now, being able to bring all that data together to give you the full picture um helps with the agility and the strategic planning.
• 5:52
  SPEAKER_01: So we see those top contractors really looking at how they can do that um kind of operationally with their talent, but also with um technology investments.
• 6:03
  SPEAKER_00: Yeah, breaking down silos is a huge thing, isn't it?
• 6:07
  SPEAKER_00: Yeah.
• 6:07
  SPEAKER_00: Um so I touched on it in in the introduction, but let's move on to that point of pricing defensibility now, because pricing defensibility came up as a differentiator rather than a back office function, right?
• 6:20
  SPEAKER_00: Um, why is pricing suddenly a strategic conversation instead of this compliance checkbox?
• 6:27
  SPEAKER_00: And what changed to make that true now?
• 6:30
  SPEAKER_01: Well, there's one big part of it is four letters, D-O-G-E.
• 6:35
  SPEAKER_01: So Doge came in, and just the overall kind of um theme when you look at the new the administration and and a lot of the executive orders and where they were going and a lot of the actions early on all came down to um cost.
• 6:49
  SPEAKER_01: What is the government paying?
• 6:50
  SPEAKER_01: Is there waste, fraud, and abuse?
• 6:52
  SPEAKER_01: Um and so, you know, we can argue about how well Doge did their work, but they came in and kind of led that um initiative around cost.
• 7:03
  SPEAKER_01: Yeah.
• 7:04
  SPEAKER_01: And a lot of that then pressure and the risk of that falls on contractors.
• 7:09
  SPEAKER_01: Yeah.
• 7:10
  SPEAKER_01: Um, we also saw um policy really pushing for more fixed price contracts.
• 7:16
  SPEAKER_01: Um and so that, you know, and other policies like wanting more transaction level data so they they can compare prices when the government is buying.
• 7:26
  SPEAKER_01: And so um, you know, that really put a lot of pressure on getting your price right, yeah, and making sure that it um fits the definition of reasonable and realistic.
• 7:39
  SPEAKER_01: Yeah, and so being able to defend that um is and make it clear kind of how that all came together is a competitive differentiator.
• 7:48
  SPEAKER_01: Like everybody has to do it, yeah, but being able to justify the price and align that cost to the administration's priorities is really what's gonna set those top performers apart.
• 7:59
  SPEAKER_00: Absolutely, absolutely.
• 8:01
  SPEAKER_00: So, Denise, let's let's now shift to talk about the balance between governance and speed of delivery.
• 8:07
  SPEAKER_00: Because for contract managers specifically, where where do you think is the real tension between that strengthening governance and not slowing delivery?
• 8:18
  SPEAKER_00: Is that a false trade-off or is there a you know a genuine ceiling that they're hitting?
• 8:24
  SPEAKER_01: Um I do think that there obviously is tension there, especially when we're in an environment where um the the train is still moving, but um here's a bit of the car still moving, but the tires are being changed while the car is moving, right?
• 8:40
  SPEAKER_01: Yeah.
• 8:40
  SPEAKER_01: So there is this tension of um staying on top of compliance, really understanding um the requirements and how you're performing, but then also having to be agile and um, you know, respond quickly to do to new reporting and compliance requirements while you're you know trying to just maintain your direction.
• 9:03
  SPEAKER_01: And so there is this tension of like, where do I put my resources?
• 9:07
  SPEAKER_01: How do I do both of these things?
• 9:09
  SPEAKER_01: Yeah.
• 9:09
  SPEAKER_01: Um, and so I think you know, larger companies that have resources can invest in teams that do that.
• 9:15
  SPEAKER_01: You know, smaller companies just have to be really um dedicated to just paying attention and and making sure they're up to speed on what these changes are and figuring out, you know, where are they gonna put their their resources?
• 9:27
  SPEAKER_01: Yeah, because I do think, you know, outcome-based performing is you know, top of mind for administration, um, commercial first, fixed price.
• 9:36
  SPEAKER_01: Um, so being able to really understand that environment and um how to how to be speed and control.
• 9:44
  SPEAKER_01: How do you kind of be responsive so you can get on top of opportunities quickly without being reckless and putting yourself at risk?
• 9:51
  SPEAKER_00: Yeah, yeah.
• 9:53
  SPEAKER_00: Great perspectives, Denise.
• 9:55
  SPEAKER_00: We're gonna move on to our final question now.
• 9:57
  SPEAKER_00: Um, looking at GovWin's data on where budgets and policy are heading through the rest of 2026.
• 10:04
  SPEAKER_00: What should contractors be building capability for right now before it becomes a competitive necessity rather than an advantage?
• 10:13
  SPEAKER_01: Um, gosh, that's a that's a big question because I think we're already in an area that's not emerging, but it's expanding, which is cybersecurity, which is security by design.
• 10:25
  SPEAKER_01: And that's not just for your technology vendors, that's anybody that's handling, you know, specific data.
• 10:32
  SPEAKER_01: Um you know, even companies that think they don't have to think about it, like, you know, landscaping companies, you know, if they're handling government data, there's requirements there.
• 10:41
  SPEAKER_01: Yeah.
• 10:42
  SPEAKER_01: And so there's this demand from um the government that whatever your solution is, whatever your product is, you need to build it, present it uh with security baked in.
• 10:52
  SPEAKER_01: Yeah.
• 10:53
  SPEAKER_01: So they don't have to procure something or deal with that security kind of being tacked on later.
• 10:58
  SPEAKER_01: So I think every contractor needs to be very aware of the cyber risk in the environment and all the all the requirements.
• 11:06
  SPEAKER_00: Yeah, absolutely.
• 11:07
  SPEAKER_00: Well, Denise, that's a great place to leave it.
• 11:10
  SPEAKER_00: Thank you so much for going straight from the stage to this conversation.
• 11:14
  SPEAKER_00: Unfortunately, that's all we have time for in this special episode of The Leading Edge.
• 11:18
  SPEAKER_00: If there is one takeaway from today's conversation, it's this the line between moving fast and staying in control isn't really a trade-off for the organizations doing this well.
• 11:29
  SPEAKER_00: It's a discipline.
• 11:31
  SPEAKER_00: For everyone listening, if you want to dig into the 2026 government contracting clarity benchmark yourself, look out for it through Dell Tech and through the release of this podcast.
• 11:42
  SPEAKER_00: Uh, thank you, Denise, so much.
• 11:44
  SPEAKER_00: It's been great chatting to you.
• 11:46
  SPEAKER_00: Um, thanks for listening as well to the Leading Edge, live from World Congress.
• 11:51
  SPEAKER_00: If you like what you heard today, stay tuned for our next episode where we will continue to explore the ideas, innovations, and leadership shifts that are shaping the future of commerce and contracting.
• 12:02
  SPEAKER_00: Until then, keep challenging, keep adapting, and keep leading.