Most Negotiated Terms 2024 US Public Sector

We operate in a fast-changing world, where the ability to adapt to altered needs and capabilities is critical. In this environment, rigid policies and regulations undermine required outcomes. 

This report highlights the constraints imposed on Federal employees and the impact on suppliers. It underscores the opportunity to update government procurement and contracting policies and practices, making them ‘fit for purpose’ in our digital age. 

By capturing the perspective of both buyers and suppliers, the report highlights how regulations, negotiation practices, and contract types significantly shape experiences and outcomes. 

Today’s rules cause government buyers to prioritize compliance, cost management, and risk allocation, while suppliers seek clarity, fair risk distribution, and flexibility. The resulting tensions lead to inefficiencies, disputes, and cost overruns. Increased openness to negotiation and streamlined processes would reduce costs by as much as 13.3%, potentially translating into savings of approximately $100 billion. This emphasizes the compelling need for a more balanced approach that accommodates the priorities of both parties while ensuring appropriate controls in the delivery of public value.

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