US Government Benchmark Report 2026

The primary challenge facing US Government contracting is not a people problem. It is a system problem. This report assesses the state of US Government contracting, concluding that the biggest obstacles to improvement are not workforce skills, but systemic issues such as complex governance, excessive approvals, fragmented accountability, and late involvement of contracting professionals in decision-making. It finds that government contracting teams are highly resilient and committed to change, but they operate within structures that limit adaptability, innovation, and commercial effectiveness. The report also highlights gaps in the use of advanced commercial contracting models, data analytics, and artificial intelligence, noting that technology investments have focused more on administrative efficiency than on improving commercial outcomes and decision-making. Overall, it argues that meaningful reform requires redesigning the broader commercial operating system, including governance, accountability, technology, and the relationship between contracting and program management, to better support mission delivery and outcomes.