A new Executive Order aimed at improving efficiency and accountability in federal contracting is drawing attention within the engineering community as agencies begin implementing new procurement directives.

Issued on April 30, 2026, the Executive Order, Promoting Efficiency, Accountability, and Performance in Federal Contracting, directs federal agencies to increase the use of fixed-price and performance-based contracts where practicable and to more closely justify the use of cost-reimbursement and other non-fixed-price contracting methods. The order also directs the Office of Management and Budget (OMB) and the Office of Federal Procurement Policy (OFPP) to develop implementation guidance and requires agencies to evaluate and report on contract performance.

What the Order Does

The Executive Order is intended to promote greater accountability and cost certainty in federal procurement. Fixed-price contracts establish a set price for work performed, while performance-based contracts emphasize measurable outcomes and results.

Although these approaches are commonly used across many types of federal contracting, the order has prompted questions about how implementation guidance may be applied to complex professional services, including engineering projects that often involve evolving project conditions, technical uncertainty, and significant reliance on professional judgment.

Why Engineers Are Paying Attention

The Executive Order does not directly address qualifications-based selection (QBS), engineering licensure, or procurement requirements established under the Brooks Act. However, some within the engineering community are closely monitoring whether future guidance could affect how engineering and other professional services are procured.

Engineering projects frequently involve conditions that cannot be fully defined at the outset of a project. As a result, stakeholders have raised questions about how expanded emphasis on fixed-price contracting could affect scope development, allocation of project risk, professional decision-making, and project delivery practices.

Some observers have also noted that federal procurement policies can occasionally influence discussions at the state and local level. While no such proposals have emerged to date, NSPE is monitoring whether policymakers or procurement officials attempt to apply similar concepts to engineering services procurement outside the federal contracting environment.

What Happens Next

Implementation of the Executive Order will largely depend on guidance developed by OMB and OFPP, as well as any future changes to the Federal Acquisition Regulation (FAR). Those actions will provide greater insight into how agencies are expected to apply the order's requirements and whether specific professional service categories will be affected.

NSPE continues to monitor federal implementation efforts and evaluate potential implications for engineering procurement practices. Particular attention is being directed toward any developments that could affect qualifications-based selection principles, professional services contracting, risk allocation, or the role of professional judgment in engineering projects.

As implementation moves forward, NSPE will continue engaging with stakeholders and tracking developments that could affect the procurement of engineering services at the federal, state, and local levels.