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Federal Contracting Trends to Watch in 2026 Blog Feature
Stephanie Hagan

By: Stephanie Hagan on January 2nd, 2026

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Federal Contracting Trends to Watch in 2026

Resources and Insight | 4 Min Read

It’s a new calendar year, and although federal government Fiscal Year 2026 is already in full swing, it’s not too late for Multiple Award Schedule (MAS) contractors to start evaluating trends that are predicted for the remainder of the year. Rising defense and homeland security budgets, a government-wide push toward IT modernization, and new procurement strategies are just a few trends that we expect to see continued growth in under the Trump Administration. We anticipate there’s a lot more to come for MAS contractors in the next several months. Let’s dive into federal trends we anticipate for 2026.

Growth of the MAS Program, GWACs, and IDIQ Procurement

The ongoing shift toward consolidated acquisition is one of the top trends for federal contractors leading into 2026. Agencies are increasingly relying on the Multiple Award Schedule (MAS) Program, Governmentwide Acquisition Vehicles (GWACs), and Indefinite Delivery, Indefinite Quantity (IDIQ) vehicles because they minimize administrative burden and accelerate the buying process. This is also because the Trump Administration Executive Order (EO) on consolidating procurement. In this EO, GSA is directed to take over the procurement of most common goods and services, including several Best-In-Class GWACs, and agencies are encouraged to use contracting vehicles that focus on lower costs and efficiency.

With this EO, we expect the MAS Program to continue to grow and change significantly. For contractors, this means more competition and frequent updates, but also increased opportunities for MAS companies. We suggest you make sure your pricing is updated, you are submitting modifications on time, and you are maintaining contract compliance. If you do not have a GSA Schedule but are looking to get one, we suggest you start as soon as possible. GSA Contracting Officers may be spread thin as they navigate this transition, so lead times may get longer.

Policy and Administrative Changes

This trend should come as no surprise if you have been keeping up with federal procurement updates the past several months. GSA and federal acquisition arms as a whole are undergoing a period of policy transformation, especially in response to modernization priorities and White House initiatives. This is demonstrated majorly through the Revolutionary Federal Acquisition Regulation (FAR) Overhaul (RFO).

The FAR is undergoing a major rewrite as part of a government-wide push to streamline contracting and eliminate outdated requirements. A few notable changes so far in this rewrite are the reorganization of FAR Part 19 for small business contracting, and the removal of the Order Level Materials (OLM) cap. The OLM cap removal has yet to make it to the MAS Solicitation, but the change has already been made in the RFO.

In the MAS Program specifically, GSA has made several changes including expanding the Transactional Data Reporting (TDR) Program, consolidating the Economic Price Adjustment (EPA) clause, and rolling out the FAS Catalog Platform (FCP) to all MAS contractors.

Defense Spending

While civilian agencies have seen some budget cuts, defense and national security spending continues to climb. The defense budget is expected to rise by about 2% annually for the next decade. Forecasts for FY 2026 show rising investments in innovation, cybersecurity, AI, space systems, tactical communications, logistics, and secure infrastructure. The Department of Defense (DoD) has already expanded its use of the MAS Program for IT, software, cybersecurity tools, analytics, and facilities-related services, and we don’t expect that to change anytime soon.

IT Modernization and AI

IT modernization remains the federal government’s most consistent area of growth and we anticipate that to continue through 2026. GSA has publicly emphasized the need to accelerate the adoption of automation, and AI across agencies. One of the strategies to watch for this is GSA’s OneGov strategy.

GSA’s OneGov Strategy seeks to modernize how government agencies buy goods and services, specifically access to IT tools and services. Recently, GSA has been looking at how agencies can use Artificial Intelligence (AI) to help reduce procurement lead times, standardize documentation, and identify compliance gaps. GSA has already negotiated with several technology firms to discount their offerings, like Perplexity and Open AI to increase the use of AI tools, and companies like SAP to accelerate federal IT modernization.

For MAS contractors offering cloud migration, cybersecurity, Zero Trust implementation, AI or data analytics support, software development, or IT professional services, 2026 may be a great year for these opportunities.

Preparing for 2026 and Beyond

Last year brought a whirlwind of change and we don’t expect this year to be any different. If you haven’t been keeping up with all the changes, we encourage you to start now, and see where you may need to update your GSA Schedule, or how you can get into position acquiring one if you have been considering it for awhile.

If you have any questions about these updates or need help managing your GSA Schedule to prepare for upcoming changes, feel free to contact one of our consultants. We are here to help you.

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About Stephanie Hagan

Stephanie Hagan is the Training and Communications Manager for Winvale. Stephanie grew up in Sarasota, Florida, and earned her Bachelor's of Arts in Journalism and Rhetoric/Communications from the University of Richmond.