From Billable Hours to Measurable Impact: The GSA's Push for Outcome-Based Contracts

"If you're as good as you say you are, you should be able to keep your cost structure down, deliver the mission and the outcome, and still make a margin." - Josh Gruenbaum, Commissioner of the Federal Acquisition Service at the GSA The General Services Administration (GSA), responsible for Federal contracting, has been making DOGE-style headlines of their own this year. In late June, they sent a letter to a number of large consulting firms under contract, looking for opportunities to reduce spending and better understand the work that is underway. Josh Gruenbaum, who is overseeing the review, specifically requested "No consultant gobbledygook" in the responses. The GSA has signaled a mindset shift from time-and-materials to outcome based contracts, a dynamic that is likely to impact private sector consulting contracts and spending as well. In this episode of the Art of Supply podcast, Kelly Barner looks into this shift and what it will require from all involved parties: How the government defines consulting services The multi-round outreach process being led by the Federal government and how firms are responding How to shift to outcome based agreements and the pressure of AI is likely to change the future of consulting Links: Kelly Barner on LinkedIn Art of Supply LinkedIn newsletter  Art of Supply on AOP Art of Supply on YouTube Subscribe to This Week in Procurement