This executive report outlines the ten most significant trends shaping federal contracting in 2026. It covers budget uncertainty, defense versus civilian spending divergence, acquisition reform, FAR overhaul, cybersecurity compliance, AI policy, and workforce reductions. The report explains how DOGE-related terminations and contract scrutiny are impacting market stability, especially for small businesses. It provides strategic insights on where growth is expected and how contractors can adapt to regulatory, economic, and operational disruption. The analysis helps firms anticipate change and refine bid strategies.

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