FY2026: Shutdown, Awards, and Policy Changes

We’re just a week into FY2026, and while the federal shutdown continues to shape the pace and rhythm of procurement, there’s still plenty of meaningful movement — and several important developments — across the government marketing communications landscape.

Here’s what you need to know this week:

Recent Awards: 

In the final hours of FY2025, a series of notable awards moved forward — underscoring the continued importance of communications programs even as the shutdown began:

  • Savvee – Awarded a $23.5M BPA with the US Coast Guard's CG-092 division for public affairs support services

  • Porter Novelli – Successfully defended their work supporting the CMS Office of Healthcare Experience & Interoperability (OHEI) valued at $5.9M.

  • Red Carrot – Awarded $5.3M by DHS to lead the “If You See Something, Say Something” national awareness campaign.

  • Chatham Communications – Awarded a $4.1M contract to support the Children's Health Insurance Program (CHIP) campaign activities at CMS 

  • LRG – Awarded a $2.7M contract with HHS HRSA for their annual Ryan White conference and various communications and outreach support services, one of the federal government's largest events

  • JPA Health – Secured $357K from HHS/NIH to produce and distribute PSAs highlighting the lifelong health benefits of breastfeeding, supporting federal priorities around nutrition and women’s health. 

Policy Shift: FAR Thresholds Increase for FY2026

One piece of positive news: several key FAR acquisition thresholds officially increased on October 1, 2026, expanding opportunities for streamlined acquisitions, small business participation, and direct awards. The Final Rule can be found here and includes: 

  • Simplified Acquisition Threshold: ↑ from $250,000 → $350,000

  • 8(a) Competitive Set-Aside Threshold: ↑ from $25M → $30M

  • 8(a) Sole Source Authority: ↑ from $4.5M → $5.5M (services) 

Make the Most of the Shutdown: Strengthen Your BD Infrastructure

With procurement activity on pause, many firms are taking this moment to invest inward — using the downtime to evaluate and strengthen their business development infrastructure so they’re sharper and more aligned when opportunities return.

One powerful way to do that: our RISE™ Business Development Assessment — a CMMI-inspired diagnostic tool that helps organizations identify strengths and weaknesses across their BD programs and align internal teams around a shared growth strategy.

We often see revealing insights emerge — for example, one team may self-rate a capability highly while another scores it much lower, sparking important conversations around alignment, accountability, and maturity.

We’ve seen remarkable results from this process with small businesses and consultancies alike. If you’re looking to use the shutdown strategically, learn more about RISE™ here →.

Let’s Connect

We’ll be at the Mid-Atlantic MarCom Summit this Thursday — if you’re attending, please be sure to find us and say hello. We always love connecting with agencies, partners, and peers who are shaping the future of government communications.

 

Mike KapetanovicProfessional Services, Marketing Communications