Rebooting Government: AI, Acquisition, and the Post-Shutdown Revolution

Original broadcast date: 11/9/25

In this episode of Fed Gov Today with Francis Rose, federal leaders and experts unpack what comes next after the longest government shutdown in history. Francis talks with Mike Derrios, former Deputy Assistant Secretary for Acquisition at the State Department, who explains how agencies and vendors will face a “deluge of activity” as contracts restart, invoices are sorted, and staffing gaps are filled. He highlights the impact of the new FAR overhaul, which gives contracting officers greater flexibility and encourages innovation, while also demanding cultural change and confidence from acquisition leaders.

Later, Snowflake’s Matthew Rose discusses how the FAR reforms are reshaping communication, vendor engagement, and buying practices. He describes a shift toward outcome-based contracting and value-driven partnerships that mirror commercial best practices, powered by rapid advances in AI and data.

Former Energy Department CIO Ann Duncan joins to explore how agencies can truly “do more with less” after the shutdown. She calls for smarter prioritization, simplified procurement, and realistic expectations for governmentwide contracts. Throughout the episode, guests emphasize collaboration, adaptability, and technology as key tools for federal acquisition’s post-shutdown recovery — and a more efficient, modern government moving forward.

From Shutdown to Showdown: Rebuilding Federal Contracting Smarter and Faster

Mike Derrios, former Deputy Assistant Secretary for Acquisition at the State Department, joins Fed Gov Today to discuss how the federal acquisition community will rebound after the historic government shutdown. He explains that once agencies reopen, both vendors and contracting officers will face a “deluge of activity” — resubmitting invoices, rehiring staff, and restarting paused projects. Small businesses, in particular, may struggle to rebuild teams after losing talent during the shutdown.

Derrios notes that government acquisition offices are also dealing with smaller staffs and attrition among 1102 professionals, making recovery even more challenging. He discusses how the upcoming FAR overhaul gives contracting officers more flexibility and encourages them to “play in the gray space,” a change that requires strong leadership and trust from agency leaders. He urges acquisition managers to empower their teams to use that flexibility confidently and creatively.

Looking ahead, Derrios highlights contract consolidation and GSA’s “One Gov” initiative as key shifts toward strategic, governmentwide purchasing. He also emphasizes the growing importance of technology and AI, encouraging contracting professionals to think like technologists. If agencies and vendors embrace these changes, he says, the government can come back stronger, more agile, and better prepared for future challenges.

Key Takeaways: 

• After the shutdown ends, agencies and vendors will face a surge of contracting activity as projects restart, invoices are resubmitted, and teams are rebuilt—especially for small businesses that lost staff during the pause.
• The FAR overhaul gives contracting officers new flexibility to innovate and use judgment rather than follow rigid processes. Derrios says leaders must create a culture that encourages experimentation and supports their teams as they adapt to this change.
• Looking ahead, he emphasizes that acquisition professionals need to think more like technologists. As AI and data tools reshape procurement, understanding technology and strategy will be essential to make federal buying faster, smarter, and more effective.

The New Rules of Federal Buying: How the FAR Overhaul Is Changing Everything

Matthew Rose, Head of Government Affairs at Snowflake, joins Fed Gov Today to discuss how the Federal Acquisition Regulation (FAR) overhaul is transforming the way government buys technology and services. He explains that recent changes mark a major cultural shift in communication between agencies and industry, encouraging open dialogue and collaboration during market research. These updates, he says, are helping both sides keep pace with the rapid evolution of AI and data technologies.

Rose highlights three key trends emerging from the overhaul: stronger communication, broader engagement with diverse vendors, and reduced complexity in acquisition. He notes that agencies are increasingly adopting outcome-based contracting—focusing on results rather than level of effort—which mirrors best practices from the commercial world. This approach allows the government to better leverage its immense buying power and streamline procurement through initiatives like One Gov.

He stresses that leadership and education are critical to sustaining these changes. Agency leaders must help their teams revisit old assumptions and understand how new technologies, including AI, can improve both mission outcomes and day-to-day work. Rose concludes that the ultimate goal is simpler, faster acquisitions that deliver greater value for agencies, industry partners, and taxpayers alike.

Key Takeaways:

1. The FAR overhaul sparks a culture shift toward open communication between agencies and industry, helping both sides keep pace with fast-moving technology.
2. Agencies are moving toward outcome-based contracting, paying for results instead of effort, and using their collective buying power more strategically.
3. Strong leadership and workforce education are essential to sustain reform and ensure technology—especially AI—works for people, not the other way around.

Doing More with Less: Smarter Spending and Real Reform After the Shutdown

Ann Dunkin, former Chief Information Officer at the Department of Energy, joins Fed Gov Today to discuss what “doing more with less” really means for agencies after the government shutdown. She notes that this phrase has been used many times before, but hopes the current moment will push leaders to pause, reflect, and focus on what actually works. Dunkin believes the administration has an opportunity to rethink old habits and pursue meaningful, targeted improvements rather than sweeping changes that may overwhelm limited staff and budgets.

She emphasizes that agencies should narrow their efforts to areas with the greatest impact—particularly commodity services like email, file sharing, and telecom—that can benefit from governmentwide contracts managed by experienced organizations such as GSA, NASA, or NIH. However, she warns that not everything can be centralized; many programs require local expertise and flexibility.

When it comes to encouraging participation, Dunkin says both incentives and some accountability may be needed, but the best motivation will come from real cost savings and efficiency gains. She concludes that success after the shutdown will depend on how quickly agencies can issue smarter contracts, leverage shared resources, and make the most of smaller, overstretched workforces.

Key Takeaways: 

• Agencies should use the post-shutdown moment to rethink priorities and focus on what truly works, not just repeat old “do more with less” slogans.
• Centralizing commodity services like email and telecom can boost efficiency, but many missions still need local expertise and flexibility.
• Real progress depends on smarter contracts, clear cost savings, and leadership that helps smaller teams work faster and more effectively.