Scott Flesch discussed President Trump's executive order making fixed-price or performance-based contracts the default for federal contracting, highlighting how performance-based incentive contracting may undercut the administration's stated goal of streamlining federal procurement. Flesch explained that tying contractor profits to performance-based metrics introduces substantial administrative burdens for both agencies and contractors, requiring extensive data tracking, evaluation, and decision-making that can be time- and resource-intensive. Flesch further noted that these incentive-based structures are far from "commercial-like" and may be particularly challenging for small businesses, which often lack the staffing and infrastructure needed to manage complex reporting and compliance requirements. As a result, he cautioned that such contracts could deter smaller firms from competing and add complexity to acquisition processes the government is otherwise seeking to simplify.