How Federal Agencies Can Apply Private Equity Lessons to Improve Efficiency and Strengthen the Supplier Base

Federal agencies are under increasing pressure to improve efficiency, reduce spending, and build a more resilient industrial base. These goals mirror proven approaches used in the private sector—especially in private equity—where optimizing operations, refining supplier relationships, and driving value through smarter spending are routine.

On May 8, 2025, Public Spend Forum, in collaboration with Efficio Consulting, hosted a focused 30-minute webinar outlining actionable strategies federal agencies can adopt, drawn directly from best practices in private equity.

Here is the recorded webinar video:

DOWNLOAD Paper on 5 Strategies from Private Equity to Reduce Federal Contract Spending

The session covered five key strategies that can help agencies reduce costs while strengthening procurement operations:

• Smarter Contracting: Breaking down contracts and renegotiating for better value
• Curbing End-of-Year Surges: Encouraging more strategic, year-round spending to avoid the September “gold rush”
• Centralized Procurement: Leveraging scale for maximum efficiency
• Labor Rate Optimization: Revisiting and renegotiating services contract labor rates
• Strategic Budgeting: Using Zero-Based Budgeting (ZBB) to align spending with actual needs

The webinar offered insights into how these methods—proven in the private sector—can be successfully adapted to the public sector to deliver immediate and long-term gains.