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The Incentives Lab
Washington, DC

Public-sector incentive design in Washington, DC

Our DC practice works where incentives are written into law, budget lines, and procurement rules — the places where a well-meant rule reliably produces the behavior nobody wanted.

The Washington economy, read as an incentive system

Washington concentrates federal agencies, contractors, trade associations, think tanks, and nonprofits. Its defining feature is distance between the people who set the reward and the people who feel it — the classic principal-agent gap at national scale.

In DC, the metric usually becomes the mission. Programs are funded on obligation rates and activity counts, so teams optimize for spend and output rather than the outcome the statute intended. Goodhart's Law with a budget attached.

Services in Washington

Public-choice incentive diagnostics

Mapping who pays, who decides, and who is rewarded across a program, agency, or association — then redesigning the measure so it tracks the mission.

Cultural Performance Audit™ for institutions

The same instrument used with corporate clients, tuned for civil-service constraints, union agreements, and appropriations cycles.

Board and association briefings

Closed-door sessions for boards, committees, and leadership councils working a specific policy incentive problem.

Where we work locally

Capitol Hill · Downtown DC · Dupont Circle · Foggy Bottom · Navy Yard · Arlington · Alexandria · Bethesda

Also serving

Maryland · Northern Virginia · Baltimore · Philadelphia · New York

Questions from Washington teams

Do you work with federal agencies and contractors?

Yes — agencies, contractors, associations, and nonprofits. Engagements are scoped to fit appropriations and procurement timelines.

Can you brief a board or committee in DC on short notice?

Briefings and half-day sessions can usually be scheduled within a few weeks. Full audits run four to eight weeks.