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Employing a case of a state transportation agency, we examine how complex institutions which integrate outsourcing within a bureaucratic process adapt to environmental regulatory changes. In 2012, two endangered species of bats were located outside of their established ranges in northern Georgia. These discoveries required the Georgia Department of Transportation (GDOT) to comply with a new set of federal regulations relating to those species when developing its projects. This article examines how GDOT adapted to new and unforeseen regulations in the face of environmental uncertainty. Using archival and interview data, we describe how GDOT engaged in Adaptive Management (AM) to internalize environmental changes (i.e. sufficiently stabilize the situation so that the project can get back on track). We also examine the role of outsourcing in bureaucratic agencies as an avenue for AM and suggest …