Congratulations! You made it to FY’25. We hope FY’24 was a success. Your reward for a great last year is to crank up and get started for the year ahead. Here are three things contractors should focus on now to be prepared:
1. Work To Smoothly Start Awarded Contracts: There just isn’t going to be that much new business right now, so instead dedicate extra resources to making sure you launch existing projects well and get out in front of any potential management or fulfillment headaches. Past performance is an important evaluation point for getting future work and that performance starts now. Now is also a great time to have discussions about what might happen to that project in the event of a shutdown later this year or in early 2025.
2. Focus on Compliance & Ethics Training: The government is operating under a CR for the next 12 weeks. There won’t be any new project starts for that time, plus many of your federal contacts will take a well-deserved break. While breaks are a good idea for contractors too, it is absolutely essential for companies to use this time for important training on new rules that shape how you sell and what you must comply with. More rules = more ways to potentially get in trouble. No one wants to be the next company to welcome the FBI to their office.
3. Get Out and Network: We’ve said before that this time of year is about the best in terms of networking with both government and industry officials. Meet new people. Learn new skills. Become a more valuable asset to your company and enhance your career at the same time. There is at least one federal market-related conference every week between now and early December. Federal buyers, especially, like to do business with people who make an effort to see and be seen. Take the family to Hawaii at Christmas. Doing the important work now prepares you for another great year in government procurement and contracting.
In case you missed it, there are three issues circulating right now that could have a substantial impact on GSA Multiple Award Schedule contractors and, other commercial item contractors. No contractor should ever assume that there’s nothing new under the GSA contracting sun.
1. The GSA IG Criticizes Both CSP and TDR-based Schedule Price Determinations: A new GSA IG report issued last week again takes agency contracting officials to task for real or perceived reliance on improper information to make price reasonableness determinations. This finding Read more
OEM’s and re-sellers should take a step back at the start of the new fiscal year and prepare to justify their business models from what will almost certainly be increased scrutiny from agencies, and perhaps Congress, in the wake of last week’s contractor raid. Early signs indicate increased attention over the role of government-only, or government-mostly re-sellers and whether such companies offer good overall values to the government or reduce competition Read more
All federal agencies will remain open through December 20th per a Continuing Resolution (CR) passed September 25th. Although doing business under a CR is no one’s first choice, the government and its suppliers are used to it by now. The specter of a shutdown has also been at least temporarily removed.
When can federal agencies and the companies that do business with them expect to see “final” appropriations for the 2025 Fiscal Year? Here are three scenarios that could help those involved in the business of government plan appropriately.
- Kamala Harris is Elected President, but Neither Party Holds Both Chambers of Congress: Under this scenario, there would be little point in pushing final appropriations actions out into the 2025 calendar year. Harris had some level of input into the Biden budget and a new Congress that looks similar to the current one couldn’t change much from what’s already been done. Congressional leaders have said that they would like to get appropriations passed by the end of the calendar year, which is the new “normal”. This election outcome makes that more likely.
Shutdown Chances: Low
- Donald Trump is Elected and Republicans Maintain Control of at Least one Chamber: A Trump Presidency, coupled with at least some sort of Republican Congressional power base, increase the chances that final appropriations would be delayed into calendar year 2025. Republicans would want to give their president a chance to have some impact on spending measures and, if a new Congress was thought to be more sympathetic, that would likely resurrect some version of an earlier House proposal to extend a CR into March. A short shutdown, just to show people they can do it, is not totally out of the question. Final appropriations could come at about the same time they did in FY’24 – late winter or early spring.
Shutdown Chances: Moderate
- Kamala Harris is elected President and the Democrats Control Both Chambers: House Republicans would likely push very hard in a lame duck session to assert their current influence, knowing that it would end in the new Congress. A relatively small number of members could force a shutdown to protest anticipated increases in government spending. Democrats, though no fans of a shutdown, may also want to delay final appropriations action until a new Congress under their control can weigh in. This would again likely push action into the late winter or early spring.
Shutdown Chances: High
Government agencies and their contractor partners should watch election outcomes closely. Not only will they provide a roadmap on policy priorities and legislation for several years, they will also have a potentially significant impact on when and how FY’25 appropriations are finally enacted.
Note: A similar article appeared last week on the Washington Technology website
Most companies have heard by now that one of the very largest GSA Schedule contractors was raided last week by a joint FBI/Defense Criminal Investigative Service (DCIS) task force. While raids are rare, they do occur and can significantly disrupt your business and attract unwanted attention. Here are four tips contractors should follow to minimize armed federal agents suddenly appearing at their door.
1. Carefully Vet Your Business Partners: The raided company is reportedly not the main target of the FBI/DCIS investigation. Rather, it is a company that they partner with. Remember, you are “your brother’s brother”, at least according to the feds. Companies must do a thorough Read more