The government market is changing as we head into spring.  Here are three things contractors should know this week about their market.

1.  Status of Appropriated Money:  Individual federal offices should have, or be closing to having, their final FY’24 appropriations numbers to spend on projects between now and the end of the fiscal year.  Anecdotal evidence suggests that business activity is generally gaining steam, though overall RFP/Q activity may still need to catch up.  If your company isn’t seeing this, it may be time to refine your federal business approach.

2.  GSA’s Federal Acquisition Service Continues to Change:  The reorganization process started in October is still a “work in progress” according to agency officials.  While boxes have been shuffled on all organization charts except for the IT Category Management portfolio, it will take Read more

Whether in government or the private sector, the AI field is booming and contractors need to understand the many ways in which this could impact their business.  Both Microsoft and Alphabet, the parent company of Google, have seen substantial increases in their overall AI business, driving profits and increasing the interest of other companies that also want to capitalize on using AI technology.  A Google search on “AI” and “federal government” returns nearly 67 million hits.  Websites that cover the government market are filled with stories about AI use, AI policy, new agency AI directors, and more.  It matters not what market segment in Read more

Whether in government or the private sector, the AI field is booming and contractors need to understand the many ways in which this could impact their business.  Both Microsoft and Alphabet, the parent company of Google, have seen substantial increases in their overall AI business, driving profits and increasing the interest of other companies that also want to capitalize on using AI technology.  A Google search on “AI” and “federal government” returns nearly 67 million hits.  Websites that cover the government market are filled with stories about AI use, AI policy, new agency AI directors, and more.  It matters not what market segment in Read more

CUT RULES:  A new FAR rule issued Monday, which not in coincidentally was Earth Day, requires government agencies to obtain sustainable acquisition solutions “to the maximum extent practicable.”  Although most of the requirements fall on companies selling products to the government, service contractors should be aware of this as well.  The rule making in the Federal Register ran several pages and can be found here:  https://shorturl.at/npsHS.  Ironically, contractor compliance with the sustainability rule creates new tracking and reporting requirements, efforts that will use both electric and personal energy.  Indeed, the best way to use government procurement to positively impact the environment would be to roll back the myriad rules that govern acquisition.  While each new rule requires both a “Reg Flex” and Read more

While Congress shifts its focus to international aid, the business of government continues.  Here are three trends contractors should be watching right now that are shaping the market.

1.  Federal Appointee Departures Will Slow the Pace of Business:  The announcement this week that Kiran Ahuja, head of the Office of Personnel Management, will leave government is just the latest indication that this is the season in which political appointees start to depart.  No surprise since this is the last year of President Biden’s term.  Contractors need to remember, though, that the departures drop the pace of innovative projects down at least one notch.  Basic Read more