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 business will continue to get done, but don’t be surprised if some “new and improved” acquisitions or acquisition methods ratchet down a bit.

2.  The Acquisition Workforce’s Appetite for Data Is Insatiable:  We’ve recently written about GSA’s desire to capture more and more acquisition information, but the appetite for data isn’t limited to GSA.  DOD and NASA, the other two agencies that, along with OFPP, comprise the FAR Council also reportedly have never met a data collection standard they don’t like.  What’s more:  if acquisition officials in one program see a feature in another, they’re likely to ask for that to be added to their own programs as well.  Contractors should not hesitate to have an honest discussion with their government counterparts on the cost of collecting and reporting additional information.  As we learn in our intro economics classes, there is no such thing as a free lunch.

3. Small Business Innovation Research (SBIR) Acquisitions Are Accelerating:  Regardless of a company’s own size, no government contractor should miss the trend toward increased contracting being conducted via SBIR contracts.  SBIR use grew by approximately 31% from FY’2020 to FY’23 and is on pace to meet or beat that number this year.  Large contractors have caught on that teaming with a small business SBIR contractor can be a way to grow their own business as well as to get innovative work awarded more quickly than through traditional acquisition channels.  These three trends are just the latest examples of how the federal market changes over time, even if that change may not be initially recognizable.