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 several months, or longer, before the full impact of the new organizational structure will be known.  Next up?  A thorough look at the MAS program.

3.    Keeping Key Employees May Have Just Gotten Tougher:  The Federal Trade Commission (FTC) issued a ruling last week negating non-compete agreements for all but senior-level corporate employees.  While the rule is being challenged in court, this development could have a substantial impact on service contractors.  Being able to bid, and deliver, key people on such contracts is often a decisive issue in competing for business.  While contractors don’t like to lose key people, they also know that attracting experienced workers with great customer relationships can give them an edge.  .

Contractors will want to closely watch how the litigation on this rule plays out.  Anticipating change in the government market doesn’t just mean staying ahead of the curve.  Sometimes it can mean the difference between growing a business or not.  Make sure your company knows what’s happening now.