The revolution in AI and the reliance on data to drive decision making are key practices in many government and non-government organizations. Who wouldn’t want tools to assist in making better decisions? It’s important to remember, however, that these new, or newer, instruments are, in fact, just tools. Tools can help us do our job more easily but are still no substitute for doing the actual job. This is important for contractors to consider as they create Read more
“Been there, done that” is an easy trap to fall into if you’ve been in the federal market for some time. Traps are harder to get out of than into, though. Here are three tips for companies to remember to stay on the road to business and out of the complacency ditch.
1. This is a small market: While the dollars spent on acquisition are considerable, there are fewer than three degrees of separation in the federal commercial item and service marketplace. The concentric circles and overlapping networks are substantial. Maintaining a good reputation is key, including such nagging details such as returning calls or emails, following through on promises, and showing up to where you said you would go. Also, keep in mind that the person causing you trouble today may be tomorrow’s customer or ally. This is a market where people know each other’s business. Read more
Unobligated COVID 19 and American Rescue Plan funding will be used to reduce the deficit and cut federal spending as part of the debt ceiling reduction plan that passed Congress late last week. Carbon-emission and green building funding was spared any cuts, showing what the administration prioritizes. Federal contractors had expressed concern that IT, service, and other projects slated to be paid for with such money would be lost and, to some extent, it seems as if those concerns were justified. According to a recent FedScoop article, “Language included in the Fiscal Responsibility Act of 2023 would cut unobligated funds made available to the Federal Citizen Services Fund at the General Services Administration through the Coronavirus Aid, Relief, and Economic Security Act of 2020. It would also claw back unobligated funds appropriated for the Office of the Chief Information officer at the Department of Justice through the same emergency legislation.” While IT leaders may decry losing money for key projects, federal agencies have traditionally experienced claw-backs of unobligated money when Congress decides to cut spending or re-program funds for new priorities. Slow action on obligating money, some of which has been available for nearly three years, is not the fault of Congress, either. It’s difficult to claim that “critical” projects are being placed at risk by the cuts if money has been available across multiple fiscal years. Also, just because money is being trimmed today, doesn’t mean it is gone forever. Provisions in the debt bill allow for the possibility of restoring some of the trimmed funds in future Congressional action if a case can be made for such action. Contractors, federal agencies, and their allies in Congress are all sure to try to make such cases for a wide array of projects. There’s almost always a chance for another bite at the federal funding apple.
Now that Congress has averted a potential partial government shutdown by passing a deal to extend the debt ceiling the remainder of the fiscal year should be strong for contractors. Companies, however, should keep an eye on what happens after that. It’s true that the federal market should be its traditionally active self this summer, including the busy final quarter. Congress appropriated plenty of money for FY’23 and most of that money has to be spent or obligated by midnight September 30th. That’s the good news. The bad news is that part of the debt ceiling deal contains a provision that would impose automatic 1% discretionary spending cuts at the start of FY’24 if Congress fails to pass all 12 appropriations bills on time. This returns the term “sequester” to federal spending discussions, a word that neither contractors nor their federal clients like. Since Congress almost always misses the appropriation deadline, it seems likely that there will be cuts at the start of the next fiscal year. Whether or not those cuts are restored during negotiations on any final spending measures is, as yet, unknown. In the meantime, public sentiment seems to be shifting toward reigning in government spending now that the pandemic crisis has passed. Two polls conducted in April, including a Harris poll, showed that 60% of voters believe that the government has too much debt and that spending should be frozen along with unspent COVID money clawed back. Those results are bound to be used by spending hawks to support reduced levels of spending everywhere except, perhaps, DOD. Those polls also showed that a sizeable part of the electorate does not favor the reelection of President Biden, giving he and his Congressional allies limited negotiation room on spending or other high-profile priorities. Now is the time to lock up federal business, but companies should definitely be prepared for the tightening that could come next.
The General Services Administration runs multiple “Interact” sites meant to be the primary way through which the agency communicates with industry. Any contractor that has asked a question to a GSA contracting official over the past several years has probably been directed to the pertinent Interact site for an answer. That’s great, so long as the Interact sites are regularly updated and communicate useful information. A recent review by Allen Federal, however, showed that three of four major Interact sites have not been updated for a month or more, even as critical developments around the agency’s IDIQ contracts unfold. As of today, the OASIS+ Interact site has gone 30 days without an update, even though OASIS+ needs to move Read more