The new year starts this week for the government. Just like last year at this time, the budget is not yet approved for this fiscal year. Instead, the House just approved yesterday a measure to operate through mid-November. This happened several times last fiscal year too if you remember. Finally the government threatened to shut down in late spring before congress approved the budget. In other words, the government operated half way through the fiscal year without an approved spending budget! (Try that in your business!!) We are headed for more of the same this year. Federal spending is cautious at best under such guidelines. Spending is postponed for fear of possible cuts and/or cancellations. This makes it difficult not only for the Contracting Officers but also for the businesses bidding on projects that the government needs to buy. Combine this with the proposed trimming of the budget and business is very uncertain and tough for small business contractors. Large business contractors also feel the pain. It has always been a challenge to do business with the Federal Government but now, especially with the certain drop in defense spending for the first time in over 10 years, makes it even more challenging. There are some areas of opportunity in this market however. It seems that certain areas of spending will demand a growing emphasis, including areas such as Energy (especially conservation related areas), Healthcare, Budget Streamlining and Cybersecurity. There will continue to be Defense related opportunities (spending will be cut, not eliminated) but they will result in more competition and it will be harder to secure them. This will mean businesses need to focus on making sure their systems are compliant, that they can deliver a quality product, at a competitive price and on time. Sounds like typical "lip service" except in today's environment this is no longer "lip service". Only the "best" will survive the competition. If you would like help making sure your offering is in this class, Tech BizSolutions can help you.
DCAA COMPLIANCE BLOG
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