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8(a) participants to receive one-year extension through COVID-19 bill

Congress has included in the new COVID-19 relief bill a one-year extension of the term for participation in the 8(a) Program.

Under the provision, any small business concern participating in the 8(a) program on or before September 9, 2020 may “elect to extend such participation by a period of 1 year.”

This is good news, especially for those concerns in their last year of viability in the 8(a) program who may have felt shortchanged from COVID’s effects on the economy.

This provision is found under Section 330 of the “Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act” (Division N, Title III of the “Consolidated Appropriations Act, 2021”).  The Consolidated Appropriations Act, 2021 was passed on December 27, 2020.  If you’re trying to find it, it’s at page 2183 of the 5593-page (!) law.

Keep reading this article at: https://smallgovcon.com/8a-program/8a-participants-to-receive-one-year-extension-through-covid-19-bill/

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Projections on contract spending for 2021 are murky

Though the Defense Department’s actual numbers won’t come out until January, federal contract spending for fiscal 2020 is projected to land somewhere upwards of $600 billion — an $89 billion increase over 2019.  Around $30 billion of that increase was COVID-related spending.

With a vaccine still on the horizon, and a presidential transition now underway, projections on contract spending for 2021 are murkier than usual.  That said, Kevin Plexico, senior vice president for Information Solutions at Deltek, said there are a few things that can be expected.

First, the topline budget caps are already set for next year due to the Bipartisan Budget Act of 2019.  They provide for modest increases in discretionary spending, which tends to lead to increases in contract spending.  It’s worth noting as well that 2021 is the final year subject to the restrictions of the Budget Control Act.

Second, President-elect Joe Biden has presented a seven-point pandemic response plan, which includes testing and tracing, as well as potentially $25 billion for vaccine development and distribution.  It’s likely to include significant spending on personal protective equipment as well, and it’s possible he could invoke the Defense Production Act toward this end.

Keep reading this article at: https://federalnewsnetwork.com/contracting/2020/11/what-contractors-can-expect-in-2021/

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What should vendors expect from Q4 2020?

The fourth quarter sprint to the finish line of the 2020 fiscal year starts in about a week.  So what can federal contractors expect?

According to Cameron Leuthy, a senior analyst at Bloomberg Government, professional services will be big, the coronavirus pandemic will present both complications and opportunities, and small businesses should already be getting ready.

To project what’s coming, analysts usually look to the previous year as a template. In 2019, Q4 included 30% of all obligations for the entire fiscal year. The Defense Department alone spent just shy of $120 billion. The departments of Housing and Urban Development, Interior and State each had more than 50% of their total obligations for 2019 in the fourth quarter. September was particularly lucrative, with $94.3B spent that month alone, 66% of which came from DoD.

There are a number of reasons for that, Leuthy said. Sometimes those reasons include policy, or maximizing potential leverage with foreign governments, in the case of the State Department. Sometimes funds are just deliberately held back from obligations, though there can be legal ramifications for that.

“Civilian agencies did hold back in some cases, because of the difference between the amount the administration asked for and the amount that Congress eventually ended up appropriating,” Leuthy said. “There’s also an incentive, and a prudent one, to hold back obligations during CRs and not get ahead of yourself.”

Keep reading this article at: https://federalnewsnetwork.com/contracting/2020/06/what-should-vendors-expect-from-q4-2020/

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Federal procurement spending up $120 billion since 2015

Agencies spent more on procurement in fiscal 2019 than in any of the previous 10 years.
Click on graphic above to see full GAO infographic.

And no surprise, agency pending on multiple award contracts for IT and services spiked last year.

Now that all of the 2019 numbers are final, the predictions of a banner year for contractors and agencies when it came to buying products and services came true.

The Government Accountability Office found agencies spent $584 billion on procurement last year, up $20 billion over 2018 and more than $120 billion since 2015.

 

Bloomberg Government reported that agencies spent $448 billion on procurement in 2014 and a six-year low of $442 billion in 2015.

The Defense Department accounted for $381 billion while civilian agencies spent $205 billion.

Of that, GAO said agencies procured 83.5% of all contracts competitively, up from 64.4% in 2015. DoD continues to struggle with competition as GAO found the Pentagon’s rate dropped to 53.8% in 2019 from 55.4% in 2015.

Keep reading this article at: https://federalnewsnetwork.com/reporters-notebook-jason-miller/2020/06/federal-procurement-spending-up-120b-since-2015/

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Fiscal 2021 budget seeks to ‘resize’ the bureaucracy

Among other things, the White House wants to rein in “improper end-of-year spending” by agencies.

On the afternoon of Feb. 10th, President Trump sent Congress a $4.8 trillion budget request for fiscal 2021 that seeks to “resize” the federal government by eliminating what the administration views as duplicative and wasteful programs and focusing on core security priorities.

The budget request includes a number of proposals Congress has previously rejected, such as significant cuts to the social safety net, foreign aid and environmental programs, as well as some federal workforce hiring and firing reforms and changes to federal retirement the administration has tried to implement previously with mixed success.

Margaret Weichert, deputy director for management at the Office of Management and Budget, told reporters on Monday that the budget reflects “the core elements of the president’s management agenda” and is a “continuation of what we’ve attempted to do over the last couple of years around the workforce.”  While the administration will continue to press for moving federal employees to a pay-for-performance system and employee training and reskilling, “not surprisingly, in year four of an administration there’s not a lot of net new ideas,” she said.

Keep reading this article at: https://www.govexec.com/management/2020/02/trumps-fiscal-2021-budget-seeks-resize-bureaucracy/163014/

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