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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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What is a continuing resolution?

A continuing resolution, or CR, is a temporary measure Congress can use to fund the government for a limited time. CRs are typically used to buy time for lawmakers to enact longer-term spending measures.

The passage of a CR usually means the regular process of passing the 12 appropriations bills by the start of the fiscal year has failed because of a standoff between political parties, or between Congress and the president.

While that’s not unusual, the Defense Department — as of mid-November 2019 — has operated under a CR for an average of 119 days per year during the last nine years, compared to an average of 32 days per year during the previous seven, according to the Congressional Research Service.

If Congress and the president fail to act, the government shuts down. Federal agencies are typically disrupted; nonessential operations are suspended, and federal employees and government contractors are left in limbo.

Because a CR will continue the funding rates of the previous year’s appropriations acts, it may bar an agency from starting or resuming a project for which there were no funds the previous year. Before the start of fiscal 2018, for example, the Pentagon identified 75 weapons programs that would experience delays because of the CR’s prohibition on starting new programs and because quantities would be restricted on 40 programs.

Keep reading this article at: https://www.defensenews.com/congress/2019/11/18/what-is-a-continuing-resolution/

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Congress mulls spring continuing resolution to avoid government shutdown

With impeachment proceedings looming and budget talks stalling, Congress will likely need a stopgap spending measure for February or March, the Senate’s top appropriator said last Thursday.

A continuing resolution, or CR, would avoid a government shutdown when the last funding patch expires Nov. 21, just before Congress takes its Thanksgiving recess.

Senate Appropriations Committee Chairman Richard Shelby, R-Ala., said that if the House passes a resolution to impeach President Donald Trump, it will indefinitely dominate the the Senate’s business, forestalling budget talks.

“It takes a lot of oxygen out of the air, and some business is transacted, but it will slow everything down,” Shelby told reporters, adding that a continuing resolution could be needed into February or March.

The Senate last week voted to advance the a package of fiscal 2020 domestic spending bills passed by the House, which would include nearly one-third of all nondefense discretionary spending. The Senate is set to resume consideration of the package today.

That package excludes Department of Defense appropriations, which has been snagged in a fight over border wall funding. Democrats are likely to withhold support for defense spending until a larger spending deal is reached.

Keep reading this article at: https://www.defensenews.com/congress/2019/10/25/congress-mulls-spring-cr-to-avoid-government-shutdown/

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