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July 8, 2020 By cs

Federal contract spending reaches its highest level ever in fiscal 2019, marking 4 straight years of growth

Spending is expected to increase even more for fiscal 2020, exceeding $600 billion even before coronavirus stimulus funding is included.
Click on image above to download report.

Federal contract spending grew for the fourth year in a row to reach $597 billion in fiscal 2019, its highest level yet and a 6% increase over the previous year, according to newly released data.  Spending is expected to exceed $600 billion in fiscal 2020, without even including spending on economic stimulus funds in the wake of the novel coronavirus pandemic.

The data, compiled by Bloomberg Government, encompasses prime and unclassified contract spending. Bloomberg released the findings in the ninth annual BGOV200 report, which ranks the top 200 federal contractors. The report analyzes market trends, contractors’ performance and other dynamics among 92 federal agencies in 20 purchasing categories during fiscal 2019.

The agencies with the biggest gains in contract spending in fiscal 2019 included: the Housing and Urban Development, Commerce and Defense departments, and the General Services Administration. Some of the top markets were: facilities and construction; professional services; information technology and aircrafts, ships/submarines and land vehicles.

The 200 companies won the same share of total contracts as in 2018 and 2017, which was 64%. The top six companies — all in the defense industry — were: Lockheed Martin Corp., Boeing Co., General Dynamics Corp., Raytheon Co., Northrop Grumman Corp. and United Technologies Corp. This was the same as last year, except McKesson Corp. was number six in 2018 and this year it ranked seventh. In 2019, 37 companies entered the top 200 for the first time.

Keep reading this article at: https://www.govexec.com/management/2020/06/federal-contract-spending-reaches-its-highest-level-ever-fiscal-2019-marking-4-straight-years-growth/166484/

Filed Under: Government Contracting News Tagged With: Bloomberg, CARES Act, Commerce Dept., coronavirus, COVID-19, DoD, federal contracting, GSA, HUD, industrial base, industry, market conditions, pandemic, spending

June 22, 2020 By cs

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/

Filed Under: Government Contracting News Tagged With: budget, continuing resolution, DoD, HUD, industry, Interior Dept., procurement forecast, small business, spending, State Dept.

October 26, 2018 By AMK

USDA saved millions so far due to ‘Centers of Excellence’

Less than one year into the White House Centers of Excellence initiative, the first pilot agency is already saving money.

“So far, we’ve realized around $26 million in cost avoidance and savings and now we’re moving on to phase 2, which is the actual implementation of the plan we developed over the past six months,” said Agriculture Department Deputy Secretary Stephen Censky, speaking last week at the Imagine Nation conference in Philadelphia.

The two-phase CoE effort focuses on five areas: customer experience, cloud adoption, infrastructure optimization, contact centers and service delivery analytics.

The first phase of the program focused on developing the modernization strategy for those key areas through a collaboration between personnel from the General Services Administration, Agriculture and consulting partners brought in through contracts.

The second phase, which Agriculture will now undertake, involves carrying out the strategy and implementing the tech tools and services the department purchases.

Keep reading this article at: https://www.nextgov.com/it-modernization/2018/10/usda-saved-millions-so-far-due-centers-excellence/152063/

Filed Under: Government Contracting News Tagged With: acquisition reform, Agriculture Dept., Centers of Excellence, CoE, GSA, HUD, procurement reform, USDA

December 15, 2016 By AMK

GAO loses jurisdiction over task order protests valued at more than $10 million

Government contractors hoping to challenge a civilian agency’s award of a task or delivery order may be out of luck, at least temporarily.

GAO-GovernmentAccountabilityOffice-SealPrior to September 30, 2016, the Government Accountability Office (GAO) had exclusive jurisdiction over protests of civilian task and delivery orders valued at more than $10 million under multiple-award IDIQ contracts.  The National Defense Authorization Act (NDAA) for Fiscal Year 2008 amended the Federal Acquisition Streamlining Act (FASA) to grant GAO this jurisdiction, Pub. L. No. 110-181, 122 Stat. 3, 237 (2008); the NDAA for Fiscal Year 2012 then established a sunset date for this jurisdiction of September 30, 2016 (41 U.S.C. § 4106(f)).   Any such protests filed after September 30, 2016, are now outside GAO’s jurisdiction, regardless of when the underlying contract was awarded (41 U.S.C. § 4106(f)).  However, contractors retain the right to protest military task and delivery orders valued over $10 million (10 U.S.C. § 2304c(e)), as well as civilian or military task and delivery orders which they allege increased the scope, period, or maximum value of the underlying contract (id. and 41 U.S.C. § 4106(f)).

The Court of Federal Claims’ jurisdiction, which is limited to civilian or military task order protests that allege increased scope, period, or maximum value of the underlying contract, is unaffected by the NDAA sunset provision (10 U.S.C. § 2304c(e); 41 U.S.C. § 4106(f)).

Ryan Consulting Group, Inc., of Indianapolis, Indiana, bore the brunt of the jurisdictional sunset in a GAO decision issued November 7, 2016 (B-414014). Ryan, one of the multiple-award contract holders, was protesting a task order award by Department of Housing and Urban Development under a multiple-award, IDIQ contract with the National Institutes of Health. The task order for enterprise architecture and information technology management support services was valued at more than $10 million.  Ryan did not allege any increase in scope, period, or maximum value of the underlying contract, so GAO had no other basis for jurisdiction. GAO dismissed Ryan’s protest, filed October 14, 2016, for lack of jurisdiction, and noted that GAO has no authority to “grandfather” any protests.

Two pieces of pending legislation could reinstate GAO’s jurisdiction.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=549892

Filed Under: Georgia Tech News Tagged With: FASA, GAO, HUD, jurisdiction, National Institutes of Health, NDAA, task order

March 12, 2015 By AMK

Government spent less on contracts in 2014 than it did the previous year

Federal spending on government contracts decreased in 2014, with the Defense Department seeing the biggest overall decline, according to a March 3 report from Govini, a business consulting company for government contractors.

Govini, each year, releases a federal scorecard that tallies and analyzes data on federal contract spending and agency performance.

The scorecard, which was released to reporters, shows that overall contract spending from the federal government was down 4 percent in 2014 compared to 2013.

The DoD saw the greatest overall decrease in dollars spent, with a nearly $9 billion year-over-year decrease in both the Navy and Army.

Keep reading this article at: http://www.fiercegovernment.com/story/report-government-spent-less-contracts-2014-it-did-previous-year/2015-03-05

Filed Under: Government Contracting News Tagged With: Commerce Dept., DoD, HUD, spending, State Dept., Treasury Dept.

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