industry | The Contracting Education Academy

July 27, 2020 By cs

Government contractors and financing a post-coronavirus ‘reboot’ of the economy

When the shutdown ends, contractors will be busy.

When the economy does begin to recover from our nationwide lockdown, one certainty is that it will not be as simple as “turning the lights back on.”

Companies may have a long road back to full strength as they go through the process of restoring their workforces, rebuilding supply chains and planning for growth in a new, unfamiliar economy.

One certainty, however, is that government contractors will be in high demand as agencies face a backlog of project work as well as new initiatives grown out of coronavirus recovery plans. Taking the right steps now will be essential to aligning these resources with expected need.

So why will government contractors face a surge in demand when COVID-19 restrictions lift? One reason is that many projects that were underway in the spring, particularly construction projects, will once again come back online after being placed on hold due to social distancing guidelines. Construction on roads, bridges and highways is expected to peak as state and federal agencies race to catch up on work planned and postponed for the spring and summer periods.

Keep reading this article at: https://federalnewsnetwork.com/commentary/2020/07/government-contractors-and-financing-a-post-coronavirus-reboot-of-the-economy/

The Contracting Education Academy at Georgia Tech has established a webpage where all contract-related developments related to the coronavirus (COVID-19) are summarized. Find the page at: https://contractingacademy.gatech.edu/coronavirus-information-for-contracting-officers-and-contractors/

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/

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/

June 8, 2020 By cs

CEOs of major Defense companies speak out about racism, call for unity

In many cases, their internal messages and social media posts went out days before military leaders issued their own calls for reflection.

It’s rare for defense CEOs to speak out about social or political issues, but many spent the early part of the week doing just that, sending internal messages to their employees and posting to social media about racism in America.

In many cases, their messages went out days before military leaders issued their own calls for reflection last Tuesday and Wednesday.

“The death of George Floyd was the result of a reprehensible act,” Raytheon Technologies CEO Greg Hayes said in a June 1 note to employees — a reference to the black man killed by a white Minneapolis police officer last week. “Although authorities are taking action to ensure justice, the national response and global dialogue related to Mr. Floyd’s death point to a serious issue ― and we must not look away.

“We must take notice,” Hayes continued. “We have to respond clearly that racism, discrimination and hatred will not be tolerated. We must take this moment to embrace the fundamental values that unite us.”

Keep reading this article at: https://www.defenseone.com/business/2020/06/ceos-major-defense-companies-speak-out-about-racism-call-unity/165925

March 18, 2020 By cs

Acquisition contracts key to agencies opening telework options in face of coronavirus

There’s good news and bad news for agencies looking to ramp up telework in the wake of the coronavirus pandemic, according to federal contracting experts.

According to the CDC, a novel coronavirus was identified as the cause of an outbreak of respiratory illness first detected in Wuhan, China in 2019. It is formally named coronavirus disease 2019 (COVID-19).

The good news is federal acquisition contracts are set up for quick acquisition of essential telework equipment, such as laptops or tablets, said acquisition experts FCW spoke with.

The bad news could be that online scammers are watching the expanding tele-workforce with great interest.

The emphasis on agency telework is growing, and although most agency employees are already assigned computers, there may be some hardware gaps to fill as workforces move to remote locations.

Federal governmentwide acquisition contracts, such as NASA’s Services for Enterprise-Wide Procurement, the General Services Administration’s ordering schedule and the National Institutes of Health Information Technology Acquisition and Assessment Center (NITAAC) are set up to help quickly fill laptops, tablets and other IT commodity orders, they said.

Keep reading this article at: https://washingtontechnology.com/articles/2020/03/11/coronavirus-telework-procurement-hardware.aspx

When the shutdown ends, contractors will be busy.

Spending is expected to increase even more for fiscal 2020, exceeding $600 billion even before coronavirus stimulus funding is included.

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

In many cases, their internal messages and social media posts went out days before military leaders issued their own calls for reflection.

There’s good news and bad news for agencies looking to ramp up telework in the wake of the coronavirus pandemic, according to federal contracting experts.

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