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Federal contracting trends to expect in 2021

February 5, 2021 By Nancy Cleveland

While the COVID pandemic defined 2020 for government contractors and everyone else, I have hope that 2021 will mark a return to normalcy and growth for this sector.  Federal contracting will still feel the effects of the pandemic in the year ahead, but other issues are on the horizon for our now $600 billion industry.

Here are what I predict will be the main trends and headlines to watch for in 2021:

Employee Recruitment From Lower Cost Areas: Related to the increase in remote workers due to COVID-19, federal contractors can now recruit for staff from across the United States who do not necessarily need to live in expensive areas like Washington D.C.  The lower cost of living in other locations could result in lower salaries, which in turn will allow for more competitive pricing.

Large Companies Will Reach Out to Smaller Contractors for Access: Larger contractors will increasingly reach out to smaller businesses for access to set aside contracts.  This is due in part to increased emphasis on HUBZones, women-owned small businesses, economically disadvantaged women-owned small businesses and other set-aside categories.

Continue reading at:  Nextgov

Filed Under: Contracting Tips Tagged With: federal contracting, trends

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