Georgia Tech Procurement Assistance Center

U.S. defense contractors report that business is booming — thanks to new spending, lower taxes

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The U.S. defense industry is on track for one of its best years in recent memory.

The five largest U.S. defense contractors — Lockheed Martin, Boeing, Northrop Grumman, Raytheon and General Dynamics — reported healthy financial results for the third quarter, in a series of earnings reports over the past week.

They benefited from a defense budget that has grown significantly under a Republican-controlled Congress and White House, as well as a 2017 tax overhaul that slashed their corporate tax rates.

“We’re seeing more and more signs of sustained long-term stable defense budget in the U.S.,” Boeing chief executive Dennis Muilenburg said Wednesday.

They have also taken advantage of a more stable budget environment that has made it easier for them to prepare for the future. Last year, Congress lifted the “sequestration” budget caps that have limited defense spending since 2013. For the first time in years, lawmakers passed their most recent spending bill without a “continuing resolution,” giving defense firms a better blueprint for their future sales.

Keep reading this article at: https://www.washingtonpost.com/business/2018/10/26/us-defense-contractors-report-that-business-is-booming-thanks-new-spending-lower-taxes

Billions of dollars in construction funding in FY 2019 funding bills

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On Sept. 13, Congress passed a Fiscal Year (FY) 2019 appropriations bill — which the president is expected to sign into law —t hat will provide significant amounts of funding for military construction projects through the U.S. Army Corps of Engineers (USACE) and Naval Facilities Engineering Command (NAVFAC); hospital, medical clinic and cemetery projects through the Department of Veteran Affairs (VA); and harbor maintenance, lock, dam, levee and environmental restoration projects through the USACE Civil Works Program.

The bill provides a total of $10.3 billion for military construction projects. This is an increase of $241 million, or 2.4 percent, above the enacted FY 2018 level. The bill appropriates $1.6 billion to fund construction, operation, and maintenance of military family housing for fiscal year 2019. This is $173 million above the fiscal year 2018 level and the same as the president’s FY 2019 budget request.

Major and minor construction within the VA is funded at $1.8 billion. In addition, $2 billion is provided for infrastructure repair, with the funding allocated to major and minor construction and non-recurring maintenance. Within the infrastructure total funding, $750 million is targeted to seismic corrections at VA facilities nationwide.

Keep reading this article at: http://advocacy.agc.org/billions-of-dollars-in-construction-funding-in-fy-2019-funding-bills/

Pentagon races to empty its coffers by month’s end

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The federal government is primed to spend as much as $300 billion in the final quarter of fiscal 2018 as agencies rush to obligate money appropriated by Congress before Sept. 30 or return it to the Treasury Department.

The spending spree is the product of the omnibus budget agreement signed six months late in March coupled with funding increases of $80 billion for defense and $63 billion for civilian agencies. The shortened time frame left procurement officials scrambling to find ways to spend the money.

Through August, defense and civilian agencies obligated some $300 billion in contracts. But to spend all the money appropriated to them by Congress, they may have to obligate well over $200 billion more in the final quarter of fiscal 2018, which ends in two weeks.

Keep reading this article at: https://www.defenseone.com/politics/2018/09/unprecedented-government-spending-spree-picks-speed/151348

With 2018 budget, Christmas comes early for federal contractors

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The federal government is flush with money, thanks to a $1.3 trillion fiscal 2018 funding package. Contractors that take proactive steps now can benefit from this bonanza.

After five continuous resolutions and a government shutdown, it’s Christmas in April and the gifts are flowing. The biggest winners in the omnibus spending bill include the departments of Commerce, Defense, Energy, Health and Human Services, Homeland Security and Transportation, all of which saw increases of more than 10 percent over last year.

Even the EPA, the beleaguered agency that the White House wants to slash – remained flat. The State Department was the only major agency that had a cut, only 5.9 percent, less than the 8 percent requested in the President’s budget.

With a total increase in the fiscal 2018 budget of $143 Billion, $80 billion for defense and $63 billion for civilian, the challenge now for most agencies will be spending the massive influx of funds by the end of the current fiscal year, Sept. 30.

Keep reading this article at: https://washingtontechnology.com/articles/2018/04/18/insights-abel-fiscal-2018-buying.aspx

The next gov’t shutdown: How contractors can prepare

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Congress’ short-term spending bill signed on Jan. 22, 2018 ended the nearly three-day government shutdown. As this spending bill only appropriated funding for government operations for three weeks, however, and does not resolve the underlying political disputes, it is unlikely to put an end to shutdown politics for good, or even for long.

Participants in the federal market would be wise to review the issues and challenges presented by shutdowns in order to remain prepared for what may come.

What Activities Can Continue During a Shutdown?

During a shutdown, federal contractors must determine whether they may continue performing. A government shutdown is not a self-executing stop-work order; a shutdown itself does not suspend a company’s obligations to perform or the government’s obligation to pay for performance. What matters is whether a contractor’s work requires any new appropriation or authorization of spending, and whether critical government personnel, facilities, and resources are available.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=666774

Also see DoD’s Jan. 18, 2018 Shutdown Guidance (Jan. 18 2018) at: https://www.defense.gov/Portals/1/Documents/pubs/GUIDANCE-FOR-CONTINUATION-OF-OPERATIONS-DURING-A-LAPSE-OF-APPROPRIATIONS.pdf,

What federal contractors should do during the government shutdown

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Government employees aren’t the only ones who are wondering what they’ll be doing on Monday if Congress can’t reach a budget agreement; federal contractors are also facing a lot of uncertainty.

Depending on when their contract was funded, what agency they’re with, what they’re doing, and where they work out of, some contractors may continue working as if nothing has changed.

If the federal personnel the contractor works alongside is locked out, the contractor may be too.

There are a lot of variables at play and most of them look to be less than ideal for contractors, who in most cases will lose money during this ordeal. But while everyone hopes this will remain a short-term dispute, there are a couple of ways contractors can use the time away from federal job sites more productively.

Keep reading this article at: https://wtop.com/government/2018/01/federal-contractors-government-shutdown/

 

 

Impact of a shutdown on contractors means lost wages, project delays

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Government contractors are often overlooked when it comes to the threat of a government shutdown. And as the most current threat becomes more and more real, many are waiting for guidance from their agency customers.

“We are hearing there is a lack of communication,” said David Berteau, the CEO of the Professional Services Council, an industry association. “We saw cases in 2013 where the contracting officer and contracting officer representative for a program gave direction to the contractor and put them on the list of cleared individuals, but when they showed up at the base or installation, there was no guard or the guard didn’t let them in. There were a lot of those disconnects in 2013. If a shutdown happens this time, the same thing may happen.”

PSC, the IT Alliance for Public Sector and the Coalition for Government Procurement are offering resources centers for contractors as they plan for a possible partial shutdown.

Keep reading this article at: https://federalnewsradio.com/government-shutdown/2018/01/impact-of-a-shutdown-on-contractors-means-lost-wages-project-delays/

Government contractor shutdown advisory

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With yet another government shutdown looming, contractors face a number of uncertainties and challenges that warrant close attention — regardless of whether a shutdown takes place or how long it lasts.

Among other challenges, contractors may face:

  • a lack of incremental funding;
  • the inability to enter into new contracts or contract modifications;
  • closed government facilities;
  • furloughed government employees;
  • delayed payments;
  • increased indirect costs; and
  • unexercised and deferred contract options.

Below we offer six suggestions to help address key areas impacted by a shutdown, including contract funding, internal and external communications, recordkeeping, and deadlines.

Keep reading this article at: https://governmentcontractsnavigator.com/2018/01/19/government-contractor-shutdown-advisory/

What tech trends to expect in FY18

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Earlier this year, Washington Technology shared four technology trends that it predicted would take shape in 2017: IT modernization, the digital connect, data security and intelligence-driven enterprise. Now as we enter the next federal fiscal year, the publication is checking in to see how those predictions have fared – and share some thoughts about what will happen next.

Under the new administration, the most significant trend we’ve seen take shape is not just about leveraging technology to better streamline service delivery, but enabling efficiencies and cost savings across the federal government while doing so.

Since the president’s proposed 2018 budget has not yet been approved, and agencies will likely be working with extensions for a few months at least – not to mention the looming possibility of sequestration, we envision that the focus will remain on investing in, and deploying, and applying technologies that drive outcomes while reducing costs.

Keep reading this article at: https://washingtontechnology.com/articles/2017/10/26/insights-parameswaran-2018-tech-trends.aspx

An infrastructure deal should be easy, but isn’t

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The stars should be aligned for a big infrastructure deal.

The lingering devastation from the hurricanes that crippled Houston and Florida underscored the national problems of crumbling roads and bridges, inadequate transportation systems and aging electrical grids. President Donald Trump and congressional Democrats both want Washington to spend billions on repairs and construction.

The need is critical. The American Society of Civil Engineers recently gave the country’s infrastructure a D-plus grade and estimated that its deficiencies will cost the economy $4 trillion over the next decade. As Floridians go days, stretching into weeks, without power, and with old people dying in nursing homes, the urgency is clear.

Keep reading this article at: https://www.bloomberg.com/view/articles/2017-09-17/an-infrastructure-deal-should-be-easy-but-isn-t

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