Georgia Tech Procurement Assistance Center

The government’s historic spending spree continues

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Driven largely by the Defense Department, the federal government’s discretionary spending spiked to a seven-year high in fiscal 2018, with agencies obligating more than $554 billion for products and services, up $100 billion from 2015.

According to official spending data from the Government Accountability Office, the Defense Department accounted for $358 billion in contract obligations while civilian agencies, like the Veterans Affairs and Homeland Security departments, obligated $195 billion.

The government closed the 2018 fiscal year on a massive spending spree—due in part to funding increases after a delayed budget agreement—and early fiscal 2019 spending data indicates the government isn’t slowing down its contract spending.

Spending data tabulated by the Professional Services Council illustrates the spending uptick.

Continue reading at:  Nextgov

Get ready for a massive government spending spree

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A government spending spree of potentially historic proportions will play out over the final seven weeks of fiscal 2018, as federal agencies look to spend $140 billion more than they thought they’d get before Congress signed the omnibus spending bill.

Without a budget agreement in place, agencies spent cautiously through the first two quarters of fiscal 2018 before the omnibus—signed six months late in March—obligated an additional $80 billion for defense and $63 billion for civilian agencies.

Federal agencies, now flush with cash, must obligate that money before the fiscal year ends on Sept. 30 or lose it to the Treasury Department. Analysts believe the federal market will see a monumental effort among procurement officials to spend as much on contracts as possible.

“If agencies are going to spend the extra money in fiscal 2018, it’s going to have to be at a much higher percentage in the fourth quarter than it has been historically,” David Berteau, president of the Professional Services Council, told Nextgov.

Keep reading this article at: https://www.nextgov.com/cio-briefing/2018/08/get-ready-massive-government-spending-spree/150360/

What to expect as the curtain comes down on federal fiscal year 2017

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Government Product News asked Chuck Schadl for his take on government selling opportunities as the federal fiscal year draws to a close on Sept. 30. Schadl is Group Manager for Government Contracting Services at the Georgia Institute of Technology. Here are his views.

The federal government’s year-end spending sprees are legendary as agencies try to commit contracting dollars – lest they have to turn their leftover budgets back to the U.S. Treasury.

A study conducted last year, however, shows that spending just before September 30 seems to be trending downward, with more attention being given to better planning the spend that begins anew on October 1.

The study, “Positioning for 2017: Competitive Outlook in Defense and Civilian Agencies,”shows that for the past two years both defense and civilian agencies have softened their year-end spending spike. Big data and analytics firm Govini conducted the research.

That said, there’s still a disproportionate amount of contract dollars obligated in the fourth quarter of the federal fiscal year – at least 30 percent.

What can vendors do now to perhaps capture year-end money, as well as set the stage for the new fiscal year?

Keep reading this article at: http://americancityandcounty.com/federal/what-expect-curtain-comes-down-federal-fiscal-year-2017

5 steps for winning more federal business in 2015

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Congress will increase discretionary spending beyond Budget Control Act caps in fiscal year 2016 but below the seven percent requested by President Barack Obama, Bloomberg Government (BGOV) analysts said at a symposium last month.

Also at the event, a panel of corporate executive officers said they see the federal procurement market stabilizing in FY 2016 after sharp declines in FY 2014 and 2015.

The remarks were made at a symposium on the outlook for federal contractors in FY 2016. The Fairfax County, Va., Chamber of Commerce sponsored the event.

Head of BGOV Don Baptiste said contractors are most concerned about the federal budget. “No one believes we will exceed the budget caps by seven percent in the 2016 budget, but we are optimistic on flat budgeting,” he said.

BGOV Senior Budget Analyst Cameron Leuthy agreed that Congress will not approve a seven percent rise in discretionary spending in FY 2016 as requested by President Obama.

“Republicans are unfriendly to tax increases” and “Democrats don’t want to cut entitlements,” he said. “That makes it tough to grow discretionary spending.”

Leuthy said the Ryan-Murray budget deal marginally increased spending. “We think that is most likely this year and next,” he said.

Keep reading this article at: http://about.bgov.com/5-steps-winning-federal-business-2015/

After years of declining contract values, 2014 might bring back large programs

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Fiscal 2014 may provide more high-dollar opportunities for federal contractors, after a recent slide in the value of new solicitations.

Deltek analyzed solicitations released each quarter from fiscal 2010 through 2013 as well as the same data for the first quarter of fiscal 2014 and anticipated solicitations for the remainder of the year.

The decreases in federal spending since fiscal 2011 have been mimicked in the combined dollar value of solicitations. Deltek saw a decline in solicitation values to $302.4 billion in fiscal 2013, down from a peak of $376.2 billion in 2011.

In contrast, the number of released solicitations has increased. The total of 6,325 solicitations released in 2013 is slightly less than the 6,700 in 2012, but represents a 32 percent increase from 2011. The average solicitation value in 2013 was $47.8 million, down from an average of $78.4 million two years earlier.

These changes illustrate a shift in federal procurement toward programs that are smaller in scope and dollar value, making it easier for agencies to gain approval to move forward.

Keep reading this article at: http://www.washingtonpost.com/business/capitalbusiness/after-years-of-declining-contract-values-2014-might-bring-back-large-programs/2014/02/20/bfd09b10-972e-11e3-afce-3e7c922ef31e_story.html

What’s on the chopping block—and what’s safe—in the Pentagon’s shrinking budget?

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This year’s scramble in Washington over the budget request will start Monday, when Defense Secretary Chuck Hagel is expected to preview the fiscal 2015 Defense Department budget—a week before the official request goes to Congress.

Its first hint at budget priorities will spur the defense industry to start lobbying, lawmakers to stake out their priorities, and the Pentagon to launch a charm offensive on Capitol Hill. And everyone involved will be chasing the same goal: keeping their priorities safe from cuts, even if that means nudging someone else’s pet project.

Before the budget Hunger Games begin, here are a few key priorities that could be on the chopping block as the Pentagon decides how to cut tens of billions of dollars—and what might escape the ax.

Keep reading this article at: http://www.defenseone.com/management/2014/02/whats-chopping-blockand-whats-safe-pentagons-shrinking-budget/79231/?oref=defenseone_today_nl?oref=d-interstitial-continue 

Defense budget set for 2014-15, but requires reconciliation

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President Barack Obama signed on Dec. 26, 2013 two key pieces of legislation that detail the Defense Department’s budget for fiscal year 2014 and the federal government’s budget for fiscal years 2014 and 2015, detailed in a Reuters report.

Ros Krasny writes the signed defense authorization bill gives the Pentagon $526.8 billion in fiscal 2014, but the two-year budget compromise reached by congressional budget committee chairs Sen. Patty Murray and Rep. Paul Ryan allocates $498 million in Pentagon spending.

A final defense budget number will need to be reconciled early in the new year, Krasny reports.

Under the government-wide budget deal, spending will increase by $63 billion over sequester levels in fiscal years 2014 through 2015, Reuters reports.

Keep reading this article at: http://www.executivegov.com/2013/12/defense-2-year-budget-bills-paint-fy-2014-15-spending-picture/ 

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