Georgia Tech Procurement Assistance Center

Signals: The federal government’s growing interest in blockchain technology

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The term “blockchain” remains a mystery to many, but its potential is extremely intriguing, particularly as applied to the government contracting industry.

As reflected in the 2018 National Defense Authorization Act (NDAA) ( H.R. 2810), the federal government is cautiously entering the blockchain waters.  This blog post will first attempt to explain what blockchain is, and then will review some of the government’s efforts to understand how blockchain can improve its business processes.

Holland & Knight attorneys Shawn Amuial, Josias Dewey, and Jeffrey Seul recently authored The Blockchain: A Guide for Legal and Business Professionals.  The book explains the blockchain concept in a readily understandable manner:

Blockchain is a distributed ledger existing across many computers that can record transactions or other data.  The transactions are mined into blocks and each block is given a unique hashtag that is copied onto a subsequent block, which form a chain (hence, the term blockchain).  Changes to the blockchain are very difficult because the blocks are chained together and distributed across a wide network.

This technology – distribution of data over multiple computers that is linked together and has a unique identifier – is of particular interest to the government contracts industry.  For example, blockchain technology potentially may produce “smart contracts,” which would be virtually self-executing and self-administered.  It may also be useful in tracking supply chains or distributing energy.  The Government accordingly is studying blockchain technology, especially whether it is resistant to cyber-attacks.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=660850

Despite procurement concerns, vendors made out well in 2016

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Federal procurement spending is up.

The number of mergers and acquisitions are skyrocketing. And overall, despite worries about the transition to a new administration, the continued inability of Congress to pass appropriations bills on time and what, many said, was an unfriendly environment for federal contractors, fiscal 2016 was a pretty darn good year for vendors.

Bloomberg Government found agencies spent $477.8 billion on acquisitions in 2016, up from $441.6 billion in 2015—a $36.2 billion increase (8 percent).

“Overall we saw a lot of positive areas for contractors in terms of growth in these markets,” said Daniel Snyder, deputy director of BGov’s Government Contracts Research, during a webinar on Aug. 29. “About one-third of overall categories were in the plus this year, and then in terms of companies, about 121 companies improved their rankings, they are followed by 64 who did a little worse than the year before and 14 remained just about the same and maintained their position.”Bloomberg Government released its sixth annual Top 200 contractors Aug. 23 along with data on trends across the federal sector.

Keep reading this article at: https://federalnewsradio.com/reporters-notebook-jason-miller/2017/09/despite-procurement-concerns-vendors-made-out-well-in-2016/

Top 10 acquisition trends of FY17

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As the final push for fiscal 2017 contract obligations comes to an end, it’s helpful to take a step back and assess the contracting environmental trends that have emerged over the past year. Each trend lends itself to further study, so here’s a high-level look at the top 10.

1. Federal sector spending has bottomed out, with anticipated growth.

Following years of declining spending, it is beginning to appear like this decline has bottomed out, with a growth in federal spending on the horizon. While there is considerable talk, firm steps are in motion for increased contract spending, particularly in defense, with reduced civilian agency spending. Clearly, a reevaluation is occurring from the dramatic budget cuts proposed for many civilian agencies, while the Department of Defense will reap increases in the short term.

Keep reading this article at: http://www.federaltimes.com/acquisition/2017/08/25/top-10-acquisition-trends-of-fy17-commentary/

State and local government survey shows increased opportunities, overworked staffs, and implications for vendors

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Government business intelligence company Onvia has released a new report addressing key changes and shifts taking place in public purchasing today.

The report — based on a survey of 668 procurement professionals and key decision makers from state, county and city agencies, including school and special districts nationwide — provides insights to businesses seeking contracts with these units of government.

In the report, agencies describe their current contracting environment as generally healthy and improving.  39% of the survey respondents expect growth in bid volumes in the next 12 months.  The report notes the “recent surge in demand for infrastructure bids stemming from the $200 billion in tax initiatives for these projects approved by voters nationwide in November.”

The increase in opportunities is contrasted with agency staff’s collective recognition that the formal bid/RFP process is “one of the most challenging aspects of their job, particularly in the areas of research, planning and specifications.”  State and local government procurement teams report that since last year there has been an increase in the share of procurement staff that are stretched or overworked.  Onvia notes that when purchasing staffs are overworked it has a negative impact on businesses who have to navigate through poorly worded bid language, adding preparation time for bidders.

Given the current purchasing environment, Onvia’s report contains a number of meaningful observations for businesses in pursuit of contracts with state, local, and educational (SLED) institutions.  Among the observations:

  • The most successful government contractors do not wait around for a bid or RFP to be issued but are actively building constructive, consultative relationships with government agencies. Without demanding loyalty or future business, these proactive companies will offer helpful advice to busy, overworked buyers about market or product trends, best practices and pricing guidelines that can help procurement staff during the critical pre-bid phase of research and planning.
  • Forward-thinking and proactive contractors should pay attention to these trends and consider how to be sensitive to buyer and user needs in their outreach, communications and project management. Where there is greater uncertainty, stress or confusion on the buying side, vendors that become known for working well with agency teams as valued partners can help differentiate themselves and earn more business even if they are not typically the lowest-priced option.

A free copy of the complete survey results and report can be downloaded at: https://www.onvia.com/market-research/surveys/survey-government-procurement-professionals-2017

 

Federal IT spending to remain flat over next 5 years

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Federal BudgetWhen the Obama administration’s 2017 budget was released in February, it showed that IT spending was set to grow 1.8 percent, up to $89.9 billion over last year’s total, with about $51.3 billion designated for civilian agencies.

This was positive news for the defense and tech contractors that serve the federal government, but the uptick may not be a sign of things to come. According to the analysts at Deltek, federal IT spending will actually decline over the next five years as agencies attempt to modernize aging IT infrastructure and reduce duplicative technologies and investments.

The Federal Information Technology Market report released earlier this month estimates total federal IT spending declining from $99.8 billion in fiscal 2016 to $98.3 billion by 2021.

Keep reading this article at: http://www.nextgov.com/cio-briefing/2016/07/deltek-federal-it-spending-remain-flat-over-next-5-years/129890

Survey reveals trends in government spending

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Onvia Report 07.2016Business intelligence firm Onvia has released the results of its first annual survey of government procurement practitioners, polling more than 500 pros from city, count and state governments, as well as school districts across the US.

For each insight gained through the survey, the report actually separates what each lesson means for both buyers and suppliers.

For instance, 42% of respondents said that on average, their requests for proposal (RFPs) don’t receive enough bidders.

According to the report, a big reason for the lack of competition was “cumbersome” or difficult regulations that scare off potential bidders, and that the largest agencies face more trouble in this area.

Keep reading this article at: http://publicspendforum.net/onvia-survey/

Visit Onvia’s site to download the report for free.

After milestone year of recovery, state government spending to slow

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State Spending Expected to SlowThis year was one of milestones for state budgets, but the upward swings of 2016 will likely be dampened in the years ahead.

It took almost a decade, but total state spending and revenues finally surpassed pre-recession peaks this year, according to a new survey from the National Association of State Budget Officers (NASBO). Yet more than two dozen states haven’t reached that milestone, a sign of the recovery’s uneven progress after the worst economic collapse in more than a generation.

While fiscal 2016 also marked the highest annual growth — 5.5 percent — for total state spending in nearly a decade, it was primarily driven by significant one-time spending increases and technical adjustments in several large states, including New York, Ohio and Texas. The median spending growth rate across the 50 states was 3.8 percent, which is lower than last year’s but slightly ahead of expectations a year ago.

Looking ahead, spending is projected to slow down even more, to 2.5 percent next fiscal year (which begins July 1 for most states). Revenues are also projected to slow.

Keep reading this article at: http://www.governing.com/topics/finance/gov-nasbo-survey-2017-state-spending.html

5 things contractors should care about in 2016

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Person drawing a graph

Calendar 2016 is in full swing and the fiscal year is nearly a third of the way through, but it’s not too late for government contractors to get ahead of the new year.

Recently, the Washington law firm Crowell & Moring hosted a webinar on topics ranging from acquisitions to intellectual property rights. Here’s a look at some of what contractors should keep their eyes on and ears turned to in 2016:

  1. An Election Year
  2. Labor and Employment
  3. Cybersecurity
  4. Intellectual Property and Data
  5. Mergers and Acquisitions

Keep reading this article at: http://federalnewsradio.com/industryassociations/2016/01/5-things-contractors-care-2016/ 

4 government contracting trends to watch in 2016

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Today’s times represent an ongoing shift in the federal services marketplace. The changes are broad and include shifts in technology; acquisition methods; and the economics of being a contractor with significant hurdles and barriers to success.  These market dynamics will play out over the coming months and years – here’s a rundown of the most significant of those changes now well underway.

1. Cloud Computing Continues to Absorb IT Services Opportunities
Federal agencies have moved beyond the 2010 Cloud-First mandate to adopt cloud computing, and have begun embracing the cloud to support their business and mission objectives.  Cloud computing represents a significant change to the way that the federal government had done business. Cloud computing permits the customer to spend less time managing complex IT resources and more time investing in core mission work.  Companies that have cloud-based offerings are winning significant business away from providers that have historically supported “in-house” solutions.

FedRamp opt outAn estimated $20 billion of the federal government’s $80 billion in IT spending is a potential target for migration to cloud computing solutions, according to the White House’s Federal Cloud Computing Strategy. The size and scope of cloud programs are becoming larger, driven in part by the success of smaller projects, and by the manifestation of supporting policies, including FedRAMP, a security “stamp of approval” that lets government agencies know a solution has an appropriate and detailed security plan in place. To date, 48 systems have been authorized FedRAMP compliant.  With the cost of a FedRAMP certification reaching as high as $300,000 and authorizations taking 9 to 15 months, gaining certification is a major commitment for any company.  As a result, many firms, especially small businesses, may be locked out of this segment of the market.

Read all 4 contracting trends to watch in 2016 at: http://www.washingtonexec.com/2015/10/guest-column-4-government-contracting-trends-to-watch-in-2016-by-mark-abel/

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