Federal Contractors Saw Available Work Shrink in 2013

6kor3dos/Shutterstock.com

Federal contracting shrunk by $58 billion in fiscal 2013, or 11 percent from the previous year, according to a New York Times analysis published Thursday.

The change marked the largest decline in a decade, the NYT analysis said, and left companies across the country scrambling to diversify their capabilities. Joe Jordan, the Obama administration’s soon-to-depart administrator of federal procurement policy, told the Times that some of the decline was due to “smarter, strategic buying techniques” such as bulk purchasing, which his office has long pushed.

Stan Soloway, president and CEO of the Professional Services Council, told Government Executive the decrease is no surprise. His member companies have cut “thousands of jobs as a result of this crazy year, in higher-end skill-set areas, in hardware, and in information technology,” he said. “Every federal agency took a [budget] hit, and there’s no way the contractor community supporting them wouldn’t take a hit.”

But Soloway cautioned against reading too much into the survey as an indicator of a new trend because, with the government having been funded in “in fits and starts, it was an inconsistent and unpredictable year.”

One change that contractors might appreciate this year is a provision in the fiscal 2014 omnibus spending bill nearing congressional approval that would prevent the Obama administration from implementing an earlier plan to require contractor bids to disclose the company’s political campaign contributions.

Soloway says his group supports the ban because such campaign gifts already are disclosed by individual taxpayers and because bidders already want to “avoid the immediate appearance” of inserting politics in the bidding process, and want politics to play no role. 

(Image via 6kor3dos/Shutterstock.com)

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Sponsored by G Suite

    Cross-Agency Teamwork, Anytime and Anywhere

    Dan McCrae, director of IT service delivery division, National Oceanic and Atmospheric Administration (NOAA)

    Download
  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

    Download
  • Federal IT Applications: Assessing Government's Core Drivers

    In order to better understand the current state of external and internal-facing agency workplace applications, Government Business Council (GBC) and Riverbed undertook an in-depth research study of federal employees. Overall, survey findings indicate that federal IT applications still face a gamut of challenges with regard to quality, reliability, and performance management.

    Download
  • PIV- I And Multifactor Authentication: The Best Defense for Federal Government Contractors

    This white paper explores NIST SP 800-171 and why compliance is critical to federal government contractors, especially those that work with the Department of Defense, as well as how leveraging PIV-I credentialing with multifactor authentication can be used as a defense against cyberattacks

    Download
  • Toward A More Innovative Government

    This research study aims to understand how state and local leaders regard their agency’s innovation efforts and what they are doing to overcome the challenges they face in successfully implementing these efforts.

    Download
  • From Volume to Value: UK’s NHS Digital Provides U.S. Healthcare Agencies A Roadmap For Value-Based Payment Models

    The U.S. healthcare industry is rapidly moving away from traditional fee-for-service models and towards value-based purchasing that reimburses physicians for quality of care in place of frequency of care.

    Download
  • GBC Flash Poll: Is Your Agency Safe?

    Federal leaders weigh in on the state of information security

    Download

When you download a report, your information may be shared with the underwriters of that document.