2009 Federal Spending on IT Review
In many ways 2009 was a difficult year that could not end fast enough. This holds true for government contractors in the IT products and services industry. There was a 21% drop in federal spending on IT compared to 2009, after 3 years of procurement increases.
There are two possible explanations for these statistics. The first explanation is the most obvious, we are in a horrendous recession. However, with trillions of dollars available for stimulus spending, there should not have been a dip. The second explanation is that there was a change in executive office, therefore many top level positions changed leaders as well. This slows down any spending and/or budgeting activity because things are unsettled.
With the combination of these two explanations, we may be looking at the largest year in federal IT spending in history. Especially because President Obama has stated publicly that a major objective of his is the improvement and updating of government technology infrastructure.
VA Will Boost IT Infrastructure in 2010
“Despite the anticipated belt-tightening under the Obama administration, technology opportunities will emerge in FY2010,” according to Input, a company devoted to federal marketing and government business analysis. Input cited the Department of Veterans Affairs with the most potential for federal spending on IT products and services. It makes a good deal of sense, with the growth in VA claims from returning military personnel. There is no information available about how antiquated the current VA systems are. But, with the expected increase of use, the VA is projected to account for 20% of IT products and serves spending in 2010.
Stimulus and modernization dollars are expected to drive many federal purchases this year as well. The Department of Defense has some big procurement plans for the Air Force’s Expeditionary Combat Support System in the tune of around $350 million. The Army’s Warfighter Information Network is earmarked at $1 Billion to develop and install a Mobile, tactical communications system for delivering video, data, imagery, and voice services.
Federal Contracts are Keeping Many California Businesses Alive
It is common knowledge that government contracts are for companies located around Washington DC, because that is where the majority of government business takes place. However, this is a large misconception, because California receives over 11% of government contracting dollars. It makes sense when you consider that 41 military bases, and hundreds of federal agency offices are located in California.
There are hundreds of GSA Contract holding small businesses in California, who put a large marketing investment and focus on the federal government. And their foresight has given them a large advantage over their competitors in a time where many small businesses are folding from lack of work.
It has been calculated that over 400,000 jobs have been created from government contracting in 2009. If 11.3% of federal spending has been in California, then over 45,000 people have remained employed in California by working for federal contractors.
Now is the time for many California businesses to consider finding their way into the federal market. From couriers to staffing companies to electricians to security integrators, there are opportunities in federal contracting. Moreover, the Obama administrations use of recovery funds to finance federal projects is a key strategy to keep Americans Employed.
GSA Technology Procurement Director Retiring
Mary Powers-King, director of governmentwide acquisition contracts and Schedule 70 for GSA's Integrated Technology Service will retire shortly after the New Year after 31 years of public service.
Powers-King came to GSA from the Department of Transportation where she oversaw a variety of high profile information technology programs. Some of the positions Powers-King held at DOT were an executive in the Federal Aviation Administration, and Director of Information Technology and Deputy CIO at the Federal Motor Carrier Safety Administration.
She joined GSA in 2007 as the Director of GWACs and IT Schedule Programs in the Integrated Technology Service. Powers-King has over 25 years of experience managing information technology programs in government. She is directly responsible for around 4,700 IT Schedule 70 contracts that compile $16.4B in business volume in Fiscal Years 08-09.
New Federal Procurement Certification
MCR provides integrated program management services to the federal government, among other things. In a statement on the MCR website dated Dec. 4th they released:
"MCR has partnered with American University in Washington, D.C., to create a Senior Program Manager Certificate Program that provides government acquisition executives with leadership training and technical skills for successful integrated program management."
The Federal Procurement Certification will begin in February 2010. The classes will cost $9000 for six 4-day courses. It appears as though the program is targeting experienced procurement officers, and will ultimately give them the skill set to move into higher-level, executive positions within industry or the military.
In few words, Neil F. Albert, President and CEO of MCR, hinted that there may be a worry that federal procurement executives may be in mass exodus to retirement. Though, this is not confirmed.
GSA’s Coleman Named Government CIO of the Year By Tech Council of Maryland
11/12/2009 GSA's Coleman Named Government CIO of the Year By Tech Council of Maryland
GSA Receives Clean Audit Opinion
A clean audit opinion is an indication that the agency’s financial statements and accompanying notes are presented fairly in all material respects and conform to generally accepted accounting principles. It is also an indication that there are no material errors in the financial statements and accompanying notes, and is clean or free from material error.
White House push to reduce contractors is at odds with expanding role of agencies
President Obama's ambitious agenda is running head on into its desire to cut contracting. Something has to give.
Quiz: Are you tailor-made for telework?
Take one of our quizzes to see if working remotely works for you.
From Nextgov.com: Will the White House give CIOs more power in the fiscal 2011 budget?
Some see language in fiscal 2010 spending bills as a signal that the Obama administration will grant IT chiefs more spending authority, while others say wait and see.
GSA Schedule Services
Acquiring a GSA Contract is not for everyone, there are several important considerations. If it makes sense for your business to acquire a GSA Contract, then we will gladly offer our expertise and efforts. Getting your GSA Schedule is long and time consuming, and this is compounded if you are doing it for the first time. Usually, when a company decides to acquire a GSA Contract without help it either never happens or it takes over a year. By partnering with us, you assure that your GSA Contract will be "in hand" sooner, and you can keep your focus on your business meanwhile. We are a small business dedicated to organic and logical growth in small and medium-sized businesses.
Call today to explore your options: (760) 801-7933
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