GovCon Insights

In addition to providing daily snapshots into the GovCon industry, Government Contractors also provides a weekly GovCon Insights that highlights and summarizes some of the top stories in the industry.
GovCon Insights from Government Contractors
Money, Money, Money With the federal government’s fiscal year coming to an end in a few days (Sunday, September 30, 2018), much of the attention over the last several days has been on the federal budget (planning stop gap measures to keep the government running to early December and beyond), and what money remains to
Congress has passed and the President has signed a $1.3 trillion budget measure ending the threat of another government shutdown, just hours before the latest of a series of temporary extensions of agency spending authority expired. Friday morning Trump registered displeasure with the bill, Tweeting that he was “considering a VETO” because the bill does not address
Focus: Hill Hearings  3 keys to good suspension and debarment programs [Federal Computer Week] – Bill Woods, director of acquisition and sourcing management at the Government Accountability Office, told the House Technology, Information Policy, Intergovernmental Relations and Procurement Reform Subcommittee yesterday that agencies with the best suspension and debarment programs have dedicated resources, detailed policies and procedures and an active case referral
Senate leaders announce bipartisan agreement to avert government shutdown [Washington Post] – The Senate passed a bipartisan bill that will fund the federal government until November 18 in a deal expected to be ratified by the House next week. The agreement to give the Federal Emergency Management Agency (FEMA) less money than Democrats had sought and to take away spending
Obama Jobs Bill Ignores America’s Most Effective Job Creation Plan, According to the American Small Business League [Business Wire] – President Obama said in his job speech last night “if you’re a small business owner who has a contract with the federal government, we’re going to make sure you get paid a lot faster than you do right now.” The American Small Business League released a
Northrop May Feel Squeeze of Postal Service Cost Cuts [Bloomberg] – The financially struggling U.S. Postal Service is seeking annual cost cuts of at least $1 billion from its over 20,000 suppliers. Companies feeling the impact include the largest contractor FedEx, mail-hauling truck firm Pat Salmon & Sons and sorting equipment makers Siemens and Northrop Grumman. Focus: Defense Contractors Seeking International Markets Lockheed eyes growth
Congress Asks McAfee for Briefing on Operation Shady RAT [New New Internet] – Rep. Mary Bono Mack (R-Calif.) sent a letter [PDF] on August 10 asking McAfee for a briefing on its recent report on Operation Shady RAT, which hacked 13 defense contractors among its 70 targets. She asked how the government and private sector could more effectively mitigate data breaches, and what the potential economic
DOD Budget Impacts on Contractors Moody’s may cut defense contractor ratings [Washington Business Journal] – Moody’s Investors Service indicates that it may cut the credit ratings of some defense contractors, especially those still dealing with substantially underfunded pension programs. Its report predicts that DOD cuts of ten percent or more will increase competition and scale back profit margins, leading
OMB gives agency CIOs more IT budget authority [Federal News Radio] – An August 8 memo [PDF] from Office of Management and Budget Director Jacob Lew gives agency CIOs authority over commodity technology purchases and responsibility for training workers leading major IT programs. Only the Veterans Affairs CIO has the power to control all IT acquisitions. IBM Pulls Out of Supercomputer Contract
Agencies play it safe with contract types [Federal Computer Week] – An Office of Federal Procurement Policy report[PDF] released July 8 finds that agencies cut around $3 billion in time-and-materials contracts and spent more on cost-reimbursement contracts from 2009 to 2010 to lessen risk. Fixed-price contracts remain the most populartype, accounting for 63 percent of procurement spending in 2009 and 62 percent in

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