Show Me the Money

Ok, you’re sitting at your desk right now in XX agency. Staring at your laundry list of projects and programs you want to enact. But there’s a problem. You don’t know what funding you will have next month, next year, 5 years?

The budget black hole is crippling agencies and contractors alike. That’s where TechAmerica comes in. They’ve just unveiled their budget scenarios. Trey Hodgkins is a spokesperson for TechAmerica.

He joined Chris Dorobek on the DorobekINSIDER program to help explain the vast and complicated potential budget situations.

Through all the potential budgeting scenarios one thing is crystal clear, next year agencies will have less money than before.

TechAmerica Foundation’s report is culled together by 400 members for 10 months. The TechAmerica teams decided there were three distinct political options that would influence the budget.

“Politically speaking it is highly probable that we will have some form of sequestration and go over the fiscal cliff,” said Hodgkins.

TechAmerica outlined 5 potential budgeting scenarios. With increasing likelihoods.

How should Vendors Prep?

“Contractors need to know how their funding is allocated. Is the funding obligated or not? Obligated contracts should be relatively protected from sequestration. Where contractors really come into trouble are with extended contracts. Say if a contract is obligated this year but not five years down the road,” said Hodgkins, “competition will be fierce.”

Contracts Drive Savings

“With tight budgets the key will be for contractors to show that their product or service will drive cost savings and efficiencies. If you can’t demonstrate savings then you shouldn’t even enter the competition,” said Hodgkins.

Acquisition Drought

“Especially at the DoD where they have made the commitment to not eliminate any military personnel. The civilian personnel will be hit hard. That will mean there are very acquisition folks to help run and manage contracts,” said Hodgkins.

*All graphs are courtesy of the TechAmerica Foundation and are copyrighted by TechAmerica.