Every year brings with it new budgets and new government initiatives. This year, however, brings the added uncertainty of a new president. For the first time in more than a decade, you will see a Republican-led Congress and a Republican president setting budgetary and fiscal policy. The need to compromise with the opposition means watered-down legislative bills just went out the window.
With less resistance to spending, government contractors should be in for a wild ride this year! Here are a few predictions on what to expect from the new administration and majority legislature.
1. Military Spending on the Rise
Donald Trump, our president-elect, has clearly stated the need for an increased military presence. He intends to see our armed forces reach more than 500,000, expand the reach of our Navy and update our Air Force.
That’s a lot of spending and investment in military infrastructure. Along with these direct costs, he has also announced a need for better care for our soldiers when they return home, a policy objective that could have repercussions in the healthcare and veterans affairs field. Keep your eye on the military for lots of prospects this year.
2. Finalized Spending Dates
Many government projects were postponed last year, and have shifted this fiscal year. Now is the time that you need to be ready to bid and win. After all, you’ve already had time to qualify these prospects, so it really comes down whether or not you can successfully capture and award.
3. Consolidated Task Orders to Speed Up Bidding
For the government IDIQ contracts that you already have in progress, be prepared to step up production. As operations increase, agencies will be looking for ways to avoid a long, drawn-out bidding process. One of the best ways to do that is by consolidating additional task orders under already existing IDIQs.
As more Task Orders come out, under existing IDIQs, you need to be prepared to execute on each Task Order that presents itself. Remember, don’t wait until you see a Task Order to proceed – best plans are to shape a deal and create a Task Order that you already know about.
4. Be Alert for Increased Small Business Set-Asides
With President-elect Trump pushing the economy to the forefront of political discussions, predicting an increase in small business set-asides is fairly obvious. Small businesses make up the largest employer sector in the U.S. market, and the government has long expressed an interest in keeping small businesses operational.
Additionally, working with small businesses helps better distribute tax dollars across multiple companies, all of whom employ locally, creating a tax cycle that improves the overall economy.
5. Terror Is a Critical Government Concern
Increased efforts against illegal immigration, reduced asylum offers and increased efforts to suppress organizations that threaten the safety of the United States all translate into government contracting opportunities. With terrorism an increasingly important taxpayer concern, the government is likely to make efforts in homeland security a priority and allocate spending accordingly.
With the likelihood of significant increases in government spending on the horizon, are you ready? If you want to take advantage of the sudden surge in opportunities you need to be prepared. A new president brings new policy initiatives, new areas of focus and new approaches to doing business. You can be in position, ready to tackle any opportunities in the crosshairs of your business objectives. If you can predict these changes, you can prepare for them. Line up the manpower, contact consultants, audit your capture management process and get ready to increase your government contracts by a significant margin.