The Consolidated Appropriations Act (“The Act”), signed into law in March of 2018, provides $500 billion in new federal spending for defense and domestic programs over two years. Perhaps of equal importance to the Government Contracting sector is the apparent return of a semblance of budget process stability on the Hill—as evidenced by the Act’s consolidation of 12 separate funding measures into a consolidated omnibus package. For now, the need for stopgap funding in the form Continuing Resolutions has been rectified, no doubt increasing industry’s comfort levels and ability to plan ahead.
By examining many of the provisions of the omnibus spending bill, and close observations about what the government contracting industry is currently facing, a number of new and emerging trends can be discerned.
Trend 1. Increased National Defense Spending –The Act provides $654.6 billion in both base and Global War on Terror/Overseas Contingency Operations funding – the biggest year-to-year increase since the beginning of the War on Terror. The bill represents largest investment in national defense in 15 years. As is usually the case, increased defense spending will flow down to Government contractors providing them new opportunities to offer national defense products and services to the Federal Government.
Trend 2. Uptick for Homeland Security – The Act includes $47.8 billion for the Department of Homeland Security, an increase of $5.4 billion over the last fiscal year. Many of these dollars will be spent in the form of contracts to bolster border infrastructure, add more “boots on the ground,” and improve surveillance technology. Arguably, this is progress for government contractors, even if none of the funds is available for the actual construction of the President’s border wall.
Read the full report 10 Emerging GovCon Trends: Download the PDF
About the Author: James K. (J im ) McCarthy has 35+ years of GovCon experience and leadership — first on Capitol Hill, then as founder of AOC Key Solutions, a leading proposal development consulting firm which has helped clients win over $175 billion dollars in government contracts.
About AOC Key Solutions: AOC Key Solutions is a consulting firm that helps companies win federal contracts through proposal development services. AOC Key Solutions helps contractors create compliant, compelling proposals so they can focus, on what they do best, supporting their government customer. Visit www.aockeysolutions.com .
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