The Government contracts marketplace continues to change. Why? A few key statistics from the 2016 Annual Review of Government Contracting prepared by NCMA and Deltek:
- Federal Government spending decreased, year-over-year, since 2011
- The top 25 agencies account for 99% of the spending
- 5 agencies (DoD, State, Marine Corps, DoE and DoL) experienced an 8% or more reduction in spending
- 4 out of 5 top Federal markets saw declines in spending from FY14 to FY15
- Bid protests continue to rise (over 2,600) with a GAO sustainment rate of 12%
- A 28% decrease in pre-solicitation notices combined with a 9% increase in combined solicitation/synopsis notices
- Overall 2% decrease in bid notices posted to FBO
- Use of GWACs for IT spend increases every year (13% of FY15 compared to 8% of FY11)
- GSA Schedule sales are essentially flat
- The number of Prime contractors with Federal obligations shrunk 23% from FY11 to Fy15
In short, there are fewer contractors (because so many are going out of business) and less Government spending. Meaning competition is becoming more fierce and in the fight to survive, companies are willing to reduce costs and cut profit to stay alive.
What does this mean for you? Your team has to get agile and more efficient and your processes have to reflect the speed of today’s business to flex, adapt and change to meet market demands.
- Sustainable Growth – Winning Lean™ - […] previously shared some data about the changes that are happening in the government marketplace. To summarize, […]