Profit from Trends in Government Funding

 

Monthly Forecast

February 2010

 

Time for Advocacy
When Government grows, it brings back in-house tasks that it formerly contracted out- reducing the opportunities for contractors. Through the end of 2009, only 20,000 Recovery contracts were awarded nationwide, and much of those were focused on transportation and road repair. Moving forward, the Feds have identified three areas of job creation - education, health and energy. We are seeing health care IT contracts funded that should create jobs. But we are not seeing an increase in small-business service or construction contracts. Nor are we seeing funding that requires collaboration with Community Based Organizations. At this time, when Government at all levels are planning their budgets for the next fiscal year, businesses and not-for-profits should be advocating for these contracts and the jobs that they will create.

 

 

 

914-633-3352

 

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Greetings! 

 

One year since the enactment of the $787 billion American Recovery and Reinvestment Act (ARRA), Congress is hard at work passing a new $35 billion jobs bill. The Recovery Act, which promised to provide contracts and jobs, created employment for between 1 million and 2.1 million people through the end of 2009, according to the non-partisan Congressional Budget Office.

 

Seem like a big spread?

 

A spread such as 1 to 2.1 million is what you get when you change the language you use for reporting.

 

Job-Creation Formulas
The original premise of the stimulus bill was that it would "save or create" 4 million jobs - nearly 90 percent in the private sector. That thinking was based on macros that calculated that for every $92,000 spent, a job would be created. Macros of this nature have long been used to justify the tax breaks given to organizations as part of economic development initiatives such as New York State's Empire Zones, and are an often-used Government tool.

  
That doesn't mean they work.

 

The lesson of the stimulus bill was that these macros have little meaning in the real world, where it is quite possible to spend $20 million or more and not create a single job.

 

Jobs Funded
As a result of this change in perspective, fourth-quarter ARRA reporting required contractors to submit only the number of jobs funded with Recovery dollars - not jobs saved or created. ARRA recipients, including Government agencies, reported that 600,000 salaries were funded through Recovery funds in the final months of the year.


How many jobs will that translate to for the 2009 calendar year? We may never know - the White House has said it will no longer report cumulative tallies - just the number of jobs funded per quarter.

 

Since the passage of the stimulus bill, 3.5 million jobs have been lost, and the national unemployment rate hovers around 10 percent.

 

If not Jobs, What?
The Center on Budget and Policy Priorities has examined stimulus spending and reports that more than two-thirds of all Recovery dollars were spent on tax benefits, state relief and entitlement spending such as extended unemployment insurance and COBRA benefits.


Much of the jobs saved were Government jobs, many of them unionized. USA Today has reported that 14 Federal agencies with a role in overseeing the ARRA hired about 3,000 workers via stimulus money.


"That's helped fuel the continued growth of the Federal Government, which increased by more than 25,000 employees, or 1.3%, since December 2008," USA Today reported (Stimulus Funds Boost Number of Federal Jobs, 9/23/2009).

 

About Proposal Pro, Inc.

Contracts continue to be exceedingly competitive.  Let Proposal Pro give you an edge:  We helped our clients to win more than $50 million in Government grants and contracts last year by helping them to focus on what the agency evaluators need and want to see.  Proposal Pro writes to win - helping businesses and non-profits to secure the large-scale, multi-year contracts that ensure their growth and profitability.  We offer technical writing, complete proposal preparation and strategic consulting that gets results for our clients and have demonstrated ability to increase their scores in the competitive RFP process.

 

Are You Ready to Win in 2010?

Proposal Pro's Write to Win™ training materials provide the inside information that savvy proposers use to win large-scale contract awards. Our audio CD reveals what to read an RFP for, what the evaluators want to see, and what mistakes to avoid. In addition to providing a step-by-step review of a Government RFP, each disk includes the worksheets and forms that we use to create proposals that evaluators respond to - with contract awards!  And remember, the purchase of training materials is a tax-deductible business expense.
 
To purchase, contact us at 914-633-3352 or visit our website at
http://www.wingovtcontracts.com

 

 

Contact Us

For further information or a free 10-minute consultation, contact:  

Judie Eisenberg
President
Proposal Pro, Inc.
914-633-3352
info@proposalpro.com
 

Send Story Suggestions, Questions or Comments to

info@proposalpro.com

 

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