Profit from Trends in Government Funding

 

Monthly Forecast

November 2009

 

Better Efficiencies, Defined
What does the Government mean when department heads start talking about creating "better efficiencies" and "delivering greater value to the taxpayer" in the procurement process?  Many believe that it means an expanded Government workforce that will take on the role that contractors now play. The evidence?

 

The Department of Homeland Security announced in October that it would convert over 3,000 contractor jobs to Federal positions. The Department of Defense (DoD) announced in April that it would convert 11,000 contracting acquisition jobs to workforce and additionally expand the DoD workforce by 9,000. Stimulus job-creation data in Government outpaced that of the private sector so far this year.

 

As Steven L. Schooner, associate professor of law and co-director of the Government procurement law program at The George Washington University Law School said to Government Executive.com, "When you say you are going to cut contractors it means one of two things: you are either increasing the size of the Government in terms of personnel, or you are going to provide less services - And neither one is an option right now."

 

 

 

914-633-3352

 

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Greetings!

 

The Obama Administration has initiated or proposed some of the largest spending measures that the Federal Government has ever seen. And it may be looking to pay for it, in part, by reducing its spending on procurement.

 

A Mandate to Cut 7%
In July, the Office of Management and Budget (OMB) called on Federal agencies to reduce their contract spending by 3.5% in Fiscal Year 2010 and another 3.5% in FY11. Further, OMB asked agencies to reduce by 10% their use of "high-risk" procurements - presumably those that run the risk of being higher-cost - including sole-source, cost-reimbursement and time-and- materials contracts.
 
While OMB projects that contracting savings could amount to $40 billion each year, they left it up to each agency to determine how to achieve those savings. Agencies submitted their savings and efficiency plans to OMB at the beginning of November, and specifics have not been released.

 

Savings Strategies
According to Government Executive.com, which surveyed agencies as they were preparing their plans, several strategies were among those being considered: 

  • Converting cost-plus contracts to fixed price
  • Using technology to create efficiencies
  • Evaluating whether contracts coming up for renewal should be continued, modified or canceled
  • Bringing the work in-house

 

The Opportunity
When tax revenue declines, as it has during this recession, Governments tend to do two things: Compete with the private sector for Government funding, and bring services back in-house. The opportunity for private organizations lies in two key areas: Specialized expertise and cost-
savings. You have to make the argument that you have the specific experience, resources and specialized expertise to make contracting more effective and cost-effective than in-sourcing. And then show them the savings - or get a job in the Federal Government!

 

About Proposal Pro

Keep current, and keep getting contracts.  Here at Proposal Pro we know a thing or two about what needs to be incorporated in proposals; we write nearly 150 each year. 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 get results for our client - including more than $50 million in Government grants and contracts last year.

 

Win Your Next Government Contract

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
 

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