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COVID-19

Tech is hot!

While tech procurements have been on the rise over the past several years, COVID most definitely fueled the flame. According to data from an analysis by Jeff Cook, managing director at Shea & Co., third-quarter 2021 tech deals hit nearly $2.2 billion. With much of that activity from strategic acquisitions. Government Technology, January/February 2022

The new year will likely see both large and smaller acquisitions continue with all being potentially significant. Cook expects, “the acquirers who’ve been active will continue to be active.” (ibid)

Apart from acquisitions, other factors have also fueled the growth. Although there is an abundance of bureaucracy in the government, the government is a stable source of sales and returns. While other areas of the economy may slow, the Government, both local and federal, will continue to operate. This coupled with the need to constantly update their tech requirements make the government a top contender for igniting tech growth. (ibid)

Another factor is the move toward cloud computing and software as a service. Google Announced in November of 2021, the launch of a cloud-based “sandbox” named RAD Lab. It is an instrument public agencies might use to test and develop their specific tools. As an added perk, Google provides support in a secure environment. (ibid)

Surveys of both cities and counties by The Center for Digital Government’s, in 2021, show greater movement to the cloud. Approximately one-third of cities report that about 30 percent of their systems and applications reside in the cloud. County migration is about 26 percent. Therefore, while movement is toward the cloud, there is an opportunity there that has yet to be tapped. (ibid)

Google is not the only game in town. Amazon is looking to take a piece of this market, as well. This shows how big tech is looking to add to their revenue from the gov tech space. (ibid)

According to Stewart Lynn, a partner at Serent Capital who leads gov tech practice, “many private-sector folks are finding new roles within government and have understood that the current systems in place are very antiquated and in need of an upgrade. As citizens have become more active online, you’re seeing governments being responsive to their citizens’ needs. Citizens today want the ability to go online and buy their permits, process their payments, understand what’s going with budget spending. And governments are responding to that demand by investing in digital solutions.” (ibid)

As with all new growth, comes a few hurdles and grey areas. According to Rita Reynolds, chief information officer for the National Association of Counties, “government technology vendors must be willing to update their terms of service and contracts to accept their responsibility and ensure that baseline essential security practices are in place to secure what they are hosting and providing to counties.” (ibid)

For counties, states, and the federal government, there’s a need for some flexibility within the procurement arena. An updated acquisition process and partnering with the private sector will go a long way to make this a win-win for both the government and vendors.

Trying to break into the government contracting arena? Give us a call.

Biden’s Management Agenda Vision includes Acquisition Priorities

The Biden Management Agenda was released last week. The Agenda includes the critical areas of strengthening the federal workforce, upgrading the customer experience, and administering the business of government. Government CIO Media and Research, November 19, 2021

The goal of the Agenda is to restore Americans’ faith in the government. The Agenda has three main objectives:

  • Strengthen/empower the federal workforce.
  • Deliver secure, equitable, and outstanding federal services as well as customer experiences.
  • Manage the business of government to “build back better.”

To achieve this, cybersecurity and IT modernization will be foundational tools for government management and mission delivery. (ibid)

According to the Agenda vision statement, “Agencies will continue to work together to enhance and secure government information technology as vital support and a catalyst for mission delivery. The COVID-19 pandemic showed us how critical IT investments are to supporting mission delivery and the essential work of government.” (ibid)

The vision statement reads, “OPM and OMB also will continue to build out tools to support agency human resources professionals in data-driven strategic workforce planning and decision-making related to employee engagement, inclusion, and organizational performance.” The focus will be to ” make every federal job a good job.” The plan is to accomplish this through competitive compensation, enhanced engagement, and mission delivery, and union opportunities. (ibid)

The second objective is to make the delivery of improved customer service, a priority. The Biden administration wants to meet people where they are rather than ask the public to navigate through the many, and often hidden, government services areas. (ibid)

The vision statement reads, “Human-centered design research will drive the management of federal programs to develop a comprehensive understanding of how individuals interact with federal services. Through this process, agencies will identify barriers to service delivery and how those barriers create undue burdens on those the government serves, in particular for underserviced communities.” (ibid)

The third objective is improving federal acquisition and financial management systems. The Biden administration plans to prioritize US manufacturing as a way to stop future supply chain disruptions. The Administration plans for upcoming major acquisitions to support a reduction in carbon output. (ibid)

The agenda vision statement reads, “accomplishing these collective and activities will also require continuous improvements in our procurement, financial assistance, and financial management ecosystems. This shift will require new measures and processes, new training for the federal workforce, and new tradeoffs that agencies will need to address going forward.” (ibid)

The “next steps” within the Management Agenda are set to be released in early 2022. (ibid)

 

Questions about how this will affect future procurements? Give us a call.

 

 

 

Get vaccinated, stay safe, continue to work

On July 29, 2021, the Biden Administration announced that every federal government employee and onsite contractor must attest to their vaccination status. At the same time, the Safer Federal Workforce Task Force which oversees the development and implementation of agency COVID-19 workplace safety plans issued the COVID-19 Workplace Safety: Agency Model Safety Principles.  The Agency Model Safety Principles must be incorporated into current COVID-19 workplace safety plans. (JD Supra September 2, 2021)

Agency Model Safety Principles:

  • Attestation form signed by onsite contractors to confirm their vaccination.
  • Contractors refusing to sign the attestation form will be treated as not fully vaccinated, for purposes of safety protocols.
  • All contractors who refuse to sign the attestation form or who are not fully vaccinated must wear a mask in all settings, physically distance, and take a weekly or twice-weekly COVID-19 screening test.
  • Agencies must create a program to test those not fully vaccinated.
  • Fully vaccinated onsite contractors do not need to be tested, physically distance themselves or wear a mask in areas of moderate or low transmission.
  • All individuals, regardless of vaccination status, must wear a mask in areas of high or substantial transmission. (ibid)

The mandate currently deals only with contractors working on federal facilities. However, the White House stated that “President Biden is directing his team to take steps to apply similar standards to all federal contractors.” (ibid)

The Safer Federal Workforce Task Force urges agencies to provide onsite contractors with the Certification of Vaccination form as they enter any federally-controlled work area. Contractors will be required to keep the form with them while they are on federal premises. Contractors should be ready to show the Certification of Vaccination upon entry to a federal building or federally-controlled indoor site. Contractors entering without a form will be required to show proof of a negative COVID-19 test, taken within the past 3 days, before entry is permitted. (ibid)

As with all things “COVID,” the policies are evolving and changing regularly. It is incumbent upon the federal contractor to stay apprised.

Questions about GSA? Give us a call.

Will the CARES Act become permanent?

In March of 2020, when the Coronovirus became a pandemic, Section 3610 of the CARES Act went into effect. This section of the CARES Act provides economic relief to contractors so that they can continue to pay their employees. Unless Congress extends Section 3610 of the CARES Act, it expires on September 30, 2021. (Washington Technology August 5, 2021)

The Professional Services Council (PSC) would like for Section 3610 to become permanent. PSC Executive Vice President David Broome feels Section 3610 should become permanent. He reasons this by looking at how several agencies have heavily relied on Section 3610 during the pandemic. GAO saw a combined $882.8 million in reimbursements from across the Departments of Defense, Energy, Homeland Security, and NASA. (ibid)

GAO staff interviewed 15 contractors and 12 agreed that Section 3610 “had a great or moderate effect on their ability to retain employees, in particular those with specialized skill or clearances.” (ibid)

According to Broome, “GAO makes the case for establishing a permanent stand-by authority that would be available when needed and in place when the next emergency happens – be it a pandemic, a cyberattack or natural disaster. Establishing this authority now would be a prudent step to implement one lesson learned from the COVID-19 pandemic and ensure that the government and contractors are prepared for the next one.” (ibid)

Are you a contractor trying to take advantage of Section 3610 and not sure where to start? Give us a call.

 

Money, money, money!

It’s the fourth fiscal quarter for the federal government and that means it’s time to use that budget or risk losing it. The fourth quarter generally holds great opportunities for contractors from July to September as agencies are keen to use up their budgets. (Federal Times August 3, 2021)

During the month of September, federal contract awards account for nearly 16 percent of all contract activity, with 40% of small business spending taking place in the last quarter of the fiscal year. Although not all agencies are the same in how they treat fourth-quarter spending, the State Department and U.S. Department of Agriculture tend to do some of their “big spending” in Q4. (ibid)

COVID-19 spending continues to account for a large share of federal contracting. The heavy COVID spending has changed the spending cycles and thrown them out of balance. This might make the Q4 rush a little less robust than in past years however it remains one of the best times of the year to be well-positioned for contract opportunities. (ibid)

Contractors should have a strategy for getting the most out of Q4 spending, especially from agencies known to rely on it.

Hoping to get the most out of Q4 spending but no strategy in place? Give us a call.