There is a slight possibility of having a Grand Bargain with some relaxation of the sequestration level. But this is not likely, and if it did happen, it would probably occur after the fall timeframe.
The decrease in spending accompanying the sequestration is not the worst part of the problem. Instead the factor slowing business down most is the UNCERTAINTY caused by the political situation. We need to have the appropriations to be passed by Congress before the agencies feel free to release their RFPs. Once appropriations are passed, then the procurement business can move forward with speed. However, industry pundit Ray Bjorklund predicts that the final appropriations for FY 2014 will not be passed until mid February.
After having a fast July and August, we are seeing moderate proposal activity in September, which is normal. The wild card in any September is that there is high end-of–year spending; but a lot of this spending is for simple contract vehicles like task orders or IFBs that don’t require complex proposals.
If the atmosphere in Congress is not too heated and acrimonious, then this will help improve business in the fall. Ill will and intemperate behavior in Congress causes the procurement process to slow down, in that it increases fear and uncertainty on the part of the agency bureaucrats.
When all of the negatives and positives are considered together, we can expect the volume of proposals this fall to be less than last fall but not catastrophic.
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