October 23, 2014

Q&A with Alan Chvotkin, EVP, Professional Services Council                 

Question:  If the Sequestration of 2016 takes effect on Oct 1, 2015, what will the net effect on discretionary spending be?

Answer:  As we saw from the sequestration action last time, there will be two significant impacts. The first will be the mandated reduction in discretionary spending in EVERY budget account. Depending on the timing of the implementation, that could be a small amount if done early in the fiscal year or a larger amount if delayed past the start of the fiscal year. But more importantly than the dollar level will be the short term uncertainty on programs — and on program releases — as agencies determine how best to execute the reductions. The disruption to the procurement cycle will be unquestionable but the magnitude will be varied across agencies and programs.