https://thepulsegovcon.com/article/fy21-opportunity-outlook-for-federal-contractors/

FY21 Opportunity Outlook for Federal Contractors

As we enter 2021, the Government Contracting industry is benefiting from a 10-year high of discretionary procurement spending. The Pulse examined the last decade of spending data and found the following:

Change is all but certain with a new Administration and a party flip, especially for an industry that is so heavily impacted by the ebb and flow of the federal landscape. Government Contractors have already seen a flurry of impactful agency and regulation updates, as well as Executive Orders during the Presidential transition:

National Defense Authorization Act (NDAA)

Executive Orders

Other

The industry has also started to see a massive change in leadership, which will most certainly impact the federal workforce and agency and department initiatives. However, not too much will change in this FY’s spending as budget caps have been previously set, and since the FY21 Omnibus and the FY21 NDAA were passed into law just a few weeks ago.

FY21 Omnibus Funding

Currently, the federal government has only spent 9% of its FY21 discretionary enacted spending level. This means there is a lot of money still left on the table. The FY21 Omnibus provided spending increases to over 15 federal entities including: Department of Agriculture (USDA), Department of Defense (DOD), Department of Education (ED), Department of Energy (DOE), Department of Transportation (DOT), Environmental Protection Agency (EPA), Department of Housing and Urban Development (HUD), Department of Interior (DOI), Department of Justice (DOJ), Department of Treasury (TREAS), Department of Health and Human Services (HHS), Department of Labor (DOL), National Aeronautics and Space Administration (NASA), Department of State (DOS), and the VA.

FY21 Omnibus Scope Trends

In FY21, Government Contractors will continue to feel the impacts of the pandemic in the year ahead, but other requirements will continue to push their way forward. After digging through all +5K pages of the FY21 Omnibus and NDAA — we identified the top technical words that Government Contractors are sure to see throughout Section C of the Request for Proposal (RFP) this year:

FY21 Opportunities + Competition

The Pulse just released two special reports on the FY21 Federal Discretionary Directives. In this report, we explored each agency’s favorite inter-agency acquisition vehicles to help Government Contractors understand where FY21 opportunities will likely be competed.

In summary, GSA IT-70 and PSS (now MAS) Schedule, as well as NASA SEWP V are overwhelming favorites with over 71% usage across the 19 federal agencies we researched. GSA OASIS and OASIS SB may only take up 3% but it is the primary favorite of DoD so don’t let the low percentage fool you.

FY21 + New Administration

Government Contracting in 2021 is sure to be interesting with a new Presidential transition taking place while the FY21 funding begins to be released. As new leadership comes into power, expect to see some opportunities get pushed to the cutting room floor (i.e. “transformation” or “reorganization” requirements for the previous FY); whereas some might come back to life as federal agencies (i.e. EPA) that have been dormant over the past 4 years get re-energized.

Be on the lookout for spending to increase starting in mid-March through the end of September. However, since agencies are uncertain of what they’ll have for FY22…it could slightly dampen FY21 obligations. But inn the meantime, we can anticipate additional funding boosts — primarily in the areas of healthcare, transportation, construction, and technology modernization — as the new Administration works with the 117th Congress to pass additional COVID-19 stimulus bills throughout this year.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
The Pulse of Government Contracting

We are a boutique federal market intelligence firm that specializes in Government Contracting storytelling. Learn more here: https://thepulsegovcon.com/