Category Archives: Business

FEDS SCRAMBLE TO ID WORKFORCE CUTS WILL IMPACT CONTRACTORS

Leaders of each federal agency have until June 30th to identify workforce reductions and other management infrastructure savings and report recommended actions to OMB.  An Executive Order, this one issued April 12th, is behind the review which is aimed at a fundamental restructuring of the entire government.  This exercise will impact contractors.  In the short term, senior agency executives, the types who meet with you and decide on whether to move forward on important programs, will be involved in what will likely be an intense management review Read more

STAY AHEAD OR GET CAUGHT FROM BEHIND – YOUR FEDERAL MARKET IS CHANGING

In the famous line from “Other People’s Money” Larry the Liquidator (no relation) stated, “…the last company around was the one that made the best (deleted) buggy whip you ever saw.” Cold comfort in a market that no longer needs buggy whips. Your approach to federal business should be changing right now so that you don’t become that company. What’s happening? How about massive e-commerce for all but complex services? Amazon is already across the threshold of the federal market door. It’s only a matter of time before they, or even their own competitors, become a significant disruptor to how product-based companies do business in federal today. How about a world in which there is no Multiple Award Schedules program? Read more

UNITED DEBACLE A LESSON FOR GOVERNMENT CONTRACTORS

While it’s tempting to add to the litany of United jokes coming from all sides this week, there are, in fact, real take-aways for government contractors.  One lesson is that companies that cut too many corners can find that the long-term expense is far, far greater than if they’d committed the right resources the first time.  In United’s case that means using better trained and better compensated personnel, and ensuring that management assets appropriate to situation are always on hand.  Consider that United’s stock price only closed with a net loss to the company of $250 million the day after the incident broke.  Add to that PR costs, lost credit Read more

RUN – DO NOT WALK – AWAY FROM GSA’S TDR

If Allen Federal had a “black box” warning like the FDA, we’d issue it for GSA’s TDR program.  We recommend strongly that any company who can avoid it do so, for as long as possible.  Recent hints from GSA that participation may be optional should be explored and pursued to the fullest extent.

While the TDR pilot is supposed to eliminate the need for contractor-supplied price and discounting information, there is widespread anecdotal evidence to show that this is not Read more

SHORT TERM CR LIKELY AS CONGRESS LEAVES TOWN

Although the government doesn’t run out of money until April 28th, there are only four legislative days between now and then for Congress to pass a planned-for omnibus spending bill.  No deal is yet finalized and it now looks increasingly likely that a short-term CR, perhaps into the first week of May, will be required to keep all agencies, except the VA and military construction accounts, funded.  Congress does intend to pass a catch-all, omnibus measure to fund all agencies that currently do not have formal appropriated dollars, but debate over Read more