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 process. In the medium-to-long-term the reorganization could impact who you meet with, as well as where and how you do business inside a particular agency. Changes could come as early as the end of the current fiscal year. There is certainly reason for experienced Washington hands to by cynical. Every administration acts like they’re the first ones to re-shape government since the George Washington Administration. On the other hand, the Office of Management and Budget has substantial leverage over agency actions and the effort has gained notice since its quiet inception. As such, most leaders will probably fall into line and do the called-for reviews for fear of having budgets withheld. It is important for contractors to understand and follow this exercise. The results could very well change with whom you do business and how much business you do.