MODERNIZING TECHNOLOGY ACT HAS FED IT EXECS HOPEFUL

Federal IT officials are so close to having a working capital fund they can taste it.  Several, in fact, are already contemplating infrastructure upgrades they might be able to accomplish once Congress passes the Modernizing Government Technology Act (MGTA).  Although final details of the Act are as yet unknown, the House passed a stand-alone bill earlier this year and the Senate included another in its version of the FY’18 NDAA.  It is, therefore, likely to become reality in some manner.  Federal IT executives say that the working capital fund will ease the fiscal burden of uncertain budget cycles.  It’s been increasingly difficult to make capital investments given uncertainty on when final fiscal year budgets may be implemented and the fact that each fiscal year starts with most agencies under a CR, precluding new project starts.  While contractors that supply IT solutions to federal agencies need to track the MGTA, they should start talking with their customers as soon as possible about possible capital projects.  Those that have the best business case have the best chance of being funded first.