As the 2014 calendar year draws to a close there are three important facts about the federal market that contractors not only need to understand, but evaluate in terms of what they mean for their business. 

1.  The Government Is Open For Business & There Are Opportunities:  All federal agencies have money, and most have it until the end of the fiscal year.  While agency budgets are tight, money will be spent on priority issues such as cyber, professional support services, and key national defense solutions.

2.  This Market Isn’t For The Faint of Heart:  Whether it’s new Executive Orders, expanded use of cost data at DOD, LPTA, reverse auctions, or strategic sourcing, the federal market is a more difficult place to do business than it was just a few years ago.  Although Congress and the Administration say they want new blood in the market, their actions are 100% guaranteed to bring about the opposite.  Successful companies have to truly understand the market they’re in and keep on watch for new speed bumps.

3.  We Have At Least One More Year of Status Quo:  While some market watchers believe that we could see a renewed civilian agency market this year, it’s more likely that growth will come in FY’16 or ’17.  Absent a game-changing event, we know what the budgets are for the next several months.  FY’16 may even bring a return to sequestration.  Procurement budgets will grow if for no other reason than years of neglect and expanded missions will require such action.  That horizon, however, is still a little ways off.