The word sequestration sends shivers up the spines of government employees and contractors alike. But the threat of sequestration isn't the only issue taking shape for the tech community this year and next.
Trey Hodgkins is the Vice President of TechAmerica's Global Public Sector Advocacy. He sat down with Chris Dorobek on the DorobekINSIDER program for an extended interview with his technology trends preview.
"Sequestration was designed to be the worst case scenario, a scene so horrific that no one could overlook the issues," said Hodgkins, "but right not it doesn't look like Congress will be able to meet the deadline, their best hope is to extend it with a continuing resolution."
Sequestration Effects: "If sequestration goes into effect in January of 2013 there will be some pretty immediate ramifications, especially in terms of personnel. Some have estimated the number of eliminated feds to be around 100,000 or higher. That's not even taking into consideration all the jobs that would be lost on the contracting side."
"It would also mean that progress in the acquisition workforce, training and experience levels would evaporate overnight. It would reduce the ability of a person to manage a contract effectively and pursue competition," said Hodgkins.
Contractor To Do List
"Contractors need to understand funding in particular. They need to know if contracts are obligated or not. Because only contractors that are obligated are safe from sequestration," said Hodgkins.
"This election may change the face of government as we know it," said Hodgkins, "either way both parties will probably keep a focus on the tech buzz words floating around now. Trends like big data, cloud computing, data analytics, mobility, data center consolidation etc. But when there is only so much funding to go around what will be diminished is up for grabs," said Hodgkins.
Is Government Contracting More Hassle than its Worth?
"Contractors have already said that they are facing increased pressure. Barriers are not being broken down but getting taller. I wouldn't be surprised that in the next 12-24 months if contractors start revisiting whether being in the government market is worth it," said Hodgkins
Other Top Concerns
- Contractors are worried about potential cuts in the Defense Authorization Act
- Fiscal Cliff -- could impact what the government market looks like
- Cybersecurity legislation - Legislators are still struggling to figure out which role the government should play. The President might take matters into his own hands with an Executive Order. There is a draft currently circulating.
- Acquisition Regulations - TechAmerica is currently tracking 250 regulations impacting contractors. That is a significant increase in the past 4-5 years.
- Political Contributions - The latest drafted Executive Order would require contractors who bid on a contract to submit information about all their political contributions both as a company and a class of corporate executives as well.
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