Contractors and Agency Officials Plan on a Tight Budget

November 30, 2015

Contractors Predict Tightening of Federal Opportunities in Next 5 Years

Source: Government Executive, Charles S. Clark, November 18, 2015

Governmentwide spending on defense and civilian contracting risks being pinched over the next five years by growing mandatory spending on entitlements, according to industry research being unveiled Wednesday and Thursday at a conference convened by the Professional Services Council.

Though the overall federal budget will rise from current $3.9 trillion to $6.2 trillion in 2025, the defense portion is projected to fall from 15 percent to 11 percent of that total, while discretionary spending shrinks from 30 percent to 20 percent, according to the group’s first annual Vision Federal Market Forecast, a synthesis of the thinking of some 300 contracting specialists from industry, agencies, think tanks and Congress.

The forecast included some upbeat news. Specifically, the unclassified federal information technology budget for procurement, transition to the cloud and transforming the workforce will tick upward from $79.5 billion in fiscal 2016 to $85.9 billion in 2021, though inflation flattens some of the growth. Pentagon services contracting will maintain itself at $100 billion annually between now and fiscal 2025,  accounting for more than half of the government’s services spending, said PSC Counsel and Executive Vice President Alan Chvotkin.  Read More …

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