James H. Moody’s 2013 Outlook: an Uncertain but Dynamic Year

James H. Moody, VETS, Inc.

WashingtonExec 2013 Government Contracting Outlook Series:

The new year brings big changes for the Federal IT industry, and WashingtonExec is back with its Government Contracting Industry Outlook Series.

We are giving local executives the opportunity to share their thoughts on where they see our industry headed this year and beyond. Leaders were asked a series of questions focused on cloud computing, healthcare IT, defense, mobility, and more.

James H. Moody is President & CEO of Veterans Enterprise Technology Solutions, Inc. (VETS, Inc.), a service-disabled veteran-owned small business. He gave us his predictions for a 2013 he sees as “dynamic”:

“With the 2012 elections over and the “Fiscal Cliff” saga continuing to affect our politics and the national economy, I believe that government contracting will continue to be dynamic.  Given the uncertainty, the market may shrink a little in 2013 as Agencies experience budget cuts, but the Government will continue to rely on information technology as a means to help streamline the government and hopefully reduce costs.  Healthcare, Defense, Veterans and Energy initiatives will continue to lead the way.  Areas such as Cloud Computing, Cyber Security, Mobile Computing, Virtualization, Customer Relationship Management, and Data Center Consolidation will all continue to grow.

We continue to see an increased use of task order vehicles with smaller individual program awards and shortened procurement timelines.  Some Agencies, such as the Department of Veterans Affairs (VA), are using shortened contract award periods (e.g., 6 month period of performance with 6-month option periods) as a potential means to better control the Government’s project risk.  Unfortunately, this puts additional risk and expense on the contractor community.

I think we will also continue to see a fairly good amount of M&A activity as the medium and larger companies look for ways to reduce overhead and increase their market share.   Small Business and the entrepreneurial spirit will continue to find new, innovative ways to grow and to fuel the nation’s economy and job growth.”



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