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.
Joseph (Joe) P. Doherty, Jr., Chief Executive Officer (CEO) and board member of GCR Inc, is our first participant in this series.
WashingtonExec: What will next year hold for Government Contracting?
Joseph P. Doherty, Jr.: 2013 will be a continuation of two streams of procurement. The first stream is sustainment of existing, necessary deliverables, both in products and services. The second stream will be driven by the more innovative CIOs that have the business vision and technical acumen to drive incremental modernization to effect operational effectiveness and cost containment.
WashingtonExec: More M&A Activity? More IT budget cuts?
Joseph P. Doherty, Jr.: As the Federal (and State & Local) agencies and departments have their budgets more strictly scrutinized, if not curtailed, causing increased competition by the many for fewer dollars, this will drive companies, in particular publicly traded companies, to “buy revenue” to demonstrate growth albeit via M&A activity. This scenario of curtailment will begin to harm small and mid-size businesses reducing valuation multiples which may cause larger companies to review more such companies for acquisition, but not necessarily leading to more deal flow.
What shape will collaboration take between industry and government in addressing tough issues: Healthcare, Defense, Big Data, Mobility, Cloud, etc?
Joseph P. Doherty, Jr.: Again, with the evolving legislative requirements and transformational technologies, including cyber security concerns, those Cabinet and Agency Heads that have the fortitude to collaborate — engage industry for consulting interchanges, strategic brainstorming, operational improvement reviews and quick-turn RFPs will be able to advance their strategy, even through the tough issues coupled with challenged budgets. It will serve as a win-win-win….. a win for the Agency, Industry and citizen taxpayers.