Manish Malhotra’s 2013 Outlook: Continued Challenges, Inevitable Budget Cuts

Manish Malhotra, Unissant, 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.

Manish Malhotra, President and CEO of Unissant,Inc, spoke with us about his predictions for the new year:

“2012 was a challenging year, 2013 is likely to continue with the same trend with several agencies having to buy the same or less – probably far less. We will probably see an increase in fixed price performance based contracts as well as Low Price/ Technically Acceptable (LPTA) contracts. Multiple award indefinite Delivery Indefinite Quantity (IDIQ) contracts will also continue to increase as agencies look for reducing costs and increasing efficiencies.

Budget cuts seem inevitable, leading to fewer contracting opportunities with increased competition. As a result, number of bid protests will continue to trend up as they have been from past few years.

Sequestration, if it happens, will have a spiraling negative impact, much more than what can be imagined. Widespread Government layoffs, resulting in less manpower will lead to even longer and slower procurement cycles in an already tough contracting environment.

As an upcoming small business, we remain optimistic about 2013 despite all the challenges. We are seeing an increase in open-­‐market small business contracts. Large system integrators seem to be more receptive to mentoring and supporting small businesses rather than using them as a check mark for a procurement requirement. However, such opportunities will mostly benefit those innovative small businesses that invest in streamlining and stabilizing their infrastructures while focusing on strengthening their core capabilities.”

 

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