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.
Mark Chadason, Senior Vice President at MacAulay-Brown, Inc. (MacB), spoke with us about his predictions for the new year.
WashingtonExec: What will next year hold for Government Contracting?
Mark Chadason: As we enter 2013, there continues to be a lot of uncertainty. Major threats to our national security continue, while the March 1 sequestration deadline threatens to impose significant cuts to our defense structure. Even if sequestration is not enacted, budget cuts are a reality for the foreseeable future. New systems development, non-mission essential support, defense civilian hiring and overseas contingency areas will all face tighter scrutiny. In addition, we will see fewer new contracts and DoD will rely more on low-cost, technically acceptable procurements. On the other hand, there are sectors that will grow. Funding for Intelligence, Surveillance and Reconnaissance, Cyber/Computer Network Operations, education, veteran affairs and healthcare will remain stable, and in some instances, increase. Another area that will see growth is Special Operations Command, which is projected to experience substantial growth in operations and support personnel. Competition for these contracts will be fierce. Strategic-minded and financially healthy companies that are able to operate in a low-cost environment are best suited to do well.
WashingtonExec: More M&A Activity? More IT budget cuts?
Mark Chadason: M&A activity will be strong in 2013. Companies will move to protect and strengthen their high growth cyber, big data and SOCOM offerings and diversify to mitigate coming defense cuts and the drawdown in Afghanistan.
WashingtonExec: What shape will collaboration take between industry and government in addressing tough issues: Healthcare, Defense, Big Data, Mobility, Cloud, etc?
Mark Chadason: Productive collaboration will be absolutely critical as shrinking budgets and increased mission requirements force us all to do more with less. Companies that work in true partnership with the Government, are dedicated to mission success and providing innovative, flexible and cost-effective solutions that will be in the best position for long term growth. The days of offering proprietary systems and solutions that are hard to use, and often come with huge cost overruns, are over. At the end of the day, we are providing solutions and services that protect the Nation. A close, collaborative government/industry partnership is in the best interest of everyone.
