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.
Shankar Pillai, President of OnPoint, told us what he expects in 2013:
“I expect to see a continuation of what has been occurring over the past 18-24 months for IT services. That is, more movement to fixed price contracts and a focus on Low Price, Technically Acceptable (LPTA) competition. We’ve seen some customers struggle with transition and performance following LPTA selections, so this may begin to run its course over the year and return to a more balanced evaluation process. It is likely that we will continue to see more contract consolidation within agencies and in the longer term across agencies as the latest federal guidance takes hold. As federal budgets are cut, IT won’t be spared so this really aligns with the competitive price environment. An unfortunate consequence may be that for those departments and agencies that didn’t adequately capture their requirements in a firm-fixed price vehicle, they will have less ability to address those unmet requirements due to a lack of funds.
We are seeing some encouraging signs in terms of collaboration with government customers in developing requirements and considering best practices. Some of our customers are leveraging RFIs, draft RFPs and multiple meetings with industry to try and develop the best solicitation. This is a positive sign and I think contributes to ensuring a delivery effort that is effective not just on cost, but in terms of accomplishing the right work to the right standard of performance. I hope this continues as it is equally good for the customer and the service provider.
Mobility is here to stay and will continue to be absorbed into the larger enterprise in terms of infrastructure management, architecture and portfolio management. This is in contrast to a few years ago, when mobility meant a device with a bolt-on type infrastructure. Cloud computing and “as a service” offerings will continue to penetrate the federal space. The leaders are moving full steam ahead and will continue to publish the benefits of their efforts. Declining budgets will probably have two interesting effects on mobility and cloud computing. It will force some to act because they can’t afford to refresh their current infrastructure, and it will prevent others from moving forward due to a lack of funds. Contractors are going to have to be innovative to help provide a glide path that addresses both ends of this spectrum.”
