Over the last few months federal spending cuts, budget restraints and federal contracting’s favorite word, “sequestration,” have been on everyone’s mind. This past week a new word was invented to describe the current budget climate: “snowquester.”
WashingtonExec reached out to area executives in the federal contracting space to share their insights regarding how this uncertain budgetary climate is impacting their customers, business, as well as future initiatives.
Debra Stouffer, Executive Vice President of BRMi and former CTO at the U.S. Environmental Protection Agency (EPA), gave us her unique insights:
WashingtonExec: How has sequestration impacted your customers?
Debra Stouffer: It is far too early to say. Many customers are still trying to plan for how they will achieve anticipated cuts. When I was in the government, sequestration was considered on two occasions. The same type of conversations that occurred then are taking place today. Agencies are performing scenario planning for various different/potential outcomes. Our clients are reviewing existing contracts, and establishing multiple scenarios based upon anticipated cuts to include assessments of critical vs. non-critical mission support programs, option year executions, continued funding of IDIQ’s, etc. BRMi remains in close communication with our clients so that we can adjust quickly and effectively to any cuts that occur.
WashingtonExec: How has/will sequestration impact your overall business?
Debra Stouffer: Again, far too early to say, but we are taking proactive steps to remain informed, be flexible and adjust. These steps include things such assessing our accounting processes, performing contract reviews and assessments, and developing proactive restructuring strategies. Most importantly, we are talking to our customers and contracting officers regularly and often to stay informed of potential impacts. Finally, we are staying positive that the needed reductions will be made through compromise.
WashingtonExec: What is your personal view of sequestration?
Debra Stouffer: Based upon my prior government experience, and in standing up governance processes across the government from private industry, hard decisions need to be made in a continuous and ongoing manner. Not everything that is wanted can be funded. Proactive, sound governance around the budget process would be less painful, more effective, and certainly more proactive. The reviews that are happening on capital hill that are aimed at transforming IT and acquisition management, and the efforts that OMB is taking with programs like Portfolio Stat, are positive steps in this direction and should be watched closely.
You can read more about Debra Stouffer, like her three pieces of advice to her children, here on WashingtonExec.
