WashingtonExec 2014 Market Outlook Series
As we turn the page on 2013, we look forward to a new year and new opportunities for innovation and growth in the government contracting community. This past year we experienced budget sequestration, a 16-day-long government shutdown, and a perpetually increasing focus on cyber security and healthcare IT.
WashingtonExec reached out to those most knowledgeable and experienced individuals in the federal contracting space. We asked executives in and around the beltway for insight regarding where they see the government contracting community headed in 2014. Topics discussed include M&A activity, cloud computing, healthcare IT, defense, mobility, and more.
Neelu Modali is the CEO of S M Resources Corporation (SMRC), a scientific engineering and technology company focused on solving the world’s most pressing problems. In his current role, Modali is focused on building and leading SMRC, with prime contracts providing science, technical, medical and professional services to federal agencies.
We are beginning to see the impacts of legislative actions in 2013 become trends for 2014. With a continuing focus on budget, it’s important to help our customers find innovative ways to create efficiency and reduce costs. I anticipate more Firm Fixed Price (FFP) and Lowest Price Technically Acceptable (LPTA) procurements while customers focus efforts on mission critical items. New initiatives may be frozen or put off until a later date unless they pose an immediate cost savings benefit.
We can expect to see more healthcare IT initiatives, not only at the Department of Health and Human Services, but also at Veterans Affairs and Military Health System. Also, the Big Data paradigm reached a turning point in the past year. In 2014, we will turn the corner, both in streamlining data aggregation and management capabilities and increasing the ability to analyze data. Pulling actionable insights from data will facilitate improved decision-making.
Finally, I believe we will see large businesses continuing to consolidate with private equity dollars moving into that space. As such, we can also expect a greater scrutiny on contractors to ensure justified spending of taxpayer dollars.
With the changes expected in 2014, SMRC is shifting as well. While we will continue to focus on civilian markets, our pipeline will generally lead away from Department of Defense work and towards other agencies such as Department of Homeland Security. We will also continue to increase teaming opportunities with large businesses, while maintaining our usual focus on single-award contracts.