Obviously, there have been quite a few changes that have occurred in 2020 that have a considerable impact on the ways businesses are operating within the Federal sector. RWCO has been tracking these trends for quite some time, which are universally present across nearly every industrial and service sector that supports public sector operations, both at the Federal and State Levels.
While reflecting on the last 12 months, it is remarkable how the landscape in 2019 and early 2020 has evolved, considerably, in ways that have a seismic impact on public sector business development:
- SBA’s new size standard average annual receipts calculation rule is effective Jan. 6, 2020. SBA adopts a transition period through Jan. 6, 2022, during which firms may choose between using a three-year averaging period and a five-year averaging period. Rather than the traditional 3-year average rule for revenue calculations, the SBA final rule adopts a 5-year average
- Teleworking and Federal/State procurements will continue to be the normal, with the OPM advising defense and civilian agencies alike to anticipate a teleworking posture through at least January 2021.
- The shift in supply-chain focus has created a challenge for service and product providers alike. While the “Federal Acquisition Regulation: Prohibition on Contracting with Entities Using Certain Telecommunications and Video Surveillance Services or Equipment” directive has been put in place, Contracting officers shall include the provision at FAR 52.204-24 and/or FAR 52.204-25.
- While limitations on the deployment of technologies originating from China remain in place, the Covid-19 pandemic testing the U.S. supply chain in ways few thought possible. The reality of limited supply and extended shipping timelines hampered the response to the medical challenge posed by the Coronavirus. Even as the call for large quantities of personal protection equipment, ventilators, and other critical items continues, the U.S. markets reliance on China as the primary source for critical supplies continues to stymie the response and recovery efforts.
- In the coming weeks, RWCO will release a research study using data supplied by Descartes Datamine that uses Bill of Lading information to track the manufacturing, inventories, and shipments of mission-critical PPE and medical supplies. Preliminary findings suggest that China currently maintains more than 88% of the sourcing capacity for these life-critical supplies, all while Federal sector emergency procurements and RFPs mandate offerors provide sources and supplies that do not rely on China.
As we move into 2021 FY Q1, we anticipate a considerable uptick in Federal contracting activity due to pent up demand for supplies and services within defense and civilian agencies. This pent up demand is largely a function of contracting activity nearly ceasing to a halt in favor of emergency procurements and pandemic response activates from April-August 2020. September 2020 should see a considerable uptick in sole source awards as well, as agencies attempt to release the pressure of contract backlogs as they move into the 2021 FY.
October 2020 should see a considerable uptick in sole source awards as well, as agencies attempt to release the pressure of contract backlogs as they move into the 2021 FY.
We are also anticipating the release of several high-profile GWACS, to include FirstSource III, CIO-SP4, VHA-IHT, NOAA Protech, and SSES NexGen.
Should you wish to discuss proposal support for any of these opportunities, please let me know and I can schedule a short introductory call. Or if you are interested in our Business Development support which includes Capture Management and Proposal Support, please let me know and I can send you our full capabilities, or read more about us here.
PUBLIC SECTOR PROCUREMENT BAROMETER SURVEY RESULTS
RWCO conducts an annual research survey of comprehensive market trends across the Federal contractor community. The research survey, entitled “Public Sector Procurement Barometer”, is fielded via an online research portal. Respondents are invited to participate in the survey through an email outreach campaign that is conducted throughout the month December. The survey is released from January 2-January 31 every calendar year.
SITE III WHITE PAPER
The DIA will combine two information technology contracting vehicles worth potentially $5.1B as a follow-on to the Enhanced Solutions for the IT Enterprise contract (E-SITE). The DIA plans to merge the $3B Infrastructure Sustainment and Development 2 program with the $2.1B Application DS2 solicitation to form a SITE III multiple-award contract. IDS2 covers cloud services and data center support work, while ADS2 seeks data integration, software engineering and other technical support services.
LTASC SCOPE OF SUPPORT
RWCO has assembled a complete review of the LTASC III program in the form of a project plan and we are providing you access to that project plan with no strings attached. Consider it our way of providing value in the form of market intelligence and LTASC guidance while demonstrating our capability of support on LTASC responses in the future.