Trends in the Federal Contracting Marketplace - VisibleThread Users Conference 2014 Keynote

Trends in the Federal Contracting Marketplace

Kevin Plexico

Vice President, Information Solutions

Deltek, Inc.

VisibleThread Users conference – Nov 2014

Agenda

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Recap of FY 2014

Budget Outlook and Scenarios for FY 2015

Opportunities and Issues to Watch

2014 Recap

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Contract Spending Trend

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Civilian contract

spending increased 2%

over 2013

Defense spending

remained flat (assuming

Q4 spending matches

2013 Q4 spending)

Source: FPDS, Deltek

Note: FY 2014 is a Deltek estimate for Defense

FY 2014 Quarterly Spending

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34% of contract spending

occurred in Q4, tying the record

set in FY 2013

Source: FPDS, Deltek

* Q4 2014 Defense spending assumes it matches

Q4 2013 level

Change in Civilian Contract Spending by Market Segment

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Source: FPDS, Deltek

Solid rebound in civilian

contract spending in major

services sectors

Change in Civilian Contract Spending by Department, 2014 vs. 2013

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• Strong increases across a number

of major departments

• Some modest reductions for some

Source: FPDS, Deltek

Outlook for FY 2015

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Discretionary Budget Proposals for FY 2015 and Beyond

Source(s): OMB, House Budget Committee, CBO

*Sequestration policy expires in FY 2021. FY2022-2024 are CBO estimates

Growth Scenarios

-Budget Control Act ~2%

-House Budget Resolution ~1%

-President’s Request ~2%

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9

Defense Budget - Past and Proposed

Source: Under Secretary of Defense (Controller)

*Reflects FY 2013 enacted level excluding sequestration

**OCO numbers are placeholders only

316 345

438468

479535

601666

666 691687

645

578 581 575 565 574 581 589

614*

** ** ** **

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Next Step Scenarios for 2015 Appropriations

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Another CR

Lame duck Congress

passes another CR to give

new Congress more time.

Omnibus

Lame duck Congress passes

full year omnibus

Shutdown

Congress can’t agree

and allows a shutdown

before

Current Continuing

Resolution

Expires Dec 11

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Forecast for FY 2015

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Source: OMB, Deltek

Note: 2014 is Deltek estimate for Defense. 2015 is Deltek Forecast

Contract Spending by Company Prime Contract Revenue

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Mix of Federal IT Spending by Contract Vehicle Type

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Source: FPDS , Deltek

Typical Acquisition Cycle Traditional RFP vs. Task Order

RFI Draft RFP

Industry Day

RFPBids Due

3-6 months 3-6 months 1-3 months

SOWBids Due

2-3 weeks

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Key Decisions/Actions

Bid/No-Bid

Teaming

Pricing/Proposal

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Issues to Watch for 2015

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• Ebola

• Mideast/ISIS

• Ukraine

• Budget/ Approps

• Mid-terms

• Immigration

• GSA schedule changes

• GWAC performance

• Small Business rule changes

• FAR changes

Regulatory Acquisition

GeopoliticalBudget/ Policy

Thank You!

Q&A

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