2014 Business Development Strategy

Monday Morning Contracting Tip

I know it’s been a while since you have received a Monday Morning Contracting Tip, but how many of you know that it is important to conduct the proper research to establish the best Business Development Strategy for the upcoming year? 2014 is around the corner, what government agency do you plan to do business with? If you know what’s going to happen before it happens, it puts you in a better position for success.  

At the beginning of each federal fiscal year there are several federal government search companies who identifies and assesses the top 20 federal contract opportunities for the coming year.

The information in this Monday Morning Contracting Tip identifies those 20 high profile procurements to reveal key trends and patterns in those procurements versus prior years, which assist should assist you in your business development strategy.

The FY 2014 Top 20 list includes $160.7billion in total contract value consisting of prime contract opportunities from a variety of agencies and industry segments.

The FY 2014 Top 20 Federal Opportunities represent $160.7billion in total contract value, a rebound from the $92.2 billion total contract value of last year’s top opportunities, which was the lowest total value since the research company began publishing the annual report in 2006. FY 2014 is more in-line with, somewhat higher than, what we saw in FY 2011 and FY 2012, where the values were $142 billion and $148.5 billion, respectively.

·       Consistent with historical trends, Defense opportunities constitute the majority of this year’s list, totaling $118billion. The Army dominates with 57 percent of FY 2014 top opportunities’ total contract value. Of the eight Army opportunities featured, three are the top valued opportunities this year.

·       If we were to characterize last year ’s top opportunities as the year of the Government-Wide Acquisition Contract (GWAC), where high dollar value contracts like NASA’s SEWP V, GSA’s OASIS, and HHS’s CIO-CS were featured, then FY 2014 is the year of the agency-specific IDIQ follow-on. Follow-on contracts account for 81percent of the total contract value in FY 2014 and more than half of the opportunities are agency-specific IDIQs.

·       Professional services opportunities, with $73.2 billion total contract value, top the list with a slightly higher total than the $73billion in IT opportunities. IT opportunities account 45percent of the total contract value for FY 2014, driven by large IDIQs like the Army’s S32G ($30B) and ITES-3S CHESS ($25B), HHS’s CIO-CS ($20B), and Defense’s E-SITE ($6B)

Of the FY 2014 top 20 federal opportunities, seven are associated with civilian departments and agencies. The combined value of the seven civilian opportunities is $42.6 billion and represents 27 percent of this year’s top 20 opportunities total contract value. This represents a nearly $7 billion increase over FY 2013’s combined civilian value of $35.8 billion.