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KRT Impact Blog

Fiscal Year 2013: Reflections from Four Years Ago

It’s been about four years since the last presidential election during November, 2008. That time period like now was full of uncertainty for the Federal market. By September 2008, (the close of the 2008 Government Fiscal Year), major cracks were showing in the US economy and there were some uncertainties that was shadowing the start of FY2009:

Overall, it was a grim time for the American economy, and there was much uncertainty around the role of the Government and what all of these factors would mean for the Federal procurement community.

Now four years on as we prepare for another round of presidential elections and a new fiscal year, we have some interesting new and old realities to deal with:

What is Sequestration?

As a quick-aside Sequestration is a result of the Budget Control Act (BCA) of 2011 and sequestration put in place almost as a doomsday device for congress to agree to terms a $1.5 trillion in deficit reduction. Obviously this did not happen. The Center on Budget and Policy Priorities had good information that provides an overview of the impacts, and more details around sequestration: http://www.cbpp.org/cms/?fa=view&id=3635

“Broadly speaking, for 2013 the across-the-board cuts will mean about an 8.4 percent cut in most affected non-defense discretionary programs, a 7.5 percent cut in affected defense programs, an 8.0 percent cut in affected mandatory programs other than Medicare, and a 2.0 percent cut in Medicare provider payments.“

With the sluggish economy, upcoming election, and uncertainty around the impacts of sequestration, it is an interesting time to be a participant in the Federal acquisition market as both a buyer (Federal Agency) and a seller (Contractor).

In a series of follow up blogs throughout the month of October – we are going to explore some potential trends that we can watch out for in the Federal Market during FY2013.  I look forward to feedback on what you think the next few years will bring us in the federal acquisition world. Reach out to us at: contact@krt-associates.com