© 2009
Impact of the Stimulus Bill on Federal ContractorsBrian M. HaneySenior Vice PresidentINPUTApril 20, 2023
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CR?
Administration Transition & Budget Cycle
2
Agency/ President Prep
Congressional Review/Approval
Agency/ President Prep
Congressional Review/Approval
Congressional Review/Approval
CR
Agency/ Pres Prep
Source: INPUT
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Leadership Turnover & Human Capital
3
Agencies Most Impacted by Leadership Losses
4.2%
1.1%
3.8%
1.8%
5.2%
.8%
2.9%
Source: OMB, EEOC, INPUT
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Peak:1998-2003
11.9%
INPUT Fcst:2008-2013
3.9%
Federal IT Budget, 1989 – 2013
Source: OMB, INPUT
Low:2006-2011
2.9%
Note: Figures include Defense and Civilian Exec Agencies Only for comparison purposes
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Federal IT Industry Forecast, 2008-2013
5
Source: INPUT
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Stimulus -- What Is It?
6
Source: American Recovery and Reinvestment Act Summary (created using Wordle.net)
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Economic Crisis Recovery in Perspective
Source: OMB, INPUT* Reflects 2009 Budget Request
819-900
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Deficit Spending at 50 Year High
8
2009 Deficit Forecast = $1.6 Trillion (11% of GDP)Most Since World War II
2009 Deficit Forecast = $1.6 Trillion (11% of GDP)Most Since World War II
Source: OMB, INPUT
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Discretionary Spending
$308.0 billion
Direct Spending
$198.0 billion
Components of Economic Stimulus Plan
0.0 200.0 400.0 600.0 800.0 1000.0
In Billions
Tax Cuts
$280.8 billion
Source: H1 Conference Report and Congressional Budget Office
= $786.8 billion
Tax cuts to individuals
Direct spending to individuals
Discretionary spending primarily to governments
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Summary of American Recovery and Reinvestment Act of 2009
Full appropriations total $786.8 billion• $506 billion in discretionary and direct payments
• $281 billion in tax relief for individuals and businesses
Provides funding for technology, science and research, infrastructure improvements, education, energy, healthcare, and training• Funding distributed through new and existing programs
• Many programs to be implemented by states with grant funds
High level of transparency
Quick turnaround• Spending plans within 30-120 days of enactment
• Goal of using 50% of funds for activities that start within 120 days
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Distribution of Funds ($B)
11
Source: Recovery.gov
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Spending Will Occur in Several Areas
12
Another $55+ Billion in technology spending is “buried” in other line items
Breakout of $308B in discretionaryspending
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Timeline of Spending
13
Estimated Costs of ARRA by Year, FY2009-FY2019
Source: CBO, INPUT
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Technology Opportunities
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The IT Markets
15
Nearly $67 billion in new technology spending (even before coverage expansion which is majority of ARRA spending)
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Funding Breakdown by Department
16
AF
Census TSA
CBP
ICE
CG
HQ
*Dollars in billions
Army
MC
Navy
NIST
NOAA
FAA EERE
OE
IHS
HRSA
NIH
ONC
BLM
FWS
NPS
USGS
BIA
ETA
OJC
AFARuralUtil.
FSA
VHA
FSA
Admin
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Homeland Security
17
Checked baggage explosives detection systems and checkpoint explosives detection equipment
$20MICE
Non-intrusive detection systems ($100M)Tactical communications equipment/radios ($60M)Border Security fencing, infrastructure and technology ($100M)Construction of land border ports of entry ($420M)
DHS HQ Consolidation - construction, site security, IT infrastructure, fixtures, and related costs
Tactical communications equipment and radios
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Social Security Administration
18
Processing disability and retirement workloads
Includes IT acquisitions and research support
$40M
Replacement of the National Computer Center and the associated IT costs
Health IT for the adoption of electronic medical records in disability claims
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Facilities Modernization at DoD
19
Facilities modernization and energy efficiency investments
($3.9B) ($1.1B)
Child development centers and warrior transition complexes($230M) ($230M)
Family Housing (including O&M)($39.6M) ($96.6M)
($712M)
($280M) Included w/Navy
($154M)
N/A N/A
Marine Corp
$154M
Research, Development, Testing and Evaluation (RDT&E) ($3.9B) ($1.1B) ($712M) ($154M)($75M)
($400M – medical facilities)
($400M) Hospital construction
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Energy & State Departments
20
Increase the efficiency of information and communications technology and improve standards
Modernize the electric gridEnhance security and reliability Energy storage
Consolidated security training facilityExpand passport agenciesIT security upgradesEstablish back-up information management facilities
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Health & Human Services
21
Health IT – tele-health services development and related infrastructure requirements($85M)Facilities construction, maintenance, improvements, equipment($415M)
Health ITModernization of non-Federal research facilities and NIH facilities on Bethesda, MD campus
Construction, renovation and equipment for health centers Health IT systems for health centers
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GSA & Veterans Affairs
22
Energy efficiency projects for federal buildingsConstruction of border stations and land ports ofentry
Maintenance and energy efficiency projects at medical facilities
IT systems
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Agriculture & NTIA
23
Modernization of IT systems
Broadband deployment in underserved areasBroadband inventory map ($300M)
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Contracting & Other Provisions
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Increasing Reliance on Task Order Vehicles
25
Source: FPDS, INPUT
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Squeeze on Small & Mid-Sized Firms Continues
26
Source: FPDS, INPUT
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Contracting Stipulations
Requires use of the FAR
To “maximum extent possible”, federal agencies must use• Competitive procedures
• Fixed-price contracts
• If other approach is used, it must be posted with explanation to Recovery.gov
Agencies can use existing contracts to execute plans
Priority given to programs that:• Can be obligated/executed quickly
• Will result in high, immediate employment;
• Have little schedule risk
• Will be executed by contract or direct hire of temporary labor
• Will complete a project phase or project
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Oversight & Transparency
Establishes Recovery Accountability & Transparency Board
Establishes Recovery.gov as transparency site
Recipients (including contractors) must provide quarterly reports
• Total amounts received and amounts obligated/expended
• List of all projects/activities on which funds have been obligated/expended
• Project name, description, completion status,
• Estimate of number of jobs created, and
• Detailed info on subcontracts
Extensive funds provided to IGs to support oversight
GAO has authority to examine the records or interview employees of contractor/subcontractors who receive funds
28
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Conclusions
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INPUT’s Take
More opportunities will be embedded within larger mandates
Requirement to act quickly could take resources away from existing work
Look for utilization of existing task order vehicles to expedite awards
30
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Recommendations
31
Be prepared to act quickly – many of the program require plans and/or project start within 30-120 days
Revisit your portfolio to identify complete solutions that simplify acquisitions• Energy audits and energy monitoring technologies
• Electronic health records and IT security
Infrastructure providers - Look for construction projects which create new “centers” or establish new offices
Consider partnerships with state and local contractors• Many opportunities funded through S&L grants
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Recommendations
32
Vendors should focus on funding sources which already exist• Much of the funding (other than construction) targets existing programs
and augments previous legislation
Keep your nose clean – extensive oversight and reporting requirements
Don’t let exuberance and desire for growth overcome common sense
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INPUTThe Authority on Government
Business
www.input.com