Will the end of FY13 signal a finale for segment of the Civ/DoD industrial base?
Sunday, July 21, 2013
Posted by: Guy Timberlake (theasbc.org/visionary)
This will likely be one of the more succinct posts I publish in the Visionary's Blog and possibly one of the most important topics. Of course, it's about money, specifically how much our Uncle Sam has not obligated to contracts this fiscal year-to-date. It's also about the future and how it will change for the Government, Industry and individuals on both sides.
Without beating around the bush, here's the state of published government contract spending as recorded by the Government:
This represents a lot of activity on the part of federal civilian and defense agencies this fiscal year, even with the much publicized challenges they've faced. Or is it?
As of this post there are just over seventy days left in the 2013 fiscal year. If we look at contract spending for 2012, the last completed fiscal year, there is a long way to go.
How far? Here's what agencies recorded having obligated in FY2012:
How will the final impact of reduced budgets and sequestration be measured in contracting dollars? One hundred billion or two hundred billion fewer contracting dollars spent in FY13?
Even if we take into consideration that YTD DoD spending won't be public until 90 day after the fact, there's potentially still a good chunk of money to spend by September 30, 2013.
How will this end?
More important to me, how much of our small business industrial base will be left standing when all is said and done?
The Chief Visionary
"The person who says it cannot be done should not interrupt the person doing it."