Government contractors are encountering the effects of sequestration as national and state agencies reduce spending on various products and services, Federal News Radio reported Thursday.
Jack Moore writes that executives said their companies are trying to develop business plans and strategies to cope with federal budget uncertainties.
The article says a Govini research cited a 32 percent decline in contract awards so far in the current fiscal year compared to the same period in the previous cycle.
In a Federal Drive talk, NeoSystems Corp. CEO Michael Tinsley said the lack of new projects has led to stagnation, which has also forced firms to cut general-administrative costs and encounter furloughs.
“It is a difficult time… but there are still a lot of opportunities even with the effects of sequestration,” Tinsley added, stressing that service providers need to focus on good management practices to survive.
Moore reports SNVC CEO and President Tom DeWitt also acknowledged that contractors must work to make adjustments to handle sequester effects and minimize business liabilities in an In Depth interview.
“If you’ve got something hot that’s got to go through, you’ve got to do everything you can to make sure that that particular item gets addressed,” DeWitt was quoted to have said in the report.
According to Federal News Radio, industry observers look forward to a spending rush towards the end of 2013 as solicitations have surged 28 percent based on federal procurement data.