3 opportunities in the president’s budget

Tom O'KeefeBy Tom O’Keefe, consultant

We all know the administration recently released its FY19 budget request. Despite the fact that the president’s budget is effectively dead on arrival, particularly with Congress reaching a budget deal for the remainder of FY18 and FY19, there still may be some worthwhile pieces of information to be gleaned from it. (It should be noted this budget deal does not mean agencies received appropriations, and we’re still operating under a continuing resolution through March 23.)

While the priorities of Congress and the administration won’t always line up, there are places where there may be a general level of agreement on what spending might look like for the next year and a half.

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How to manage in an uncertain budget climate

Chris WiedemannBy Chris Wiedemann, consultant

It’s safe to say that, over the last few years, industry and government have both gotten used to a certain amount of dysfunction in the appropriations process. We haven’t had a full package of 12 appropriations bills since 2008; some combination of omnibus appropriations and continuing resolutions (CR) is the new normal.

However, even by those standards, this fiscal year has been rocky – a series of short CRs, followed by the first government shutdown since 2013. In the end, that shutdown lasted less than a day, as Congress passed a CR funding the government through Feb. 8.

This is good news in that our customers have appropriations again, and can keep the lights on for the next three weeks. If you’re lucky or were working on closing deals before funding expired on Jan. 19, those contracts may close during this CR. Unfortunately, there’s a downside to the deal: Without getting lost in politics, there’s a very good chance that we’ll be right back where we started when this current appropriation period ends.
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Is this the new way of modernizing old systems?

Chris WiedemannMGT Act, tech modernization

By Chris Wiedemann, consultant

If you attended the Civilian FY18 Federal Budget Briefing at immixGroup’s most recent Government IT Sales Summit, one theme should have resonated throughout: the new ways government agencies are approaching the old problem of legacy system modernization.

It can be challenging to separate rhetoric from action sometimes, but there’s real energy in government around addressing the challenges of technology overhauls. Agencies are taking a customer-centric approach to design and development, with agile methodologies and human-centric design really becoming deep-rooted in civilian IT groups – and, perhaps more importantly, they’ve gotten an assist from Congress in the form of the Modernizing Government Technology (MGT) Act, which was signed into law as part of the FY18 National Defense Authorization Act (NDAA).

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What you need to know about changes at DOD

Stephanie MeloniDepartment of Defense

By Stephanie Meloni, consultant, and Mark Wisinger, senior analyst

The Department of Defense and military services have been making strides to ensure DOD can modernize its capabilities across domains and stay ahead of threats. Facing budget shortfalls for the past few years has raised concerns about adversaries catching up to the U.S. With the DOD’s requested budget increase for the coming years, it will be looking to technology to restore readiness shortfalls and maintain the military edge.

Here are some of the major changes technology companies will want to be aware of in 2018:

CYBERCOM’s elevation to full command status

Expect CYBERCOM to officially become a Combatant Command by the end of October 2018, which will coincide with it reaching full operating capability. This also speaks to the ever-increasing emphasis on cyber as a warfighting domain, and one of its major focus areas will be automating cyber defense.

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The 3 DOD trends you need to know

Stephanie MeloniBy Stephanie Meloni, consultant, and Mark Wisinger, senior analyst

As we prepare for the Department of Defense FY18 budget briefing we’ll deliver at this year’s Government IT Sales Summit, we’ve been able to take a step back and look across the DOD to identify department-wide trends, initiatives and happenings.

Several are jumping out, driven by a fairly new administration and an updated National Defense Authorization Act.

Here are three trends to consider if you sell or want to sell technology to the DOD.

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A continuing resolution is inevitable. Here’s what you need to do

continuing resolution, install base, federal government, budgetBy Stephanie Meloni, consultant

There’s a strong possibility of beginning FY18 under a continuing resolution (CR), so technology companies doing business in the public sector need to be aware of how this will impact sales. Since a CR keeps the government funded at the previous year’s budget, this will mean no new program starts or capital expenditures. The government is basically funding itself to keep the lights on and performing last year’s mission.

CRs have become more and more common in recent years, however, the next CR we face may be longer than most, as experts say it may need to extend into December.

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Here’s what to expect at the end of the fiscal year. (Hint: It’s going to be more chaotic)

Chris Wiedemannfederal budget, fiscal year, procurementBy Chris Wiedemann, consultant

The end of the federal fiscal year is just around the corner and it always brings its share of chaos as agencies scramble to make the most out of their “use it or lose it” money. This year will be no different.

In fact, given the truncated nature of this year’s omnibus funding bill, the situation on the buy-side has become even more chaotic, as customers try to move through FY17 appropriations and secure FY18 budget requests at the same time.

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