In budget mess, still contracting opportunities in 2011?

By Jolie Lee
Federal News Radio

As a new Congress tackles the country’s massive budget deficit, companies are wondering — What’s the future of federal contracting opportunities?

That’s the question Kevin Plexico, senior vice president of research and analysis services for INPUT, tackled at the FedFocus 2011 conference earlier this month.

In general, there is “a lot of uncertainty,” Plexico told host Francis Rose.

However, contractors can still find opportunities with the Homeland Security Department, Department of Veterans Affairs and anything to do with health care.

Specifically, health IT is an area Plexico predicts will have a lot of growth potential.

“the government has tremendous opportunities to influence the direction of the nation’s health care system,” he said.

Another protected area is cybersecurity, where “government’s not done with the work we have ahead there,” Plexico said.

Although Defense Secretary Robert Gates aims to trim $100 billion over the next five years, Plexico pointed out that this reduction will not come so much from direct cuts as slower growth to “free up money.”

Green initiatives are now tied to cost-savings and efficiency, so energy and environmental issues will also be a good bet for contractors, he said.

Contractors should watch the new Congress closely to get a better idea of where the money ends up.

The political parties “seem so unwilling to collaborate and work together on a solution that it’s hard to see who it’s going to shake out,” Plexico said.

Read Federal News Radio’s coverage of the Fed Focus 2011 Conference.

Copyright © 2024 Federal News Network. All rights reserved. This website is not intended for users located within the European Economic Area.