Last month, Market Connections, Inc. issued a study that highlighted whether or not contractors believed that sequestration will happen and what they are doing to prepare for it. With the sequestration deadline being pushed back two months, it seems that now is an ideal time to re-examine, in more depth, the findings of this survey.
While many of the contractors surveyed were split on whether or not sequestration would happen, a surprising 46 percent of contractors are doing nothing until the budget issue is resolved.
As part of the survey, Market Connections asked contractors how they are preparing for sequestration. Here are some of their verbatim insights:
- Focusing my BD efforts on meeting agencies’ top priorities, which are less likely to be cut.
- Business as usual with a completed contingency plan in case sequestration actually occurs.
- Already looking at commercial opportunities.
- We are going to market as actively as last fiscal year, but with somewhat less prospecting.
- We’re well-versed in government operations and know at any given time budgets can be cut; new priorities implemented that impact programs, etc. Our standard operating procedure is to maintain close analysis of all current government agency customers, which is our entire customer base. We build close relationships with customers to help them better manage various impacts on their programs.
- Aggressively developing new buyer relationships.
- Retrenching, cutting lease costs, attrition personnel, working existing contracts harder.
- Moving forward and expanding in both B2B and B2G markets.
- We continue to cut costs/overhead and are being tentative on decisions to move forward on future capital investments. We are taking a wait-and-see attitude for business plans impacting decisions.
- Preparing for DoD budgets to be slashed. Employees very anxious.
- Business as usual — run lean, work with customers to solve problems.
- The total effect is minimal. Continue to work.
The responses provide some insight into the current business operations of many contractors – from developing contingency plans to expanding to different markets.
As we head into the next round of sequestration negotiations, the FedPulse editors will certainly be keeping our eye on this issue. Unfortunately, the uncertainty that blanketed the government contractor community in 2012 will continue finto 2013until this issue is resolved and the government issues clear budget and contract guidelines.