Federal Contracting Trends to Expect in 2021February 04, 2021Federal contracting will still feel some of the effects of the pandemic in the year ahead, but other issues are gaining importance for our now $600 billion industry. From the White House to Congress to the General Services Administration, efforts continue to streamline the strategies and processes federal agencies use to purchase billions of dollars in goods and services each year. Supply chain security is a major thrust of current acquisition reform initiatives, impacting every aspect of the contracting landscape. From the Cybersecurity Maturity Model Certification (CMMC) and audits of contractor systems protections, to removing/replacing untrusted hardware and software from federal systems, contractors must implement federal standards to continue their federal business lines.
Federal Contracting Trends to Expect in 2021
Defense and civilian agencies continue to roll out acquisition reform initiatives. The DOD’s new Adaptive Acquisition Framework is designed to facilitate faster delivery of new and emerging technology capabilities, and OMB’s “Frictionless Acquisitions” goal will drive process improvement and increased visibility into acquisitions.
Category Management (CM) is streamlining federal acquisitions of common commodity products and services to eliminate redundancies and increase efficiency. Contractors should assess the implications of agency efforts to migrate demand to contracts managed under category management principles.
FEMA Advance Contracts for goods and services are competed and awarded in advance of major disaster declarations to provide efficient, cost-effective means for rapid delivery of supplies and services for recurring disaster response and recovery requirements. In FY2021, FEMA has 89 advanced contracts in 46 mission-essential areas. This year will be a huge year for FEMA and Disaster Response procurement.
Small business participation and performance continue to receive focus by OMB, DOD, and others. Efforts to increase small business participation as primes will also be accompanied by greater consideration of small business past performance.
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