Federal Workforce Numbers Poses Challenges for Contractors-Job Loss = Federal Fund Decline?

President of Allen Federal Business Partners Larry Allen wrote recently that the U.S. Government's Civil Service workforce shrunk by nearly 80,000 positions in 2013- continuing what he called, "a trend in which more people leave the government than come on board."  The Virginia-based Allen, also an consultant to Cisco Distribution Giant-Comstor, wrote in his Blog with Cisco Partners like GET, LLC, that the total federal workforce, including active duty military personnel, now stands at 4.3 million people and that the size of the workforce is expected to continue its contraction, including in the military, as activities in Afghanistan wind down. 

Does this mean that the pace of job loss is expected to slow? Allen wrote:

"...This phenomena poses many challenges for companies selling to the federal government.

First, there are fewer people to sell to.  Does your firm sell hardware or services priced by the seat?  Your business may have to look harder and diversify in order to succeed.  We have already seen agencies, for example, write provisions into contracts for software that require contractors to reduce their fees in the event that fewer licenses are purchased or if some are cancelled due to workforce reductions.  This makes up-front discussions with customers all the more important so that you firm understands how to make smart pricing decisions.

Service sellers may have an easier time as the missions of government certainly aren’t going away.  Despite political rhetoric, the fact remains that citizens expect government services.  If the feds themselves aren’t providing it, contractors will have to.

No matter what you’re selling, however, budget constraints will still be a reality."

GET, LLC stands with Allen in that we all should take proactive steps to ensure our federal customers are making the best buying decisions and provide as much assistance as possible to help facilitate such. The more we all understand and share the historical knowledge and program experience with our federal customer's contracting teams, both will succeed.  Thanks Larry for the words of advice.

GET, LLC is a proud Cisco Registered Partner providing the latest Cisco products and services direct to businesses and organizations. For more on the benefits that our Partnership can bring to you and your respective business contact us at 671-483-0789 or at www.get-guam.com.