Presidential Administration Transition Impact on Federal IT Will Likely Be Modest, According to Deltek Report
New Deltek GovWin IQ report examines the impact of the presidential transition on federal IT contracting
HERNDON, Va. – October 18, 2016 – According to a recent report from Deltek, federal IT contract spending is typically unaffected by administration transitions due to the timing of the budget cycle and the apolitical nature of IT decision making. However, federal contractors should be prepared to navigate through potential changes in program priorities, new leadership and potential loss of program champions. Deltek's Impact of the Presidential Transition, 2016-2017 report examines the transition process, the current federal environment in which the change will occur, and past impacts of administration changes on federal contracting. The report also provides insight into each candidates’ agenda and policy positions, and how they may impact federal budgets, human capital and programs.
- Agency Leadership Changes Will Have the Most Impact – Agencies vary widely in the number and type of leadership positions that are subject to change during an administration transition. Although general workforce separations (retirements, resignations, or other separations) did not significantly increase shortly before or after the last administration change, senior level departures (such as at the Secretary and CIO levels) will likely have the most impact on federal IT priorities and investments.
- Little Effect on IT Budgets – Changes in presidential administrations historically have not significantly affected IT budgets or contract spending. New administrations typically do not wield full budgetary power until over a year into the new term, however contractors should look for policy changes to begin in the shorter term, possibly within six months of inauguration.
- IT Policies/Initiatives to Maintain Momentum – Well-rooted IT initiatives such as FITARA, data center optimization, and Defense’s Better Buying Power initiative will likely not lose momentum with either administration, however a new administration will likely put its stamp on others by the middle of the term.
- Both candidates vow to invest in VA and DOD – These agencies will provide areas of opportunity for federal IT contractors regardless of which administration takes office. If Clinton is elected, look for additional opportunities in agencies with missions related to medical research and advancement, healthcare, science, and climate. Her campaign also plans to invest in cybersecurity and government modernization. If Trump is elected, look for a drawdown in spending in agencies with missions related to climate, science, and healthcare. Additional opportunities may be found in the areas of immigration reform, cybersecurity and government modernization.
For more information on GovWin IQ and this report, visit the “Impact of the Presidential Transition, 2016-2017” page on Deltek.com/GovWin. The report is free to subscribers of GovWin’s Federal Market Analysis program. Press interviews can be arranged by contacting Lauran Cacciatori.
DELTEK ANALYST QUOTES
“Historically, changes in presidential administrations have not significantly impacted IT budgets or contract spending. However, policy changes and implementation could begin as early as within six months of inauguration, and probably sooner for those related to central campaign platforms.”
– Angie Petty, Senior Principal Research Analyst, Deltek
“The next administration’s IT leadership inherits a flurry of relatively new IT acquisition and governance policies, some of which have become law. New agency leadership will need to establish a balance between setting new priorities and leveraging existing frameworks, and that impacts both agencies and the contractors who support them.”
– John Slye, Advisory Research Analyst, Deltek
“The human capital impact during a transition is important. Not only will some contractors need to identify and recruit new program champions who may be leaving, they should also be prepared to reassess their solutions, value propositions and sales strategies to align with the priorities of a new class of appointees.”
– Deniece Peterson, Director of Research, Deltek
#Federal IT budgets typically stable during administration transitions http://bit.ly/2e0uNMk #2016election #Deltek
Few IT details from Trump, but systems for VA and DOD will be likely opportunities http://bit.ly/2e0uNMk #2016election #Deltek
#FITARA, data center optimization & DOD’s BBP 3.0 likely to maintain momentum under new POTUS http://bit.ly/2e0uNMk #2016election #Deltek
#DOE, State & HHS have most leadership positions subject to change after #2016election http://bit.ly/2e0uNMk #Deltek
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