First, there are the top-down agency reductions like what happened at the U.S. Agency for International Development and what has started at the Education Department.
“They’re coming top-down at some agencies and they’re basically collapsing them to the minimum allowed by law,” said Kevin Brancato, a senior vice president at TechnoMile, a provider of tools that help contracts track opportunities and manage contracts.
Prong number two bottom-up review that has resulted in a slowing of new awards and modifications, and in some cases the halting payments and invoices.
“Traditional reformers try to shrink budgets by cutting programs, but the Trump administration is actually undertaking a pincer maneuver,” Brancato told us. “This has gotten everyone’s attention.”
The impacts can be crushing for contractors at the targeted agencies. TechnoMile’s analysis of USAID found that 81% of that agency's contractors are at high risk because their work is almost solely concentrated there.
A majority – 71% – may lose everything because there is just one customer for the skills and services they provide. Unlike IT contractors who could find similar work at other agencies, USAID contractors largely do not have that option.
“It’s terrifying,” Brancato said. “They wake up in the morning and their industry is gone.”
While it may not be as drastic as USAID, Brancato said contractors at the Education Department and other agencies will face similar challenges through this bottom-up review that the Trump administration and the Department of Government Efficiency are looking to drive.
Brancato does not expect the Homeland Security Department or the Defense Department to undergo the same kind of reviews and pressures as ..
Support the originator by clicking the read the rest link below.
