This year provided much needed budget certainty in a transitioning marketplace that saw a wave of mergers and acquisitions. In the forefront, presidential election jockeying brought focus to highly charged political issues such as healthcare reform, immigration and fi ghting terrorism. In the backdrop, the Bipartisan Budget Act of 2015 provides about $112 billion in new funding and for the next two years, prevents a return to the spending caps known as sequestration. As a result, agencies spent freely throughout the year instead of waiting until the last three months. The share of total spending occurring in the fi nal quarter of the fi scal year returned to the typical level of 30 percent, down from a high of 35 percent in 2014.
Sequestration Dust Settles as Spending Decline Slows
Overall spending fell by two percent in fiscal year 2015, the smallest annual decline since 2011, a year that saw seven continuing resolutions and funding levels in-line with the previous year. Despite the top-level decline, half of agencies managed to increase contract obligations. USAID led the way with a 25 percent increase from conflict zone stabilization spending. Among Defense agencies, Navy was the only one to increase contract obligations. Major weapon system programs, including the F-35 Joint Strike Fighter, Virginia-class Submarine, Littoral Combat Ship and P-8A Poseidon, dominate spending.
Navy’s research and development priorities include the Next Generation Jammer, Unmanned Carrier-Launched Airborne Surveillance and Strike (UCLASS) and developing electromagnetic spectrum and cyber capabilities.
The top 50 product and service categories performed slightly better, with 28 percent seeing growth in 2015 compared to 26 percent in 2014. Unmanned Aircraft saw the increase, followed by the Operation of Government-Owned Government-Operated R&D Facilities, Guided Missile Components and Communication Equipment. Categories seeing the largest decline in growth include Space Launch, Combat Ships and Landing Vessels, IT Network Management and Advanced Defense Development.
The concentration of large spending categories varies greatly across agencies. High spending levels on Drugs & Biologicals make HHS the leader of all agencies with 50 percent of annual spending driven by the top five product and service categories. Defense Research Labs is second, followed by USDA, GSA, VA and SSA.
A summary of FY15 spending details for each agency, including top product service categories, procurement methods, set-aside classifications and top vendors follows.
$88.0B Contract Spend 0.2%
$149.2B Budget Authority 1.1%
104.3K Contract Spend 3.1%
52.8K Vendors 9.6%
$71.4B Contract Spend 6.7%
$119.5 Budget Authority 2.1%
86.7K Contracts 4.5%
53.3K Vendors 8.8%
$56.4B Contract Spend 4.1%
$136.9 Budget Authority 1.3%
41.4K Contracts 4.8%
22.6K Vendors 6.3%
Government Executive Media Group and Govini are proud to present The 2016 Federal Scorecard. Utilizing a big data approach to provide a broad picture of agency and contractor activity with more than 6,000 data points, the Scorecard is a powerful market intelligence resource creating a provocative view into the Federal procurement landscape.View This Week's Featured Agency