1. 2018 NOHA Business Summit Conference
Carey Webster
Sr. Director, Research at Deltek

2. Agenda Budget Trends and Outlook
Small Business and Native Contracting Trends
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3. Budget Trends and Outlook
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4. FY 2019 Discretionary Budget Themes –Defense
Defense Budget*
$686B
FY 2019 Discretionary Budget Themes –Defense
Infuses Department of Defense with funding to close capability gaps and execute the New National Defense Strategy
Targets investments in training, equipment, maintenance, missile defense, modernization and infrastructure to increase lethality and improve operations in Europe and Asia
Mitigates capacity readiness challenges in command and control, cybersecurity, Intelligence, Surveillance, and Reconnaissance (ISR)
Drives partnerships for initiatives in hypersonics, autonomy, cyber, space, directed energy, electronic warfare, and artificial intelligence
Acquisition Reform
Continues organizational transformation – establishment of new Offices of the Under Secretaries of Defense for Acquisition and Sustainment (A&S) and Research and Engineering (R&E)
Promotes rapid prototyping/rapid fielding programs and use of Other Transaction Authority (OTA)
Streamlines and codifies acquisition regulations
O&M Request
$284B
Procurement Request
$144B
RDT&E
$92B
Source: Department of Defense *Includes additional FY 2019 funding provided by the Bipartisan Budget Act of 2018
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5. FY 2019 Discretionary Budget Themes –Civilian
Civilian Budget*
$572B
FY 2019 Discretionary Budget Themes –Civilian
Priorities include:
Southwest border wall and immigration enforcement
Veteran care
Combatting opioid addiction
IT Modernization
Cybersecurity
Reorganization and reform
Streamlining common functions to reduce duplication (e.g. statistics, finance, etc.)
Workforce reform
Regulatory reform
Infrastructure
$1T in total infrastructure investment through a combination of direct federal funding and incentives for non-federal funding
$250B for grants, transformative projects, credit programs, and capital revolving funds
Border Security and Immigration Enforcement
$23.1B
Opiod Epidemic
$17B
R&D
$60.4B
Source: OMB *Includes additional FY 2019 funding provided by the Bipartisan Budget Act of 2018
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6. Federal Contract Spending

7. Contract Spending in Relation to Agency Budgets
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8. Small Business and Native Contracting Trends
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9. The Shift to Small Business Contracting
SBA Government Wide Goal % 5% 5% 3% 3%
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10. What Is Government Buying from Small Business?
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11. Quarterly Spending by Size of Business
Source: FPDS, Deltek
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12. How Are Awards to Small Business Made?
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13. Preference Programs Used in Native Contracting
When looking at the preference programs used to award contracts to native owned firms, you can see the sharp decline that has happened in the award of sole source contracts
In general, we’ve seen contracting officers move away from sole source contracts allowed to all kinds of firms
Sole source awards are allowed to 8(a) firms, HUBZone firms, SDVO and, most recently, women owned firms.
However, in practice they are used sparingly as COs give preference to competed programs
You can see that here with the corresponding increase in the 8(a) competed awards and the Small Business set asides
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14. Native Contracting Trending Upward as % of Total Market
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15. Trend in Federal Contracting with Firms Owned by HNOs
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16. Federal Contracting with Firms Owned by HNOs by Industry
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17. Federal Contracting with Firms Owned by HNOs by Preference Program Used
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18. Deltek GovWin IQ Opportunity Tracking for Small Business
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19. For more information: Carey Webster CareyWebster@Deltek.com