Agency reorgs slow down recompetes
- By Adam Mazmanian
- Nov 06, 2017
Senior leaders at CACI explained on a Nov. 2 earnings call that bookings were down in the most recent fiscal quarter in part because federal agencies are bridging existing contracts rather than making awards in recompetes while the gears grind on reorganization plans.
The firm won $1.2 billion in contract awards, "which at first appears significantly lower than what we have done in previous years," said Ken Asbury, CACI president and CEO. "The key factor to this quarter was that there was a significant number of short-term recompete bridges, which contributed fractional value to our total awards."
While no means an exhaustive list, the FedBizOpps website indicates that in recent months, CACI has won short-term extensions on contracts with the Army, Navy and U.S. Secret Service.
Chief Operating Officer John Mengucci said that administration efforts to reorganize the executive branch are part of the reason for the stalled rebids. "We have seen some material increase in the bridge and some of our delayed recompete programs," Mengucci said. "Some are with agencies that are frankly in the midst of major reorganizations. And it's clear that those are directly related to what we would call administrative delays."
The impact is especially pronounced in the intelligence services market, where Mengucci said CACI is "seeing customers bridge and postpone some of our larger recompetes."
At least in the intelligence space, CACI is not anticipating that reorgs will alter agency priorities. "Clearly, those customers are not looking for a break in the services we provided them in the middle of prosecuting some really important missions, Mengucci said.
The lull in recompetes noted by CACI senior leaders tracks with governmentwide activity on agency reform plans as part of the Trump administration's fiscal year 2019 budget request. Agencies were on deadline to submit plans by the close of September, and are presumably engaged in a back-and-forth with the Office of Management and Budget on these plans as part of the process of finalizing FY19 budget requests. Plans are slated to include long-term plans to reduce the federal employee headcount, with civilian agencies bearing the brunt of the workforce reduction. The plans and the administration's budget proposal are expected to be made public in February 2018.
In the nearer term, CACI leaders are anticipating that Congress will pass an appropriations package by the Dec. 9 deadline to avoid a government shutdown. Asbury noted that "if enacted, the current budget numbers will drive increased defense, intelligence and homeland security spending, which will be positive for CACI, our industry and particularly, our country."
Adam Mazmanian is executive editor of FCW.
Before joining the editing team, Mazmanian was an FCW staff writer covering Congress, government-wide technology policy and the Department of Veterans Affairs. Prior to joining FCW, Mazmanian was technology correspondent for National Journal and served in a variety of editorial roles at B2B news service SmartBrief. Mazmanian has contributed reviews and articles to the Washington Post, the Washington City Paper, Newsday, New York Press, Architect Magazine and other publications.
Click here for previous articles by Mazmanian. Connect with him on Twitter at @thisismaz.