2012 Outlook for Federal Contractors Kevin Plexico Vice President, Federal Information Services...

2012 Outlook for Federal Contractors

Kevin Plexico

Vice President, Federal Information Services

Deltek, Inc.

September 15, 2011

©2011 Deltek, Inc. All Rights Reserved

Agenda

Preliminary Clarity™ Research Findings Benchmarking and Best Practices for Government Contractors

Federal Budget Outlook

Acquisition Trends and Impact on Contractors

Update on Deltek and Deltek Information Solutions

2


Preliminary Deltek Clarity Research Findings

3


Firm Growth Rates – Past, Present and Future

4

Source: Preliminary 2011 Clarity Results

Note: Includes firms with 50 employees or more


Clarity Results – Top Business Development Challenges

5



How companies are responding tobusiness development challenges

6



Budget Outlook

7


Connecting the Federal Budget to Contracting

8

Total Federal Spending

Discretionary Spending

Contract Spending

$3.5 Trillion

$1.2 Trillion

$550 Billion


Discretionary Funding Trend, 2010-2012

9

Source: House Appropriations Committee, Deltek


Status of FY2012 Appropriations

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Appropriations2012 Current Status of Proposal

House StatusTotal ($B)

vs. Req ($B)

vs. 2011 ($B)

vs. 2011 (%)

Agriculture 17.3 -5 -2.7 -13% Passed House in June; Senate committee voted 9/7

Commerce, Justice, Science

50.2 -7.4 -3.1 -6% Approved by Committee 7/13

Defense /OCO 530 / 119 -9 / +0.9 +17 / -39 3% / -33% Passed House 7/8

Energy & Water 30.6 -5.9 -1.0 -3% Passed House in July; Senate committee voted 9/7

Financial Services 19.9 -6.0 -2.0 -9% Approved by Committee 6/23

Homeland Security 40.6 -3.0 -1.1 -3% Passed House in June; Senate committee voted 9/7

Interior & Environment 27.5 -3.8 -2.1 -7% In Committee 7/13

Labor/HHS/Education

Legislative Branch 3.3 -0.5 -0.2 -6% Passed House 7/22

Military/Veterans 72.5 -1.2 -0.6 -1% Passed House & Senate in July

State/Foreign Operations

Transportation/HUD 55.2 -19.8 -0.2 0% Approved by Committee 9/8

Source: House Appropriations Committee


Strategic Growth Opportunities for Federal Contractors

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• Energy R&D Investments

• Energy conservation & infrastructure modernization

• Utilize electronic health records to reduce costs

• Expand government health care programs

• Expansion of cyber operations

• Consolidation of networks to improve cybersecurity

• Consolidation• Leverage cloud• Improve

performance

Energy/ Conservation

Cybersecurity

Healthcare

Budget Streamlining


Contract Opportunity Outlook, FY 2012

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Source: Deltek

Tracking 2,800+ opportunities across 40

agencies with solicitation release in FY 2012


Acquisition Trends

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Growing Importance of Task Order Based Contracts

14

Source: Deltek


Response Times on Task Orders

15

Source: DeltekBased on sample of 11,800 task orders

across 18 contract vehicles


Conclusions

Budget environment leading to much more competitive landscape Growth most likely to come from market share vs. market growth Protecting incumbency is paramount

Companies need to position for growing areas – either through acquisition or organic growth

Positioning on Contract Vehicles increasingly important Leveraging integrator relationships critical for small firms

Companies must adapt to accelerated proposal environment brought on by task order contracting

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Update on Deltek Information Solutions

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Deltek Information SolutionsAccelerating the Business Development Cycle

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Information & Analysis

Community &

Networking

Workflow Solutions

Enabling decisions and improving productivity through critical business information & analysis

Fostering relationships needed to build and expand

Expediting business development processes through workflow solutions.


Information & Analysis – The Combined Value of INPUT & FedSources The single largest source for government contracting information and analysis Covering U.S. federal, state and local government contracting Critical Information to support critical business development activities like:

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Pipeline Development The single largest repository of contract opportunities• 11,000+ federal opportunities valued at over $1 trillion,

including 4,000+ pre-announced opportunities• 200,000+ S&L bid opportunities identified annually

Account Planning Profiles of over 95 federal agencies, 50 states and 59,000 local governments

Competitive and Partner Analysis

Profiles of over 500,000 vendors3 million+ labor rates on over 6,000 vendors

Market & Industry Analysis and Forecasts

Market research reports on major trends, issues and opportunities in the government contracting sector

Capture Intelligence Deep insights and analysis on multi-billion procurements to support bid/no-bid & capture processes


Q&A

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2012 Outlook for Federal Contractors Kevin Plexico Vice President, Federal Information Services...

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