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About RayRay Bjorklund
BS, UC Davis
MS, Northrop Univ.
Research Fellow, Eisenhower School
DAWIA Level III
Joined Deltek April 2011
40+ years in Technology, Program Management, Consulting
FedSources, a Washington Management Group Company
Defense Information Systems Agency
Headquarters Air Force
Air Force Materiel Command
Air Combat Command
Army Training and Doctrine Command
Guides Deltek Information Solutions in use of market information
Provides subject matter expertise to consulting
engagements Analyzes public sector markets
Develops innovative methodologies for acquiring and
exploiting public sector data
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Know key rules and processes of budget formulation and execution
Understand the differences among: Financing methods Appropriations types
Know how to follow the money to identify business opportunities
Objectives
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Federal Fiscal Processes Are Complex
Extensive statutory and regulatory requirements
A very lengthy process Important control and feedback nodes Agency leadership Office of Management and Budget (OMB) Department of the Treasury Financial Management Service Congressional Appropriations Committees Comptrollers and contracting officers
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The Appropriations Rules
U.S. Constitution
Government Accountability Office Red Book on appropriations law
Specific congressional bills Authorizations Appropriations Antideficiency Act (ADA), Pub.L. 97-
258 Duration of appropriations
Purpose for which appropriated Contingencies Reprogramming
The Budgeting Rules
White House policy and guidance
OMB Circular A-11
Agency financial management regulations
Treasury reporting
Get Familiar with the Rules
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Congressional Appropriations
Budget resolution
Enacted legislation Authorizations Appropriations
Committee markups and reports
Conference committee reports
Continuing Resolutions
Comptroller General decisions
Congressional Budget Office estimates
Congressional Research Service reports
Executive Branch Budget
The Budget of the United States Government
Budget volume: the President's Budget message and other broad policy statements
Appendix: detailed information by agency, bureau or program group, budget accounts, programs and activities
Analytical Perspectives: analysis of special-interest topics
Historical Tables
Other volumes
Get Familiar with the Documents
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Make Your Analysis Relevant
What is the top line budget?
Within the top line, what dollars are contractor addressable? Directly addressable Indirectly addressable
Within addressable budget, what dollars are contestable?
What’s the time phasing?
8
Total spend:$3.5T
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Mandatory (or direct) Set by permanent laws Includes entitlements and benefits
that must be paid Limited contractor addressability
Discretionary Controlled by annual
appropriations Permits some spending flexibility,
constrained by rules, legislated authorizations
Significant contractor addressability
Know Types of Spending
$1.3T$2.2T
Other spending
Contractor-addressable
spending
Most directly affected by Congress
Mandatory Discretionary
Note: Circles scaled relative to GFY 2013 budget
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Integrate Your Business with the Money Trail
Develop and submit proposal
Bid?Develop and implement
capture strategyWin?
Earn past performance qualifications
Get paid?
Capture?Conduct
pursuit reviewIdentify and analyze targets
Authorizations and Appropriations
Planning Budget request
Disbursement and Outlay
Award and Obligation
Requirement and SolicitationApportionment and Allocation
Ear
ly
Sta
ge
Pre
-A
war
dA
cqu
isit
ion
P
erfo
rman
ce
Government
Contractor
Source: Deltek analysis
De-oblig?
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Budget Formulation Takes 10+ Months
Submittal to Congress
Appeals
Presidential decisions
Data entry
Passbacks
OMB review
Agency submissions
OMB planning guidance
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Will the Funding Be There?
Magnitude of spending Top line growth or decline rate Contractor-addressable spending
Spending pattern shifts Conversion of contract services to government payroll Spending declines due to functional consolidation Increased capital investments Grants and subsidies
Financing methods Shifts among discretionary and mandatory appropriations, and
offsetting collections Backlog of unobligated balances Use of pay-as-you-go (PAYGO)
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What the Budget Tells Us
Program spend plan by activity
Budgetary resources Unobligated balances brought forward Appropriations (Discretionary and Mandatory) Offsetting collections (Discretionary and Mandatory)
Budget authority and outlays Discretionary Mandatory
Obligations plan Direct Reimbursable
Employment summary
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USDA Agricultural Research Service Budget Request
Unobligated balance, SOY 2M$ Discretionary appropriations 1,103M$ Offsetting collections 127M$
Total budgetary resources 1,232M$ Unobligated balance, EOY 4M$
Gross outlays 1,262M$ Government salaries and benefits 724M$ Other expenses 33M$ Contractor-addressable obligations 333M$ Grants 13M$ Reimbursable obligations 125M$
Total new obligations 1,228M$
FINANCING AND SPENDING
27 percent addressable
Source: Deltek analysis of GFY2013 President’s Budget
Previous funding not spent on contracts or
other purposes
The “ask”
Estimated disbursements
Budget authority requested
Anticipated GFY 2013 new
spending on contracts and for other purposes
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Some Points to Consider
Not all accounts expire at EOY
What can be purchased is specified by “color of money”
Budget authority not always equal to outlays
Budget authority not always equal to obligations
Addressable obligations not always equal to contractor revenue
Subsequent appropriations can change budget authority
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Pre-decisional silence, until State of the Union address
Budget submission President’s budget message signals Executive Branch priorities Appendix volume shows spending plan, by account Agency-specific congressional justifications amplify account spending
plans
Congressional appropriations activities provide the vectors Congressional budget resolution sets targets Authorizations process Appropriations committee/subcommittee marks Conference Report complementing the appropriations bill summarizes
rationale for final dollar level Conference reports
Making Use of the Data
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Summary
Get to know the meaning of the terms
Follow Executive Branch and Legislative Branch processes
Pay close attention to contractor-addressability
Don’t let political hype misdirect you
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ADA – Antideficiency Act
DAWIA – Defense Acquisition Workforce Improvement Act
EOY – end of year
GFY – government fiscal year
OMB – Office of Management and Budget
PAYGO – pay-as-you-go
SOY – start of year
T – trillion
USDA – US Department of Agriculture
Acronyms
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