According to Deltek, government spending on information technology is set to grow by $1.9 billion in GFY 2016 to $79.1 billion — a 2.5 percent increase. However, as the chart on the right shows, the Department of Defense (“DoD”) is not expected to reach its GFY 2014 level, and federal health agencies (Department of Health and Human Services’ (“HHS”) and Department of Veterans Affairs (“VA”)) have increased overall spending from GFY 2014 levels yet faced with headwinds from prior year.
President Obama signed the annual defense authorization bill on Wednesday, marking it the 54th consecutive year the bill has passed. One of the major highlights of the bill is an overhaul of the military retirement system, which is expected to provide a form of retirement compensation to roughly four out of five service members, a significant improvement from the current system that benefits only one out of five members.
The annual National Business Aircraft Association (“NBAA”) conference, one of the largest meetings of business and general aviation manufacturers and suppliers, was held this past week, November 17-19th, in Las Vegas. There were mixed messages surrounding the business jet market, as various suppliers and original equipment manufacturers (“OEMs”) are witnessing a weaker larger-cabin market, while small / midsize cabin markets are expecting growth.
The 2015 Dubai Airshow had very few contract announcements, as commercial and defense customers were not very active during the show. There were no major orders announced on the first day, which is disappointing in contrast to the record $192 billion orders on the first day of the 2013 Dubai Airshow.
The Boeing-Lockheed Martin team has filed a formal protest against the Air Force’s award of the $80 billion LRS-B contract to Northrop Grumman. The protest process will likely take a minimum of three months to play out, further delaying the start of one of the highest-priority Air Force programs.
Northrop Grumman was awarded the Air Force’s Long Range Strike Bomber (“LRS-B”) contract, the largest military aircraft contract since the Joint Strike Fighter (“JSF”) award to Lockheed Martin in 2001. Northrop beat out the team of Boeing and Lockheed Martin to build a new fleet of aircraft to replace the Air Force’s B-52’s and B-1s.
President Barack Obama vetoed the National Defense Authorization Act, which authorized $612 billion in military spending over the next year. The Obama administration has criticized the bill for failing to resolve spending caps known as sequestration, and impeding on the President’s ability to close the U.S. detention facility in Guantanamo Bay, Cuba.
Over the past few years, the Obama administration has worked with various government agencies to consolidate federal contracts into fewer, larger awards in an effort to save money for taxpayers. In a recent announcement by the General Services Administration (“GSA”), it has been actively pushing to reduce approximately 5,000 contracts and 4,500 contractors to roughly 4,000 of each over the past year.