President's 2009 Budget Requires Agencies to Do More with Less

The recent release of the President's FY 2009 budget request outlines ongoing opportunities for technology contractors to focus on solving agencies' need to do more with less, according to INPUT, the authority on government business.

"The FY 2009 request for Development, Modernization, and Enhancement monies, which includes new programs, is down 1.4 percent from the FY 2008 appropriation, but the Steady State spending request is up nearly 7 percent," stated Melissa Smith, director, research at INPUT. "Priorities this year are clearly focused on streamlining and efficiencies, rather than on big, new programs," she added.

Overall, the federal government continues to spend more than it expects on technology and at faster growth rates than originally budgeted. Last year's expectation for final FY 2007 spending was $63.8 billion, but OMB reported this week that agencies actually spent $65.6 billion, a full $1.7 billion more than anticipated. Similarly, the request last year for FY 2008 was $65.9 billion, while this week's estimate of what will actually be spent by the end of FY 2008 is almost 4 percent more. This represents a 4 percent increase over 2007, when predictions last year were closer to 2.6 percent.

"When all is said and done, this year's 3.8 percent increase for FY 2009 over FY 2008 estimated spend is likely to be higher still," said Smith. "Considering we've been in an environment of Continuing Resolutions (CR), this increase is surprising. CRs didn't limit spending as much as might be expected," she added.

With so much of the increase attributable to steady state spending, the FY 2009 budget request reflects the high perceived value of modernization, consolidation, streamlining, and e-government programs focused on reducing redundancies and increasing efficiency. "Since these are monies that, according to OMB, can go directly into mission fulfillment, this represents real ROI for agencies struggling with the current difficult environment," said Smith. "The request shows that in this year of transition, agencies are focused on getting things done and not on initiating new projects. This is the year for contractors to formulate solutions to agency problems and mission fulfillment or, at a minimum, clearly articulate how solutions can solve their problems. Smart contractors are also looking ahead to identify problems the new administration will have to address, and invest in technologies and alliances to solve those priorities."

INPUT

INPUT is the authority on government business. Established in 1974, INPUT helps companies develop federal, state, and local government business and helps public sector organizations achieve their objectives. Over 1,300 member organizations, including small specialized companies, new entrants to the public sector, and the largest government contractors and agencies, rely on INPUT for the latest and most comprehensive procurement and market information, consulting, powerful sales management tools, and educational & networking events.

Source: INPUT