DLF Defense Contracting News
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April 2020 Newsletter Highlights:
News from our clients
Bank of America
The power to see the road ahead
For the army of contractors supplying goods and services to the federal government, the past decade has been full of advances and retreats. A spike in spending today is reminiscent of the surge in outlays to contractors after passage of the American Recovery and Reinvestment Act of 2009. But spending fell sharply in 2013 and remained depressed for the next few years.1 The current upswing has left many contractors scrambling to find enough workers to fulfill the contracts they’ve won.
That’s a particular challenge for contractors working with the Department of Defense, which accounts for more than half of all U.S. payments to contractors and has seen its budget jump since 2017.2 But opportunities in other areas are also on the rise. A big overhaul of information technology systems throughout the government is just getting started, promising a strong, steady increase in contracts to tech companies of all sizes and descriptions. Sustainability initiatives affecting new and existing government buildings are a boon to building contractors, while the Department of Veterans Affairs, caring for veterans of recent U.S. wars, is awarding increasing numbers of contracts in health services and related areas. Yet, contractors seeking to take advantage of this rush in demand also face a shifting competitive landscape and stricter regulations. Against that backdrop, five trends showcase the opportunities and challenges government contractors face today and in the future: rising defense spending; information technology overhaul and cyber security; shortage of skilled labor; shifting competitive landscape and growing audit and compliance requirements.
Another note, our country took a historic next step toward helping win the war on the coronavirus with the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. There is important work ahead to quickly understand the requirements so we can play our role in getting the assistance to where it is needed. We share with you and other leaders a common goal: We all want the power to move beyond this health and humanitarian crisis. We are committed to do everything we can to help. For more information, please click here https://newsroom.bankofamerica.com/press-releases/consumer-banking/bank-america-announces-additional-support-consumer-and-small.
2 Vertical IQ: “Government Contractors,” 12-10-2018, page 3.
“Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed. ©2019 Bank of America Corporation. All rights reserved. ARY9V7PD 08-19-2926
CRI | Carr, Riggs & Ingram CPAs and Advisors
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ENERCON Integrated Defense Solutions
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Projects Unlimited is an essential business and is fully operational. As we all know, Covid-19 has made it nearly impossible for the aerospace and defense industry to physically connect with their customers.
Projects Unlimited products and services are considered critical to national security and the Department of Defense, so moving forward in these challenging times, we wanted to ensure that current restrictions have not slowed down the ongoing in-house production and the promised on-time delivery of product. READ MORE...