The Scorecard illustrates that while overall agency spending fell by two percent, the smallest annual decline since FY11, half of all federal agencies increased spending.
“Spending may have decreased relative to the last two years, but we see signs of a rebound, or spending stabilization, as agency funding solidified,” said Govini founder and CEO Eric Gillespie. “Just like Wall Street, uncertainty kills agency procurement more than budget pressure.”
The third-annual ranking of agency spending and contractor performance reveals several insights into the shifting federal market landscape:
Shifts in Defense Priorities. The Navy was the only Defense agency to increase its contract obligations, through recapitalization of major weapon system programs, including the F-35 and Virginia-class submarines, which emphasizes the U.S. pivot to Asia. In FY15, the Navy spent 55 percent more on aircraft than on ships and landing vessels, with aircraft contract awards totaling almost $15 billion.
Demand Still Strong for Services. Federal agencies were still heavily reliant on professional services, with the top two services categories holding steady with a combined $32 billion in awards. “What we saw was a major restructuring of industry in response to past LPTA measures rather than a disappearance of services contracting,” added Gillespie.
Impact of Services Consolidation on Competitive Landscape. Several contractors jumped in rank thanks to M&A (mergers & acquisitions) activity. For example, at the Department of Veterans Affairs (VA), newly formed CSRA jumped six spots in rank to join the top ten vendors with $106 million in capture.
Prescription Drug Spending Spikes. Prescription drugs are a growing cost across agencies, with Drugs and Biologicals purchases up 27 percent over the three year average. McKesson gained the most ground with capture, growing by 36 percent to $6 billion at Health & Human Services (HHS) and the VA.
The Federal Scorecard provides a top-level view of the federal market and measures contractor performance and agency spending with proprietary metrics. Public sector businesses use it to predict market behavior and follow the money, making it an invaluable tool for identifying future opportunities, potential partnerships and competitive threats.
“This is a big data approach to reveal market insights. While budget data shows where the government claims it will spend, the Scorecard shows what was actually spent and indicates future spending trends,” said Gillespie. “It serves as a starting point to help our clients stay several steps in front of their competitors. Instead of moving with the market, this intelligence enables them to get ahead of it.”
The Scorecard also presents a fact-based view of the market to enable alignment between Strategy and Business Development teams. “Big data provides a way to slice up the market to cut across industries, agencies and companies in many ways that companies haven’t explored,” added Gillespie. “The Scorecard shows where businesses should prioritize their efforts and resources for the highest probability of winning.”
The 277 vendors featured in the Scorecard are ranked by revenue capture and contract efficacy, a proprietary Govini system of metrics that illustrates how much work is required to win a contract. Additional Govini proprietary metrics include contract complexity and competitors per contract action. The 24 U.S. government agencies are ranked by the total dollar value of contract obligations compared to the previous fiscal year. Below are the top-ranked vendors at each agency based on total capture dollars and vendor efficacy:
- The Navy – Lockheed Martin
- The Army – Lockheed Martin
- The Air Force – Lockheed Martin
- Defense-Wide – Humana
- Defense Research Labs – Lockheed Martin
- Department of Energy – Los Alamos National Security
- Department of Health and Human Services – Pfizer
- Department of Veterans Affairs – Kiewit-Turner Joint Venture
- National Aeronautics & Space Administration – The Boeing Company
- Department of Homeland Security – McCarthy Mortenson
- Department of State – B.L. Harbert International
- General Services Administration – Hensel Phelps Construction
- Department of Justice – Corrections Corporation of America
- Department of Transportation – Lockheed Martin
- Department of the Treasury – Coin ‘N Things
- Department of Agriculture – Clean Harbors
- Department of the Interior – McCarthy Building Companies
- Agency for International Development – Partnership for Supply Chain Management
- Department of Education – Accenture
- Department of Commerce – Harris Corporation
- Department of Labor – Management & Training Corp.
- Social Security Administration – Lockheed Martin
- Environmental Protection Agency – Jacobs Engineering Group
- Department of Housing and Urban Development – The Hewlett-Packard Company
To request a copy of the 2016 Federal Scorecard, visit www.govini.com.
Govini is the leading business intelligence platform for companies that sell to the public sector. Across the entire business development lifecycle, Govini creates proprietary analytics which answer critical questions pertaining to addressable market size, opportunity qualification, competitive positioning and partner profiling. The Govini database of record gives companies in every industry a distinct advantage when working with the government. For more information about Govini, visit govini.com or call 866-209-9100.
Sarah Horowitz, 202-379-0546