Using Sequestration to Drive Smarter Spending
Sequestration officially went into effect on March 1st, 2013, affecting people across the nation by making broad budget cuts, eliminating Government jobs and making cuts to mission-critical programs. While sequestration may not be permanent, the Congressional Budget Office projects discretionary budget reductions for many years to come (see the graph below).
To thrive in this limited resource environment, the Government and their consulting partners must approach sequestration as an opportunity to drive smarter spending throughout the Federal government.
Significant spending cuts force agencies to reexamine their spending. During this time, it’s vital that agencies not only look at what they purchase, but also their process for acquiring goods and services - from identifying a need to awarding a contract.
Both the government and its industry partners play a role in shaking up the “one-size-fits-all” approach that is too often applied to government procurement. Industry partners can support this effort by assisting with analysis of current spending habits and providing innovative solutions to the government’s long-standing issues at competitive prices. Implementing cost-saving actions such as the following can drive smarter spending with industry support:
- Track and monitor office and/or agency purchases
- Analyze spending to identify redundancies and opportunities for standardization and consolidation
- Collaborate with other offices and agencies on shared services (e.g., email)
- Consider innovation and long-term savings potential when evaluating proposals
If the Federal Government and its industry partners work together to execute these initiatives, Government decision-makers are empowered to make strategic decisions that result in higher value purchases and long-term cost savings. This strategic approach to government procurement allows for continued success in this fiscally-constrained environment.
The Government and private sector cannot afford to wait for sequestration to end or the discretionary budget to increase. The time for change is now. To learn more about sequestration, visit www.whitehouse.gov/issues/sequester.
Collaboration is essential to implement the strategic changes necessary to drive smarter spending; therefore, protecting jobs, and enabling growth and progress for our country.