Top 5 Things To Know In Government Contracting This Week (June 1 - June 9th, 2024)

Hello readers! As we step into the summer of 2024, the US government contracting sector has seen significant developments. Here’s a roundup of the top five things industry professionals should know:

1. ABC’s Recognition of Excellence:

The Associated Builders and Contractors (ABC) has unveiled its 2024 list of top-performing US construction contractors. Market sector leaders were highlighted, with BL Harbert International taking the top spot for government projects, showcasing the company’s commitment to excellence and leadership in the field.

2. GovCon Index’s Financial Performance:

Recent trends in the GovCon Index have indicated a slight downturn, marking the second week in a row of losses for the year. The index, a key indicator of the financial health of 30 leading government contracting firms, dipped by 0.37% as the week concluded, with a final valuation of $4,953.15. This downturn reflects a 0.92% decrease compared to the previous week. However, looking at the broader picture, the GovCon Index has demonstrated a robust performance over the last few months, achieving a 2.31% gain compared to the previous month and an impressive 7.08% growth since the start of the year.

The index’s recent performance can be partly attributed to the market’s response to strong April employment figures, which resulted in a downturn in US stock markets and an uptick in Treasury yields. In contrast to the general trend, certain companies within the index, such as Palantir Technologies and Boeing, have defied expectations with stock price increases of 7.52% and 7.11%, respectively. On the other hand, Science Applications International Corporation experienced a notable decline, with its stock value falling by 14.07% over the course of the week.

With the Federal Reserve’s Open Market Committee scheduled to convene soon, and with forecasts suggesting that the current interest rate range will be maintained, the movements of the GovCon Index will continue to be a focal point for market analysts and investors, who will monitor these developments with keen interest.

3. FAA’s Call for NextGen Bids:

The Federal Aviation Administration (FAA) is advancing its NextGen technology upgrades, issuing a call for bids that will impact aviation and technology contractors significantly. These upgrades are part of a broader initiative to modernize the US air transportation system, promising enhanced efficiency and safety.

4. DHS Expands Border Security Tech:

The Department of Homeland Security (DHS) is set to broaden its border security technology. This expansion is expected to lead to new contracts and opportunities within the sector, as DHS continues to adapt to emerging threats and enhance national security.

5. DOD’s Regulatory Updates:

The Department of Defense (DOD) has published three final rules amending the Defense Federal Acquisition Regulation Supplement (DFARS), effective May 30, 2024. These amendments include:

- - Data Requirements for Commercial Products: Simplifying data submissions for major weapons systems procurements.
  - Limitation on Certain Foreign Goods: Adding acquisition limitations for star trackers used in national security satellites.
  - Restriction on Certain Metal Products: Expanding restrictions on the acquisition of magnets, tantalum, and tungsten to include upstream activities.

Stay tuned for next week’s edition of “Top 5 Things to Know in GovCon this Week” for more insights and updates from RSM on the ever-changing government contracting industry!

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Contact our team now:

For information on D365 Business Applications – Jonathan.Reynolds@rsmus.com