Deltek Insight 2012: The Ins and Outs of the Federal Budget


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Look no further than last year’s deficit reduction issues and the implementation of the Budget Control Act of 2011 to see the complexity of the U.S. budget process. But if you know the process -- along with which documents to use and how to read them -- you can turn the budget into a valuable tool for business development. In this session, Deltek experts will guide you through the federal budget process, what key documents are kicked off in that process, and how to use them to your advantage in pursuing government business. Intermediate Level.

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Deltek Insight 2012: The Ins and Outs of the Federal Budget

  1. 1. The Ins and Outs of theFederal BudgetRay Bjorklund, VP and Chief Knowledge Officer, DeltekGC-430
  2. 2. About Ray2 ©2012 Deltek. All rights reserved.
  3. 3. ObjectivesKnow key rules and processes of budget formulation andexecutionUnderstand the differences among:  Financing methods  Appropriations typesKnow how to follow the money to identify businessopportunities3 ©2012 Deltek. All rights reserved.
  4. 4. Federal Fiscal Processes Are ComplexExtensive statutory and regulatory requirementsA very lengthy process  Important control and feedback nodes  Agency leadership  Office of Management and Budget (OMB)  Department of the Treasury Financial Management Service  Congressional Appropriations Committees  Comptrollers and contracting officers4 ©2012 Deltek. All rights reserved.
  5. 5. Get Familiar with the Rules The Appropriations Rules The Budgeting RulesU.S. Constitution White House policy and guidanceGovernment Accountability Office Red OMB Circular A-11Book on appropriations law Agency financial managementSpecific congressional bills regulations  Authorizations Treasury reporting  Appropriations  Antideficiency Act (ADA), Pub.L. 97-258  Duration of appropriationsPurpose for which appropriated  Contingencies  Reprogramming5 ©2012 Deltek. All rights reserved.
  6. 6. Get Familiar with the Documents Congressional Appropriations Executive Branch BudgetBudget resolution The Budget of the United StatesEnacted legislation Government  Authorizations Budget volume: the Presidents Budget  Appropriations message and other broad policyCommittee markups and reports statementsConference committee reports Appendix: detailed information by agency, bureau or program group,Continuing Resolutions budget accounts, programs andComptroller General decisions activitiesCongressional Budget Office estimates Analytical Perspectives: analysis ofCongressional Research Service reports special-interest topics Historical Tables Other volumes6 ©2012 Deltek. All rights reserved.
  7. 7. Make Your Analysis RelevantWhat is the top line budget?Within the top line, what dollars are contractor addressable?  Directly addressable  Indirectly addressableWithin addressable budget, what dollars are contestable?What’s the time phasing?7 ©2012 Deltek. All rights reserved.
  8. 8. Know Types of Spending Most directly affected by CongressMandatory (or direct)  Set by permanent laws  Includes entitlements and benefits $2.2T $1.3T that must be paid  Limited contractor addressability Mandatory DiscretionaryDiscretionary  Controlled by annual appropriations Other spending Total  Permits some spending flexibility, spend: constrained by rules, legislated $3.5T authorizations Contractor-  Significant contractor addressability addressable spending Note: Circles scaled relative to GFY 2013 budget8 ©2012 Deltek. All rights reserved.
  9. 9. Integrate Your Business with the Money Trail Budget Authorizations and Planning request Appropriations Stage Early Conduct Identify and analyze targets Capture? pursuit review Develop and Develop and implement Win? Bid? submit proposal capture strategy Award Pre- Award and Apportionment Requirement and Solicitation Obligation and Allocation Performance De- Disbursement Acquisition oblig? and Outlay Government Contractor Earn past performance Get qualifications paid? Source: Deltek analysis9 ©2012 Deltek. All rights reserved.
  10. 10. Budget Formulation Takes 10+ Months OMB planning guidance Agency submissions OMB review Passbacks Data entry Presidential decisions Appeals Submittal to Congress10 ©2012 Deltek. All rights reserved.
  11. 11. Will the Funding Be There?Magnitude of spending  Top line growth or decline rate  Contractor-addressable spendingSpending pattern shifts  Conversion of contract services to government payroll  Spending declines due to functional consolidation  Increased capital investments  Grants and subsidiesFinancing methods  Shifts among discretionary and mandatory appropriations, and offsetting collections  Backlog of unobligated balances  Use of pay-as-you-go (PAYGO)11 ©2012 Deltek. All rights reserved.
  12. 12. What the Budget Tells UsProgram spend plan by activityBudgetary resources  Unobligated balances brought forward  Appropriations (Discretionary and Mandatory)  Offsetting collections (Discretionary and Mandatory)Budget authority and outlays  Discretionary  MandatoryObligations plan  Direct  ReimbursableEmployment summary12 ©2012 Deltek. All rights reserved.
  13. 13. USDA Agricultural Research Service Budget Request Previous funding FINANCING AND SPENDING not spent on contracts or Unobligated balance, SOY $ 2M other purposes Discretionary appropriations $ 1,103M Offsetting collections $ 127M The “ask” Total budgetary resources $ 1,232M Budget authority Unobligated balance, EOY $ 4M requested Gross outlays $ 1,262M Government salaries and benefits $ 724M Estimated disbursements Other expenses $ 33M Contractor-addressable obligations $ 333M 27 percent Anticipated GFY Grants $ 13M addressable 2013 new Reimbursable obligations $ 125M spending on contracts and for Total new obligations $ 1,228M other purposes Source: Deltek analysis of GFY2013 President’s Budget13 ©2012 Deltek. All rights reserved.
  14. 14. Some Points to ConsiderNot all accounts expire at EOYWhat can be purchased is specified by “color of money”Budget authority not always equal to outlaysBudget authority not always equal to obligationsAddressable obligations not always equal to contractorrevenueSubsequent appropriations can change budget authority14 ©2012 Deltek. All rights reserved.
  15. 15. Making Use of the DataPre-decisional silence, until State of the Union addressBudget submission  President’s budget message signals Executive Branch priorities  Appendix volume shows spending plan, by account  Agency-specific congressional justifications amplify account spending plansCongressional appropriations activities provide the vectors  Congressional budget resolution sets targets  Authorizations process  Appropriations committee/subcommittee marks  Conference Report complementing the appropriations bill summarizes rationale for final dollar level  Conference reports15 ©2012 Deltek. All rights reserved.
  16. 16. SummaryGet to know the meaning of the termsFollow Executive Branch and Legislative Branch processesPay close attention to contractor-addressabilityDon’t let political hype misdirect you16 ©2012 Deltek. All rights reserved.
  17. 17. Know More with Deltek Want to Know More with Deltek? View the resources below or visit for additional information and analysis to help you find and win more government business. Team More with Deltek Free White Paper: How Prime Contractors Can Win More Business Through Effective Teaming and Partner Management Comply More with Deltek Free White Paper: Compliance 101: Understanding the Greatest Challenges of GSA Schedule Contracts Win More with Deltek Video Case Study: How Citizant Increased Their Pipeline From $250 Million to $960 Million in One Year17 ©2012 Deltek, Inc. All Rights Reserved
  18. 18. Thank You!18 ©2012 Deltek. All rights reserved.
  19. 19. AcronymsADA – Antideficiency ActDAWIA – Defense Acquisition Workforce Improvement ActEOY – end of yearGFY – government fiscal yearOMB – Office of Management and BudgetPAYGO – pay-as-you-goSOY – start of yearT – trillionUSDA – US Department of Agriculture19 ©2012 Deltek. All rights reserved.