Yes, the money has been flowing for a long time, and yes, the government's need for help from the private sector remains, well, robust. But the world turns, as BusinessWeek points out in a story about federal contracting.
Already concerned about tightening tech budgets, contractors now have to contend with the possibility of a Democratic administration, one that would undoubtedly be intent on looking into spending over the past eight years. Some view GOP contender John McCain as a wildcard because of the "maverick" image he likes to project.
"In the political calculus of Wall Street, investors have come to regard Republican Administrations as the more favorable for the fortunes of the U.S. aerospace and defense industry. But things don't seem quite so clear-cut as the 2008 election approaches," the magazine writes. "The maverick reputation of Republican hopeful John McCain is making defense companies nervous about what the future may hold. And Barack Obama's commitment to protecting jobs at home (the defense industry employs a considerable number of Americans) has somewhat tempered concerns about his pledge to accelerate an end to the U.S. military presence in Iraq."
Will spending actually drop? For a bunch of reasons, Government Inc. thinks not. Billions are already committed for years to come. But maybe competition and oversight will improve. Either way, change could be coming, and that makes a very wired-in contracting world uncomfy.
Please email us to report offensive comments.
Posted by: Michael Lent | August 25, 2008 3:03 PM
Posted by: CarmanK | August 28, 2008 12:16 PM
The comments to this entry are closed.