Based on an unscientific survey of headlines from Federal News Radio, when it comes to higher interest rates, folks in the government contracting community are primarily concerned with whether their TSPs balances have gone up.
Rising interest rates have had a pretty profound on the US economy, though. Bond returns are at historic lows. We’ve seen major bankruptcies and corporate layoffs. And even though it seems like ages ago, just a bit over six months ago, we experienced a systemic banking crisis caused by insolvency of some major banks.
Still, for the most part, I would argue that the impact of higher interest rates on the economy has not really been felt in the context of #govcon or affected acquisition strategies. At least, I would have argued that.
As it turns out, though, contracting officers at the Department of Veterans Affairs (VA) are worried about corporate debt? At least, that’s what I learned through a recent GAO protest filed by IBM related to a VA effort to “procure supply chain modernization services…”
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