This briefing covers active market intelligence, regulatory guidelines, and tactical capture recommendations for federal and defense contractors pursuing opportunities in this procurement classification.
FEDERAL CONTRACTORS – Donald Trump has mastered the art of the deal — in the private sector. But as president he may find that dealmaking in the federal government is somewhat less artistic.
Consider Carrier: its plant in Indiana became a flashpoint on the campaign trail after Carrier said it would move more than 2,000 jobs to low-cost Mexico. After his election, Trump began a highly public negotiation with the company designed to keep as many of those jobs in the United States as possible.
On Thursday, Trump is set to visit Indiana to lay out a deal he made with the company to keep as many as 1,000 jobs in the state. The specifics of the agreement have not yet been made public.
But one appealing point of leverage for a dealmaker like Trump would be Carrier’s parent, United Technologies, a $56 billion company that generates about 10 percent of its revenue from federal government contracts — and particularly from Pentagon defense contracts.
But President Trump will not have as much leverage over those contracts as CEO Trump would have had in the private sector.
Federal contracting regulations are notoriously restrictive. And experts tell CNBC that any effort to quash UTC contracts could run afoul of the rules and expose the federal government to a costly lawsuit from the company.
Read more: These rules may prohibit Trump from threatening federal contractors to keep jobs in US
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