Ask 100 people about the $700 billion bailout – who it helps, does it help, etc. – and you are likely to get 100 different answers. Main Street USA hears bank executives pull out the Rod Tidwell (of Jerry McGuire fame) line of arguing the bailout, er, rescue package, er financial life preserver, er Doug Flutie hail mary, is needed to “help me help you.”
With the stock market’s eye-popping gyrations forcing investors to reach for the Pepto and the housing market still underwater, deciphering the success of the rescue package will take time. But one can say with relative certainty that the financial crises – like all dramatic economic and financial events – creates opportunities for those properly positioned and with the astute foresight. And one such sector that can and will play a role in implementing the bailout – and earn a chunk of change doing so – is the government contractor community.
Washington Technology pointed out as much today, highlighting a report from research firm Input that government contractors are logically positioned with the resources and expertise required to manage large and complex aspects of the rescue package. Input analyst Deniece Peterson specifically referenced that “some contractors will benefit from opportunities to help run the Troubled Asset Relief Program within a newly established Office of Financial Stability and within the Office of the Special Inspector General for the program.”
The IDC report goes on to say that these opportunities might help mitigate some of the sting from expected budget funding decreases as a result of the tighter financial picture and shifting priorities the bailout entails. Input’s blog also cites a Washington Times story on how even defense spending – a stalwart for government contractors through the Bush Administration – will take a hit as a result of tighter budgets and the transition to a new Administration. While not much is yet evident on the surface in terms of which contractors are jockeying for a slice of the rescue package administration pie, there is no doubt plenty of activity behind the scenes as contractors brace for a leaner funding picture in store for the government.