Federal Hot Minute Oct. 15, 2012

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One many unique characteristic of the government market is that sometimes politics influence business decisions.

Here are a few recent examples:

Last week the House Intelligence Committee warned both private and public sector organizations from buying products from Huawei, the big Chinese high tech company. The committee claimed that their products posed a national security risk which the company vehemently denies.

Another interesting example has put some defense contractors in the middle of two conflicting political forces. OMB wants to give contractors a reprieve from their obligation of giving an employee a 60 day notice of a layoff should it result from the sequestration.

Bloomberg reports Senator McCain claims OMB’s decision is politically motivated and seeks to stop it.
Of course, it’s no different in Europe where political forces prevented the merger between two enormous government contractors EADS and BAE.

To be successful contractors need to keep an eye on BOTH the business opportunities in government as well as the political forces behind them.

For links to stories mentioned here, please go to I’m Steve Vito of UpsonVito.

China Tech Giant Under Fire

Politics, not security, at center of Huawei, ZTE allegations, say analysts

Huawei's Ally: IBM

China’s defense of Huawei? U.S. tech companies spy too

McCain Threatens to Block Contractor Payments From Pentagon

Why the EADS-BAE Deal Collapsed

Government Discord Derails Massive European Merger

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