Feds could award $250 billion in IT contracts in FY06

RESTON, Va., 30 August 2005. Twenty information technology (IT) contracts will be awarded by the federal government in fiscal year 2006 with a combined potential value of $250 billion, according to a report released today by INPUT, an analyst firm focusing on government business.

Aug 30th, 2005

RESTON, Va., 30 August 2005. Twenty information technology (IT) contracts will be awarded by the federal government in fiscal year 2006 with a combined potential value of $250 billion, according to a report released today by INPUT, an analyst firm focusing on government business.

The General Services Administration (GSA) will account for the highest value of award dollars due to the Alliant and Networx Government-Wide Acquisition Contracts (GWACs).

"2006 looks to be a banner year for small business awards with nearly all acquisitions setting aside a significant amount of contracting dollars for small businesses," said Darren Bezdek, manager subcontract opportunities for INPUT. "GSA's Alliant Small Business GWAC may represent the largest IT contract ever awarded exclusively to small business."

The Department of Homeland Security (DHS) will award three major contracts in FY06 carrying a combined ceiling value of $50 billion: Enterprise Acquisition Gateway for Leading Edge solutions (EAGLE), First Source, and American Shield Initiative (ASI). The EAGLE acquisition accounts for the majority of the awards with a ceiling value set at $45 billion. The contract will provide DHS with its own method of purchasing IT services as opposed to utilizing other GWACs and consolidates the majority of DHS IT services needs under one contract. Awards are planned to be made to both small and large businesses.

Within the major contracts, some important technology standards are likely to be selected that will have significant impact on future acquisitions. "Most notable is the Justice Department's Integrated Wireless Network (IWN) contract which may set standards for how state, local, and tribal public safety and homeland security entities communicate," stated Bezdek. "Similarly, the ASI contract in DHS will utilize cutting-edge technology to monitor America's borders and could be a proving ground for the application of monitoring technology across government agencies in a variety of applications."

"There are few markets in the world where one can find a single contract valued at $50 billion," added Bezdek. "The contracts awarded in the next year are going to have a significant impact on vendor market share and the insertion of technology in the federal government. Vendors should pay close attention to ensure they are positioned to play a role in these opportunities."

Established in 1974, INPUT helps companies develop federal, state, and local government business and helps public sector organizations achieve their objectives. Over 1,000 members, including small specialized companies, new entrants to the public sector, and the largest government contractors and agencies, rely on INPUT for the latest and most comprehensive procurement and market information, consulting, powerful sales management tools, and educational & networking events. For more information, see www.input.com.

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