'04 Saw 60 Percent Increase in Feds' Technology Contract Awards

Defense agencies lead spending boost; professional services award values increase 110 percent in FY04, INPUT reports

Defense agencies lead spending boost; professional services award values increase 110 percent in FY04, INPUT reports

Reston, VA — December 3, 2004 — U.S. federal government awards of information technology (IT)-related prime contracts reached $155 billion in fiscal year 2004, representing a 60 percent increase over the $95 billion in IT-related prime contracts awarded during FY2003, according to a report released today by INPUT, a government market intelligence firm.

The December INPUT/Output report, entitled "FY2004 Where did the money go?", indicates that defense agencies are primarily responsible for the increase this year, with four of the top five departments in defense-related sectors. In terms of total dollars, five departments awarded a total exceeding $118 billion — 76 percent of the entire awards during FY2004.

"The large increase in awarded dollars can be attributed to a handful of defense related programs, as well as the emergence of the Department of Homeland Security as a major player with its $10 billion US VISIT award," said Michael Boland, senior analyst of federal vendor profiles at INPUT.

The United States Navy led the way, with $36.8 billion awarded, which included the $19.5 billion Engineering, Technical and Support Services contract for the Naval Warfare Center and other Naval Sea Systems Command (NAVSEA) Field Sites (SeaPort II) program.

In addition, the INPUT/Output report notes that professional services awards totaled $103.3 billion in FY2004, an increase of 110 percent over FY2003.

"However, due to two significant defense related programs, the network and telecommunications category increased 900 percent in FY2004," Boland said. Awards for the $9 billion Air Force Network Centric Solutions (NETCENTS) program and the $7 billion Army Warfighter Information Network - Tactical System (WIN-T) program accounted for 84 percent of the $19.2 billion in network and telecommunications services awards.

INPUT is currently tracking approximately $114 billion in IT-related contracting opportunities with award dates during FY2005.

The firm's analysis of FY 2004 federal contract awards is available for download at http://money.input.com.
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