Study: $60B spent on IT services

Federal agencies awarded more than $60 billion in information technology services contracts last year, according to a study released today by Chantilly, Va.-based market intelligence firm Input.

The study shows that $44 billion — 73 percent of the total — came from just five agencies. The Transportation Department ranked first with $24.3 billion in spending, and the Coast Guard's $17 billion Integrated Deepwater System project accounted for much of that total. The Commerce Department ran a distant second with $5.7 billion. The Army spent $5.2 billion, the Office of the Secretary of Defense $4.9 billion and the Navy $4.4 billion.

The Coast Guard awarded the Deepwater contract to Lockheed Martin Corp. and Northrop Grumman Corp. last summer. The project is a comprehensive overhaul that involves replacing cutters and aircraft as well as the accompanying sensors and other systems.

Input also broke the numbers down by service category. IT outsourcing services topped that list, at $24.3 billion. Professional services drew $20.8 billion, and network and telecommunications services trailed at $9.5 billion.

In outsourcing and professional services, one or two large awards made up more than half the agency's total contract value, noted Erik TerHaar, Input's manager of federal market development services.

Deepwater was the largest outsourcing contract, making Transportation the leading agency for outsourcing at $17.2 billion.

The Army led in professional services contracts at $4.7 billion. Boeing Co. took almost half of that in a six-year contract worth up to $6 billion for work on the Army's Joint Tactical Radio System, according to Input's report.

Input examined 650 contract awards to create its analysis. The firm cautions that the report is based on a "representative sample" of technology-related federal opportunities in its own database, and does not represent total awards. It also excludes General Services Administration schedule awards and governmentwide acquisition contract vehicles.


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