Federal prime IT contracts down 20 percent, Input finds

Federal prime information technology contracts dropped 20 percent between fiscal 2004 and 2005, to about $123 billion, according to the market research firm Input.

In a report to be released tomorrow, the firm says IT contracts totaled about $155 billion in fiscal 2004. However, the firm predicts a 60 percent rise in such contracts for fiscal 2006.

Although annual contract awards decreased in fiscal 2005, overall federal IT spending increased 5 percent, according to the firm. More spending is now coming through existing contracts and through departmentwide indefinite delivery/ indefinite quantity contracts, allowing for fewer new direct awards, according to Marcus Fedeli, manager of federal opportunity products at Input.

"This trend will continue next year," he added. "However, we will see contract awards rise significantly due to several anticipated billion dollar-plus program awards."

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