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Deltek Insights and Observations - Federal IT Contract Award Environment

Published: August 31, 2016

Federal Market AnalysisContract AwardsForecasts and SpendingInformation TechnologyIT ReformPolicy and LegislationSubcontracting

Deltek's Insights and Observations: The Federal IT Contract Award Environment report analyzes spending levels, contracts and competitive landscape of federal IT contracting.

Deltek’s Insights and Observations: The Federal IT Contract Award Environment report examines trends in federal agency contracting for IT goods and services from fiscal year 2013 to 2015, including analysis of the policies and legislation shaping the award of IT contracts and task orders.

Federal IT contracting is evolving in complexity thanks to the pace of technology evolution, aging IT systems and the growing array of policies and legislative initiatives that government agencies must follow. As competition heightens and oversight increases, it will be critical for contractors to gain deeper insight into contracting trends to help inform bid decisions.

Key Findings

Analysis of three years of contracting data reveal several insights into federal contracting behavior:

  • * GWACs and agency-specific IDIQs continue to dominate overall IT spending, representing 36% of all IT contracting in FY 2015.
  • * Agencies’ preference for fixed price contracts continues, however it is largely driven by IT professional services work.
  • * The average value of task orders in FY 2015 was $442K, however over 70% of task orders are less than $250K.
  • * Task order competition is high, considering agencies’ preference for them. Agencies received at least 6 offers on nearly 20% of task orders.
  • * Whether due to single award contracts or lack of broad interest, 25% of IT obligations were for contracts for which agencies received only 1 bid. Agencies receive 3 to 5 bids on the majority of task orders.
  • * Analysis of 20 next-generation (recompete) contract vehicles shows a pattern in agencies increasing in the size of available vendor pools, whether through increasing the number of awards or providing on-ramping opportunities.

Critical Insight for Vendors

Deltek’s Insights and Observations: The Federal IT Contract Award Environment report provides critical insight into the IT contracting landscape where vendors compete. It is designed to help federal contractors identify trends in IT contract competitions to support business development planning and decision-making.

Deltek’s Insights and Observations: The Federal IT Contract Award Environment report is delivered in PowerPoint® format and includes an Executive Briefing that summarizes key findings and an Excel® workbook with data from the analysis.

 

TABLE OF CONTENTS
  • - Introduction
  • - Purpose of the Report
  • - Scope and Methodology
  • - Key Findings
  • -Federal Contracting Environment
  • - IT Contract Award Trends (including overall IT, task order contracting, subawards and recompetes)
  • - Agency Landscape
  • - Conclusions and Recommendations
  • - Appendix