Federal Contract Awards Reach $11 Billion in 2Q FY05

Awards Declined 40 Percent From Previous Quarter,

But Remain on Pace With Last Year

May 26, 2005, 01:00 ET from INPUT

    RESTON, Va., May 26 /PRNewswire/ -- Federal government agencies awarded
 $11 billion in IT-related prime contracts during the second quarter of fiscal
 year 2005 (2Q FY05), a decrease of 40 percent from the previous quarter
 according to a report released today by INPUT, the quantifiable leader in
 government market intelligence.  The federal government has awarded a combined
 $30 billion in contracts for the first two quarters of FY05, putting contract
 awards on pace with the same time period last year.  INPUT anticipates
 contract awards to nearly double next quarter to $20 billion.
     According to the 2Q FY05 Federal Contract Awards INPUT/Output(R) report,
 just five departments awarded nearly $8 billion, or 72 percent, of all
 contracts during the quarter.  The Department of Navy ranked first due to
 multiple large awards made in the quarter.  The largest award was for the
 continuing Fielded Training Systems Support (FTSS) services for Navy and non-
 Navy customers at multiple training sites around the world.  Another
 significant Navy award was for the Atlantic Undersea Test and Evaluation
 Center (AUTEC).  Dyncorp Technical Services was awarded the contract to
 provide continued operation and maintenance of the facility.  INPUT estimates
 the contract value at $762 million.
     The split between civilian and defense agency contract awards was nearly
 equal at $5.3 billion and $5.6 billion, respectively.  "We're seeing the
 balance between civilian and defense awards swing back towards their typical
 split after the brief departure we saw last quarter due to a couple large
 civilian contract awards," said Marcus Fedeli, manager, federal opportunity
 products at INPUT.  "We expect the number of defense awards to eclipse
 civilian awards by nearly 100 in the third quarter of FY05."
     Navy also led all agencies in set-aside competitions with 21 set-aside
 competition contracts, valued at $201 million.  The Commerce Department
 followed closely behind the Navy for set-asides due to one contract, valued at
 $192 million, awarded to AKIMA/DTSV LLC.  The contract fulfills the Patent and
 Trademark Office's requirement for support services to improve processing and
 maintenance of applications.
     Set-aside competition awards accounted for just seven and a half percent
 of all awarded dollars in 2Q FY05.  Fifteen federal departments awarded a
 total of $826 million in set-aside competitions.  Small business set-asides
 far exceeded all other set-aside competition types with 35 awards valued at
 $652 million, nearly 80 percent of all set-aside awards.  Only one contract
 was awarded via Service-Disabled Veteran-Owned Business (SDVOB).  The $35
 million award was made by the Army to BCP International Limited.  "The
 percentage of set-aside awards remained relatively stable from the previous
 quarter," said Fedeli.  "Given recent legislation, we continue to anticipate a
 drastic increase in the number and awards of SDVOB procurements moving forward
 to ensure the three percent SDVOB goal is met."
     INPUT's 2Q FY05 Federal Contract Awards INPUT/Output report is available
 to clients of INPUT's Information Services subscriptions.  For more
 information on INPUT's Information Services subscriptions, visit
 http://info.input.com or call 703-707-3500.
     About INPUT:
     INPUT is the quantifiable leader in government market intelligence.
 Established in 1974 and based in Reston, Virginia, INPUT provides information
 services, analysis, consulting, software solutions, and events to help
 technology vendors win more government business, and to help government
 organizations further advance their IT initiatives.  INPUT tracks more than a
 half trillion dollars in contract and grant opportunities within the US
 federal, state & local government markets, as well as tender opportunities
 throughout the European Union.  INPUT has built a solid reputation for high
 quality and in-depth government industry insight and analysis with over 1,000
 clients, including hundreds of small to medium size IT contractors and 70% of
 the top 150.  Leading defense, hardware, software, telecommunications and IT
 services contractors, plus 4 of the top 5 8(a)s, rely on INPUT to help them
 win more than $45 billion in government business each year.  For more
 information about INPUT, visit http://www.input.com or call 703-707-3500.
     Proper use of name is INPUT
     CONTACT:  Amanda Morgan of INPUT, +1-703-707-3540, or amorgan@input.com.