Input: GSA IT schedule sales dip again in '06

Annual sales through the General Services Administration's multiple award schedule contracts for IT products and services declined for the second straight year in fiscal 2006, according to Input Inc.

GSA's sales figures for fiscal 2006 declined to $16.3 billion, matching the Reston Va., market research firm's July prediction. Decreasing IT services sales weighed heavily on the schedule, off more than $600 million year over year. The actual decline in the schedule's IT services sales was 6.5 percent versus last year.

"Overall federal IT services spending continues to grow at an attractive pace, so the decline in schedule spending reflects a conspicuous move by buyers to other contract vehicles," said Ashlea Higgs, Input's manager of new markets.

One external factor contributing to the IT schedule's descent is rising competition from department-specific, multiple-award contracts.

"We see more and more vendors increasing their business development investment in non-schedule task order vehicles and in teaming with their peers to stay in front of agency buying preferences and contract consolidation, respectively," said Higgs.

"Non-schedule contract vehicles capture a bigger share of IT spending each year. Collectively, these contracts grow at a rate several times the growth experienced by the IT budget and the IT schedule," he added.