Systems market to top $18 billion

Federal spending on computer systems will increase at a compound annual growth rate of 9 percent, from $12 billion in fiscal 2002 to more than $18 billion in 2007, according to a report by Input Inc., a Chantilly, Va., market research company.

The server segment will have the strongest growth, increasing at a compound annual growth rate of 10 percent, said Payton Smith, manager of public-sector market analysis services at Input. An emphasis on information sharing between agencies and the development of network-centric warfare capabilities will drive the growth of the server segment.

The General Services Administration's Information Technology Schedule accounted for more than 45 percent of computer equipment sales in the federal government during 2001, according to the report. Purchase of IT equipment on the GSA Schedule has increased nearly 100 percent since fiscal 1997, due in large part to procurement reforms in the mid-1990s, the report showed. Despite the growth, the report advised that large outsourcing contracts have the potential to significantly alter market dynamics in the federal government.

The impact of outsourcing on the computer systems market in the federal government will depend on the success of existing programs, such as the Navy-Marine Corps Intranet project, the report said.

Affiliated Computer Services Inc., Dallas, won a $6.6 million contract with NASA's Glenn Research Center to operate a mobile aerospace education laboratory and to install similar, fixed aerospace education laboratories in high-tech classrooms across the United States.

Anteon International Corp., Fairfax, Va., won a one-year task order worth $5.4 million to provide system support services to the Navy's Aegis destroyer shipbuilding program. The Aegis combat system is a ship-based missile detection, tracking and elimination system capable of simultaneously following multiple anti-air, anti-surface and anti-submarine missiles.

Computer Sciences Corp., El Segundo, Calif., won a $50 million subcontract from Unisys Corp. to provide enterprise integration and other information technology services to the Transportation Security Administration. CSC will support TSA's initial effort to build a secure IT infrastructure for 429 domestic airports and more than 180 related locations. The programs eventually will include all of the nation's transportation systems, including rail, highway, transit, maritime and pipeline.

Northrop Grumman Corp., Los Angeles, won a blanket purchase agreement worth $30 million over three years by the Defense Information Systems Agency to provide e-commerce infrastructure support. Also, Northrop Grumman Information Technology won a three-year, $8.1 million contract from the Louisiana Department of Social Services for IT services to support agency operations.

Orincon Corp. International, San Diego, was selected by the Office of Naval Research as the prime contractor, system architect and integrator for the Navy's Theater Undersea Warfare initiative, worth up to $25 million.

TeleCommunications Systems Inc., Annapolis, Md., won a one-year, $4 million contract extension of its 1998 network and systems support contract with the Baltimore Board of Estimates.

Titan Corp., San Diego, won an Air Force financial information systems contract worth up to $18.7 million over four years. Titan will provide technical assistance in planning, managing, coordinating and executing the Defense Department IT processes for developing and acquiring financial information systems.

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