Old Dominion Smokes the Competition in Federal IT Spending

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HOT TECHNOLOGY REGIONS

Old Dominion Smokes the Competition in Federal IT Spending

By Trish Williams

The state of Virginia garnered the lion's share of federal information technology dollars in fiscal year 1996 with a whopping $10.7
billion in contract obligations, almost double the amount it gleaned the previous fiscal year, according to a new analysis prepared by the market
research firm Input.

California took a distant second place with $5.6 billion in contract obligations, followed by Maryland with $4.3 billion, according to the geographic analysis of federal information technology spending by the Vienna, Va., firm.

Next up in the nation's hottest federal information technology regions are the District of Columbia ($2.8 billion) and Massachusetts ($2.7 billion), according to the Input analysis.

Virginia, Maryland and Washington, D.C., accounted for about 38.6 percent of the spending, grabbing the most work performed on a state basis. This marks a slight increase from the fiscal year 1995 level of 31.5 percent, but it also is in keeping with a downward trend during the past several years for more work performance outside the region, said Norm Berthaut, Input's vice president.

Rounding out the top 10 are Texas, Florida, New Jersey, New York and Colorado, according to Input, which used data from the Federal Procurement Data Center maintained by the General Services Administration.

Agencies are required to report procurement data to GSA, including the amount the federal government has agreed to pay for a specified product or service. While these contract obligation numbers do not necessarily indicate the amount of money spent or the potential value of a contract, they do provide a useful snapshot of federal IT spending patterns.

According to Input, the leading agency spenders in fiscal 1996 were the Army with $9.7 billion in contract obligations, followed by the Navy ($9.3 billion) and Air Force ($8.5 billion). GSA ranked fourth in agency spending with $2.6 billion in contract obligations, a spike from the agency's fiscal 1995 level likely due in part to the agency's telecom spending on behalf of other agencies, according to Input.

The top 10 agencies did about 90 percent of the total spending, which is consistent with the previous year's findings, Berthaut said. The top agencies did 92 percent of the spending in fiscal 1995.

The top 10 states had 73 percent of the spending in this year's cycle. In fiscal year 1995, the top 10 states had 67 percent of the spending performed among them.

A breakdown of expenditures by types of companies showed that Virginia firms dominated all categories with the exception of nonprofits, which received more federal monies in Georgia. Large businesses, small businesses, 8(a) firms and small-disadvantaged companies in Virginia gleaned more than their counterparts in any other region, according to Input's geographic distribution breakdown shown in an accompanying chart.

States with strong spending on small businesses include New Jersey and Georgia; those with strong spending on 8(a)s include Ohio, New Jersey and Missouri. States with healthy spending on non-profits include Oklahoma, New Jersey and New Mexico. Leading states in the small disadvantaged spending arena are Virginia, Maryland, California and Massachusetts, closely mirroring those with large business spending totals.

A report of the high-technology industry prepared by the American Electronics Association, the nation's largest high-tech trade association, noted that computer makers, electronics companies and information technology firms tend to cluster to take advantage of pools of skilled workers and the collection of technology resources.

Joining the well-known areas of Silicon Valley, Massachusetts' Route 128 and North Carolina's Research Triangle in the last decade, the Cyberstates report said, are Northern Virginia's Silicon Dominion and the emergence of Utah and Idaho as high-tech centers.

Other leading high-tech regions to watch are the Silicon Hills of Austin and San Antonio, Texas; Seattle; the technology corridor of Redmond, Bellevue and Kirkland in Washington; and Oregon's Silicon Forest, the report said. n

Agency Top Place of Performance
Department State Department State
Agriculture
Air Force
Army
Commerce
Defense
Education
Energy
EPA
FEMA
GSA
HHS
Missouri
California
Virginia
Virginia
Virginia
Maryland
Louisiana
District of Columbia
Virginia
Virginia
Massachusetts
HUD
Interior
Justice
Labor
NASA
Navy
State
Transportation
Treasury
Veteran's Affairs
Maryland
Colorado
District of Columbia
District of Columbia
Texas
Virginia
Virginia
Virginia
District of Columbia
District of Columbia


TOP STATE WORK LOCATIONS
(Obligations in $K)
VA
CA
MD
DC
MA
TX
FL
NJ
NY
10,762,386
5,604,527
4,361,506
2,818,554
2,713,206
2,243,808
2,086,430
1,216,675
1,158,458
CO
NC
OR
OH
WA
PA
IN
MO
AL
1,106,710
964,106
962,324
907,987
769,439
728,718
720,641
644,967
609,067
LA
GA
SC
IL
OK
AZ
NH
NM
MS
594,003
542,011
429,694
418,990
402,109
393,891
361,187
339,293
282,766
CT
MN
IA
NE
NV
SD
MI
KS
RI
267,738
205,320
177,704
161,949
154,388
127,500
116,087
105,983
104,673
WV
HI
UT
KY
AK
WI
ID
ND
AR
79,512
79,235
76,078
65,847
65,428
59,776
58,433
27,741
23,678
MT
DE
VT
ME
VI
WY
PR
AS
GU
16,648
7,934
7,526
5,080
1,163
1,108
536
19
7


TOP AGENCY SPENDERS
Name Obligations $K
Army
Navy
AirForce
GSA
DOD
HHS
Energy
Transportation
NASA
Treasury
Justice
Agency for Int'l Development
Commerce
State
EPA
Nat'l Consumer Cooperative Bank
Education
Agriculture
Veteran's Affairs
U.S. Army Corps of Engineers (Civil Program Financing only)
HUD
Interior
Labor
FEMA
United States Information Agency
Nuclear Regulatory Commission
Securities and Exchange Commission
OPM
Executive Office of the President
National Science Foundation
Smithsonian Institution
Commodity Futures Trading Commission
Equal Employment Opportunity Commission
Trade and Development Program
Federal Trade Commission
National Labor Relations Board
Arms Control and Disarmament Agency
Peace Corps
Railroad Retirement Board
Federal Election Committee
National Endowment for the Arts
National Mediation Board
Interstate Commerce Commission
National Archives and Records Administration
FCC
Consumer Product Safety Commission
United States Soldiers' and Airmen's Home
National Endowment for the Humanities
Merit Systems Protection Board
National Capital Planning Commission
John F. Kennedy Center for the Performing Arts
International Trade Commission
9,674,792
9,390,770
8,588,365
2,593,918
2,591,748
2,558,659
2,456,693
2,026,797
1,798,683
965,065
952,181
484,159
445,948
371,309
354,935
337,507
335,392
329,868
300,232
207,964
189,315
160,676
147,163
144,588
92,960
54,714
22,833
17,271
16,059
11,086
7,688
7,156
4,544
4,318
3,941
3,672
3,639
3,184
2,263
1,922
1,475
1,274
860
800
722
619
392
316
286
80
55
32

Geographic Distribution of companies

Rank Large Business Small Business 8(a) Small Disadvantaged NonProfit All
1. Virginia Virginia Virginia Virginia Georgia Virginia
2. California Maryland Maryland Maryland California California
3. Maryland California Colorado California Texas Maryland
4. Massachusetts New Jersey California Massachusetts Ohio Massachusetts
5. New Jersey Pennsylvania Massachusetts Colorado Massachusetts Texas
6. Florida Georgia Missouri Florida Oklahoma New Jersey
7. Texas Texas New Jersey Ohio District of Columbia Florida
8. New York Massachusetts Florida District of Columbia New Jersey New York
9. District of Columbia Florida District of Columbia New Jersey New York District of Columbia
10. Colorado New York Ohio Missouri New Mexico Colorado

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