Bumper crop of contracts awaits firms

ONLINE FORUM

The Top 20 Contracts for 2006
Join analysts from market research firm Input for an online forum at 2 p.m. Sept. 8. They will be available to answer questions on the Top 20 contracts for 2006 as well as other federal pocurement issues. To submit questions, or to sign up for an e-mail reminder, click here.

For more details on these contracts, type 180 in the Quickfind box on the left.

Systems integrators should gear up for a busy 2006 as the federal government makes plans for major contracts from the Defense, Homeland Security, Justice and Veteran Affairs departments as well as the General Services Administration.

A new report from the research firm Input Inc. of Reston, Va., identifies 20 contracts to be awarded in the next 12 months that will have potential value of $250 billion.

These contracts will affect how agencies spend their money into the next decade, Input said.

The contracts on this page are ranked according to dollar value, but these procurements are noteworthy for more than just their potential revenue stream.

Contracts such as GSA's Alliant Small Business and VA's Veterans Technology Services offer vehicles, respectively, for small businesses and businesses owned by service-disabled veterans. Other contracts, such as GSA's Alliant and Army's Strategic Services Sourcing, offer significant incentives for using small businesses, Input said.

Many of these procurements also consolidate other vehicles, so companies that don't win a spot on the new contracts may find it harder to reach important customers, Input analysts said.

Input's research report is scheduled to be released Aug. 29.

No. 1 Alliant

Agency: General Services Administration

Value: Ceiling of $50 billion over 10 years

Status: RFP by end of September*

Award: By end of March 2006 to several contractors*

Purpose: Provide a broad range of IT services including biometrics, business process re-engineering, communications, distance learning, information assurance and operations, modeling and simulation, security, system design and development, and Web development.

Significance: Consolidates several contracts into one, potentially reducing the number of companies that may compete for task orders.

No. 2 Eagle: Enterprise Acquisition Gateway for Leading Edge solutions

Agency: Homeland Security Department

Value:Ceiling of $45 billion over seven years

Status: RFP by the end of September

Award: By end of March 2006 to several contractors*

Purpose: Provide DHS with IT services and solutions. Services are grouped into five functional areas. Awards will be made to both small and large businesses.

Significance: DHS will have its own contract as opposed to using other GWACs and incurring their associated fees. Eagle will consolidate most DHS IT services needs under one contract.

No. 3 Management of Los Alamos National Laboratory

Agency: Energy Department and National Nuclear Security Administration

Value: $42 billion over 20 years

Status: Award in December*

Purpose: Management and operation of Los Alamos National Laboratory.

Significance:First time the contract will be competed after being run for more than six decades by the University of California.

No. 4 IT Enterprise Solutions 2 Services

Agency: Army

Value: $20 billion ceiling over nine years

Status: RFP in Fall 2005*

Award: March 2006 to four large and four small businesses*

Purpose:Manage IT assets as well as purchase a wide variety of support services such as network management, information assurance and services related to the Secret Internet Protocol Router Network.

Significance:The ceiling value is 20 times larger than ITES 1.


No. 5 Strategic Services Sourcing

Agency: Army Material Command

Value: $19 billion over 10 years

Status: Post-RFP

Award: By March 2006 to 10 contractors, including three small businesses

Purpose: Provide IT and support services to command and control customers at Fort Monmouth, N.J., in areas such as engineering, business operations, and logistics for C4ISR customers.

Significance: Consolidates multiple contracts. At least 18 percent of the work will go to small business primes. Fort Monmouth is on the list of recommended base closures, which could impact the contract.

No. 6 Alliant Small Business

Agency:GSA

Value: $15 billion ceiling over 10 years

Status: RFP by end of September*

Award: End of March 2006*

Purpose: Focused on information systems engineering and systems operations and maintenance.

Significance: Largest contract ever developed specifically for small businesses. Consolidates several GWACs into one contract, potentially reducing the number of companies that can compete on GSA contracts.

No. 7 Networx

Agency:GSA

Value: $10 billion ceiling over 10 years.

Status: Post-RFP, award expected in April 2006

Purpose: Provide telecommunications and networking services and technical solutions to all federal agencies. Networx is divided into two contracts: Networx Universal will provide national services, and Networx Enterprise, will provide more localized services.

Significance: Largest pending network deal in the world. Regarded as critical to the financial well being of U.S. telecom carriers.

No. 8 Purchase of Computer Hardware and Software 3

Agency: Veteran Affairs

Value: $6 billion ceiling over five years

Status: RFP expected in November*

Award: April 2006 to nine to 12 contractors*

Purpose: Known as Peaches 3, the contract is for IT hardware, software and peripherals.
Significance: Expected to be mandatory for all VA agencies and divisions. VA plans to increase the use of laptop computers to replace desktop PCs. Emphasizes leasing of equipment. Smart card readers are mandatory on workstations. Prohibits Bluetooth radios unless the radio can be removed or disabled by VA.

No. 9 Veterans Technology Services

Agency: VA

Value: $5 billion ceiling over 10 years

Status: Source selection

Award: June 2006*

Purpose: Provide IT solutions to federal agencies in functional areas that include information systems engineering and systems operations and maintenance.

Significance: Help businesses owned by service-disabled veterans by letting them compete in a smaller pool of companies, giving them a chance to develop before moving into larger acquisition environments. Well-positioned small and mid-sized services companies will likely see rapid growth in the next two years as the government now has an easier way to identify these companies and procure services from them. Help agencies comply with Veterans Entrepreneurship and Small Business Development Act of 1999 and the Veterans Benefit Act.

No. 10 Infrastructure Modernization

Agency: Army

Value:$4 billion over 10 years

Status: RFP expected Oct. 19

Award:April 2006

Purpose: Update telecommunications lines including installing fiber-optic cable at major Army installations and ultimately create a single integrated communications system.
Significance: Consolidates multiple contracts, potentially limiting the number of opportunities non-winning vendors will have to compete for work.

The rest of the Top 20:

No. 11 NASA SEWP IV

No. 12 Army Logistics Joint Administrative Management Support Services II

No. 13 Total Information Processing Support Services-3

No. 14 DHS First Source

No. 15 Justice Department Integrated Wireless Network

No. 16 Americas Shield Initiative

No. 17 Information Technology Support Services III

No. 18 Centers for Medicare and Medicaid Services/Enterprise Data Center

No. 19 Defense Information Systems/Encore II

No. 20 FBI/Sentinel


*Time frame is an estimate from Input.

About the Author

Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.

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