Input downplays Alliant prospects

While the 29 contractors that earned spots on the Alliant governmentwide acquisition contract celebrate their wins, research firm Input Inc. is pouring a bucket of cold water on the party.

The General Services Administration set a ceiling of $50 billion for the 10-year contract, but Input analysts believe that it will actually generate far less business, according to a report issued today.

Input's report suggests that many agencies will prefer to use their own contracts rather than the GSA vehicle. The Reston, Va.-based firm based that conclusion partly on recent experience.

"While overall contract vehicle spending nearly doubled over the last five years, GSA's contract vehicles have been in decline as a percentage of the overall market," said John Slye, manager of federal industry analysis for Input. "When all is said and done, we think Alliant will do well if it achieves $7.5 billion in value."

Input pointed to the combined performance of Millennia and Answer, two existing GWACs that Alliant will eventually replace. The two contracts together showed steady growth from $514 million in fiscal 2002 to $729 million in 2005, with a slight dip in 2003 to $505 million. But in fiscal 2006, the contract revenues dropped to $574 million, which Input attributed partly to big-spending agencies, including the Defense and Homeland Security departments, shifting some of their contract spending to internal acquisition programs.

"The largest agencies are trying hard to get control over their acquisition costs and leverage existing contract staff," Slye said. "So the smaller agencies may be Alliant's prime customer base."

About the Author

Technology journalist Michael Hardy is a former FCW editor.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.