Agencies to spend more on IT in 2010

The government research company INPUT announced at a webinar on Tuesday that information technology spending at civilian agencies should climb significantly next year, but much of the money will be spent renewing or replacing existing contracts.

The total value of the 20 largest federal IT projects in 2010 is 50 percent higher than the previous year, increasing from about $120 billion to $180 billion.

The majority (all but two) of the projects are contracts that will be re-competed (which is good if you are new to government contracting, especially if you are a small business) or are consolidations of existing pacts (which is good for you if you are a potential sub-contractor).

The best and largest example is the Homeland Security Department’s EAGLE II contract which will replace the EAGLE contract as DHS’ preferred vehicle for procuring IT services. This is a huge contract – INPUT expects DHS to award EAGLE II during the second quarter of fiscal 2010 with a ceiling of $45 billion. The original contract had about $2.8 billion in business during fiscal 2007 and $3.3 billion during fiscal 2008.

DHS is choosing to re-compete EAGLE II rather than exercising the original contract’s two option periods because many of the small business vendors originally awarded under EAGLE have outgrown their small business and disadvantaged designations.

Here’s the really good news if you are a small business that provides IT services: DHS is looking for a new set of small business vendors for EAGLE II. The contract will include separate tracks for different classes of vendors, including small businesses, service-disabled owned companies, 8(a) certified organizations, and firms located in HubZones.

If you want to know more about EAGLE II, you might read the recently posted (September 22nd) copy of the vendor day questions – ( In Bidspeed, search for DHSEAGLE2-UNRESTRICTED in the global search.

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