In a reversal from 2010, the top 20 contract opportunities planned by US federal agencies for fiscal year 2011 are dominated by procurements out of defense agencies.
According to a new report, Top 20 Federal Contract Opportunities, published by market research firm INPUT, now owned by Deltek, more than 80 percent of the approximately $142 billion in total contract value for 2011 will be associated with defense agencies.
"Several major defense procurements, including the Army's Enhanced Army Global Logistics Enterprise (EAGLE) program—valued at $50 billion—are planned," said Kevin Plexico, senior vice president at INPUT. "These represent significant opportunities for the government contracting community."
The report also reveals some notable trends that provide increased prime contract opportunities for vendors, especially small businesses. Agencies are shifting a number of single-award contracts to multiple-award contracts; including, in some cases, setting aside a separate set of awards for small businesses of varying socioeconomic classes. According to the report, five out of 20 are expected to be awarded to a single vendor.
"The government is clearly trying to increase prime contract opportunities for small businesses, in an effort to increase their engagement. The challenge ahead for agencies is to ensure that the work procured under these contracts is distributed in sufficient volume to make it meaningful for those small businesses that significantly invested in the development proposal," said Plexico.
Only two of this year's top 20 procurements represent brand new initiatives, however. The remaining 18 opportunities are all replacements or reconfigurations of existing contracts with an established set of vendors, making the competitive environment rather intense for the vendor community.
The Top 20 Federal Contract Opportunities report is published by INPUT yearly, at the beginning of each new federal fiscal year, to assist companies in planning for their involvement in major procurements. "Through this research, we wish to arm vendors with actionable data to help them in their business development planning," said Plexico.
Established in 1974, INPUT helps companies develop federal, state, and local government business and helps public sector organizations achieve their objectives. It was acquired by Deltek on 1 October this year.
