We are returning to a more traditional competitive environment.
Washington, DC (PRWEB) May 12, 2013
The Soter Group, LLC released a report that analyzes the past five fiscal years of DHS-funded prime contracts to the private sector. “DHS is a large and appealing target for the private sector. The recently signed budget spares DHS from the worst of sequestration, making it more attractive than some other Federal departments and agencies,” Soter Group President and CEO, Justin Taft explained. “We are returning to a more traditional competitive environment.”
The report identifies the following major trends:
- Spending has declined in the last five years, but the addressable market remains large – Prime obligations on DHS-funded contracts to the private sector hit a five-year low in FY12 of $13.1B. This is more than 12% lower than the five-year high of $14.9B in both FY09 and in FY11.
- The type of contracts used by DHS has remained relatively consistent over the past five fiscal years – Fixed price type contracts are most prevalent, accounting for $8.0B, or 60%, of FY12 prime obligations. Cost reimbursement contracts received $2.3B of last year’s prime obligations.
- Competition continues to increase at DHS as the decline in proportion of non-competitive contracts persists – Non-competitive contracts, which accounted for 21% of DHS prime obligations in FY08, only received $1.7B, or 12%, of FY12 prime obligations.
- The use of set aside contracts has increased and is likely to continue to grow – The utilization of set aside procurements at DHS has nearly doubled in dollar value from FY08 to FY12, increasing from $1.5B to over $2.9B.
“Identifying the growth opportunities and forming the appropriate teams to pursue DHS opportunities will be more crucial than ever in the next several years,” Taft added.
Access the full report, Department of Homeland Security Contract Funding, 2008 – 2012, here:
Follow The Soter Group on LinkedIn to access other and future reports on the following topics:
- Federal Cyber Security (second/third quarter 2013)
- Federal Homeland Security Mission Spending Across All Departments and Agencies
- Federal Health IT
- Airborne Intelligence, Surveillance, and Reconnaissance (ISR)
About The Soter Group
The Soter Group provides services to both the Federal government and the commercial entities that support it. Our Commercial Services Division provides market research and strategic advisory services to commercial clients seeking to enter or grow in the Federal government security market. To learn more, please visit http://www.TheSoterGroup.com.