The success of the economic stimulus package depends on the government's ability to spend this money quickly
Reston, VA (Vocus) January 8, 2009
President-elect Obama's economic stimulus package will provide billions of dollars in contract opportunities to government contractors, according to INPUT. The package, which is likely to approach $1 trillion in spending over the next two years, is expected to contain over $350 billion in spending for projects related to infrastructure improvement, electronic health records, green initiatives and modernization of schools.
"The success of the economic stimulus package depends on the government's ability to spend this money quickly," says Kevin Plexico, senior vice president at INPUT. "Contractors have demonstrated a particular adeptness at creating jobs quickly with government funding."
While much of the funding in the stimulus package will cover health care costs and pay for tax cuts, INPUT identified several ways the stimulus package may drive funding to contractors, including:
- Funds for GSA, the military and other agencies operating government buildings to implement green technologies
- Substantial increases in funding for the Army Corps of Engineers to accelerate infrastructure projects
- Grants to states for road and bridge construction
- Grants to state and local governments for modernization of schools including expanded investment in computers and Internet connectivity in schools
- Funding to health providers to accelerate the adoption of electronic medical records
"It's too early to tell the mix of investments that will be included in the stimulus package, but it is clear there will be an abundance of opportunities for contractors to participate at the federal, state and local levels," said Mr. Plexico.
For more information on INPUT's analysis of the economic crisis and government actions related to it, read the blog post on this topic at INPUT's B2G Exchange blog: http://www.input.com/blogs/public/index.cfm/2008/12/22/Economic-Stimulus-Will-Drive-Billions-to-Government-Contractors?cmp=OCT-mrobamaeconomicpkg010409.
EDITOR'S NOTE: To speak with an INPUT representative regarding this release, please contact Helena Brito at hbrito (at) input (dot) com or 703-707-4161.
INPUT is the authority on government business. Established in 1974, INPUT helps companies develop federal, state, and local government business and helps public sector organizations achieve their objectives. Over 1,500 member organizations, including small specialized companies, new entrants to the public sector, and the largest government contractors and agencies, rely on INPUT for the latest and most comprehensive procurement and market information, consulting, powerful sales management tools, and educational & networking events. For more information about INPUT, visit http://www.input.com or call 703-707-3500.
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