Federal Spending On Task Order Vehicles Increased Nearly 40% In 2007

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According to recent analysis conducted by INPUT, the authority on government business, spending on multiple award task order contract vehicles by the U.S. federal government reached over $21 billion in fiscal year 2007, a 39% increase over fiscal year 2006.

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As agencies rely more and more on these types of vehicles, agencies should expect heightened scrutiny from Congress and the small business community concerned about the impact of these vehicles on competition.

According to recent analysis conducted by INPUT, the authority on government business, spending on multiple award task order contract vehicles by the U.S. federal government reached over $21 billion in fiscal year 2007, a 39% increase over fiscal year 2006.

The largest increases occurred in contract vehicles operated by major agencies outside of GSA’s government wide acquisition contracts (GWACs), such as the Army’s CECOM Rapid Response (CR2) contracts and the Navy’s SeaPort contracts, which increased by nearly $1 billion and $1.6 billion in annual spending, respectively. GSA vehicles rebounded from a slight decrease in spending on its GWACs in 2006 with a 20% increase in 2007.

“Government agencies continue to shift money to these task order oriented vehicles,” says Kevin Plexico, executive vice president with INPUT. “They allow agencies to speed the acquisition process, avoid scrutiny and have more control over the vendors who are able to bid.”

The amount of money flowing through these types of contracts has reached over 30% of federal technology spending. “As agencies rely more and more on these types of vehicles, agencies should expect heightened scrutiny from Congress and the small business community concerned about the impact of these vehicles on competition.”

INPUT’s findings are summarized in a blog post on INPUT’s new INPUT Government Technology Market blog, http://INPUTBlog.input.com.

This analysis, as well as INPUT’s complete forecast of federal technology spending, will be presented at INPUT’s annual Federal MarketView conference on April 24, 2008. Visit http://marketview.input.com for more information.

EDITOR’S NOTE: To speak with Kevin Plexico please contact Helena Brito at hbrito @ input.com or 703-707-4161.

About INPUT
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 1,300 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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Helena Brito
INPUT
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