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Not all GWACs hit hard as IT spending declines

Apr. 10, 2014 - 04:21PM   |  
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Jennifer Sakole is the principal analyst for Federal Information Solutions at Deltek. Her experience spans 20 years in the federal market in various roles including proposal writer, pricing analyst, marketing manager and account manager. She has been with INPUT and Deltek for over a decade.
Jennifer Sakole is the principal analyst for Federal Information Solutions at Deltek. Her experience spans 20 years in the federal market in various roles including proposal writer, pricing analyst, marketing manager and account manager. She has been with INPUT and Deltek for over a decade. (File)

In the span of a few weeks, a colleague of mine published an article that identified winners and losers in fiscal 2013 spending; I was requested by a client to research spending trends associated with a specific GWAC; and I published a report about the upcoming SeaPort-e Rolling Admission for fiscal 2014.

The combined visibility and analysis of spending trends made me curious about what things looked like in fiscal 2013 for GWACs and Schedule 70.

We all know that overall reported federal information technology (IT) spending has declined over the past four fiscal years. The IT spending compound annual growth rate (CAGR) for the time period is -5.5 percent. There was a -8.8 percent decrease in IT spending from fiscal 2012 to 2013, which totaled a loss of $6.6 billion.

My question was: Would all the GWACs and Schedule 70 mirror these decreases? The answer was no. Here’s a quick look at which vehicles fared better than others in fiscal 2013.

Winners

Chief Information Officer Solutions and Partners (CIOSP2i), CIOSP3 Unrestricted and CIOSP3 Small Business

While the CIOSP2i contracts have expired, there’s still spending being reported on active task orders issued under these contracts. When combined with the orders on CIOSP3 Unrestricted and Small Business, the growth is evident, with a 13-percent jump in reported spending from fiscal 2012 to 2013. Combined reported spending in fiscal 2013 for the three programs was $477 million.

Alliant Full & Open and Alliant Small Business

Both Alliant vehicles have recognized year-over-year increased reported spending since fiscal 2010. Both vehicles saw nearly the same dollar value increase in reported spending from fiscal 2012 to fiscal 2013: Reported spending on Alliant F&O increased by $166.1 million, while spending on Alliant SB increased by $154.1 million.

In fiscal 2013, total reported spending for Alliant F&O was $1.9 billion and total spending for Alliant SB was $759.4 million.

Solutions for Enterprise Wide Procurement (SEWP IV)

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While some may not consider a flat CAGR over the past four fiscal years a “win,” when compared to other vehicles I’d say it is.

There were three other factors that make me think of fiscal 2013 as a good year for SEWP IV:

■ Reported spending increased 8.7 percent on SEWP IV from fiscal 2012 to 2013.

■ The total combined value of task orders awarded in fiscal 2013 was the highest since 2010.

■ The average value of a task order award increased from $188,000 in fiscal 2012 to $232,000 in fiscal 2013.

Total reported spending for the vehicle in fiscal 2013 was $2.2 billion.

Losers

Schedule 70

Reported spending on Schedule 70 has declined year over year since fiscal 2010, with a -7.7% CAGR over the four-year period and an over-$900-million decrease in reported spending from fiscal 2012 to 2013.

With that said, total reported spending in fiscal 2013 topped $7.3 billion, which is three times more than the fiscal 2013 reported spending on SEWP IV and a little more than 2.5 times the combined fiscal 2013 reported spending on Alliant F&O and Alliant SB.

Electronic Commodities Store (ECS III) and Veterans Technology Services (VETS)

Both contract vehicles saw decreases in reported spending from fiscal 2012 to 2013. ECS III has seen incredible growth since fiscal 2010, resulting in a 66-percent CAGR for the four-fiscal-year period; however, there was a 4.5-percent decrease in spending from fiscal 2012 to 2013.

In contrast, after a peak in reported spending in fiscal 2011 at $371.2 million, VETS has had year-over-year decreases since, with a 25-percent decrease in spending from fiscal 2012 to 2013.

Total reported spending for fiscal 2013: ECS III at $354.8 million and VETS at $203.8 million.

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