Despite rumors of a looming fiscal cliff and a harsh reality for contractors, the Department of Veterans Affairs (VA) and the General Services Administration (GSA) are finalizing major IT acquisitions. These two technology contracts are expected to exceed $5 billion and $1.5 billion respectively. The VA is looking to award funding by September 30th and the GSA is releasing an RFI this week for continuous monitoring systems.
This may come to a surprise for many in the contracting world and those fearing the apocalypse of sequestration, but some are calling this the most active buying season in years. The Federal Systems Integration and Management Center (FEDSIM) announced the GSA will award $1.5 billion with at least $900 million committed to the DoD. The reality is there still is strain on IT budgets, and these major acquisitions are not the result of increased funding but rather moving money from other contracts.
The VA plans to spend its $5 billion via two multiple award contract vehicles; the five-year Commodity Enterprise Contract (CEC) and the Transformation Twenty-One Total Technology acquisition program (T4). Not only will the 4th quarter of 2012 be prosperous, but the VA projects the T4 contract to expand in fiscal year 2013 by allowing other agencies to purchase off it.
The GSA is also expecting an expansion in IT acquisition for 2013 with the development of a DHS cyber program. This program will exclusively utilize Schedule 70 and focus on small business participation. The DHS cyber program is expected to award Schedule 70 contracts in November.
Although not all agencies are having prosperous fourth quarters, it is a relief for contractors and private sector IT companies the VA and GSA will award billions in the next two months.
