May 30, 2017
How Much Are Agencies Spending on New Contracts?
Source: Nextgov, Frank Konkel, May 16, 2017
The federal government rarely seeks truly innovative solutions when it bids out new contracts, according to a report released today.
Federal market research and analysis firm Nation Analytics’ “Government Services Competitive Intelligence Report” examined 246 task orders and contracts for federal services—each worth $50 million or more—awarded across the federal landscape in fiscal 2016. It includes federal service acquisitions, such as IT, professional services and operations and maintenance of facilities, but not one-time acquisitions such as weapons systems or construction projects.
Only 35 contracts of those contracts were for new requirements, according to the report. Agencies spent the other $49 billion, or 90 percent of the federal services spend, on the recompetition of work already being performed by existing contractors.
“We went in expecting more contracts to be new requirements because the government, when asked, likes to say, ‘this is a new requirement,’” Nation Analytics Founder Brian Friel said. “But when you step back and think about it, it’s not really that surprising that the government puts out mostly recompetes because government doesn’t change that often. Agencies have fairly stable missions, and their requirements tend to be relatively stable.” READ MORE….
Contact your nearest PTAC to learn about government contracting.
For help with Government Contracting: contact your nearest Procurement Technical Assistance Center (PTAC). Funded through Cooperative Agreements between the U.S. Department of Defense and state and local governments/institutions, PTACs provide free and low-cost assistance in virtually all areas of government contracting.