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Tech Deals Escape Contracting Squeeze

Photo: Andrew Brown
Photo: Andrew Brown

Boom times for contractors may be waning, according to industry research group FedSources, but new technology deals may escape the decline, Nextgov reports.

Next year’s budget already shows a decline of 5 percent on government contract spending, likely due, in part, to the Obama administration’s in-sourcing efforts – bringing jobs once held by contractors under the purview of the federal government.

FedSource’s annual report listing the top 50 opportunities for government contractors shows signs of decreased growth for industry.

According to Nextgov: “With few exceptions, most of the largest upcoming contracts are recompetes of expiring deals, in which agencies are seeking multiple vendors, rather than a single source, to perform the work.”

All of which points to increased competition for a diminishing pool of federal money.

For example, Nextgov also reports a separate report by research firm INPUT found the era of the single contract was being overtaken by multiple-award, indefinite delivery-indefinite quantity deals.

But there are also hints of growth in certain sectors.

FedSources sees health IT and cybersecurity, as well as cloud computing platforms, as safe bets in the contracting world.

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