Ongoing Reliance on Task Order Vehicles Will Drive Consolidation, Competition and Spending Scrutiny, According to Deltek
New Deltek GovWin IQ report explores the trends and drivers shaping the information technology task order contracting environment
HERNDON, Va. – September 11, 2014 – According to Deltek’s new report, Federal Information Technology Task Order Vehicle Trends, federal agencies are leveraging task order contract vehicles to accomplish multiple technology and policy goals, including centralizing and consolidating spending, implementing emerging technologies, and increasing small business utilization. Between fiscal years 2010 and 2013, agencies spent an average of 50% of information technology dollars through task order contract vehicles. Set-aside spending on IT task order-based contract vehicles has continued to increase year over year, despite declines in overall IT task order contract spending.
Competitive Environment Creates Challenges for Agencies and Contractors Alike
Task order contract vehicles continue to offer benefits to both agencies and contractors. These contract vehicles offer agencies the flexibility, purchasing power, and speed needed to meet IT requirements. From a contractor perspective, task order contract vehicles can provide a more predictable scope of work and potentially longer-term revenue stream than other contract types.
However, lacking a position on a preferred task order contract vehicle can drastically impact contractors’ access to agencies for years at a time, which intensifies the competitive environment. As a result, bid protests – and agencies’ efforts to “protest-proof” solicitations with better requirements and compliance – lengthen acquisition timelines.
“Protest outcomes to date only serve as encouragement for continued protests,” says Deniece Peterson, Director of Federal Industry Analysis at Deltek. “The chances that there will be some favorable action for a protesting contractor are over 40%.”
Positioning is Critical for Future Opportunities
The identification of agencies’ preferred vehicles will be critical for gaining access to the majority of IT budgets. Some agencies are addressing emerging technology needs through Blanket Purchase Agreements, while others are leveraging enterprise-wide task order contract vehicles. Agencies are also targeting these types of vehicles for the strategic sourcing of commodity IT. Task order contract vehicles also serve as effective means for establishing small business opportunities. As such, incumbents and new competitors alike must be prepared for tough competition and agencies’ price sensitivity.
“The importance of incumbency as a competitive factor is not what is used to be,” says Alex Rossino, Analyst at Deltek. “Agencies are actively working to not only increase competition and refresh their pool of industry partners, but also use recompetes as a platform for price negotiations.”
For more information on the Federal Information Technology Task Order Vehicle Trends report, visit GovWin.com. A free summary is available here and the full report is free to subscribers of GovWin’s Federal Industry Analysis program. Press interviews can be arranged by contacting Lauran Cacciatori.
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About GovWin IQ
Deltek’s GovWin IQ provides the market intelligence tools and analysis government contractors need to gain a competitive advantage and be a formidable player in the federal market. Backed by a team of government research and analysis experts, GovWin IQ provides the most powerful, comprehensive, and timely lead generation and business intelligence solutions available. More than $1.8 trillion opportunities are tracked every year. www.govwin.com
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