Mid-Atlantic is hot spot for end-of-year opportunities

September 8, 2013

As the government’s fiscal year wraps up, some U.S. regions are faring better than others when it comes to federal business opportunities. The Mid-Atlantic, Southwest and Southeast are the front-runners this quarter.

As of July, Deltek had identified over 2,400 fourth-quarter regional opportunities, worth a total of $53 billion. Almost 50 percent of these are in the Mid-Atlantic region, offering local contractors an array of industries and agencies to target.

Three of the top five industries for federal spending are also the top three industries for regional opportunities in the fourth quarter: professional services; information technology; and architecture, engineering and construction.

The Mid-Atlantic opportunities are split nearly even between defense and civilian, and each has work worth more than $12 billion. Other regions stand in sharp contrast: Defense opportunities in all other regions have double to triple the value of civilian opportunities.

Driving the Mid-Atlantic’s dominance in the fourth quarter are three large opportunities with Maryland-based agencies.

The Army Corps of Engineers has a requirement for a multistory joint operations center and supporting infrastructure for the National Security Agency at Fort Meade.

This is a new requirement with an estimated value of $500 million, and Deltek expects the solicitation to be released in mid-September.

The Defense Information Systems Agency requirement for a cloud service provider is expected to hit the street in September.

This new requirement for commercial infrastructure-as-a-service and associated support services has no incumbents. The award is estimated at $450 million and is expected to be a full and open competition.

Deltek expects the solicitation to be released this month; however, recent requirements changes may cause a delay.

The NASA Project Planning and Control IV opportunity involves facility and personnel management, and is a follow-on competition set aside for participants in the small business 8(a) program.

The work is based at NASA’s Goddard Space Flight Center. Valued at $296 million, the solicitation is expected to be released around Sept. 27.

Deltek is expecting this quarter to be the largest in recent memory. Based on data from July, the last quarter of fiscal 2013 offers the highest total value and number of regional solicitations anticipated since the fourth quarter of 2010.

This month will show whether the volatile federal environment — with the potential for continuing mandatory budget cuts, the high probability of a continuing resolution and even furloughs — will affect the final tally of regional solicitations released this year.

Jennifer Sakole is principal research analyst at Herndon-based Deltek, which analyzes the government contracting market and can be found at www.deltek.com.

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