More than a dozen incumbents in race for new contract vehicle worth up to $25 billion

February 7

Contractors are closely watching an Army acquisition effort that could be worth up to $25 billion.

The effort, known as Information Technology Enterprise Solutions 3-Services or ITES 3S, would replace ITES 2S, which has produced about $9.5 billion in spending so far, according to the Army.

The new program is meant to provide the Army and other federal agencies a range of technology services, from cybersecurity to network systems operation to education and training.

It could be even bigger than the original contract vehicle, which has a $20 billion ceiling and 16 incumbents, including giants in technology and contracting. Among the incumbents are Booz Allen Hamilton, Computer Sciences Corp., Dell, General Dynamics, Hewlett-Packard, IBM, Lockheed Martin and Northrop Grumman, according to the Army.

There are also small businesses included on the existing contract, suggesting there may be work set aside for these businesses in the new version.

The new iteration, which could be awarded to 11 to 20 bidders, is expected to have a ceiling of $20 billion to $25 billion, according to Lee von Schrader, an analyst with Herndon-based Deltek, which researches the government contracting market.

The Army declined to comment, explaining that the contract is still being drafted.

Von Schrader said Deltek expects the program to have a three-year base period along with two three-year options.

“It’s just such a large program that they’re anticipating an incredible amount of responses,” she said.

The Army is slated to hold an informational event for industry later this month, and Deltek expects a draft solicitation in March.

A final solicitation is expected in August, though von Schrader noted the Army may release more up-to-date information at the informational meeting.

Already, more than 2,100 Deltek users have marked the program of interest — the new contract vehicle has been viewed nearly 3,400 times in just the past month.

“It’s one of the few huge IT services vehicles,” von Schrader said. If “you’re in that market, you really want to do your best to get on it.”

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