Last year’s fourth quarter in federal government contracting is set to be eclipsed by its 2014 successor: The number of regional opportunities remains the same, but with a much higher dollar value.
Deltek anticipates that more than 1,300 regional solicitations — with a combined value of more than $63 billion — will be released in the fourth quarter of fiscal 2014. Last year, 1,375 regional solicitations were released with a combined value of $42.2 billion.
Like last year, the Mid-Atlantic region has the most robust opportunity pipeline of any region, offering both the highest number of end-of-fiscal-year opportunities and total value: more than 450 solicitations are anticipated, worth $28 billion.
The southeast and south central regions round out the top areas, with $10 billion and $4 billion, respectively.
IT opportunities in the Mid-Atlantic account for half of the total fourth-quarter value. This is quite a shift from what we saw last year, when professional services opportunities dominated the region’s quarterly pipeline.
One of the largest IT opportunities Deltek anticipates in the quarter is Defense Systems Integration, Design, Development, Operation and Maintenance Support, an agency-specific indefinite-delivery, indefinite-quantity contract vehicle with a ceiling value of $8 billion.
An industry day has been scheduled for July 10. Deltek anticipates the solicitation to be released in September, and the work will be based in Virginia.
Another large Mid-Atlantic IT opportunity is the Federal Emergency Management Agency’s Enterprise Applications Development Integration and Sustainment, a follow-on to a task order with IBM that’s worth approximately $1 billion. Earlier this year, the contracting office announced that the follow-on would be procured this fiscal year, so Deltek expects procurement activity to begin in July.
The Mid-Atlantic is the top region for anticipated fourth-quarter set-aside programs, with more than 100 opportunities totaling $3.7 billion. Two-thirds of the region’s set-aside procurements are IT-related, and more than $1 billion in professional services set-aside procurements are anticipated.
The highest dollar value Mid-Atlantic set-aside for the quarter is with the Army Program Executive Office, Enterprise Information Systems for Enterprise Resource Planning Services, a small business set-aside multiple award multiple-award indefinite delivery/indefinite quantity with a ceiling value of $1 billion.
The draft request for proposal was released on June 13; the final solicitation is expected before the end of the fiscal year. Deltek estimates an August release.
Jennifer Sakole is a principal analyst for Herndon-based Deltek, which conducts analysis on the government contracting market and can be found at www.deltek.com.