U.S. defense contracting opportunities once again make up the vast majority of overall potential federal contracting awards in fiscal 2014, with 73% of more than $160 billion across the government seen coming from the national security realm, according to consulting firm Deltek.
The $118 billion in defense opportunities is double the total for the previous year, and the percentage is above the five-year average of 69%. Within the defense sector, the Army dominates, with 57% of the total contract value.
Overall, Deltek, in its latest annual review of the top-20 federal award opportunities in the fiscal year ahead, sees other interesting trends, including U.S. government contracts making a rebound from 2013. Fiscal 2014, which ends Sept. 30, is the year of the agency-specific, indefinite-delivery, indefinite-quantity (IDIQ) follow-on awards, Deltek notes.
“Follow-on contracts account for 81% of the total contract value in fiscal 2014, and more than half of the top opportunities are agency-specific IDIQs,” the company says.
Fiscal 2013’s most important large-award trend was the government-wide acquisition contract, such as NASA’s fifth Solutions for Enterprise-Wide Procurement deal. Grouped by type for 2014, professional services contracts should amount to $73.2 billion, slightly more than the $73 billion in information technology (IT), even though at $14.6 billion the average IT award is twice that for professional services contracts, according to Deltek.