Photographer: Edward Linsmier/Bloomberg

IT spending on government-wide contracts tops $10 billion

December 1, 2016 Daniel Snyder

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Federal information technology spending on government-wide acquisition contracts, or GWACs, topped $10 billion for the first time in fiscal 2016, Bloomberg Government data show.

The government spent $10.9 billion on IT products and services using GWACs in the fiscal year that ended Sept. 30, up from $9.4 billion in fiscal 2015, and the fifth-straight annual gain.

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Since 1992, GWAC spending has generated about $82 billion in orders. More than half of that total, or $42.7 billion, was obligated between fiscal 2012 through 2016 alone.

Companies including Booz Allen Hamilton Holding Corp. ($2.3 billion), CSRA Inc. ($2 billion), Lockheed Martin Corp. ($2.0 billion), Leidos Holdings Inc. ($1.6 billion) and CACI International Inc. ($1.2 billion) have won the largest share of GWAC obligated dollars in the five-year period. Small businesses have won about $19.9 billion during the same period.

Contracts such as Alliant Large Business ($12 billion), Alliant Small Business ($4.7 billion), and Solutions for Enterprise-Wide Procurement IV (8.4 billion) are driving most of the GWAC spending. Government policy initiatives that seek to consolidate contract spending on vehicles designated as “best-in-class” should continue in fiscal 2017 and beyond.

The number of companies winning obligations on those contracts jumped to about 1,000 in fiscal 2016, from 800 in 2012.

Bloomberg Government clients can click here for Bloomberg Government’s GWAC market definition to analyze GWAC spending.

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