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Multiple Award Contracts Fuel Set-Aside Growth

Set-aside contracts for information technology will top $20.5 billion in fiscal 2006, 43% more than last year, according to the market research firm Input.

Professional services will account for about 70% of that total, or $14 billion.

Input counts the total value of contracts that are scheduled to be awarded during the year, including the ceiling value for indefinite delivery, indefinite quantity contracts.

The largest set-aside is GSA’s governmentwide acquisition contract for service-disabled veterans, due to be awarded this spring, with a ceiling of $5 billion.

Other major IT contracts include:

•Homeland Security’s First Source, a $3 billion multiple award contract for commercial IT products, a small business set-aside;

•The Air Force’s $960 million small business set-aside for professional acquisition and information technology support services; •The Air Force’s $350 million small business set-aside for advisory and assistance services at Tinker Air Force Base in Oklahoma; and

•The Army’s $310 million small business set-aside for business process outsourcing of emerging program management and interpretation/translation services in Afghanistan, due in the second quarter of the fiscal year.

Set-asides for service-disabled veteran-owned businesses are the fastest growing category as agencies struggle to meet the 3% goal for prime contracting with those companies. Besides the SDV GWAC, Input says it is tracking an additional $200 million in SDV set-asides, with the Army accounting for more than half of that.

But only 4,113 SDV businesses specializing in IT are registered in the Central Contractor Registration, less than 6% of all small IT businesses, according to the report.

One of the biggest 8(a) set-asides this year will be NASA Glenn Research Center’s requirement for technical, engineering and scientific services.


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