In the first year of the new Army Contracting Agency, the Army increased its prime contract awards to small businesses to 28% in fiscal 2003, from 26.5% the year before.

Some critics had expected the centralization of major contracting activity under the new agency would hurt small firms.

The Army said it awarded over $13.6 billion to small business firms during the year. The Office of Small and Disadvantaged Business Utilization credited “a comprehensive outreach program that reinforced education and opportunity, and Army leadership who emphasized the critical importance of small business to the support of our nation’s warfighter.”

The Defense Department has ordered that all information, even unclassified data, must be encrypted before it is transmitted wirelessly over DOD networks, Government Computer News reported. The policy, issued by Deputy Defense Secretary Paul Wolfowitz, is mandatory for all DOD personnel, contractors and visitors entering Defense facilities.

The policy prohibits the use of wireless devices for storing, processing or transmitting classified information without approval.

Federal spending on information technology products and services will increase at a compound annual growth rate of 6.6% over the next five years, according to a study by the research firm Input. It estimates IT spending will grow from $59 billion in fiscal 2004 to $81 billion in 2009.

“Despite the large numbers, we’re seeing indications of much more conservative growth of federal IT spending than we’ve observed over the past five years,” says Payton Smith, manager of public sector market analysis at Input. Smith explains, “The rush of homeland security spending is subsiding, while the Office of Management and Budget is demonstrating an unprecedented level of control over IT investment plans in federal agencies.”

Input reported federal agencies awarded 49 new IT contracts worth more than $1 million each in March, up from 29 in February.

A team of two HubZone companies — GeoControl Systems Inc. and W de Y, both of Houston, — was awarded NASA Johnson Space Center’s first-ever HUB Zone set-aside contract, a five-year, $8.7 million deal for printing and mail support services.

The effort will involve approximately twenty-six full time equivalent personnel.

The National Women’s Business Center announced three of the awards to be presented May 11 at its Gala and Fundraiser in Washington:

2004 Public Sector Entrepreneurial Visionary Award to Labor Secretary Elaine Chao;

2004 Entrepreneurial Visionary Award to Lurita Doan, founder and president, New Technology Management Inc.; and

2004 Leadership Achievement Award to Paula Jagemann, founder, eCommerce Industries Inc.