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2011 Forecast: Fewer New Opportunities

Most major small business contracts planned for fiscal 2011 are recompetes, with few new programs in the pipeline, according to market researchers. Tighter budgets and a reduction in war-related spending will cut into federal contracting opportunities.

Market researchers at FedSources estimate total contract spending will fall by 5% from 2010. Among the reasons: the Obama administration’s insourcing policy and the Defense Department’s goal of cutting spending on service contracts by 10% annually over the next three years.

FedSources expects an increase in the cybersecurity, health information technology and energy markets.

But at least 14 huge multiple award set-aside contracts are anticipated during the year, with a total value of around $15 billion. The Homeland Security Department is scheduled to recompete its two largest IT vehicles, EAGLE (a partial set-aside) and First Source (a small business set-aside), and will add a new multibillion dollar set-aside for technical, acquisition, and business support services.

In addition, the Army plans a new multibillion dollar set-aside for communications and transmission services.

Agencies are increasingly turning to multiple award task order contracts to speed up procurements and ease pressure on overburdened contracting shops, according to the market research firm Input. By some calculations, task order contracts now account for a majority of federal procurement dollars spent on services, making it vital for small firms to win a place on them.

These are the largest multiple award set-asides to be competed in fiscal 2011, as compiled by Set-Aside Alert from Input, FedSources and other sources:

Homeland Security Department: EAGLE II. DHS will recompete the Enterprise Acquisition Gateway for Leading Edge Solutions (EAGLE) IT requirement. The EAGLE II solicitation, expected before the end of this month, will include two separate source selections, one unrestricted and one set-aside for small businesses. Source selection will be at the functional category level within each track.

Within the small business track, there will be set-asides for 8(a), HUBZone and service-disabled veteran-owned firms. Forty to 60 small business awards are possible.

The contract allows for inclusion of a set-aside track for woman-owned businesses when that SBA program stands up, probably early next year.

Est. value: $22 billion (including full and open component)
RFP: Oct. 2010

National Institutes of Health: CIO-SPS3 Small Business. NIH’s next generation contracts to support IT efforts, with a focus on health and research IT. These services include health and biomedical-related IT services to meet scientific, health, administrative, operational, managerial, and information management requirements. CIO-SPS3 will replace the CIO-SP2i contract and the IW2nd contract

Est. value: $20 billion
RFP: first quarter 2011

Army: Communications and Transmission Systems (CTS). The Defense Communications andArmy Transmission Systems at Fort Monmouth, NJ, and the Information Technology, E-Commerce, and Commercial Contracting Center will compete the requirement as a small business set-aside. It will be the primary means of acquisition for hardware and ancillary services. The program includes a state-of-the-art CTS, components, associated peripheral equipment, technology insertion, sub-assemblies, data, and ancillary technical support services for life cycle support.

Est. value: $19.5 billion
RFP: third quarter 2011

Homeland Security Department: Technical Acquisition and Business Support Services (TABSS). The Coast Guard is managing this new small business set-aside, an IDIQ multiple award contract vehicle to provide technical, acquisition, and business support services for all of DHS. The services are categorized into three domains: (1) Program Management, Engineering and Technology Support Services, (2) Business, Financial Management and Audit Support Services and (3) Contract Management Support Services.

Est. value: $11 billion
RFP: first quarter 2011

Army: ITES-3H. The Information Technology Enterprise Solutions-3 Hardware (ITES-3H) contract will consist of multiple commercial Catalogs with UNIX Based Servers, Windows Based Servers, Workstations, Thin Clients, Desktops and Notebooks, Storage Systems, Networking Equipment, Catalog F Network Printers, Video Equipment, Uninterruptible Power Supplies (UPS). The Army intends to reserve several awards for smallbusiness.

Est. value: $5 billion
RFP: third quarter 2011

Air Force: Caps II. The Air Force Aeronautical Systems Center is preparing for the acquisition of Consolidated Acquisition of Professional Services (CAPS) II, a small business set-aside. The contracts will fulfill the need for technical and acquisition management support to supplement government organic resources at ASC Wright-Patterson AFB, OH. The requirement includes the following services: Applicable Documents, General Requirements, Contract Management and Administration, Acquisition Management Support, Test & Evaluation Support, Administrative Support, Security Management Support and Configuration and Data Management Support. Ten awards are anticipated.

Est. value: $3 billion
RFP: first quarter 2011
NAICS code: 541712

Homeland Security Department: First Source. The Enterprise Solutions Office will recompete the departmentwide, IDIQ First Source contract to provide IT commodity products, a small business set-aside. This contract includes IT commodities such as equipment and software, networking equipment, wireless technology, imaging products and voice recognition technology.

Est. value: $3 billion
RFP: third quarter 2011

Army: SETAC 10.The Space and Missile Defense Command/Army Forces Strategic Command will compete the Systems Engineering and Technical Assistance Contract 2010 (SETAC 10). It is a small business set-aside, with at least one award anticipated for a service-disabled veteran-owned business. The contract will provide systems engineering and technical assistance in support of air, space, missile defense, homeland security/homeland defense, warfighter and chemical, biological, radiological and nuclear missions.

Est. value: $2.75 billion
RFP: first quarter 2011
NAICS code: 541712

Navy: TSC III. The Naval Air Warfare Center Training Systems Division is in the preliminary planning phase for the third multiple-award IDIQ Training Systems Contract (TSC III), a small business set-aside. Contracts will provide new training systems, modifications and upgrades to existing training systems, complementary Instructional Systems Development and complementary Training Systems Support.

Est. Value: $2 billion
RFP: first quarter 2011

Defense Information Systems Agency: GSM-ETI. The Global Informaton Grid (GIG) Services Management-Engineering/Transition/Implementation (GSM-ETI) contract will provide engineering, implementation and transition services to include systems engineering and integration; architecture, telecommunication standards development; telecommunication network security and information systems engineering; IT/IS Systems expansion/technology refresh; circuit/service/system development and transition. Contractor performance is required worldwide at government and contractor facilities.

Est. value: $1.42 billion
RFP: second quarter 2011

Army: Defense Language Interpretation and Translation Services (DLITE). The Army Intelligence and Security Command (INSCOM) will compete the contract as a partial small business set-aside. Two mission areas—routine operations and training and exercise support—are set aside for small businesses. The third mission area, contingency operations, is a full and open competition. Because contractors must be prepared to provide services worldwide, small firms may need teaming partners.

Est. value: $900 million
RFP date: first quarter 2011
NAICS code: 541930

Navy: Global Contingency Operations. The Space and Naval Warfare Center (SPAWAR) intends to recompete its Global War on Terrorism analysis studies, exercise, and training support services contracts as a small business set-aside. The new contracts will provide command, control, communication, computers, intelligence, surveillance, and reconnaissance (C4ISR) support to numerous military and federal agencies. Small businesses may need substantial partnerships to demonstrate capabilities to handle requirements inside and outside the United States.

Est. value: $249 million
RFP: fourth quarter 2011
NAICS code 541330

Army: Enhanced Army Global Logistics Enterprise Program (EAGLE). The successor program to the Army’s Field and Installation Readiness Support Team (FIRST) contracts, the EAGLE contract is expected to be a partial small business set-aside. The contract vehicle will be the Army Materiel Command’s primary source for delivering logistics-related services to warfighters in the field. Services to be provided by EAGLE vendors include program management, quality assurance, information technology support, training, supply, transportation, and maintenance support. Contracts must have the capability to work inside and outside the United States.

Est. value: $100 million (Input’s estimate of the small business share of the $50 billion contract)
RFP: second quarter 2011
NAICS code: 561210

Air Force: NETCENTS II IT Professional Support Engineering Services. The objective of this set-aside for service-disabled veteran-owned businesses is to acquire non-personal Advisory and Assistance Services in order to provide a broad range of IT Professional and Engineering Support Services to the Air Force, Department of Defense and other federal agencies. Six to nine awards are anticipated.

Est. value: $25 million
RFP date: first quarter 201
NAICS code: 541512


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