Forecast: Gov IT $ to slowly rise

Federal spending on information technology is projected to finally end its five-year drop in fiscal 2015, beginning a slow rise through to fiscal 2020, according to the TechAmerica Foundation’s recent Vision Forecast.

In non-inflation-adjusted terms, TechAmerica estimated the annual rate of growth of total federal IT from fiscal 2010 to fiscal 2015 at -1.8% (negative growth).

The trend becomes positive growth for fiscal 2015 to fiscal 2020, with a 2.6% non-inflation-adjusted annual growth rate expected.

In non-inflation-adjusted dollar terms, IT spending dropped from $80.7 billion in fiscal 2010 to $73.7 billion in fiscal 2015, and will rise to $84 billion in fiscal 2010, TechAmerica said.

Adjusted for inflation, the annual growth rate was -3.4% for fiscal 2010 to 2015, and 0.9% for fiscal 2015 to 2020.

In dollar terms adjusted for inflation, that meant a drop from $87.8 billion in fiscal 2010 down to $73.7 billion in fiscal 2015, rising to $77 billion in fiscal 2020.

TechAmerica also graphed defense IT and civilian IT spending.

In addition, TechAmerica officials at their Vision conference said Low-Price Technically Acceptable (LPTA) acquisitions have increased as a share of the Defense Department’s large IT acquisitions.

LPTA for DOD IT contract actions over $25 million rose from 10% of such actions in fiscal 2009 to 36% of such actions currently, a TechAmerica representative confirmed to Set-Aside Alert.

More information: TechAmerica Vision Forecast: http://goo.gl/5Yv74B

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