Govini Predicts Increased Competition for IT Contracts Across Pentagon in 2017

A Govini report predicts competition for information technology contracts across the Defense Department and service branches to increase in 2017 as $210 billion worth of DoD contracts approach expiration in the coming year, Nextgov reported Wednesday.

Frank Konkel writes the analytics firm also estimates bids for each expiring IT contract to increase to an average of seven proposals in 2017 from six offers per contract in the previous year, a figure that would put approximately $9 billion in expiring contracts up for competition.

“2017 is going to be a big year for IT contractors and systems integrators,” said Matt Hummer, director of analytics and professional services for Govini.

“It’s going to be really competitive, with shorter contracts and higher churn.”

Hummer noted that mergers and acquisitions in the IT sector will continue in 2017 driven by the competitive environment, Konkel reports.

Govini’s report also showed an analysis of the expiring contract risk exposure of several companies such as Leidos, Accenture, ManTech International, Science Applications International Corp., CSRA, Deloitte and PwC, the report added.