As states rebound from three straight years of budget shortfalls, systems integrators are showing remarkable creativity in helping states stretch scarce dollars. Many are signing contracts that require less upfront funding by customers, and that generate additional revenue for the state. Although these approaches are not necessarily new, the demand for them is strong and growing.
The departments of Defense and Homeland Security are preparing four new communications and network projects that will generate billions of dollars in business for IT, wireless and telecom companies.
The Army Corps of Engineers is looking for a developer of Web-based tools to make better use of its geo-information system data. The tools will help in identifying and classifying roads and trails on military installations and modeling their impact on sedimentation within watersheds.
ESRI of Redlands, Calif., last month became the first vendor to sign on to SmartBuy, the federal government's enterprisewide software licensing initiative, following nine months of hard work by the company and federal agencies to create the agreement.
California is facing a $15 billion budget shortfall, and it doesn't have a lot of money to throw at new information technology initiatives. So state CIO Clark Kelso said government agencies will aggressively pursue share-in-savings contracts with their vendors.
Standardized procedures to respond to national, regional and local emergencies may soon be the rule for all levels of government, according to Homeland Security Secretary Tom Ridge.
A unit of SBC Communications Inc. has won the right to compete for telecommunications services that federal agencies will buy in 2004. Analysts estimate this business is worth about $12.5 billion.
Commercial spending for research and development has increased substantially in recent years. For every federal dollar invested in this area, business now invests about $2. As a result, the private sector now plays an increasingly important role in developing new technologies and influencing acquisitions for some of the most critical federal programs.
The issue of "offshoring" ? moving work from the United States to lower-cost locations overseas ? is taking off. Presidential candidates are talking about it; Congress has taken small steps toward banning it on federal contracts; and analysts of all stripes have weighed in with their perspectives.
Some companies get how to sell to the federal government. Some don't. "They don't help me understand how they can solve the business problems the department has," said <b>Mike Sade</b>, senior procurement executive at the Commerce Department. Those that get it, Sade said, have embraced the procurement reforms now guiding federal agencies. Washington Technology talked to companies at the top of their game in connecting with government and found out how they do it.
State and local governments will continue their full-scale retreat from offshore outsourcing this year to avoid the political backlash that often accompanies the loss of government jobs to overseas sites, industry and government officials said.
Government Micro Resources Inc. has proven to be a reliable small business, bringing in about $100 million from its government work each year. Although the company graduated from the SBA's 8(a) development program five years ago, it still qualified for small-business set-aside contracts. That will change Jan. 28, when a new procurement rule goes into effect that says small IT VARs must have 150 or fewer employees.
<b>New Hampshire Administrative Services Department</b><br><b>Project: </b>Statewide Enterprise Resource Planning System<br><b>Term:</b> TBD<br><b>Estimated value:</b> TBD<br><b>RFP release:</b> January <br>The department has a requirement for a statewide ERP system that will include budget and finance, human resources and electronic purchasing modules.
For three top-tier government contractors ? the Boeing Co., Computer Sciences Corp. and Electronic Data Systems Corp. ? the new year provides a chance for correction following an unpleasant end to 2003.
