Home  › Stats › Ad Industry Metrics › Ad Spend

Federal Government Upped IT Spending 60 Percent in '04

  |  December 27, 2004   |  Comments

Department of Homeland of Security creation part of a surge in Fed's tech spending.

The U.S. Federal Government awarded $155 billion in IT-related program contracts in 2004, a 60 percent increase over the $95 billion it awarded in 2003, according to a report released by INPUT, a government spending watchdog.

The report analyzes the total contract value of over 1,100 IT-related program awards, spanning 15 product and service categories.

"The large increase in awarded dollars can be attributed to a handful of defense-related programs, as well as the emergence of the Department of Homeland Security (DHS) as a major player with its $10 billion US VISIT award," said Michael Boland, senior analyst of Federal Vendor Profiles at INPUT.

The goal of the US Visitor and Immigration Status Indication Technology System is to collect, maintain, and share information on foreign nationals, including biometric identifiers, such as inkless fingerprints, and eye and facial scans. It accounts for 82 percent of the program dollars awarded by the DHS this year.

IT_Budget_for_Top_5_Departments_2004
click on the graph for a larger view
As in 2003, Army and Navy programs accounted for almost half of the total program contracts awarded by the federal government, this year approximately $70 billion.

The top three IT services categories for 2004, meanwhile, were professional services ($108.3 billion); network/telecom services ($19.2 billion); and research and development ($10.4 billion). Those three categories accounted 89 percent of all IT program contracts awarded in 2004, with $138 billion.

The report defined the leading category, professional services, as project management, quality assurance, planning and analysis, software development, education and training, engineering/scientific, consulting and design, operations support, and modeling/simulation.

Top3_IT_Service_Categories_2004
click on the graph for a larger view
Although professional services accounted for the bulk of the infotech dollars awarded by the federal government, the research and development category grew the most, percentage-wise, in 2004.

"Research and development was the most striking category this year, in that it doubled year-over-year compared to 2003," Boland said. That increase was primarily due to the $4.6 billion Kinetic Energy Intercept Capabilities (KEI) program, an integral component of the Bush Administration's missile defense shield program.

Looking forward, the report suggests IT contracts awarded in 2005 will be approximately $114 billion. One initiative outlined by the U.S. government's Office of Management and Budget is to require all publicly accessible federal government Web sites to be fully searchable by the end of 2005.

Some sites like those for the National Archives and the Department of Defense visual information center already have implemented such search capabilities.

ClickZ Live Toronto Twitter Canada MD Kirstine Stewart to Keynote Toronto
ClickZ Live Toronto (May 14-16) is a new event addressing the rapidly changing landscape that digital marketers face. The agenda focuses on customer engagement and attaining maximum ROI through online marketing efforts across paid, owned & earned media. Register now and save!

ABOUT THE AUTHOR

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Stats delivers stats headlines to your inbox twice a week. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

ion Interactive Marketing Apps for Landing Pages White Paper

Marketing Apps for Landing Pages White Paper
Marketing apps can elevate a formulaic landing page into a highly interactive user experience. Learn how to turn your static content into exciting marketing apps.

eMarketer: Redefining Mobile-Only Users: Millions Selectively Avoid the Desktop

Redefining 'Mobile-Only' Users: Millions Selectively Avoid the Desktop
A new breed of selective mobile-only consumers has emerged. What are the demos of these users and how and where can marketers reach them?

Jobs

    • Contact Center Professional
      Contact Center Professional (TCC: The Contact Center) - Hunt ValleyLooking to join a workforce that prides themselves on being routine and keeping...
    • Recruitment and Team Building Ambassador
      Recruitment and Team Building Ambassador (Agora Inc.) - BaltimoreAgora, www.agora-inc.com, continues to expand! In order to meet the needs of our...
    • Design and Publishing Specialist
      Design and Publishing Specialist (Bonner and Partners) - BaltimoreIf you’re a hungry self-starter, creative, organized and have an extreme...