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Federal Technology Service & Federal Supply Service : Federal Technology Service & Federal Supply Service GSA IT Revenue and Opportunities in the Federal IT Market


Agenda : Agenda Drivers Affecting the Demand for GSA Products and Services Issues Affecting Demand FSS Market Analysis Schedules, Budgets, Awards


Issues Affecting Demand : Issues Affecting Demand Slowing in growth driven by Budget Realities Initiatives to Consolidate IT Programs Efficiencies in managing IT Programs Outsourcing and Competitive Sourcing A-76 Awards 56 % of Federal Workforce Eligible to Retire by 2008 E-Government Dollar short falls Homeland Security Mission Support War On Terror


Breakdown of Federal Budget (FY04) : Breakdown of Federal Budget (FY04) $2.2 Trillion - Federal Budget Mandatory Programs 57% Interest on Debt 8% Discretionary Spending 35% The Discretionary Budget is Only a Third of the Budget Source: President’s FY04Budget (Budget Authority) IT = 7.8% of Discretionary Spending Non-DoD 51% DoD 051 49% $782 Billion - Discretionary Spending


Drivers Affecting the Demand for Our Products and Services : Drivers Affecting the Demand for Our Products and Services Ongoing contracting process improvement; “Get It Right” campaign launched GSA FTS contract activity and revenue starting to level off Review of DOD’s use of GSA Schedule and GWACs Focus on impact of Defense Authorization legislation on GSA Customer shift to in-house contracts Perception of Fees


GWAC Analysis : GWAC Analysis Source: FPDS 2003 GSA GWACs FTS Makes up between 79 - 97% of GSA GWAC Revenue


Federal IT Budget and FSS Schedule Sales : Federal IT Budget and FSS Schedule Sales IT budget will grow 3.6% from FY05 to FY10 -- compared to 8.3% for FY00 to FY05 23% 25% 27% 26% 28% FSS Market Share


DoD vs. Civilian IT Budget : DoD vs. Civilian IT Budget DoD grows 4.4% Civilian grows 2.9%


GSA Market Share for Schedule 70 NAIC Codes : GSA Market Share for Schedule 70 NAIC Codes


GSA’s Best Market Performance : GSA’s Best Market Performance


GSA’s Best Market Potential : GSA’s Best Market Potential


GSA’s Lowest Market Potential : GSA’s Lowest Market Potential


GSA Market Share for Schedule 70 NAIC Codes : GSA Market Share for Schedule 70 NAIC Codes


Category 1: IT Hardware : Category 1: IT Hardware Electronic Computer Manufacturing: 334111 Computer Storage Device Manufacturing: 334112 Computer Terminals Manufacturing: 334113 Other Computer Peripheral Equipment Manufacturing: 334119 Equipment specifically used in the automatic acquisition, storage, manipulation, management, movement, control, display, switching, interchange, transmission or reception of data or information


Category 2: Electronic Hardware : Category 2: Electronic Hardware Telephone Apparatus: 334210 Radio and TV Equipment Manufacturing: 334220 Other Communications Equip. Manufacturing: 334290 AV Equip. Man.: 334310 Current Carrying Device: 335931 Non Current Device: 335932 Electronic Hardware that lacks the capability of complex data manipulation found in IT Hardware Equipment


Category 3: IT Services (Professional and Support) : Category 3: IT Services (Professional and Support) Computer and Software Retail: 443120 All Other Publishing: 511199 Software Publishers: 511210 Internet Publishers and Broadcasting: 516110 Internet Service Providers: 518111 Web Search Portals: 518112 Data Processing Services : 518210 Office Equip. Leasing: 532420 Custom Programming: 541511 Systems Design: 541512 Computer Facilities Mgmt: 541513 Other Computer Related Services: 541519 Computer Training: 611420 Computer Repair and Maintenance: 811212 Services that support and/or involve IT Hardware


Category 4: Telecommunication Services : Category 4: Telecommunication Services Wired Telecommunication Carriers: 517110 Paging: 517211 Cellular and Wireless Comm : 517212 Telecomm Resellers: 517310 Satellite Telecomm: 517410 Other Telecomm: 517910 Services that support the transmission of messages electronically over distance


NAIC Categories : NAIC Categories


FTS Analysis : FTS Analysis


Federal IT Budget and FTS Information Technology Solutions Revenue : Federal IT Budget and FTS Information Technology Solutions Revenue 10% 11% 12% 13% 12% FTS Market Share * Source: GEIA, 2003 & FTS Near System $ B


FTS IT Defense & Civilian Agency – Customer Growth : FTS IT Defense & Civilian Agency – Customer Growth


FTS Network Services and IT Revenue 2002 – 2004 : FTS Network Services and IT Revenue 2002 – 2004


Federal Telecom Budget & FTS Revenue : Federal Telecom Budget & FTS Revenue * Source: INPUT, 2003 17.8% 19.2% 21.4% FTS Market Share


What’s Left : What’s Left Finalize Analysis of Federal Spending Patterns Finalize Regional FTS Analysis Customer Analysis Telecom Analysis FSS Customer Satisfaction Drivers Conclusions/Findings/Recommendations