# Presentation: 067396

## Federal Technology Service & Federal Supply Service 

- GSA IT Revenue and Opportunities in the Federal IT Market

## Agenda

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

## 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)

**$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

- 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 

- 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 grows 4.4%    Civilian grows 2.9%

## GSA Market Share for Schedule 70 NAIC Codes

## GSA’s Best Market Performance

## GSA’s Best Market Potential

## GSA’s Lowest Market Potential

## GSA Market Share for Schedule 70 NAIC Codes

## 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

- 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)

- 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

- 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

## 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 Network Services and IT Revenue 2002 – 2004

## Federal Telecom Budget & FTS Revenue

- * Source:  INPUT, 2003

**17.8%**

**19.2%**

**21.4%**

**FTS Market Share**

## What’s Left	

- Finalize Analysis of Federal Spending Patterns
- Finalize Regional FTS Analysis
- Customer Analysis
- Telecom Analysis
- FSS Customer Satisfaction Drivers
- Conclusions/Findings/Recommendations