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Washington Cranks Up Contracts

Vendors, particularly in security, could be in line for a bumper payday as the U.S Government flashes its cash in massive IT contracts, according to analyst firm Input (see Federal Awards Increased).

Contract awards totaling a colossal $67 billion were made during the third quarter of this year, an increase of 190 percent on the same period last year, says Input. Although contract awards in the next quarter will not reach these heady heights, Input says that $34 billion worth of contracts are due to be awarded in Q4, which is still 70 percent up on the year-ago quarter.

This could be good news for vendors in cyber security and information security, says Megan Gamse, a manager at Input and the author of the research. Given obvious recent events, as a nation we see a need to further protect ourselves as a whole, as well as our information infrastructure.”

Gamse says that if past quarters are anything to go by, then the big spenders will be the likes of the Department of Defense and the Department of Homeland Security.

Recent events in Washington appear to bear this out. After months of pressure from industry, the government recently agreed to appoint a cyber-security tsar who will be responsible for leading the country’s response to cyber threats. This will raise the profile of security on Capitol Hill and force departments to think seriously about how they share (and secure) information (see Search for the Czar and Where's the Cyber-Security Quarterback?).

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