Army Makes $5B IT Solutions 2 Contract Exclusive

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The U.S. Army has excluded non-Army users in the Information Technology Enterprise Solutions 2 Hardware contract, Washington Technology reports.

The ITES-2H contract is now restricted to Army users due to an extension through August 2013 that was approved on January 27.

The follow-on contract has a ceiling value of $5 billion and the government has already spent $3.9 billion in contract funds.

Prime contractors include:

  • Dell (NYSE: DELL)
  • GTSI Corp. (NYSE: GTSI)
  • Iron Bow Technologies
  • World Wide Technology

Limiting the contract to Army users will make it easier to approve extensions, according to Washington Technology.

Deltek expects a request for proposals for a new IT contract to be issued in March and anticipates the follow-on contract will be awarded in June 2013.

Seventy percent of ITES-2H business is with the Army, 20 percent with the Navy and other defense and civilian users account for 10 percent.

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