Major Federal AEC Contracts Worth Over $44 Billion in Near Term

03/16/2006


The top ten federal architecture, engineering and construction (AEC) contracts of fiscal years 2006 and 2007 are anticipated to produce more than $44 billion in business opportunities over the next 24 months, according to a report released today by INPUT , Reston, Va.

Some of the major initiatives in the federal AEC sector focus on repair of damaged infrastructure systems due to natural disasters, civil wars on foreign soil, accidents and terrorist attacks. An environmental remediation, protection and conservation program in locations worldwide is another major focus for a large number of these contracts.

“There are long term contracts for repair, reconstruction and rehabilitation which will occur at government facilities worldwide,” said Tim Brett, manager, AEC opportunities at INPUT. “Infrastructure repair requires a wide range of AEC services, and government is looking for new and innovative methods for the support and repair of many infrastructure systems. Having long term contracts in place enables regular support and maintenance of infrastructure, as well as existing resources available for immediate reaction to contingencies or natural disasters.”

Of the top ten federal AEC opportunities being tracked, three of them are being released by the Department of the Air Force and are expected to produce $28 billion in business opportunities over the next two years. The Air Force programs are Heavy Engineering Repair and Construction (HERC), Sustainment, Restoration, and Modernization Acquisition Task Order Contract (SATOC), and Worldwide Planning Program and Design. These major programs detail requirements for services such as new design and construction, upgrades to existing facilities, engineering services during construction and environmental support.

“Over the next five years, the federal government is likely to award over $200 billion for AEC services,” said Brett. “These services cover a broad range of needs and it is essential for vendors to be prepared with innovative, cost saving solutions if they want to receive the awards. Vendors, large and small alike, would do well to pay close attention to evolving government requirements and needs to make sure they are positioned to play a role in these opportunities.”





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