infoTECH Feature

July 06, 2010

23 IT Companies team up to Compete for $7.06 Billion in Government Contracts

Twenty-three small information technology companies in the USA have formed a consortium aiming to win $7 billion in U.S. military contracts.
Winning military contracts in the USA is a ticket to profit and success as the availability of contracts in private sector has been diminished because of the economic recession.
'The definition of small business has evolved. If you're too small, you're out of the game,' said Dr. Randal Pinkett, national spokesman of MITC, the consortium which wants to bolster the small and medium size companies in the country. 'Now more than ever the message for small business owners today is that size matters to our customers. We live in a day and age when scale is necessary to compete.'
MITC companies are hoping to win portions of the Air Force's NETCENTS 2, a $24.2 billion project to procure a range of technology services. 'We commend the Air Force for its ongoing efforts to make NETCENTS 2 more small business friendly by breaking up the contracts into smaller projects,' Dr. Pinkett said.
The Air Force is reportedly planning to allocate $7.06 billion worth of contracts to small businesses, dividing the work in three parts such as net operations, applications and IT services.
MITC firms are spread around 24 states and have annual revenues between $600,000 and $25 million.
MITC, whose members were drawn from more than 200 firms nationwide, says its goal is to become a strong and attractive resource for technology applications and infrastructure for the military and other government agencies.
'A company would have great difficulty winning a contract even twice its annual revenues,' Dr. Pinkett said. 'A consortium translates into strength in numbers and is a way of formalizing how we pool our collective capabilities.'

Narayan Bhat is a contributing editor for TMCnet. To read more of Narayan's articles, please visit his columnist page.

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