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)
- IBM (NYSE: IBM)
- 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.
