THE EAGLE HAS LANDED - BIG SPENDING IN DHS CONTRACT

August 29, 2008
Get ready for the big spend at DHS. DHS's "Enterprise Acquisition Gateway for Leading Edge" AKA "EAGLE" has a lot of ground to make up this fourth quarter.
 
It should be noted that while EAGLE is not a mandatory procurement vehicle, it is DHS's primary procurement vehicle. For those who are not familar with EAGLE, it contacts across 16 components and offices of DHS. Since its award in 2006, a total of $4.8 Billion has been awarded through EAGLE - $30,800,053.88 in 2006, $2,967,047,239.28 in 2007 and $1,861,954,518.82 through July of 2008. It does not take rocket science to see that DHS plans to spend a lot in this last quarter of 2008.- If DHS matches last year, over $1 billion remains to be spent.
 

According to a recent report by INPUT, EAGLE should expect a "spending spree" in the fourth quarter. According to INPUT, in the fourth quarter of fiscal 2007, spending on EAGLE skyrocketed to $2.4 billion, almost quadruple the level from the previous three quarters combined. The jump was driven in part by two large task order contracts, but even when those contracts are not taken into account, fourth quarter fiscal 2007 spending was more than half of the total spending that year. The average agency completes about 34 percent of its annual spending in the last quarter of the fiscal year, which ends Sept. 30.

INPUT expects fourth quarter EAGLE spending to be higher in fiscal 2008 than it was in fiscal 2007. In the second quarter of fiscal 2008, contract spending topped $300 million, compared to $43 million in the second quarter of 2007. Moreover, INPUTnoted that EAGLE has significantly outpaced similar contract vehicles, such as the Air Force's NETCENTS and the Navy's SeaPort-e, in both number of task orders and dollars spent. What I found most interesting -The average task order size on EAGLE is $8.8 million, compared to $3.8 million on SeaPort-e and $542,000 on NETCENTS.

Four of the seven major agencies make up the bulk of spending at DHS. CBP, CIS, ICE and TSA is where I would go hunting.