Homeland Security Contracts Fuel Increase in Government IT Spending

The federal government spent more than $23 billion in the second quarter of 2004 on information technology-related contracts fueled by a $10 billion Homeland Security contract.

According to a report on CNET News.com, the spending increased by 50 percent over the same period last year, up from $15.5 billion in the second quarter of 2003. A $10 billion contract for setting up Homeland Security's Visitor and Immigration Status Indication Technology System (US-Visit) is primarily responsible for fueling the upswing, says Virginia-based Input, a provider of data on the government market.

Input, who provided the original report for CNET News.com, also said the total worth of orders placed by Homeland Security alone was $10.7 billion, compared with $93 million for all IT-related contracts during the same period last year.

The report also noted that the government awarded nearly 90 percent of the contracts to five departments: Homeland Security, the Army, the Navy, the Air Force and the Department of Transportation.

To read the full CNET News.com article, click here: http://www.businessweek.com/technology/cnet/stories/5287003.htm.