According to Sarah Chacko’s report, $23 billion in federal contracts are set to expire in January with that figure totaling $291 billion for full calendar year 2012.
Chacko writes the first contracts that could see cuts under the sequester include those based on time and materials or labor hours, as well as contracts that allow agencies to place any number of orders against them, including indefinite-delivery/indefinite-quantity contracts.
Ray Bjorklund, chief knowledge officer for Deltek, told Federal Times agencies may not exercise options and not write additional contracts if the sequester comes down.
Agencies use IDIQs to purchase professional, administrative and management support services, medical services and facilities-related services, Chacko writes, citing a Center for Strategic and International Studies analysis.
The CSIS estimates the amount of support services purchased through time-and-materials contracts grew 14 percent year-over-year between 2000 and 2010, while fixed-price contracts grew at 11 percent year-over-year during that time, Chacko writes.