Structure and Dynamics of the U.S. Federal Professional Services Industrial Base 1995-2004

June 5, 2006

During the past decade, the U.S. government has been increasing its reliance on the private sector for a wide range of professional and support services. Providing professional services to the federal government has become a significant industry, growing from $102 billion in 1995 to $167 billion in 2004.  The U.S. government now contracts for as much services as it purchases in hardware.

Based on data from the Federal Procurement Data System (FPDS) and interviews with key industry and government figures, this report highlights trends in the types of professional services procured, procurement by key government departments and agencies, the evolution of different contract vehicles, the number of firms that make up the industrial base, and market shares held by small, medium and large companies.