Economic stimulus expected to deliver billions to government contractors

President-elect Obama’s economic stimulus package will provide billions of dollars in contract opportunities to government contractors, according to Input. The package, which is likely to approach $1 trillion in spending over the next two years, is expected to contain over $350 billion in spending for projects related to infrastructure improvement, electronic health records, green initiatives, and modernization of schools.

“The success of the economic stimulus package depends on the government’s ability to spend this money quickly,” says Kevin Plexico, senior vice president at Input. “Contractors have demonstrated a particular adeptness at creating jobs quickly with government funding.”

Input identified several ways the stimulus package may drive funding to contractors, including:

Funds for GSA, the military and other agencies operating government buildings to implement green technologies

Substantial increases in funding for the Army Corps of Engineers to accelerate infrastructure projects

Grants to states for road and bridge construction

Grants to state and local governments for modernization of schools including expanded investment in computers and Internet connectivity in schools

Funding to health providers to accelerate the adoption of electronic medical records

“It’s too early to tell the mix of investments that will be included in the stimulus package, but it is clear there will be an abundance of opportunities for contractors to participate at the federal, state, and local levels,” says Plexico.