This report analyzes the $11.6 billion increase in federal procurement spending in the Washington area between 1993 and 2000.

This increase accounted for 60 percent of the nationwide increase in federal procurement. The disproportionate growth of federal procurement in the Washington area was the result of two trends in federal spending that have combined to benefit the nation’s capital. First, the downsizing of the federal workforce has been accompanied by an increase in outsourcing of services. Second, federal procurement of services has shifted dramatically towards technology-based services. Both trends have increased procurement in Washington faster than in other places. Indeed, the Washington area’s success in dominating the federal market for technology-based services has led to its emergence as one of the nation’s leading centers of information and telecommunications technology.