Federal IT Market Overview

$109B
Annual Federal IT Spending
45%
Cloud/Infrastructure
30%
Cybersecurity
25%
AI/Emerging Tech

Major Federal IT Contract Vehicles

GSA IT Schedule 70

Ceiling: Unlimited | Duration: 20 years

  • Largest federal IT contract vehicle
  • Pre-negotiated pricing and terms
  • Available to all federal agencies
  • Covers hardware, software, and services

CIO-SP4

Ceiling: $50B | Duration: 10 years

  • NIH's IT services GWAC
  • 10 task areas including emerging tech
  • Small business tracks available
  • Health IT focus areas

SEWP VI

Ceiling: Unlimited | Duration: 10 years

  • NASA's technology products GWAC
  • IT products and product-based services
  • Streamlined procurement process
  • Lower fees than GSA

Alliant 3

Ceiling: $75B | Duration: 10 years

  • GSA's enterprise IT solutions GWAC
  • Integrated IT solutions
  • Emerging technologies focus
  • Unrestricted and small business tracks

8(a) STARS III

Ceiling: $50B | Duration: 10 years

  • 8(a) small businesses only
  • Emerging technology sub-areas
  • Directed to specific 8(a) firms
  • Simplified acquisition process

DISA Encore III

Ceiling: $17.5B | Duration: 10 years

  • Defense IT services
  • Infrastructure and engineering
  • Classified work capabilities
  • Global deployment support

High-Demand Technology Areas

Cloud Computing & Migration

  • FedRAMP authorized solutions
  • Multi-cloud management
  • Legacy system modernization
  • Cloud security and compliance
  • Cost optimization services

Cybersecurity

  • Zero Trust architecture
  • Continuous diagnostics and mitigation
  • Security operations centers
  • Incident response services
  • Compliance automation

Artificial Intelligence & ML

  • Natural language processing
  • Computer vision solutions
  • Predictive analytics
  • Robotic process automation
  • Ethical AI frameworks

DevSecOps & Agile

  • CI/CD pipeline implementation
  • Container orchestration
  • Infrastructure as code
  • Agile transformation
  • Automated testing frameworks

Top Federal IT Buyers

Agency Annual IT Budget Focus Areas Key Vehicles
Department of Defense $46.5B Cybersecurity, C4ISR, Cloud DISA Encore, NETCENTS
Department of Homeland Security $8.9B Border tech, Cybersecurity EAGLE, FirstSource
VA $7.2B Health IT, EHR modernization T4NG, VECTOR
HHS/CMS $6.8B Healthcare IT, Data analytics CIO-SP4, SPARC
Treasury/IRS $4.3B Tax systems, Financial tech TIPSS-5, IRS IDES

Strategies for Winning IT Contracts

Technical Excellence

  • Maintain current technology certifications (AWS, Azure, Google Cloud)
  • Demonstrate DevSecOps maturity and Agile experience
  • Build FedRAMP-ready solutions from the start
  • Invest in cleared personnel for classified work
  • Develop reusable, compliant solution architectures
  • Create strong technical past performance narratives

Business Development

  • Get on multiple contract vehicles (GSA, GWACs, agency-specific)
  • Partner with complementary firms for full-solution offerings
  • Invest in capture management before RFPs are released
  • Build relationships with agency IT leadership and CIOs
  • Attend industry days and pre-solicitation conferences
  • Monitor agency IT strategic plans and technology roadmaps

Compliance Requirements

  • Achieve CMMC Level 2 certification for DoD work
  • Implement NIST 800-53 controls for federal systems
  • Maintain ISO 27001 certification for competitive advantage
  • Ensure Section 508 accessibility compliance
  • Document supply chain risk management practices
  • Establish insider threat programs for classified work

IT Contract Types & Pricing Models

Time & Materials (T&M)

Common for staff augmentation and agile development projects.

  • Labor rates plus materials at cost
  • Flexibility for changing requirements
  • Requires strong rate justification

Firm Fixed Price (FFP)

Used for well-defined deliverables and commercial items.

  • Fixed price for defined scope
  • Risk on contractor
  • Common for COTS products

Labor Hour (LH)

Similar to T&M but without materials, common for services.

  • Fixed labor rates
  • Variable hours based on need
  • Good for help desk, support

IT Contracting Resources

  • FedRAMP.gov: Cloud service authorization requirements
  • Section508.gov: Accessibility compliance resources
  • NIST Cybersecurity Framework: Security implementation guides
  • OMB IT Dashboard: Federal IT spending data
  • TechFAR Hub: Agile and digital service contracting
  • GSA OASIS+: Next generation professional services