BLOOMBERG GOVERNMENT HIGHLIGHTS SIX MARKET SEGMENTS TO WATCH

Recent analysis from Bloomberg Government finds that six federal market segments control approximately 25% of federal spending.  Knowing what those markets are, who’s buying, and how they’re buying is important information for contractors.   Cloud computing, AI and operations and logistics comprise the top three areas.  None of those should come as a surprise.  We’ve previously written about the ubiquity of government users desiring AI solutions throughout government.  Business management and financial services, facilities services and digital services round out the top six.  Business and financial services point to the importance of holding key GSA contracts, such as professional service offerings through the Schedules program and GSA’s OASIS contract.  Digital services, an area defined by Bloomberg, includes not only web applications, but the emerging emphasis on enhancing customer experience.  Despite efforts by the Biden Administration to attract new market entries, Bloomberg predicts that competition for most of the dollars in these areas will become more pointed among established contractors.  Further, the overall number of companies will decline as some merge or are acquired, while others leave the federal market generally.  A key factor included in the Bloomberg presentation, but also well known to contractors, is the increased statutory and regulatory burdens placed on contractors as the Administration tries to achieve multiple public policy goals via government contracting.  Holding critical contract vehicles is also important.  Bloomberg forecasts that up-coming vehicles such as LOGCAP V, SEWP VI, the GSA services MAC, and GSA Alliant III will be among the most desired contracts to have.  Bloomberg’s report shows that, while government priorities shift over time, the basic business blocks for contractors remain the same.