CIVILIAN AGENCY OPPORTUNITIES INCREASE, IF YOU KNOW WHERE TO LOOK

Civilian agency spending grew 53% from FY’18 to FY’22 according to a recent Bloomberg Government presentation.  Bloomberg expects increases to continue, despite Congressional budgetary pressure to reduce outlays.  While the top line number shows that there are good opportunities for contractors in the non-DOD federal market, not every agency is the best fit for each company.  A little market research is necessary to find the best matches based on what specific companies offer.  Of the five civilian agencies highlighted by Bloomberg, for example, the Department of Health and Human Services ranked as the best opportunity for professional service contractors.  This category is at the top of the HHS procurement list.  Further, Bloomberg estimates that “Management Advisory Services” account for 68% of total professional services spending.  IT contractors may find good opportunities at DHS and the IRS.  Each of those spends more on IT than in any other area.  While the VA is a big IT spender and one of the largest civilian agencies in terms of acquisition activity, companies should note that VA medical spending exceeds the combined acquisition outlays for professional services, IT, and construction.  Also, while opportunities for each of these have increased at the VA, partnering with a Service-Disabled Veteran Owned Small Business (SDVOSB) or Veteran Owned Small Business (VOSB) is an important part of many companies’ VA strategy.  NASA and the Department of Energy are the other two agencies highlighted by Bloomberg.  Energy spends most of its acquisition money to run its network of national labs and to construct new facilities.  Research and Development is the top acquisition area for NASA, with much of that work related to deep space projects.  No contractor can be in every agency at once, but Bloomberg’s numbers may provide companies with intelligence on how to smartly diversify and grow their federal business.