Many managed services providers (MSPs) and value-added resellers (VARs) overlook a prospect with a considerable budget that consistently buys IT products and services year after year. The U.S. government. Consider these four statistics about U.S. government information technology spending:
1. For fiscal year (FY) 2023, U.S. government IT spending is projected at approximately $81 billion and is expected to spend around $21.7 million on major IT investments.
2. For FY 2022, the federal government has budgeted around $58 million to support civilian federal government agencies’ IT needs. Other trends in 2022 included spending on IT workforce improvement and systems modernization.
3. The U.S. government plans to spend $10.46 billion on cybersecurity in 2023. The department requesting the largest amount of the cyber security budget for FY 2022 was the Department of Homeland Security, which asked for $2.6 billion.
4. Cloud spending by the federal government, from FY2016-FY2021, grew steadily with a CAGR of 14.3 percent.
Can you think of any other prospect that can come close to equaling that opportunity?
Resources to Help You Break into Government Contracting
But even though the potential is excellent, selling IT solutions and services to government offices and agencies can be intimidating. Fortunately, there are a variety of programs and organizations that can help you enter and find success in the government market. Here are six resources that can provide you with the information and guidance you need:
1The Small Business Administration (SBA) All Small Mentor-Protégé Program
The SBA All Small program matches small businesses new to government contracting with experienced contractors. Mentors can provide businesses new to the space with guidance on accounting, marketing, planning, and assistance with bidding, acquisition and performance processes. Mentors can also offer general services like human resource sharing or security clearance support. In addition, the SBA provides a course to help you determine if your business is a good fit for the All Small program.
2The Small Business Administration 8(a) Business Development Program
This program is designed to help small businesses owned by socially or economically disadvantaged people compete for government contracts. The program provides business training, marketing assistance, and executive development and offers the services of specialists who can help eligible businesses through the federal contracting process. In addition, participants can form joint ventures through the SBA mentor-protégé program.
3SBA Courses, Videos and Events
The SBA offers a variety of educational resources. For example, the association provides access to videos about the SBA’s HUBZone program or how to sell to the government. Additionally, the SBA holds events that provide information on government contracting for both prime contractors and subcontractors.
The USA.gov website is devoted to helping businesses prepare to become federal contractors. It provides links to websites where you can find business opportunities and offers an 8-step process for preparing your business for federal contracting. You’ll also find guidance on how to bid and a link you can use to chat with USA.gov to find answers to your questions.
5GSA Training Programs
The General Services Administration (GSA) offers workshops, conferences and seminars throughout the country and online to help businesses get on the GSA schedule and market themselves successfully. The GSA also provides resources specifically for small businesses.
FedBizOpps.gov has become SAM.gov. This website provides links to acquisition policy, regulation and compliance information that you will need as a federal contractor.
The More You Know
Take time to study the opportunity to sell IT solutions and services to the federal government and the resources available to help your VAR or MSP business succeed. These facts will help you decide whether to focus time and resources on entering this vertical.