Tip Tuesday: Small Business Federal Contracting Trends For 2022

SAM Directory Blog


This tip comes from a blog post that was originally published at https://sam.directory/blog/small-business-federal-contracting-trends-for-2022/.


The United States Government Is A Very Powerful Client With Deep Pockets The Federal government usually spends billions of dollars a year on goods and services. This makes the U.S. government an extremely attractive client. There are few other organizations with this type of spending power and clout.

The government also tends to buy goods and services in bulk. If your business has the infrastructure to handle large orders, then the government can help you grow substantially at an accelerated pace.

Government agencies also buy goods and services in large quantities. Large orders can be a double-edged sword for small businesses. However, if managed correctly, they can help you grow substantially and rapidly.

Small Businesses Are Given Special Consideration When It Comes To Government Contracts In many markets, small businesses are often out-competed by larger organizations that often have access to almost unlimited resources. This set aside actually might increase a small business’s chances of winning a lucrative bid.

The federal government is required to set aside at least 23 percent of its total spending specifically for small businesses. Several small businesses have made a fortune just on federal government contract awards.


The Department Of Health And Human Services The Department of Health and Human Services states its mission “Is to enhance the health and well-being of all Americans, by providing for effective health and human services and by fostering sound, sustained advances in the sciences underlying medicine, public health, and social services” This is an agency whose need has only increased due to the current pandemic of Covid-19.

This agency is a great contracting source for small businesses that provide healthcare services and products. Go to https://www.hhs.gov/grants/contracts/index.html for more information. This agency also does a lot of partnerships, so it is a great way for a small business to get its foot in the door with many other types of government agencies.

Streamlining and Modernizing Information Technology Did you know that the Internal Revenue Service, the Veteran’s Affairs Department, Defense Department, and the Transportation Department are operating on computer systems that are over 50 years old? Some are still using 1970 IBM mainframe computers that store information on floppy disks!

This has caused the government to pass the Modernizing Government Technology Act, also known as the MGT. The MGT has authorized that 100 hundred million dollars be allocated to modernizing the federal government Information Technology systems in 2018. Then another 150 million dollars were added to the MGT in 2019. The Consolidated Appropriations Act also then added billions of dollars to upgrade the government’s I.T. systems and update infrastructure.

So small businesses that can help the government reduce redundancies, save money, and streamline government technology have a great chance of obtaining very profitable government contracts in 2022 and beyond.

Blockchain Blockchain allows for the distribution of data on multiple platforms at the same time. It grows as a new set of recordings, referred to as blocks, are added to it. All the blocks contain timestamp information linking them to previous blocks, thus creating a chain. This allows for no data block to be altered without the alteration of all the blocks that came before it.

The government is interested in blockchain data management because it is decentralized and allows for more security for transactions. This usually also means that operating costs can be lower. The United States government became interested in blockchain technology in 2016 and it should be a very lucrative avenue for many small businesses.

Innovation OTS is a five-year program that will continue in 2020. It aims to provide opportunities for nontraditional government contractors to work with the Department of Homeland Security developing new technologies to address upcoming threats. In 2020, small business contractors can take advantage of Innovation OTS to form government partnerships and provide innovative technologies.

Cyber Security As the world becomes increasingly higher-tech, security breaches are more likely to be in data management than on the battlefields. The government needs to stay several steps ahead of those who wish to exploit undiscovered vulnerabilities in our systems. This is why cybersecurity will be a very lucrative area for government contractors. This is particularly true in 2021, which might see unprecedented dangers as new systems are being installed in several federal agencies. Cybersecurity will be used to protect voter databases and voting machines.

Cybersecurity is also going to be a big part of government protection when it comes to cyberattacks on supply chains. Contractors that can help manage these constant threats to government security will be in high demand.

Air And Missile Defense Innovation The United States Army has big plans for developing its air and missile defense system to be one of the best in the world. Lieutenant General James H. Dickinson, commanding general of the U.S. Army Space and Missile Defense Command/Army Forces Strategic Command, said, “Our vision is that the AMD force of 2028 will provide the combatant commanders with a flexible, agile, and integrated AMD force capable of executing multi-domain operations.”

The army is particularly interested in modernizing its radar technologies. This is a fantastic opportunity for innovative small businesses to step up to the plate and help the army build some new prototypes. The army is very open to working closely with new businesses to develop key technologies that will streamline operations in the future.

If you have any questions about this topic, please contact your KYPTAC Consultant. Not a client? Sign up here.