Federal IT contractors have been facing major changes recently as part of the government’s broader effort to reduce overall spending. Leading systems integrators such as Accenture and Booz Allen are reportedly being asked to identify billions of dollars in savings or risk having their contracts canceled altogether.
Department of Defense (DoD) to streamline IT vendor approvals
At the same time, the federal government promises to make it simpler for vendors and service providers to qualify to deliver IT services. The DoD, for example, wants to make it simpler for IT vendors and service providers to qualify to win contracts. Pentagon Chief Software Officer Rob Vietmeye spoke at a recent IT Innovation event. The event was hosted by the Northern Virginia chapter of AFCEA International, a nonprofit focused on communication technologies. He said gaining the necessary approvals to connect to DoD networks will soon become easier.
IT vendors and service providers that can independently verify they have adopted secure supply chain and coding practices will soon be eligible for fast-track approvals. This change streamlines the qualification process and reduces delays in delivering critical services. Dubbed the “Swift Process,” reviews conducted under the provisions of a Cybersecurity Maturity Model Certification program will now be applied to specific products beginning later this year rather than entire organizations. Previously, a review of an entire organization would have taken months to complete.
U.S. government IT spending under review amid budget cuts
The U.S. government is projected to spend more than $102 billion on IT in 2025. IT spending is now being reviewed as part of a larger effort to reduce federal spending, which now exceeds $6.8 trillion. Given the current $1.3 trillion budget deficit, federal agencies have been directed to look for all possible ways to reduce spending. The recently established Department of Government Efficiency (DOGE) supports this effort, aiming to optimize government operations and improve fiscal responsibility.
This puts more pressure on incumbent suppliers of IT products and services to the federal government to reduce costs. At the same time, it creates opportunities for new vendors to enter the market. Changes to how agencies procure these products and services could open the door for new vendors to compete. Federal agencies will be more open to considering alternative IT products and services. There also appears to be a concerted effort to cut back on red tape. Previously, the process of winning a government contract was often time-consuming and burdensome. Many IT vendors and service providers don’t have the deep pockets needed to invest years into pursuing a federal contract. In many cases, that effort may never lead to a signed deal.
It’s also important to remember that winning a government contract is only the first step. The real challenge is delivering the IT technologies and services needed. Service providers must deliver the IT technologies and services in a way that enables them to turn a profit.
As the government moves toward greater efficiency, IT vendors must adapt to a rapidly changing environment. By embracing these new procurement strategies, vendors can position themselves for success in the evolving federal landscape.
Photo: DebSankar / Shutterstock
This post originally appeared on Smarter MSP.