Federal Tech Contracting Spending Rose $8B in FY2018

The Federal government spent $82 billion on technology contracting in fiscal year 2018 according to a Bloomberg Government analysis, marking an $8 billion increase over FY 2017.

In total, agencies spent $559 billion on contracts of all kinds, a nine percent increase over FY 2017.  The increase in technology contract spending outpaced the pace of the government at large with a nearly 11 percent increase. The tech contracting growth was surpassed only by contracting growth in defense-related industries such as weapons, land vehicles, and aircraft components.

The analysis found that agencies increased spending on technology services and technology equipment at a very similar pace, with both growing about 11 percent. The FY 2018 growth in technology contracts marks the four consecutive year of growth for that category.

“Technology was a massive contributor to market growth,” noted Daniel Snyder, director of government contracts analysis at Bloomberg Government.

The analysis named General Dynamics, Leidos, and Perspecta as the top performers in the Federal market, with sales of $3 billion, $2.4 billion, and $2.2 billion respectively.

Looking forward, Bloomberg Government predicts more usage of best-in-class contracts driving business to larger contractors, and more government spending on as-a-service offerings.

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