[Bloomberg Government has launched the 11th annual BGOV200, a ranking of the top federal contractors. See the list and download the report.]
Technology continues to be a massive contributor to federal market growth. IT has typically been a market with reliable growth each year, however, in FY2021 there was a slight decline from fiscal year 2020’s high of $76.4 billion. FY21 totals of $71.6 billion still outline consistent growth from 2019’s $69.5 billion – a steady increase from $57.3 billion in fiscal 2016.
The market was on a growth trajectory before Covid-19 due to continued investment in IT modernization. Technology was bolstered beyond forecast amounts as agencies adopted remote work measures in fiscal 2020 and beyond.
In fiscal 2021 technology management drove most IT growth and expanded by $2.38 billion, from $361.4 million to $2.4 billion, as agencies continue investing in the monitoring and administration of IT systems to make them operate efficiently. IT security and compliance rose to $4.4 billion – an uptick of $1.5 billion – as agencies adapt to cybersecurity requirements.
Leidos Holdings, Inc ($3.3 billion), General Dynamics Corp ($3.1 billion), and Dell Technologies ($2.1 billion) were the top companies in the IT sector. These companies maintained their dominance by relying on major single-award contracts in combination with a broad portfolio of multiple-award contracts.
IT companies can rely on BGOV tools and analysis to monitor IT activity in the coming year. Among the 10 IT subcategories, IT Management produced the highest increase in fiscal 2021 and is expected to continue in fiscal 2022. Cloud opportunities span all the cloud subcategories, with about two-thirds spending in IT applications.