Federal IT contractors demonstrate significant success in government modernization, with industry giants securing substantial contracts. Lockheed Martin generated $12.02 billion in federal IT revenue, while Leidos and National Security Technologies each secured nearly $5 billion in contracts. Small businesses exceeded expectations by capturing 28.4% of total contracts, surpassing the government’s 23% target. This expanding landscape, which grew from $598.32 billion to $773.68 billion, reveals compelling opportunities in federal technology contracting.
Federal IT Contracting Growth and Market Leaders
Federal technology contracting remains a cornerstone of government modernization efforts, with major IT companies securing billions in annual revenue through federal procurement. Leading this charge is Lockheed Martin, which generated $12.02 billion in IT-related federal revenue during fiscal year 2015, demonstrating the considerable opportunities available in government contracting.
Federal IT contracting drives government modernization, with industry leaders like Lockheed Martin capturing billions in annual procurement revenue.
The federal contracting landscape has shown remarkable growth, expanding from $598.32 billion in FY2019 to $773.68 billion by FY2024. This growth has particularly benefited established IT contractors like Leidos and National Security Technologies, which secured $4.74 billion and $4.82 billion respectively. Battelle Memorial Institute has strengthened its position through biomedical research solutions. Professional services and IT represent a significant portion of federal spending trends.
Mid-tier providers such as CACI and Telos have carved out specialized niches in cybersecurity and disaster response, earning contracts worth $115 million and $117 million. Users are encouraged to conduct independent verification of contract award information.
Defense agencies continue to drive notable IT spending, with the Navy and Air Force leading allocations at $137.48 billion and $105.18 billion in FY2024. The Veterans Affairs department has demonstrated remarkable growth in technology investment, nearly tripling its contract spending from $28.81 billion in FY2019 to $66.90 billion in FY2024.
Small businesses have achieved unprecedented success in federal contracting, capturing 28.4% of total contracts in FY2023, surpassing the government’s 23% target. Companies like DLT Solutions and CDW-G have established strong positions in providing IT solutions to federal agencies, with revenues of $42.3 million and $151.4 million respectively.
The Defense Logistics Agency has increased its contract awards notably, reaching $53.00 billion in FY2024, while the General Services Administration expanded its technology investments to $26.51 billion.
Specialized providers like ASM Research and Iron Mountain have successfully focused on data security and cloud services, securing contracts worth $101 million and $65.8 million respectively.
The Department of Energy has emerged as a major player in technology procurement, with contracts growing to $47.68 billion in FY2024, driven by increased emphasis on cybersecurity and IT infrastructure modernization.
This growth reflects the government’s broader commitment to technological advancement, with Other Than Small Business contractors receiving 76.7% of total contract value, while maintaining strong support for small business innovation through dedicated set-asides and targeted opportunities.
Frequently Asked Questions
What Security Clearances Are Required for Employees in Federal IT Contracts?
Federal IT contract employees typically require either Confidential or Secret security clearances, depending on the sensitivity of information they access.
Confidential clearance needs NACLC screening and credit checks, with reinvestigation every 15 years.
Positions involving more sensitive data require Secret clearance, which demands more thorough background investigations.
The specific clearance level depends on the contract requirements and the employee’s role in handling classified information.
How Long Does the Federal Contractor Certification Process Typically Take?
The federal contractor certification process typically takes 3-6 months from start to finish.
Key steps include obtaining a UEI through SAM.gov (2-3 business days), completing System for Award Management registration (2-4 weeks), and securing necessary security clearances (3-4 months).
Additional time may be needed for specialized certifications like FedRAMP or industry-specific requirements.
The timeline can vary based on the type of contracts sought and agency-specific requirements.
What Small Business Set-Aside Programs Exist for Federal IT Contracts?
The federal government offers four primary set-aside programs for IT contracts: the 8(a) Business Development Program for small disadvantaged businesses, the HUBZone Program for companies in underutilized areas, the Service-Disabled Veteran-Owned Program, and the Women-Owned Small Business Program.
Each program has specific eligibility requirements, including ownership criteria, size standards based on NAICS codes, and certification processes.
These programs help guarantee diverse participation in federal IT contracting opportunities.
Which Certifications Are Most Valuable for Federal IT Contracting Companies?
For federal IT contracting companies, key technical certifications include CompTIA Security+, Certified Information Systems Security Professional (CISSP), and Project Management Professional (PMP).
These validate expertise in cybersecurity and project delivery. Additionally, contractors should pursue ISO 9001 certification for quality management systems and Capability Maturity Model Integration (CMMI) ratings, which demonstrate process maturity.
Cloud certifications from AWS, Microsoft Azure, and Google Cloud are increasingly important for federal cloud initiatives.
How Often Do Federal IT Contractors Need to Renew Their Vendor Registrations?
Federal IT contractors must renew their SAM (System for Award Management) registrations annually, with expiration occurring 365 days after the last approval date.
The renewal process should begin 60-90 days before expiration to prevent disruptions in contract eligibility. SAM.gov sends automated reminders, but contractors are responsible for initiating manual renewals.
Failing to maintain active registration can result in immediate disqualification from federal contracts and the inability to bid on new opportunities.
