SLED grants can make IT acquisition possible

April 15, 2024 by Leave a comment

Vendors can help navigate the grant process

As many as one-third of government agencies do not apply for grants to help finance their missions, even though that money is available to fund initiatives and bridge the funding gap in existing programs. A vendor that understands how to navigate the grant process can be of great help to a state or local government agency, pointing them in the direction of resources they may have overlooked.

Let’s look at how vendors can play an important part in the SLED grant-seeking process.

Biggest SLED grant hurdles: Complexity and awareness

A considerable percentage of eligible agencies don’t take advantage of grant opportunities. According to GrantStation, among government funding sources, state government application rates (74%) were higher than those of local government (71%) or the federal government (64%) at the end of 2023. That means as many as one-third of all agencies do not apply for grant funding. Meanwhile Instrumentl found that “there are currently more than 900 federal grant programs offered by 26 different grant-making agencies.”

Why aren’t government agencies taking advantage of these opportunities? Main reasons include lack of expertise, the process can be too complicated and lack of understanding of the associated costs to write a compelling grant proposal.

But complexity isn’t the only reason government agencies don’t apply for grants. Often it boils down to a lack of awareness. Agencies that have not historically included grant requests in their funding strategies might not even know of available opportunities.

Qualified vendors can provide opportunity information and assistance to agencies, so that they are better positioned to pursue them.

A trusted vendor can help an agency identify grants and the correct government points of contact who manage those grants. This can save time and provide additional business value.

Vendor-agency cooperation is fundamental to success

Awareness only goes so far. Agencies must have access to a knowledgeable grant writer and clear communication with their trusted vendors.

For some smaller local agencies, an administrative employee may be completing the application. They will have to rely on vendors to help answer technical requirements. On the other hand, grant writers with more experience may meet with vendors during the application process, so that both parties understand the requirements for answering grant application questions. Regardless, vendors and agencies that make a coordinated effort can prepare compelling grant responses.

Some local commissions offer grant resources to third-party writers. The Roanoke Valley-Alleghany Regional Commission is starting the Ready LDD Grant Writing Bench program. This Virginia program will provide on-call grant writers and project management support to its member communities of Alleghany County, Botetourt County, Craig County, the City of Covington and the Town of Clifton Forge.

3 questions to consider before pursuing grant opportunities

To help your agency customers decide if they are ready to start a grant-seeking program, there are a few things they have to address upfront:

  • What is their appetite for grant solicitation? Not every agency will want to direct personnel and financial resources to a grant application process.
  • What is their timeline? Grant-seeking success means coordinating requests with adequate preparation time, including internal planning and forecasting when a grant may be used.
  • Are they willing to have a grants conversation with you? A collaborative agreement with vendors during the grant application process can save time and help create a persuasive response to grant applications.

There are amazing growth opportunities within grants. Consider working with the right vendors to help you navigate the complex process and start building your pipeline of grant opportunities.

This blog was adapted from a commentary originally published in Washington Technology. For the full original commentary, click here.

Chauncey Kehoe is SLED Program Director for immixGroup, the public sector business of Arrow Electronics. immixGroup delivers mission-driven results through innovative technology solutions for public sector IT. Visit www.immixgroup.com for more information.

Do you want to keep on top of federal procurement regulations? Subscribe to immixGroup’s Government Sales Insider blog now!

Filed under Market Intelligence, Marketing, Sales, SLED

“Whole-of-state” is the focus for 2024 SLED 2024 IT spending

February 12, 2024 by Leave a comment

Cybersecurity, AI and efficiency are top priorities

By Benjamin Harris, Market Intelligence Manager, immixGroup

The “whole-of-state” approach to budgeting and collaboration at the state, local and education (SLED) level is among the top drivers behind how technology investment is being directed during 2024.

Of the $138.9 billion budgeted across SLED for 2024, IT services makes up $59 billion. Software products represent $13 billion. By 2025 those numbers may increase to $61 billion for services and $14 billion for software products.

Here are the areas that will lead budget discussion this year for key players in the SLED market. This information was gleaned from an analysis of publicly available budget information from government agency websites, private, subscription-based organizations that track government spending, as well as other open-source material.

State-level highlights

California. California’s IT budget for 2024 is $13 billion. The state’s top IT investments include $198 million for modernization to its Employment Development Department, $126.6 million for COVID-19 response and $93 million for REAL ID. The IT strategic priority for California is delivery of easy-to-use, fast, dependable and secure public services.

New York. New York is committed to a “whole-of-state” approach to cybersecurity. The state’s $5.4 billion IT budget includes $391 million for centralized technology services, $50 million for data analytics and $30 million for technology financing. Priorities include digitizing services, enhancing its cyber posture and creating a “One ID” system for residents to access services across all agencies.

Texas. Out of a $5.4 billion IT budget, Texas’ top IT investments include $323 million for IT oversight and program support, along with $270 million for data center and shared technology services, and $53 million to promote efficient security. Priorities include enhancing data management practices to bolster analytical decision making.

City-level highlights

District of Columbia. DC has a 2024 IT budget of $369 million, of which $17.5 million will go to updating its traffic ticket processing system, and $3.5 million to the P-20W data system to measure and use information on student college and career readiness and outcomes. DC’s IT strategic priorities include improving user-centric digital experiences, IT operations, and infrastructure and cybersecurity.

San Francisco. San Francisco’s strategic goals include prioritizing service accessibility, redesigning operations and introducing innovative services for government modernization. The city’s $291 million budget will earmark $26 million for major IT projects, $10 million to improve data access, and $6 million for security consulting and design services.

Philadelphia. Of $270 million in its IT budget, Philadelphia will invest $11 million in records digitization and storage, $8 million in upgrading cloud solutions and $8 million in data systems for essential services support. The city’s priorities include transforming recreation centers to broadband anchor institutions, updating fire department IT and developing citywide electric vehicle charging.

Chicago. The Second City’s $240 million IT budget includes $50 million for computer hardware, software, peripherals, cloud, and related maintenance and installation services. Chicago’s IT priorities include people-first digital services, securing cities and assets, and creating a data-driven city.

Education highlights

University of Michigan-Ann Arbor. The University’s $523 million IT budget includes a 5 percent increase to base operating appropriations, plus one-time resources for infrastructure, technology, equipment and maintenance. Approximately $70 million will be directed at enhanced enterprise IT security and increased support for data visualization software.

University of California – Los Angeles. UCLA’s $422 million IT budget is focused on infrastructure solutions such as modernizing telephony services to eliminate costly hardware equipment. The university will also focus on application modernization to replace its aging mainframe-based financial aid system, among other modernization activities. 

Chicago Public Schools. With $169 million in its IT budget, the Chicago Public School system is directing $20 million to technology wiring, cabling, and voice network maintenance and support. Another $20 million is allocated to upgrading or replacing the existing ERP system, with $10 million for firewall replacement and related services.

It will be fascinating to watch whether SLED budgeting will match spending realities as we move through 2024. In the meantime, it’s clear that priorities at each level will mirror each other as SLED moves to a fully “whole-of-state” IT philosophy.

Benjamin Harris is the SLED market intelligence analyst for immixGroup, the public sector business of Arrow Electronics. immixGroup delivers mission-driven results through innovative technology solutions for public sector IT. Find out more about immixGroup’s SLED contract vehicles here.

Keep on top of federal procurement regulations. Subscribe to immixGroup’s Government Sales Insider blog here!

Filed under Marketing, Sales, SLED

Quantum computing requires new levels of cybersecurity

January 11, 2024 by Leave a comment

Federal sector expects increase in quantum activity during 2024

By Jimmy Baker and Bruce LaPine, PhD

If you’ve read any federal or state IT publications lately, then you should be familiar with the national cybersecurity concerns surrounding quantum computing. But what is the difference between classical and quantum computing, and what’s in store for federal agencies, both near-term and down the road?

The National Institute of Standards and Technology (NIST) had a deadline of November 22, 2023, for any feedback on proposed standards that could be strong enough to stand up to the threat that quantum computing poses to public sector security.

NIST is defining security standards for the age of quantum computing, along with some definitions of the language associated with the quantum world.

Technology advances create security vulnerabilities

As quantum.gov indicates, quantum-based technologies are already making seismic shifts in the private sector, and government is not far behind. Examples of quantum computing already making a difference in technology, quantum.gov states, include GPS, magnetic resonance imaging, semiconductors and lasers for telecommunications.

Because Quantum Information Science (QIS) and Quantum Information Processing systems (QIPs) are so profoundly revolutionary, their capabilities can be used by adversaries to cause detrimental effects to business, industries and the government sector.

One of the major technology areas that may be affected with the projected power and speed of quantum computing is today’s encryption. Current algorithms take a massive amount of compute power and time to break an encryption code using a conventional computer.  

Quantum computing systems have the ability to perform simultaneous computations at an exponential rate when compared to the linear processes of today’s conventional computers. What would have taken many years with today’s computers can be performed in as little as hours using quantum-based systems.

Because of this extremely short compute time, quantum computing has the unfortunate effect of extinguishing any possible safety factors. Consequently, most currently encrypted transactions involving information exchange are at risk.

NIST algorithms for quantum-resistant encryption

After much research, NIST selected four algorithms that are likely to withstand quantum computer attacks. The agency is working to standardize these algorithms as a last step to enabling organizations around the world to integrate them into their encryption infrastructure.

The proposed standards include:

  • CRYSTALS-Kyber, for general encryption purposes such as creating secure websites (covered in FIPS 203).
  • CRYSTALS-Dilithium, to protect digital signatures when signing documents remotely (covered FIPS 204).
  • SPHINCS+, another proposed algorithm for digital signatures (covered in FIPS 205).

A draft standard for FALCON, the fourth algorithm, which will also address electronic signatures, will be released in about a year, NIST says.

The proposed standards are distinct guidelines that will impact both the commercial and federal sectors. There’s much activity being planned in quantum computing in the federal sector from now through the end of 2024. By familiarizing yourself with quantum topics and the upcoming initiatives being proposed by NIST, you’ll be in better shape to position your offerings properly in the post-quantum information exchange world.

Contact an immixGroup representative about quantum computing and other trends that should be on your radar.

Jimmy Baker is public sector marketing strategist and Bruce LaPine, PhD is security architect for immixGroup, the public sector business of Arrow Electronics. immixGroup delivers mission-driven results through innovative technology solutions for public sector IT.

Visit http://www.immixGroup.com/ for more information.

Want to keep on top of federal procurement regulations? Subscribe to immixGroup’s Government Sales Insider blog now!

Filed under Market Intelligence, Public Policy, Sales, What is...? Tagged with , , , ,

Selling to SLED

October 17, 2023 by Leave a comment

Six basics to follow

By Chauncey Kehoe, Legal Shared Services Manager, immixGroup

Selling to state, local, and education (SLED) agencies is vastly different than selling to the federal market. SLED agencies act as individual entities with their own purchasing requirements and customer service needs.

The differences between SLED and federal sales start with registration requirements for doing business. In Texas, for example, registering with the state doesn’t mean you can sell to each local entity. You may also need to register with the locality’s registrar’s office or their e-procurement platform, as is the case for the city of El Paso.

After local registration, you’ll need to sign up for each bid notification system. Cities, counties, and individual schools may use their own respective notification platforms, so do your homework.

Also, it’s important to know each customer’s and prospect’s fiscal year. Does it begin in July, April, or October? Do they budget annually or biennially? This is important information for discussing and planning projects with your sales targets.

Take these six actions to position yourself for successful selling into the SLED market:

  • Secure your certifications. It’s essential to maintain your Secretary of State Tax Certification wherever you plan to do business. Many companies may be more focused on the sales cycle than on administrative compliance.
  • Maintain good standing where you’re selling. Some states, like Texas, have a comptroller website where you can monitor your company’s “report card” grade. You should aim for a grade of B or better. A low grade on customer service, for example, might hinder you from securing a future contract.
  • Know the procurement process. Does your customer submit procurement requests to a board or through legislation? That answer may depend on the size of the project. It’s up to you to know.
  • Have financing options. For larger projects, consider using a financing office that has worked at the state or local level. This will help ensure you have enough funds to fulfill the contract as you plan internal budgets.
  • Be accessible. Your SLED customers expect you to have excellent customer service and support, and to be available at a moment’s notice. That’s why many companies place offices in close proximity to their customers.
  • Stay current on cybersecurity requirements. Many state, local, and education entities are creating their own certification processes for security requirements. For example, Texas and Arizona have each adopted their own RAMP policies, based largely on FedRAMP and StateRAMP. Requirements vary by state, and even by entity within the same state.

You must understand what each SLED entity requires for RAMP certification. Selling enterprise-level technology may mean checking with state, local and higher education agencies, to ensure your technology complies with specific RAMP programs.

As you can see, selling to the SLED market is not the same as selling to the federal market. SLED often has much more detailed requirements. To succeed and build your pipeline, you have to know the basics. These factors make a good jumping-off point.

Chauncey Kehoe is legal shared services manager for immixGroup, the public sector business of Arrow Electronics. immixGroup delivers mission-driven results through innovative technology solutions for public sector IT.

Visit http://www.immixGroup.com/ for more information.

Want to keep on top of federal procurement regulations? Subscribe to immixGroup’s Government Sales Insider blog now!

Filed under Sales, SLED

Government shutdown threatens FY24 budget approval

September 22, 2023 by Leave a comment

What every government contractor should know if a federal shutdown occurs

By Skyler Handl, Corporate Counsel Public Sector, immixGroup

In recent years, talk of a government shutdown has become common. But what is a government shutdown, how does it impact the public sector industry, and what actions can you take to prepare for it?

A government shutdown occurs when dollars have not been appropriated by Congress to fund government agencies and functions. Consider the Antideficiency Act (ADA), which prohibits government agencies from obligating (spending) funds that have not been appropriated, i.e., authorized by Congress. Developing a budget is a complex political process and a failure to properly plan, coupled with an intransigent Congress can create delays in funding. We often see a continuing resolution (CR) passed as a temporary fix if a formal budget agreement is not reached. A CR caps spending at the prior year’s budget for an agreed-upon period of time. The CR allows the federal government to operate while a comprehensive budget can be passed.

When Congress fails to pass a budget or put in place a CR, government agencies run out of funding. This results in everything from government employees being furloughed to contract awards and payments being delayed. Daily activities generally come to a halt, so as a contractor you can expect your pipeline discussions, active implementation projects, and other engagements with government customers to be postponed. There are some exceptions for mission-essential offices, including those supporting national security, which will be communicated on a case-by-case basis from the contracting officer to their supply chain.

For contractors who have already-funded contracts, a shutdown often delays payment. Contractors may receive ADA exception letters stating that funds have been obligated, but these do not guarantee timely payment. Typically, these orders will be processed two weeks after the government reopens from a shutdown. Contractors should confirm government customers’ ability to accept delivery and process invoices for payment. With many government employees and functions on furlough, the correct customer point of contact may not be available to accept delivery or process payment requests.

During a government shutdown, and shortly after it concludes, it is important to maintain open communication. Prime contractors, resellers and system integrators need to be in contact with their contracting officers to navigate stop-work orders, timing of payment, and delivery or any other challenges that arise. Subcontractors, suppliers, and OEMs should hold regular check-ins with their prime contractors and direct customers to receive flow down and collaborate on forthcoming actions to support the government customer.

With the threat of a potential shutdown, review your forecast and adjust as appropriate, communicate with critical government customers where their support will be needed to continue performance on open contracts, and create a communication plan with your customers and suppliers to quickly share information as it becomes available from contracting officers. Lastly, remain calm. A review of prior government shutdowns indicates they typically last only a couple of weeks.  The longest government shutdown in history was between December 2018 and January 2019, lasting a total of 34 days.

Skyler Handl is legal counsel for immixGroup, the public sector business of Arrow Electronics. Delivering mission driven results through innovative technology solutions for public sector IT. Visit http://www.immixgroup.com/ for more information.

Want to keep on top of federal procurement regulations? Subscribe to immixGroup’s Government Sales Insider blog now!

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SLED fraud prevention needs multilayered solutions

August 30, 2023 by Leave a comment

Data sharing is a key element to combat multibillion-dollar losses

By Benjamin Harris, SLED Market Intelligence Analyst

Because fraud is a constant, complex challenge for government agencies, a multilayered approach — including data sharing, the deliberate ability to make the same data available to multiple agencies — will help you respond and combat attacks. State CIOs have prioritized fraud response, and vendors in the SLED market should position themselves accordingly.

Fraud is a multibillion-dollar problem

What are the financial implications of fraud? The Federal Trade Commission data showed that fraud cost consumers nearly $8.8 billion in 2022. According to the FBI Internet Crime Report (IC3), fraud is responsible for more than $1 billion in losses to victims — most often in the form of technical and customer support or government impersonation that originates from fraudulent call centers.

In March 2023, the Biden Administration issued a proposal to address systemic fraud and identity theft. The Government Accountability Office then introduced an overview of fraud risk management with key areas for federal agency and congressional action.

How a multilayered attack on fraud works

A SLED-level, multilayered plan to combat fraud should be made up of three distinct strategies:

  • Information sharing and collaboration
  • New technologies
  • Verifiable digital credentials

This three-tiered approach requires data sharing among state agencies, as well as educating local entities, leveraging emerging and advanced technology from industry, and implementing fraud detection and prevention legislation. Such legislation would require the allocation of funds to fraud prevention, thereby effectively mirroring federal recommendations for fraud management.

SLED organizations and government agencies must prioritize collaboration and information sharing. Technologies like artificial intelligence, machine learning, and blockchain, can greatly enhance fraud prevention and detection. Verifiable digital credentials should be used as a secure and private way to reduce identity theft. The Brookings Institution recently published information on the power of AI for fraud protection and defense.

What does this mean for vendors? State agencies need collaboration tools, advanced technologies, and identity management solutions. Those who sell to the SLED market should align their technology offerings with the solutions that state government agencies are seeking. They should also make sure their solutions are in alignment with federal agency recommendations for the best approaches to fight fraud.

Benjamin Harris is SLED market intelligence analyst for immixGroup, the public sector business of Arrow Electronics. immixGroup delivers mission-driven results through innovative technology solutions for public sector IT. Find out more about immixGroup’s SLED contract vehicles here.

Keep on top of federal procurement regulations. Subscribe to immixGroup’s Government Sales Insider blog here!

Filed under Sales

SLED funding moves toward a “whole-of-state” model

August 7, 2023 by Leave a comment

Cybersecurity is the first focus in IT approach

By Benjamin Harris, SLED Market Intelligence Analyst

How should federal funding be divided among state and local governments? Starting with cybersecurity, but ultimately extending to all areas of IT, the approach seems to emphasize what’s becoming known as a “whole-of-state” strategy. Vendors should prepare for this new way of thinking by appropriately positioning their IT solutions in this context.

Whole-of state cybersecurity grants

Here are some whole of state funding opportunities related to resource-sharing in cybersecurity:

  • The State and Local Cybersecurity Improvement Act established the State and Local Cybersecurity Grant Program, appropriating $1 billion to be awarded over four years.
  • The Coronavirus State and Local Fiscal Recovery Funds (SLFRF) delivers $350 billion to state, local, and tribal governments across the country to support their response to and recovery from the COVID-19 public health emergency.
  • The Department of Commerce also has a number of grant programs for state and local governments’ technology initiatives. The National Telecommunications and Information Administration (NTIA) offers grants for expanding broadband and digital infrastructure in underserved areas.
  • The Smart Cities and Communities Act, introduced in 2021, proposes funding for smart city initiatives and the development of innovative technologies in local communities. This proposal could provide additional funding for state and local technology projects.

States and agencies already using the whole-of-state model for cybersecurity include:

Get ready for future technology funding trends

While it’s starting with  cybersecurity, this “whole-of-state” approach is likely to eventually apply across all IT technologies. State budgets also will begin allocating funds to more projects for local and educational entities.

Vendors working with state governments should start framing their offerings increasingly as solutions that support not only state agencies, but their local and education counterparts as well.

Benjamin Harris is SLED Market intelligence analyst for immixGroup, the public sector business of Arrow Electronics. immixGroup delivers mission-driven results through innovative technology solutions for public sector IT. Find out more about immixGroup’s SLED contract vehicles here.

Keep on top of federal procurement regulations. Subscribe to immixGroup’s Government Sales Insider blog here!

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How to keep control of the sale during marketplace transactions

July 18, 2023 by Leave a comment

Avoid getting cut out of the deal

By Sydney Herren, Director of Sales, Partners & Alliances

Unpacking the transaction workflow

immixGroup is recognized by Amazon Web Services (AWS) as a designated seller of record (DSOR). As a DSOR, we have rates that are only associated with AWS Marketplace that channel partners can access. immixGroup has an AWS Marketplace dedicated deal desk that assists our channel partners with creating and delivering private offers to their end users. 

Add your terms and services to the offer, if applicable, and then provide the offer to your customer. With an accepted offer, you, your customer, immixGroup, and AWS Marketplace will be notified and the software will be delivered.

Familiarize yourself with Marketplace language

There are a lot of terms to navigate when selling through AWS Marketplace. Here are the ones you need to know:

Channel Partner Private Offer (CPPO): These offers may include discounted rates from the list price of public offers and enable you to customize and configure products.

Public listing: These are offers in which a product is purchased at list price directly through AWS. There is minimal seller involvement, the product is not discounted, and it can’t be changed from the publicly listed configurations.

AWS Enterprise Discount Program (EDP): This private pricing program for enterprises provides a discount for a purchase commitment. Under an EDP, customers are already committed to spending a certain amount within Marketplace, and their budget is “burned down” as products and services are purchased.

Overcome federal procurement obstacles. Sell on your own terms.

As a channel partner, you’re uniquely positioned to provide holistic solutions using the optimal technologies that integrate well and work in harmony. Marketplace offers another way for you to transact deals — and you have the ability to provide custom pricing, licensing terms, and your own additional services. immixGroup provides the resources to bring together the supplier, channel partner, and end customer to provide a seamless transaction flow. This flow overcomes the challenges faced in federal procurement by providing:

• Contract vehicles
• Support for small businesses
• Role-based governance
• Compliant licensing
• Approved product list
• Funding workflow

Control the sale

After all the hours and resources you put in to meet the customer’s needs, it can be incredibly frustrating when your organization can’t take the sale across the finish line. The problem is often when it leaves your hands and goes to the customer’s procurement process.

immixGroup helps you understand how to maintain control throughout every step of the sales cycle, even when it’s out of your hands.

• Align AWS Marketplace features and programs to meet common needs for federal procurement officers.
• Streamline procurement from years to weeks.
• Reduce costs for buyers and sellers across government.
• Ensure transactions meet the scope of government regulations.
• Provide governance controls to ensure continued compliance.

Read more details about immixGroup Marketplace at Marketplaces are here to stay (immixgroup.com). Increase your sales potential by leveraging AWS Marketplace and contact an immixGroup representative to get started.

Sydney Herren is the director of sales, partners and alliances for immixGroup. This public sector business of Arrow Electronics delivers mission-driven results through innovative technology solutions for public sector IT demands.

Visit http://www.immixgroup.com/ for more information.

Want to keep on top of federal opportunities and regulations? Subscribe to immixGroup’s Government Sales Insider blog now!

Filed under Channel Management, Market Intelligence, Marketing, Sales Tagged with , , , ,

Time’s run out for TikTok with government contractors

June 7, 2023 by Leave a comment

New FAR and state rules clamp down on the social media platform

By Skyler Handl, Corporate Counsel Public Sector

You’ve likely heard the rumblings in the news, at both the federal and state levels, regarding national security concerns and the popular social media application TikTok, owned by ByteDance. On August 6, 2020, President Trump issued Executive Order 13942 banning the use of TikTok in the United States. TikTok received a preliminary injunction that prohibited the enforcement of the executive order, and President Biden rescinded the executive order in 2021. In early 2023, Congress acted to renew the effort to restrict TikTok. Their action included a prohibition on TikTok in the Consolidated Appropriations Act 2023 which directed the Office of Management and Budget (“OMB”) to further implement the ban. OMB released guidance (M-23-13) on February 27, 2023, extending the prohibition to federal contractors.

On June 2, 2023, the FAR council published FAR Case 2023-010 ( Prohibition on a ByteDance Covered Application). This interim rule amends FAR part 4, adding a new subpart 4.22, Prohibition on a ByteDance Covered Application, with a corresponding new contract clause at 52.204–27, Prohibition on a ByteDance Covered Application. The FAR clause at 52.204–27 prohibits contractors from having or using a covered application, including TikTok or any successor application of TikTok, on any information technology owned or managed by the federal government or on any information technology (IT) used or provided by the contractor under a contract, including equipment provided by the contractor’s employees.

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Debt ceiling deal impacts IT budgets

June 1, 2023 by Leave a comment

What federal IT contractors need to know about the legislation

By Grier Eagan, Senior Market Intelligence Analyst

With the expected passing of the debt ceiling legislation, which locks in federal civilian spending until January 2025, contractors who sell IT to the government face a shifting landscape. While the Federal Civilian FY24 IT budget will cap at $56.4 billion, identical to the budget passed in FY22, opportunities still exist for those nimble enough to adapt.

Despite this cap representing a $6.9 billion decrease from the IT budget originally requested for FY24, IT vendors should take solace in the fact that the FY25 budget will see a marginal 1 percent increase. However, considering the current annual inflation rate of 4.93 percent as per the Consumer Price Index, this means that the federal civilian government will have approximately 4 percent less buying power under the FY25 budget than the FY24 budget.

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