In the government contracting marketplace, it’s important to analyze trends so you can put your company in a position to capitalize on opportunities. When studying trends, it’s beneficial to look at the full picture—new trends will appear, and old trends may remain as well. We all know that our society moves fast when it comes to some trends like fashion and social media, but the government isn’t always as quick, especially since initiatives and regulations take time to be put in place. In this blog, we will look at 5 upcoming trends we expect to see in 2024. If you’d like to compare 2023 trends, check out this blog.
Technological expansion will continue to shape the federal sector in 2024. In the past year, we saw a remarkable surge in prioritizing technological advancement, with Artificial Intelligence (AI) emerging as a pivotal focus for sustained growth in the coming year. The integration of AI into daily operations has yielded many advantages, however the government has also been careful to place an emphasis on the security of AI. In the fall of 2023, the Presidential Administration released an Executive Order (EO) on “Safe, Secure, and Trustworthy Artificial Intelligence,” creating new standards for AI safety and security, specifically safeguarding data privacy.
The federal government plans to use AI across a variety of use cases including healthcare, transportation, the supply chain, and the environment and integrating it with supporting services, so we expect to see an increase in contracting opportunities in these sectors, especially related to AI development and safety.
Emerging technologies are intertwined with cybersecurity innovation, training, and investments. As technology advances like AI mentioned above, so does the need for security. We have growing cyber threats as it has become one of the primary attacks in the modern age. The government has put extra emphasis on protecting our data. A significant reason for this upgraded focus on cybersecurity has been the rapid changes in information technology advancement. The capabilities and connectivity of cyber devices and communications have grown exponentially in the past few years. So have the cyber threats from malware and hackers, requiring a restructuring of priorities for agencies.
Following major data leaks and increased vulnerability, the federal government has implemented several initiatives related to cybersecurity, including strengthening and implementing new Federal Acquisition Regulation (FAR) clauses and an EO on “Improving the Nation’s Cybersecurity.”
As we wait to see the exact government appreciation for 2024, it's essential to position your company to be in front of buyers so you can capitalize on these appropriations. One way to set yourself up for success is to ensure you've got the contract vehicles federal agencies may favor to make their buys, such as the GSA Multiple Award Schedule. (MAS) Program.
In 2024, many investments will be pushed through the standing indefinite delivery, indefinite quantity vehicles (IDIQs), and new ones will be developed to actively acquire new contractors. This is due to having such a compressed buying period for the remaining IDIQs, and an increasing need to acquire advanced solutions quickly and efficiently. Federal buyers will not only be looking for solutions, but they're also going to be looking for easy ways to get at those solutions.
As a contractor, we encourage you to think about this now and look into the upcoming IDIQ vehicles to see if any of them make sense for your business. You can take a look at some of the active and upcoming vehicles here.
A common trend in 2023 was prioritizing small businesses in government contracting. We look for this to continue to expand in 2024. The Biden-Harris Administration set a goal to increase annual spending on small businesses, including increasing spending goals and expanding programs to assist small businesses in the government contracting world. Federal spending is growing in small business set-aside contracts, especially Small Disadvantaged Businesses (SDBs). The small business size standards were also modified, meaning a lot of medium-sized businesses now qualify as small, allowing for more opportunities for contractors to compete in small business contracts.
If you are a small business or think you may now qualify, we encourage you to look for increased business opportunities in 2024.
We are still recovering from the effects COVID-19 and other global events had on our supply chain, so this trend will continue into 2024 and probably for the next several years. Global supply chain issues have greatly affected the availability of essential products and services. To mitigate this, the federal government has placed a heavier emphasis on supply chain security and rebuilding our domestic manufacturing capacity through several EOs. This means producing more domestic content and shifting the focus to American-made materials. The government will continue to value supply chain security and capacity in the future.
After reading this blog, you hopefully better understand what’s to come for 2024. We encourage you to do a little more research into the specific trends related to your offerings. If you have any questions, need help managing your GSA Schedule, or are interested in getting your own GSA Schedule/partnering with a GSA reseller, feel free to contact one of our consultants. We are here to help and guide your company in the right direction.