Federal Government Spending: The Top 10 Special Item Numbers (SINs)
Just like the commercial world, it’s important to periodically research what the current federal marketplace looks like and where it may be headed. Tracking federal government spending allows you know which agencies are spending the most money and what they are most interested buying. As we move through the 3rd quarter of Fiscal Year (FY) 2022, the government is gearing up for the Q4 spending spree, so it's important to take note of agencies' procurement habits and how your business can prepare.
In this article, we'll break down recent federal government spending including overall government spending and how it influences the top 10 General Services Administration (GSA) Special Item Numbers (SINs).
Overall Government Spending
Before we launch into the top 10 Special Item Numbers (SINs), we’ll give a brief overview of government spending overall. In 2021, the federal government spent $6.82 trillion dollars—which is 30% of the total GDP of the U.S. and was $300 billion more than last year’s spending.
Health, defense, and social security were the 3 largest categories of spending. Contractors in these sectors will most likely continue to see an increase in purchases from the federal government.
Here’s a breakdown of the top spending of departments, programs, and administrations:
It’s also important to look at what's on the horizon. The Biden Administration’s stronger focus on Buying American means that the federal government will be procuring more domestic products and services in the future. This includes food, clothing, fabrics, iron, steel, manufactured products, and construction materials.
Government Contract Spending
Let’s narrow or scope of analysis from total government spending to specific contract spending. The U.S. government is a monolith organization striving to stay competitive in the 21st century. This means government agencies are spending twice as much on Information Technology (IT). IT modernization has been a big push the past few years, and it will not stop anytime soon. Here are the top industries through the GSA Multiple Award Schedule (MAS) program:
- Information Technology (IT): $20.3 billion
- Professional Services: $9.3 billion
- Industrial Products and Services: $2.3 billion
- Transportation and Logistics Services: $1.4 billion
- Human Capital: $1.2 billion
- Office Management: $1.2 billion
- Facilities and Construction: $1.1 billion
- Security and Protection: $624 million
- Travel and Lodging: $550 million
- Clothing, Textiles and Subsistence: $289 million
Top 10 Special Item Numbers (SINs)
As we witnessed above, the federal government is allocating more money on IT than ever before, and the numbers prove it. So far this year, the government has spent $5.7 billion on the top 10 SINs through the Multiple Award Schedule (MAS) program. Of these 10 SINs, 4 of them are in the Information Technology Large Category counting for $3.9 billion or 68% of the top spending. As agencies rush to update and secure their IT infrastructure, the trend of high-level spending in this sector will continue.
Here are the top 10 SINs from FY 2021:
- 54151S: Information Technology Professional Services: $2,498,570,799
- 54161: Management and Financial Consulting, Acquisition and Grants Management Support, and Business Program and Project Management Services: $1,170,053,267
- 511210: Software Licenses: $874,080,013
- 541330ENG: Engineering Services: $310,450,822
- 518210C: Cloud and Cloud-Related IT Professional Services: $179,113,795
- 33411: Purchasing of New Electronic Equipment: $178,324,089
- 561210FAC: Complete Facilities Maintenance and Management: $155,080,025
- 541614: Deployment, Distribution, and Transportation Logistics Services: $147,781,421
- 541715: Engineering Research and Development and Strategic Planning: $144,906,961
- 561599L: Lodging Negotiations and Management Services: $139,953,994
Using Government Spending Research to Your Advantage
With your GSA Schedule, you have a unique opportunity to sell to federal as well as state and local government agencies. Just like you conduct market research on your commercial customers, you should make sure you take the time to know how your government customers are allocating their budgets and what their spending habits are.
Once you have done your research, the best way to pursue new contracting opportunities and exploit the increased spending is by ensuring that your products and services are updated on GSA Advantage!, you are compliant with your sales practices, and your invoices are current. You should also make sure you are maximizing your web presence and effectively actively marketing your GSA Schedule.
If you want to learn more about how you can stay on top of your GSA Schedule and search for contracting opportunities, you can check out our blogs, sign up for our monthly newsletter, or contact one of our consultants.