The rapid evolution of information technology has shaped virtually everything in today’s world, including how the federal government functions. For years, the government has lagged behind industry advancements for various reasons. As the Office of Management and Budget (OMB) puts it:
“The Federal Government largely missed out on that [IT] transformation due to poor management of technology investments, with IT projects too often costing hundreds of millions of dollars more than they should, taking years longer than necessary to deploy, and delivering technologies that are obsolete by the time they are completed.”
The Office of the Federal Chief Information Officer (OFCIO), within the OMB, released their “2024 Impact Report,” where they breakdown federal progress that occurred in several key IT areas under the Biden-Harris administration (note: the report is currently unavailable online, but we have saved a copy here to view). Read on to learn more technological advancements the federal government made in the last four years, with an outlook on how efforts in these realms may change under the Trump administration.
Cybersecurity
The 2024 Impact Report discusses some key advancements the federal government has made in cybersecurity, as well as highlights how imperative continued advancements in cybersecurity are. Among these developments is the initiative to make federal agencies “quantum-resistant,” meaning that they are protected from the risk quantum computing has on encrypted information.
Another highlight was the establishment of interagency evaluations of significant supply chain risks in the federal procurement of information and communications technology (ICT). Finally, OFCIO discussed the importance of collaboration in cybersecurity advancements, particularly in the guidance this office and the Office of the National Cyber Director (ONCD) released on budget prioritization.
We have seen the government’s prioritization on cybersecurity evidenced in the federal procurement world. The General Service Administration’s (GSA) Multiple Award Schedule (MAS) Program has seen $905M spent on cybersecurity from federal agencies in the fiscal year 2024. This is part of a trend in increased spending, up from $604M in FY2023 and $362M in FY2022. Moreover, these numbers are only for this contracting vehicle and doesn’t account for government spending through other vehicles, such as OASIS+. While the spending is uncertain right now with the new administration finding ways to trim budgets, cybersecurity is certainly an area that Trump will prioritize.
In Trump's first term, he accelerated cybersecurity regulations to try to protect sensitive information from hackers and breaches. The Cybersecurity Maturity Model Certification (CMMC) was created under the Trump Administration, and now that it's finalized, we can expect to see this requirement appear in several future solicitations.
Technology Modernization and Data
Efforts to modernize the IT landscape in the federal government, particularly in accelerating the adoption of cloud computing products and services, have seen a lot of changes at the policy level. The report headlines the codification and expansion of the Federal Risk and Authorization Management Program (FedRAMP), which assists with the adoption of cloud computing technologies among federal agencies. The report also lists the adoption of “Zero Trust” data security policy, and partnerships with GSA and the National Archives and Records to build and maintain open data tools and resources.
Again, a focus on cloud computing has been seen in trends in federal procurement spending. GSA’s 518210C Special Item Number that defines procurement for cloud computing technologies on the MAS program has seen $1.5B spent by the federal government in the fiscal year 2024, up from $851M in FY2023 and $993M in FY2022.
Under the Department of Government Efficiency (DOGE), the Trump administration plans to focus heavily on technology and software modernization, so we might see an increase in the need for cutting edge and efficient technology solutions.
Digital Service Delivery
Anyone who has used a federal website, database, portal, or otherwise, knows that the government is lacking in the latest innovations in website design, functionality, and user interface experience that is standard in commercial spaces. With key public services being distributed through the federal government, and the increasing move towards the digital landscape, OFCIO highlights improving the user experience and functionality across federal websites.
Key improvements OFCIO has outlined in this report include a series of memorandums released calling for innovation in federal website standards, digital public experience, and strengthening digital accessibility, especially as it relates to Section 508 of the Rehabilitation Act. Like the other 3 major aspects of this report, OFCIO cites an increase in budget allocation to web modernization efforts meant to improve digital service delivery.
Artificial Intelligence (AI)
AI is a hot-button issue for both the commercial and government worlds. In the 2024 Impact Report, OFCIO takes the stance that the government must keep pace with the rapid evolution of technologies like these, and that it must serve as a model for how to responsibly integrate AI into operations. The report highlights the Executive Order (EO 14110) in 2023 on governmental use of AI, and the investments of $30 billion allocated for federal use of AI. OFCIO also elaborates on their efforts in training the federal workforce in AI, and key use cases where AI utilization has benefited agency operations across the government.
In federal procurement, we are seeing an increased interest in AI across multiple Requests for Proposals (RFPs) and contracting vehicles. For example, the Government Wide Acquisition Contract (GWAC) Alliant 3 now includes AI in its scope for sought IT services. Outside of IT specifically, we are also likely to see AI emerge in the scopes of other procurement projects, such as healthcare, transportation, and disaster response.
In the new administration, we can expect a continuing increase in the need for AI products and services, but there will most likely be a decrease in stringency with the current AI framework from 2023. There will also be stricter regulations on trade with China related to AI.
Outlook on Federal IT Advancements in the New Administration
It is standard for federal priorities to shift when new administrations take over. IT initiatives tend to endure administration changes because IT is, generally, a bipartisan issue. For the four categories above, the previous Trump administration has supported advancement efforts in each, but the degree to which those efforts align with the Biden administration efforts are expected to vary.
In cybersecurity, for example, the Trump administration has also supported quantum-resistance initiatives; on the other hand, we will likely see a significantly different stance on AI as we mentioned above. While the Biden administration underlined regulation as a priority in incorporating AI into federal use, the Trump administration is expected to reduce regulation in favor of supporting innovation.
Federal Procurement Outlook
Regardless of shifts in priorities across administrations, federal procurement of IT products and services is expected to grow. Through the GSA MAS program, IT-related products and services regularly accounts for over half of the spending that goes through that program. If you are interested in learning more about government contracting and the GWACs discussed in this article, reach out to Winvale’s team of contracting consultants and acquisition experts.
