It's projected that federal spending on contractor-supplied Information Technology (IT) products and services will grow from $104.2 billion in FY 2018 to $116.4 billion in FY 2023 at a compound annual growth rate (CAGR) of 2.2% Governed by Federal Acquisition Regulations, this market is composed of key verticals, such as law enforcement, healthcare, defense and more.
Though federal purchasing occurs year round, the buying season is Aug. 1-Oct. 31, peaking Sept. 30 when federal budgets expire. Federal purchase orders must be issued by Sept. 30 in order to be included in current the year's budget.
For 2019, the federal government is expected to spend $107 billion on their federal IT initiatives. The key drivers and technologies include cybersecurity, modernization, mobility, data center optimization, IOT and cloud services for the upcoming buying season. Tech Data recognizes the priority the federal government has given these areas and has developed services and technology-focused business units to help our customers navigate the federal market.
One new service Tech Data has to offer is partnering on our GSA schedule 70. We have several vendors participating today and anticipate more vendors in the future. Our Public Sector team can facilitate the onboarding process in order to leverage the opportunity a GSA schedule provides.