The Top Federal Government Contracting Trends for 2022

Posted by Nick Schiffler on January 13, 2022

Capital Building

Now that the 2021 calendar year is behind us and federal agencies are ramping up in 2022, it’s a good time to take stock of the coming year, examine the topics most relevant in contracting today, and game plan for how to succeed over the next 12 months.

In this blog, we will review the top federal government contracting trends that we expect to have the greatest impact on the U.S. federal over the course of 2022. These trends were presented in our recent on-demand webinar hosted by Kevin Plexico, Deltek’s SVP of Information Solutions. If you’re trying to ensure that your federal government contracting business is best prepared for what’s to come this year, take note of the below four topics and ask yourself if you have the knowledge and tools you need.

Federal Government Spending Outlook in 2022

The overall future for federal funding is bright – while the Build Back Better plan is (at the time of this writing) still in limbo, a number of spending initiatives are expected to create opportunities for contractors in 2022.

One of the most talked about has been the Infrastructure Investment and Jobs Act (IIJA), which adds roughly $550B to already planned infrastructure appropriations. About 2/3 of this funding will be doled out to state, local and education government agencies, industry and individuals, still leaving a significant amount for federal agencies. This investment will cover a number of areas including major roadway and bridge projects, power infrastructure, passenger and freight rail and broadband infrastructure.

Expanding Compliance Requirements

GovWin analysts are seeing an increased level of compliance requirements, which is one of the reasons companies diversify once they get into the federal government contracting market – they’ll get a landing spot with one agency and then branch out to others.

Among the different compliance areas that contractors should watch in 2022 is the federal contractor vaccination mandate. As of the time of this blog, enforcement of this mandate is currently on hold nationwide due to a number of legal challenges – something worth keeping a close eye on. Supply chain security and compliance, climate change compliance and compliance measures related to diversity and equity should also be top of mind for those selling to the federal government.

Focus on Small Business Policies

The coming year is likely to bring an even more sharp focus within the federal government to help small businesses succeed and grow. That increasing focus on small business policies, which includes raising the Small Disadvantaged Businesses (SBD) goal to 15%, could create more opportunities for smaller contractors and firms willing to partner with small businesses. The government is also seeking to eliminate contracting barriers to small businesses in under-represented communities.

Government Contract Consolidation

The number of firms receiving federal awards is declining despite significant increases in federal spending driven in part by two factors:

  • Agencies adopting IDIQ contracts offering fewer prime positions
  • Barriers to entry driven by rising contract compliance requirements (for example, the updated CMMC measures)

As there’s more focus on IDIQs and contract consolidation, there could be more bundling and fewer prime positions for large and small businesses available.

Understand Federal Government Contracting Trends and Grow Your Business

If you want your business to get ahead of the competition and win more federal government business in 2022, understanding these key trends is a good way to start.

GovWin’s Federal Government Contracting Trends for 2022 on-demand webinar can help you gain a clear understanding of the market conditions that impact the federal government contracting space, and give yourself the knowledge you need to develop a winning public sector contract strategy in a competitive market. Click the link below to register for the webinar today.


 

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