Although defense budgets for this year were approved in 2020 under the last administration, many have anxiously awaited the new administration’s rollout of spending for the next few years. While political pundits duke it out over the necessity of many of the changes and initiative shifts, government contracting is going to see different industries and businesses take a front seat in contract acquisition and awards. If you are looking to break into government contracting for the first time, here are some of the hot spots and key points to note as you throw your hat into the ring.
Infrastructure Development in Construction and Cybersecurity
Modernization seems to be the focus on every level, and some industries are taking center stage for the first time since post-WWII infrastructure investment. Industries such as construction and cybersecurity will be at the top of the list for modernizing the military and federal agencies.
A large portion of spending will be on upgrades to public schools, VA hospitals, and old federal buildings. Additionally, about $115B is allotted for fixing roads and bridges and making architectural upgrades to ports, airports, and transit systems. So if you are a construction company looking for reliable income, here is a great way to break into federal work because the opportunities are plentiful.
Big Opportunities for Small Businesses
Small businesses are about to see more opportunity as a whole. With an intention of closing the racial wealth gap, the Biden budget is pushing for $100B of new opportunities for disabled and minority-owned small businesses. This would be a 50% increase in contract allocations for small businesses by 2026.
With a large portion of 8(a) businesses being minority-owned, and 40% of those businesses operating within the construction industry, there will be plenty of opportunity for this to be where we see the most growth.
IT and cybersecurity are two hotbeds for opportunity as well, especially in the aftermath of the SolarWinds breach. Federal agencies are looking towards cloud-based systems, which will not only necessitate new technologies but a huge increase and upgrades in cybersecurity protection.
Not to mention the need to bring in cyber professionals from commercial business to in-house, federal jobs to increase protection of internal processes and procedures. Cyber threats are on the rise and looming issues with China and Russia are motivating the government’s push to increase cyber standards for federal agencies and government contractors alike.
Cybersecurity and the Biden Budget
It is a matter of National Defense in terms of strategically using IT for military mission success and improving cybersecurity. The goal is to not only protect the data of the American people but that of our military and keep our information out of the hands of our enemies abroad. Much of this portion of the budget is set aside for investigating cybercrimes, protecting against recurrence and new threats, and upgrading military equipment to include cloud-based communication across the board.
In the last big piece of the pie, the majority of the money is going into research and development of standards and practices in cybersecurity and toward medical advancements for Alzheimer’s, virus protection, and vaccinations.
The new budget outline wasn’t a surprise to most. The new opportunities are giving rise to small businesses within construction, technology, and medical research and development in the perceived post-COVID world. So, let’s get to work!