The Federal Government is the world's largest buyer of goods and services. With federal spending rising in several sectors in 2023, it's the perfect time to explore federal contracting.
In 2022, the total obligations of the federal government reached $6.8 trillion. The Department of Defense led the way with $3.1 trillion, followed by the Department of Health and Human Services at $1.3 trillion, and the Department of Veterans Affairs at $1.1 trillion. The industries that saw the most obligations were professional, scientific, and technical services ($1.2 trillion), construction ($900 billion), and manufacturing ($800 billion).
As of June 30, 2023, the total obligations for FY23 are already at $4.3 trillion. The Department of Defense, Health and Human Services, and Veterans Affairs continue to lead in obligations. The professional, scientific, and technical services industry remains at the top, with construction and manufacturing following closely.
Information Technology (IT)
The government is investing heavily in IT. In 2023, spending is set to increase by 6%, reaching $156.2 billion. This is driven by the need to update systems and improve government operations. This surge in spending represents a significant opportunity for businesses in the IT sector.
Healthcare
The healthcare sector is also seeing a boost. With an 8% increase in spending planned for 2023, the total will reach a massive $813.3 billion. This is due to an aging population and expanded coverage. Businesses in the healthcare sector can take advantage of this upward trend.
Defense
Defense remains a key area of federal spending. 2023 the budget will grow by 4.7%, hitting $778.7 billion. This is to ensure military strength and readiness. This growth opens up a range of possibilities for businesses in the defense sector.
Energy
The government is committed to a greener future. Energy spending is set to rise by 7.4% in 2023, reaching $61.4 billion. This is part of reducing reliance on imported energy and developing sustainable sources. This increased spending offers excellent potential for businesses in the energy sector.
Transportation
Transportation is another area of focus. With a 6.4% increase in spending planned for 2023, the total will reach $84.3 billion. This is to support infrastructure projects and accommodate population growth. For businesses in construction and logistics, this represents a significant opportunity.
These sectors are just the start. The federal government is a vast market, and it's open for business. But winning contracts is about more than knowing where the money is. It's about understanding the procurement process, building relationships, and delivering quality.
At USFCR, we're here to help you navigate the world of federal contracting. We have the expertise to guide you through every step of the process. Take advantage of these opportunities. Contact us today, and let's get started.
To speak with a Registration and Contracting Specialist, Call: (866) 216-5343
