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Aspiring 8a

IT Modernization Boosts GSA/GWAC Spending in 2019

Federal Agencies are showing greater interest than ever before in utilizing GSA/GWACs for their Information Technology modernization needs. Only three agencies are authorized by the OMB to manage GWACs (Governmentwide Acquisition Contracts). The General Services Administration, NASA and the National Institutes of Health. This to some extent gives the GSA a monopoly on the lion’s share of federal IT spending. Additionally, this limits the number of GWACs to less than a dozen.

Why GSA IT70?
The easiest IT GWAC for firms to obtain a position in is GSA IT70. This is because it has open enrollment and firms only need to meet the requirements for the schedule, rather than competing with other firms for a position. IT70 is generally considered the first stop for entering the Federal IT space.
   
Federal IT Sales Data Overall
1.  Federal IT spending overall is $95B annually
2.  Federal IT spending with small business is $20B annually


Small Business Stats for IT70
1.  80% of all vendors on IT70 are small businesses
2.  40% of sales dollars on IT70 are with small businesses
3.  25%+ of all Federal Small Business IT Dollars are spent on IT70
4.  $5.5B Federal GSA IT 70 small business sales
5.  $1.4MM is the average small business IT70 Contract holder schedule sales per year 
6.  3,900 is the current number of IT70 small business schedule holders

Federal Computer Weekly:  “In general, GSA/GWACs continue to see strong agency investment… overall agency spend through the GSA's IT GWACs, such as IT Schedule 70 and Alliant II, is up over 9%.

As you can see below, Bloomberg Government shows similar results for GSA/GWACs performance during 2019.

GWAC Spending Has Nearly Doubled Since FY2015

Dollars in Billions by Fiscal Year

2015 - $9B

2016 - $12B

2017 - $13B

2018 - $15B

2019 - $17B


If you are considering either getting on GSA Schedule and/or acquiring your 8(a) Certification, I usually recommend exploring both options simultaneously as there are redundancies in the application process which also typically results in a significant cost savings. Either way, most consultants agree that a GSA Schedule is a great first step when entering the federal marketplace. I also always recommend contacting an industry expert that can among many things help your firm determine whether you should view the federal government as a growth area for your business. Advance GSA is one such outfit that continues to have a lot of success getting businesses on GSA Schedule. They do not charge for an initial consultation and can be reached at (303)810-4580.

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