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Industry Landscape
The U.S. federal government contracting industry is robust and complex, driven by significant government spending across various sectors. It is characterized by evolving regulations, intense competition, and a constant need for specialized professional services. Organizations like PSC play a crucial role in advocating for contractors, providing market intelligence, and facilitating networking to navigate this intricate landscape and foster efficient public-private partnerships.
Total Assets Under Management (AUM)
Total U.S. Federal Contract Spending in United States
~Around $700 billion USD annually
(3-5% CAGR)
Growth is driven by: Defense spending priorities. Increased demand for IT and cybersecurity. Infrastructure and healthcare investments.
Total Addressable Market
700 billion USD
Market Growth Stage
Pace of Market Growth
Emerging Technologies
Artificial Intelligence (AI) in Acquisition
AI and machine learning will automate procurement processes, enhance data analysis for contract awards, and improve fraud detection.
Cybersecurity Mesh Architecture
This distributed approach to security will protect federal systems and contractor data by establishing a more resilient and adaptable defense perimeter.
Blockchain for Supply Chain Transparency
Blockchain technology will provide immutable records for supply chain transactions, enhancing trust, traceability, and mitigating counterfeiting risks for federal contractors.
Impactful Policy Frameworks
Federal Acquisition Regulation (FAR) Updates on Cybersecurity (Ongoing)
Recent and ongoing updates to the FAR emphasize stricter cybersecurity requirements and supply chain risk management for all federal contractors, particularly CMMC.
This directly impacts contractors by mandating significant investments in cybersecurity infrastructure and compliance, affecting their ability to bid and perform on federal contracts.
Infrastructure Investment and Jobs Act (2021)
This bipartisan act provides significant funding for infrastructure projects, including broadband, transportation, and clean energy, creating new contracting opportunities.
The act generates a surge in demand for professional services related to infrastructure development, offering substantial new revenue streams for federal contractors.
Buy American Act Enforcement and Domestic Preference (Ongoing)
The Biden administration has increased emphasis on strengthening 'Buy American' provisions and domestic preference in federal procurement, requiring more U.S.-made content.
This policy pushes federal contractors to prioritize domestic sourcing and manufacturing, potentially altering supply chains and increasing costs for some.
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