Technology and innovation are the driving force that is motivating the federal contracting of the United States to serve and protect its citizens. It is high time the government collaborates with contractors to develop cutting-edge solutions to do this effectively.
It must also educate its acquisition workforce to guide the procurement process effectively and implement safeguards to protect its accomplishments. It is a difficult but worthwhile endeavor that federal contractors are eager to take on in collaboration with their government customers. Keep reading as we outline the top trends we expect to witness in this domain in 2023.
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Data Analytics
Data analytics is becoming essential for businesses of all sizes, including the biggest government contracting companies in the USA. It can assist contractors in better understanding their performance metrics than ever before. This technology can also assist them in identifying growth areas within their contracting base.
As technology advances, data-driven decisions in government contracting will become even more important. The government looks forward to appointing professional data analytics to handle these functions.
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Better Support to Small Businesses
The U.S. government plans to increase its support to small businesses. It plans to do it through various programs and initiatives. In 2023, we can expect more programs to help small businesses compete with larger companies for federal contracts.
These new initiatives may include access to funding grants, technical help programs, or tax incentives. Moreover, the Small Business Administration (SBA) plans to expand its outreach efforts. It intends to ensure that more small businesses get qualified for socioeconomic status awards. It also aims to create the greatest awareness of small business government contracts.
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Artificial Intelligence and Automation for Small Business
Technology remains an important factor in government contracting. Agencies attempt to reduce manual processing costs. It also aims to improve their ability to process large amounts of data in less time. It leads to the demand for automation tools in the federal contracting domain.
AI has become one of the top choices for applications such as predictive analytics. It can help government agencies make better decisions while selecting contractors. It can also assist them in better evaluation of contractor performance over time. Furthermore, AI can simplify complex tasks that involve large amounts of data. It is a time-saving and cost-saving technology for federal agencies.
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Inclusion and Diversity
It is another federal contracting trend to watch for in 2023. Government agencies have become more aware of diversity and inclusion in contracting. It aims to assist small businesses of minorities, women, veterans, and other groups. Apart from this, it also plans to improve workforce management and resource allocation in 2023.
SBA has created programs such as 8(a), HUBZone, WOSB/WBE, and VOSB/SDVOSB designed to help these businesses. These programs give small businesses access to sole-source award opportunities they did not have earlier.
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Revision in Procurement Policies
The federal government is making efforts to update its procurement process. The Office of Management and Budget (“OMB”) recently issued a memorandum. It entails plans to streamline procurement processes across all executive departments and agencies.
These reforms include increased use of technology and data-driven decision-making. It also includes greater contract term flexibility and better contract supervision. This reform can also help in increasing outreach efforts to potential vendors. It is a much-needed step as per the experts from the biggest government contracting companies in the USA.
Bottom Line
We expect these trends to be important to the federal contracting industry in the coming year. Agencies plan to move forward with robust investment plans with budget increases. Businessmen seeking government contracts should consider these trends to maximize every opportunity. Companies must always pay close attention to the most recent market intelligence to succeed.