In the United States, every state has their own budget that dictates what they can spend on goods and services throughout the year. As you might imagine, some states’ spending far exceeds others due to a variety of factors including  a state’s population, the number of government agencies operating within the state, the types of projects it wants to undertake at the state level and the number of schools, public service utilities and emergency departments it operates, to name a few. However, just because one state spends more money than another doesn’t necessarily mean that they issue a higher number of contracts in a given year; in fact it’s common for a state with a lower total spend to have solicited for and awarded a higher number of contracts than a state that spent more money.

The charts below provide a comparison of the top 10 states in terms of contract spending for 2014 and 2015, along with the total number of contracts awarded in each state.  

*Source: USAspending.gov State Profiles: Contracts Data

It’s interesting to note that, although nine of the top 10 states in terms of contract spending remained the same from 2014 to 2015, there was a significant increase in the total number of contracts awarded in 2015. Despite this, contract spending did not increase in all of the states. Most surprising is the fact that Virginia, Pennsylvania and New York all experienced large increases in the number of contracts they awarded in 2015 compared with 2014, but each of these states paradoxically spent fewer funds in 2015 than they did in 2014. One possible explanation for this is that large service contracts may have been broken down into smaller contracts, each of which were then bid on by smaller companies at lower prices, resulting in more contracts being awarded for a smaller total spend.

Top Industries for Government Contracting

After decades of operating in the government bidding industry, we at BidNet have identified the top industry sectors that government agencies solicit products and services from: they are construction, architecture and engineering, information technology, consulting, janitorial and cleaning services, security and safety, and landscaping services. One thing that these sectors all have in common is that they are needed on a consistent basis; they must be provided seasonally or on a regular basis in order to maintain the operation of government agencies, towns, cities, hospitals, schools, and other public facilities.

Even if your business operates in an industry outside of the top government contracting sectors, chances are there are still government agencies that have a need for the products and services you sell. Agencies, towns, cities and other public entities must source everything they need to maintain their day-to-day operations, and this means that vendors and suppliers of all kinds are in high demand year-round, from janitorial service providers to information technology consultants. If you are an experienced provider that can help an agency achieve their goals and objectives, they won’t hesitate to purchase from you. 

GSA Top 10 Contracts

The General Services Administration (GSA) Schedule shows the top 10 contract types for overall government spending, which are:

• Information Technology Equipment, Software and Services
• Professional Services
• Mission Oriented Business Integrated Services (MOBIS includes consulting, facilitation, quality assurance, analysis, strategy formulation, advisory and assistance, research, and training to acquisition and program support)
• Professional Engineering Services
• Total Solutions for Law Enforcement and Security
• Furniture
• Financial and Business Solutions
• Hardware Supplies
• Office, Imaging and Document Management Solutions
• Scientific Equipment and Related Services

Knowing this information may help you see where the best opportunities are when it comes to doing business with the government and if you’re able to expand outside of your state, you may find yourself winning more contracts. Also, knowing which industries are more popular than others can help you understand the competitive environment better and will allow you to be more prepared in your approach to bidding. 

Danielle Calamaras | BidNet.com