Government agencies have increased information technology contract obligations to small businesses from $23.8 billion in fiscal year 2019 to $26.2 billion in FY 2020, Bloomberg Government reported Monday.
If trends continue, agencies could obligate $28.3 billion in IT work to small businesses in FY 2021, BGOV noted.
Small businesses have received $3.1 billion in government IT funds to date, the report states.
According to BGOV, the departments of Defense, Health and Human Services, Veterans Affairs, Homeland Security and the Treasury led the spending for small business IT contracts in FY 20.
BGOV data shows that the largest amount of obligations to small businesses in FY 20 was made through NASA“™s Solutions for Enterprise-Wide Procurement V government-wide acquisition contract.
Agencies also “relied heavily“ on small business contractors for digital transformation, cybersecurity and digital services in FY 20 and spent $530 million for AI contracts to small businesses, BGOV noted. The figure represents an increase from $327 million in FY 19.
Small businesses also received $14.8 billion for government IT outsourcing services in FY 20.