IT ServicesGovernment Contracts
IT services is the largest category of federal contracting, encompassing everything from cloud migration and cybersecurity to help desk support and software development. The federal government spends over $100 billion annually on IT, with demand accelerating as agencies modernize legacy systems under mandates like the Federal Data Strategy and Cloud Smart initiatives.
Definition
IT services government contracts are federal procurement opportunities for information technology solutions including software development, cloud computing, systems integration, IT support services, and digital transformation. These contracts are awarded through vehicles like GSA IT Schedule 70 and agency-specific BPAs.
Key Takeaways
- IT services is the single largest federal contracting category by dollar value, exceeding $100 billion annually.
- GSA Schedule 70 (now consolidated into MAS) is the primary contract vehicle for IT services across all agencies.
- FedRAMP authorization is increasingly required for any cloud-based solution sold to federal agencies.
- Small businesses can compete effectively through set-asides, particularly 8(a) and SDVOSB programs.
- Agencies prioritize contractors with active security clearances and CMMC compliance for defense IT work.
Market Snapshot
Average Contract Size
$250K - $50M
Competition Level
HighGrowth Trend
GrowingTop NAICS Codes for IT Services
| NAICS Code | Description | Search |
|---|---|---|
| 541512 | Computer Systems Design Services | View |
| 541511 | Custom Computer Programming Services | View |
| 541519 | Other Computer Related Services | View |
| 518210 | Data Processing, Hosting, and Related Services | View |
| 511210 | Software Publishers | View |
Search contracts by NAICS code to find opportunities matching your it services capabilities.
Key Federal Agencies
These agencies are the largest buyers of it services services and products in the federal market.
Relevant Certifications & Set-Asides
These certifications and set-aside programs can give your it services business a competitive advantage in federal contracting.
Tips for Winning IT Services Contracts
Obtain GSA Multiple Award Schedule (MAS) contract with IT SINs to access the broadest range of agency buyers.
Pursue FedRAMP authorization early if you offer cloud or SaaS products - it is becoming a baseline requirement, not a differentiator.
Build past performance on smaller task orders before pursuing large IDIQs and agency-wide contracts.
Partner with large primes as a subcontractor to gain past performance and access to contract vehicles you cannot reach as a prime.
Invest in security clearances for key personnel - cleared staff are in high demand and provide a competitive advantage.
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Frequently Asked Questions
What are the most common contract vehicles for IT services?
The most common vehicles are GSA MAS (formerly Schedule 70), CIO-SP4 (NIH NITAAC), Alliant 2/3 (GSA), SEWP V (NASA), and agency-specific BPAs and IDIQs. GSA MAS is the most accessible for small businesses, while Alliant and CIO-SP4 support larger enterprise engagements.
Do I need a security clearance for government IT contracts?
Not all IT contracts require clearances, but many DoD and intelligence community contracts do. Having personnel with active Secret or Top Secret clearances significantly expands your addressable market. Civilian agencies generally require fewer clearances, though sensitive positions may still need Public Trust or higher.
How important is FedRAMP for selling cloud services to the government?
FedRAMP authorization is essential for selling cloud services to federal agencies. Without it, agencies must perform their own security assessment, which most avoid. FedRAMP can take 12-18 months and cost $500K-$2M to obtain, but it opens the entire federal cloud market once authorized.
Can small businesses compete against large IT contractors?
Yes. The federal government sets annual small business contracting goals (currently 23% of prime contracts). Set-aside programs like 8(a), SDVOSB, WOSB, and HUBZone restrict competition to qualified small businesses. Many agencies break large requirements into smaller task orders specifically to enable small business participation.
What is CMMC and how does it affect IT contractors?
CMMC (Cybersecurity Maturity Model Certification) is a DoD requirement for contractors handling Controlled Unclassified Information (CUI). CMMC Level 2 requires compliance with 110 NIST SP 800-171 controls verified by a third-party assessor. All DoD IT contractors will need CMMC certification to bid on contracts involving CUI.
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