IT contracting is one of the many different types of government contracts offered by the US government. An IT government contractor pretty much provides the same services as a regular consultant (Accenture, Deloitte, etc.) or B2B (business to business) companies, but for the government. The services can generally be broken down into three areas:
- Analysis and feedback on current infrastructure, technology, etc. depending on the contract focus (is it for construction, software, cybersecurity, etc.).
- Outsourcing services. This is especially common among IT government contractors (GovCon for short) that will create most of the software that the various government agencies, such as the DoD, FBI, and CIA use.
Research Contracts: Research and development contracts are often offered to companies that can examine legal papers required by government agencies.
In the government contracting (GovCon) sector, an IT contractor is frequently hired by federal agencies and state departments, such as the FBI, CIA, Department of Defense (DoD), Department of State, etc. The procuring federal market never runs out of projects, contracts, or chances for this type of service, and can offer contracts ranging from hundreds of thousands to billions of dollars.
Do government contractors make good money?
This is a loaded question.
According to the 2020 general pay scale, the average US GovCon provider makes approx. $108,931. However, it is hard to say exactly, since the prime contracts and the government contract funds will be the deciding factors.
If things go according to plan for the contractor, and assuming the federal market approves of a company’s past performance (previous contract history, experience, strategic partners, etc.), the government contractor is more likely to receive future contractual chances.
The biggest challenge in GovCon is getting a foot through the door because new entrants generally face a chicken-and-egg problem due to a lack of past performance. Government agencies are required by law to consider at least some degree of past performance before awarding contracts, which can involve everything from past contracts won, agencies the company has worked for, etc. But new IT government contractors, by definition, do not boast any past performance so what are they to do?
Cheat… sort of. Many companies that start out in the GovCon sector will find strategic partners by offering them access to contracts they would be ineligible for otherwise, owing to the former’s special status which the latter may not have. For example, let’s say you are an SB8A (small business association certified) NHO (native Hawaiian organization) like our company DIGITALSPEC. You could then find a company like Amazon and partner with it, with the latter willing to partner because it wouldn’t have access to small business contracts otherwise.
What are the most popular IT government contracts?
The most common government contracts offered by a federal contractor fall into the following categories:
The first is goods; depending on their need, government agencies may be looking for and acquiring anything at any given time.
The fact that the government procures anything at no given time, this idea gave birth to the concept of hiring small enterprises that provide services, known as the procurement data system.
Research and Technical Assistance
Last but not least is the research and technical assistance. These contracts are comparable to service-based agreements, but they are more industry-specific. Scientific research and technical help for government agencies’ legal paper examinations are two examples.
Assume your company has a strong portfolio, a searchable database on the federal procurement data system, and a list of prior clients’ references. If that’s the case, you’ll be eligible to bid on these specific contracts.