Federal contract spending is expected to increase this fall, as it traditionally does at the end of the fiscal year. However, one area where federal contract spending is down is cybersecurity, in spite of the fact that data breaches are more prevalent than they’ve ever been. Learn more in our blog.
Federal Contract Spending Will Increase in Fall
Federal contract spending usually increases in the fall during the last few months of the fiscal year, which ends on September 30. This year is expected to be no exception. According to Next Gov (reporting on a Bloomberg event), “Since 2009, agencies have spent an average of 32 percent of their annual contract dollars in the last three months of the fiscal year.” Furthermore, “Last year, agencies obligated $142 billion in contracts during July, August and September.”
So where is this late-stage spending going? Much of it goes to “large multiple-award contracts, especially for information technology purchases.” Another big driver of late-stage spending is small business, “as agencies become aware of how much they need to award to meet small business contracting goals for the year.” Another big reason for late-stage spending is that long-term continuing resolutions, it takes longer for contracting officers to finish their work, said Next Gov.
Cybersecurity Spending Down
While overall federal contract spending will increase in the next few months, one area in which spending has stalled is cybersecurity. As reported in Next Gov, “About 52 percent of businesses reported a slight decrease in cyber spending in the past year…according to a new survey from contracting analysis firm Deltek.”
This is in spite of the fact that “about 46 percent of respondents said they had experienced some type of physical or virtual breach, according to Deltek. About 33 percent said they experienced denial-of-service attacks, 33 percent sited data breaches and 13 percent pointed to physical breaches.”
Data breaches have been an area of concern in both the public and private sectors over the past few years, with retailers and government agencies falling victims to data theft, often of sensitive information.
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