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WE’VE REFRESHED OUR ANALYSIS OF GOVERNMENT CONTRACTING HOTSPOTS

SEE THE 2017 RANKINGS HERE

In Onvia’s latest study, 10 Hotspots in Government Contracting for 2016, our market analysis team discovered that contracts for geographic information systems (GIS) in the state, local and education (SLED) government market grew 24% in 2015 over 2014.

Out of nearly 500 unique industry categories analyzed for the report, bids & RFPs for GIS represent the #2 ranked area for growth in the SLED government contracting market.

GIS Bids & RFPs

Government Agencies Continue to See Value by Investing More in GIS

For the second year in a row, growth in contracts related to geographic information systems (GIS) were identified as a top 10 hotspot in government contracting. Onvia’s data supports the assessment that GIS in growing in value to the public sector. After posting a growth rate of 20% for 2014, GIS projects grew by an even faster pace of 24% in 2015.

[Agencies are] recognizing its [GIS] value for a huge range of functions, stimulating an accelerated rate of growth and change.

Prowest & Associates

Continued growth in GIS contracts and its importance to SLED government agencies can’t be understated. GIS software and custom appplications give agencies the opportunity to manage and analyze geographic-linked data to solve problems, such as monitoring infrastructure and aiding in emergency management efforts.

Vendors interested in pursuing these contracts should note that GIS efforts are commonly a component of larger government projects, such as larger IT initiatives, or projects in design, construction and consulting. As the study by Prowest & Associates noted, the use of GIS by government agencies has been evolving and expanding rapidly with agencies finding useful applications in open data, Internet of Things (IoT) and smart city initiatives.

Which Agencies Issue the Most GIS Contracts?

Onvia’s analysis shows that firms pursuing SLED government contracts related to GIS are most likely to find the largest share of opportunities at the city level of government. City agencies accounted for a 51% share of the bids analyzed for the report. With a 21% share of the projects, the total number of opportunities from state agencies were fewer, but when looking at the value and complexity of state level GIS projects, they were generally much larger than city projects. The average value of state level GIS projects was $6.9 million versus only $453,000 for cities.

Businesses can further narrow their pursuits by focusing their efforts on the top 5 states for issuing GIS contracts highlighted in the heatmap below:

Top 5 States for GIS Bids & RFPs

How to Get Ahead of the Competition and Win More GIS Contracts

With the average awarded value of SLED GIS contracts averaging out at a healthy $2.3 million, contractors have the opportunity to secure long-term government clients by embedding their services in agency GIS efforts for years to come.

Onvia recommends that contractors who pursue these contracts track agencies who are discussing potential GIS spending well before the issuance of a competitive bid or RFP. Those firms who track early mentions of future spending related to GIS in agency budgets and technology plans can greatly increase their chances of winning more contracts.

GIS Isn’t the Only Growing Area in Government Contracting

Watch the video below to learn about 9 other contracting hotspots that have seen notable growth rates in bids & RFPs over the last two years:

 

Your copy of the full report awaits