Jun 25 2024

Scaling Cloud Services Tops State and Local Procurement Priorities

GovWin’s 2024 SLED Government Purchasing Trends report highlights the cloud trend.

GovWin has identified scaling cloud services as its No. 1 “hotspot” for state and local contracting, noting that bids pertaining to scaling cloud increased 39 percent in 2023, more than any other procurement area.

State and local agencies have turned to cloud services such as Infrastructure as a Service, Platform as a Service, Software as a Service and Storage as a Service to modernize IT, improve access, and reduce maintenance and hardware costs. These cloud-enabled benefits are also foundational to many of the other procurement priorities highlighted in the report.

Click the banner below to see how citizen services benefit from cloud.


GovWin identified 10 such procurement priorities for 2024, including the following related directly to IT:

No. 5: Strengthening Disaster Response

An estimated 88.5 percent of U.S. counties experienced a natural disaster between 2013 and 2023, according to Forbes. As the frequency and cost of natural disasters increases among state and local governments, so does the interest in disaster response; from 2022 to 2023, GovWin documented a 15 percent increase in government contracting.

Disaster response and recovery can run the gamut from immediate emergency response services to minimizing downtime of critical IT infrastructure precipitated by weather events such as hurricanes and floods. Procurement priorities vary from state to state depending on the most prevalent threats.

No. 8: Supporting First Responders

First responder agencies at the state and local levels have faced staffing and resource shortages since 2020, driving a 10 percent jump in government contracting in 2023. State and local governments intend to use these procurements to help first responder agencies execute their duties more effectively and efficiently.

GovWin’s report notes that software and IT are key investments for first responders — specifically, updating computer-aided dispatch systems, record management systems and incident management systems. Agencies that require funding assistance for such initiatives may be eligible for support via the Emergency Management Performance Grant or the Homeland Security Grant Program.

No. 9: Revitalizing Built Spaces

Since 2022, state and local agencies have increased bids and RFPs related to revitalizing unused or deteriorating government-owned property by 9 percent.

Many agencies and facility managers see this as an opportunity to make better use of their real estate portfolios while taking steps to create sustainable government buildings. Others seek to use renovations as an opportunity to finance initiatives in other priority areas such as IT modernization.

No. 10: Modernizing Water Infrastructure

Spurred largely by federal funding, state and local government contracting activity in this area has increased 5 percent since 2022. Modernizing drinking water and wastewater management services entails construction and design projects as well as an intensified focus on smarter and more resilient water systems, a trend predating COVID-19.

In 2019, for example, DC Water collaborated with Microsoft to start using artificial intelligence to predict pipe defects. Similar initiatives can help cities predict water use and even monitor water supplies in drought-stricken Western states, according to WSU Insider.

As federal funding from the Clean Water State Revolving Fund trickles down to states, GovWin anticipates an even greater focus on modernizing water infrastructure in the coming fiscal year.

Thapana Onphalai/Getty Images

Learn from Your Peers

What can you glean about security from other IT pros? Check out new CDW research and insight from our experts.