First Look at FY 2020 - 2022 Federal Big Data Spending Trends

Big data and analytics in the federal space continues to evolve and grow. Requirements called for by the Evidence Act have been implemented, and agencies are placing a larger emphasis on data management, accessibility, integration, and dissemination more than ever.

Deltek’s preliminary analysis of big data-related contract spending totaled $17B from FY 2020-2022. Specifically, big data obligations increased 12% in the three-year period, from $5.5B in FY 2020 to $6.2B in FY2022. To classify big data goods and services on a deeper level, Deltek categorizes spending into the following eight solution types:

• Analysis Support: Subject matter expertise and services required to support the development of big data solutions and the analysis leveraging such solutions.
• Analytics: Software that enables use of data sets, statistical and quantitative analysis and predictive modeling, and delivers output that can be used in decision-making.
• Artificial Intelligence and Machine Learning: Solutions that enable the simulation of human intelligence in machines, including learning and problem-solving.
• Big Data Systems and Platforms: Systems and platforms that enable the development, deployment, operation and maintenance of big data infrastructure.
• Data Management and Integration: Tools to identify, manage and control data resources, unify siloed data, and prepare and transform data for analysis and machine learning tasks.
• High Performance Computing: The aggregation of computing power delivering higher performance than traditional desktops/workstations.
• Storage/Servers: Storage exceeding 1 terabyte and servers purchased explicitly to enable big data infrastructure and processing.
• Visualization: Software that enables the graphical representation of information and data.

Below is breakdown of total spending from FY 2020-2022 by solution type:

 Sources: Deltek, FPDS

Observations:

• Nearly all solution types increased in the three-year period, except in BD Systems and Platforms and Analysis Support
• HPC obligations jumped 144% from $33M in FY 2020 to $82M in FY 2022, driven by additional spending at the Air Force.
• Spending in AI/ML was primarily rooted in the Defense Sector, with $2.2B in the three-year period.
• Data Management and Integration grew the most under Civilian, from $736M in FY 2020 to $1.1B in FY 2022.
• Similarly, Analysis Support grew the most under Defense, from $206M in FY 2020 to $602M in FY 2022.
• HHS led spending in Analytics from FY 2020-2022 with $1.3B.
• Business Analytics led analytics type spending with $663M in the three-year period, followed by Security Analytics ($378M), Health Analytics ($344M) and Predictive Analytics ($325M).
• Obligations awarded to Small Businesses held steady in the three-year period and totaled $8.1B.
• HHS led in big data obligations to small business ($1.2B), followed by Defense Agencies ($1.1B), Air Force ($1.0B) and SBA ($948M).
• Largest task orders by spend in the three-year period include: 
  • SBA:  SBA-ODA DATA ANALYSIS AND LOAN RECOMMENDATION SERVICES FOR COVID-19, $300M with RER Solutions
  • DOJ: 3 FIELD SERVICE REPRESENTATIVES FOR HELP DESK SERVICES FOR PALANTIR SOFTWARE, $250M with Sava Workforce Solutions.
  • SSA: DEVELOPMENT & DATABASE SUPPORT TO THE AGENCY'S OFFICE OF SOFTWARE ENGINEERING AND DISABILITY CASE PROCESSING SYSTEM, $164M with Leidos

Looking ahead, contractors can expect to see an increase in evidence-based data initiatives to fulfill Biden Administration priorities in areas such as work environment assessments, environmental social governance, and customer experience initiatives. Open data practices are also being prioritized within agency data strategies to increase public use and engagement with federal data. Lastly, AI/ML expansion at agencies, particularly as responsible AI is emphasized, will directly impact future additional investment in data cleaning and categorization.