With the US Government FY 2022 quickly winding down (US Government year end is Sept 2022), now is the time for organizations to begin development of their FY 2023 Government sales plans. 

Each year at this time, software companies begin to hear stories about how much money the Federal Government spends at the close of their fiscal year (yes, many of these stories are true) and ask themselves "how can I participate?"

Well, for FY 2022 if you don’t have an opportunity already in  progress chances are you are way too late. However, now is the perfect time to begin planning your FY 2023 sales campaigns to positively position yourself to participate in the FY 2023 year end.

Market analysis conducted by Marion Square and our partners show that the Federal Government’s proposed budget for IT and Cyber spending will increase again in FY 2023. Highlights of the proposed budget includes:

Federal Civilian agencies:

• Proposed IT budget of $65B which is an increase of 11% from the 2022 budget (which is the largest increase request in the last 12 years). Information Technology (whitehouse.gov).

• Proposed Cyber specific budget is $11B.

Specific areas of focus for Civilian agencies include:

• CISA- which is set to receive $2.5B.

• Zero Trust Architecture for agencies to comply with Executive Order 14028 which states agencies must implement Zero Trust by 2024.

• AI, Digital Services and Software Supply Chain security.

Dept of Defense:

• Proposed IT budget is $57.9B.

• Cyber Security budget $11.2B has been proposed with a focus in two critical areas: The Department of Defense Releases the President's Fiscal Year 2023 Defense Budget > U.S. Department of Defense > Release.

  • Operationalizing Zero Trust Architecture across Military Departments and Defense Agencies ($6.6B has been earmarked) Appropriations Committee Releases Fiscal Year 2023 Defense Funding Bill | House Committee on Appropriations.

  • Increasing cybersecurity support to the Defense Industrial Base- focus on software supply chain.

• Note- these budget numbers do not include funding for Research programs and SBIR's.

As the data clearly shows, there will be plenty of opportunities for innovative organizations to pursue and win Government contracts in FY 2023. The key to winning these contracts starts with development of your go to market strategy, which you should be developing now.

At Marion Square, we always advise and work with our clients to understand the Government budgets and funding priorities as step #1. We utilize this data and insights as the foundation of our Government go to market. This approach ensures that organizations focus their time and resources in areas that are funded and have the greatest chance of yielding contracts. Our advice is to understand the budget and priorities and then build your plan around based on this information for the greatest chance of success and return.