State and Local Procurement Set to Increase in 2024

BidPrime News Jan 02, 2024

Government procurement spending at the state and local levels is projected to grow steadily in 2024, providing expanded opportunities across industries contracting with the public sector. The following are some of the industries projected to experience growth in public sector opportunities.

Construction - Infrastructure projects in transportation, utilities, government facilities, parks, and community development will create extensive construction procurement opportunities. Areas like road and bridge building, water/sewer systems, EV charging stations, new government complexes, and disaster recovery rebuilding should see especially high bid volumes.

Engineering - Closely tied to construction, engineering services will be needed for designing infrastructure projects, conducting feasibility studies, and providing program management. Civil, electrical, structural, and environmental engineering skills will be in demand.

IT and Technology - State and local IT upgrade projects, including legacy system modernizations, cloud migrations, blockchain applications, AI implementations, cybersecurity services, network installations etc. present substantial tech sector procurement possibilities as agencies play catchup.

Healthcare - Public health agencies and Medicaid services will continue large equipment, pharma, and service buys. Telehealth expansions and health IT/data analytics system upgrades as part of that. Healthcare facilities management also included.

Professional Services - Agencies seek specialized expertise like policy consultants, auditors, architects, training providers, business analysts, and more on strategic planning, regulation compliance, program improvement and daily operations.

Drivers Fueling Procurement Growth

Several key factors underlie this year's favorable forecasts from market research firms and government associations:

Infrastructure Projects - With the 2021 infrastructure bill and dotting of remaining funds, state infrastructure modernization initiatives like smart cities and EV charging stations will drive procurement spending upward. Agencies will also continue repairing outdated transportation networks, water systems, bridges, government buildings and parks.

Pandemic Recovery - Lingering pandemic impacts mean agencies must still purchase PPE supplies, COVID test kids, medical equipment, and contract qualified health providers. Budgets also account for economic recovery programs.

IT and Cybersecurity - Governments lag behind commercial IT upgrades, so playing catch up with digital transformation, cloud migrations and strengthening municipal cyber defenses against growing threats all spur tech investment.

Healthcare Services

    ● Telehealth infrastructure, platforms, and solutions as agencies expand virtual care access.

    ● Provider networks like medical, dental, mental health, and ambulance services contracted to serve public health program recipients.

    ● Health IT systems, software, data analytics to upgrade public health data capabilities.

    ● Medical equipment including EMS vehicles, imaging machines, patient monitors purchased by state health departments and clinics.


    ● Civil engineering services for infrastructure project design, feasibility studies, program management.

    ● Building contractors for government facilities like justice centers, parks complexes, affordable housing.

    ● Road, highway, bridge builders to repair aging transportation systems.

    Electrical engineers and construction for EV charging station installation.


    ● Cloud migration and management providers as legacy systems shift to the cloud.

    ● Cybersecurity hardware, software, and services to reinforce municipal network defenses.

    ● Enterprise resource planning (ERP) software/integrators to update finance functions.

    ● IoT consultants around smart cities initiatives and intelligent traffic systems.

Facilities Management

    ● HVAC installation and building automation systems. Energy efficiency upgrades.

    ● Electrical contractors and electricians assisting power infrastructure upgrades.

    ● Waste management providers across municipal buildings/programs.

    ● Custodial and cleaning service contractors for schools, health clinics, courts, prisons and more government properties.

Strategic Sourcing Opportunities


    ● Green building products fitting local environmental goals around renewable energy, reduced waste, LEED certification etc.

Small Business Set-Asides

    ● Break large contracts into portions suitable for local SMBs and minority-owned businesses per regulations.

Bundled Service Packages

    ● Offer to handle a collection of facility services like waste management, landscaping, pest control, cleaning, security, and cafeteria operations.

Contract Vehicles

    ● Provide pre-negotiated master agreements, IDIQ contracts, and other simplified purchasing tools.

Bill Culhane, BidPrime's Chief Operations Officer, reviewed this report and suggests, "This forecast is where a service like BidPrime comes in handy for businesses aiming to grow public sector revenue. Our BidPrime team stands ready to combine technology and human expertise to uncover relevant bid opportunities from across North America, so businesses can focus sales and marketing resources on the most relevant and targeted state/municipal bids to drive 2024 public sector wins."

The growth indicators reveal prime time ahead for vendors selling into state and municipal channels. Smart market positioning and understanding buyer needs sets up success. Are you and your business prepared to monitor agency forecasts, upcoming solicitations and procurement trends to capitalize on expansive 2024 public sector potential?

Visit BidPrime or call 1.888.808.5356 to Request a Demo today to see how BidPrime provides the visibility, tools and insights to drive your 2024 public sector wins!

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