FAA’s IT Modernization Surge: What Small Tech Firms Need to Know
The Federal Aviation Administration (FAA) is quietly becoming one of the hottest sources of IT contracting opportunities in government. Between FY2023 and FY2025, its budget has grown by billions, with a disproportionate share aimed at IT and telecom modernization. For small and mid-sized businesses eyeing federal contracting certifications—or already playing in cloud, cybersecurity, or systems integration—this shift could be a game changer.
The numbers tell the story: FAA’s FY2024 budget hit $24B, up from $23B in FY2023, and the FY2025 request pushes it to $26B. Within that, nearly $3.9B is carved out for IT and telecom—about a 17% jump in just a year. Programs like the FAA Enterprise Network Services (FENS) IP backbone and NOTAM modernization are receiving hundreds of millions. Translation: the nation’s airspace runs on technology, and the FAA is in the middle of a massive upgrade cycle.
So what does that mean for small businesses? Let’s break it down.
FAA’s modernization push is structured around a handful of large Indefinite Delivery, Indefinite Quantity (IDIQ) vehicles. Think of them as gated communities—if you’re not inside, you’ll need to subcontract your way in. Big names like Booz Allen, SAIC, and Noblis are holding prime spots. But here’s the good news: FAA has carved out lanes for small firms across multiple vehicles.
ITIPSS (10 years, $2.4B): Covers app modernization, cyber, enterprise IT. Includes dedicated small-business tracks where firms like Concept Solutions and IgniteAction already hold prime positions.
SAVES (10 years, $4.1B, recompete in 2025): FAA’s mandatory IT hardware/software contract. Six of eight vendor slots are reserved for small businesses, making it a critical path for IT resellers, cloud service providers, and systems integrators.
eFAST: FAA’s preferred small-business contracting vehicle for IT and telecom. Hundreds of small firms already play here, but it’s worth pursuing if you’re serious about FAA.
SETIS & ATEPS: Systems engineering-heavy, but with IT overlap. These contracts favor firms with strong technical chops who can partner as subs.
Together, these vehicles will funnel billions into cloud migrations, cybersecurity upgrades, enterprise IT refreshes, and network transformations.
Why it matters for small contractors
If you’ve been grinding on smaller task orders under GSA MAS or state/local IT work, FAA represents a step up—both in dollar value and visibility. With the right SBA 8a certification or women owned small business certification, you can target set-aside slots directly or partner with large primes who need small business participation. FAA has even reported a 43% small business subcontracting goal on some new contracts. That’s a higher-than-average target, meaning primes are actively looking for qualified partners.
For companies holding disabled veteran small business certification or exploring SBIR Grant Assistance, this is also a ripe moment to align your contractor NAICS code strategy. Best NAICS codes for small business IT work here include 54151S (IT services), 541512 (systems integration), and 518210 (cloud hosting). FAA buys under these codes regularly, and your visibility in SAM.gov will hinge on having the right alignment.
Actionable steps for small businesses
Get on (or team into) ITIPSS and SAVES: If you’re not a prime, find out who is, and pitch your value as a subcontractor. Specialized niches like cybersecurity training, FedRAMP compliance, and Zero Trust implementation are in high demand.
Leverage FAA’s eFAST vehicle: It’s explicitly designed for small businesses and covers a wide swath of IT services. If you’re not on it yet, start planning for the next open window.
Invest in federal contracting certifications: Whether SBA 8a certification, women business certification, or disabled veteran government contracts, the FAA’s set-aside carve-outs mean certifications are more than a nice-to-have—they’re revenue multipliers.
Prioritize cybersecurity readiness: FAA contracts increasingly incorporate Zero Trust and CMMC-like requirements. If you can’t demonstrate compliance, you won’t be competitive.
Don’t ignore the “boring” admin: Contract vehicles like SAVES often involve installation and lifecycle support. Help desk, on-site services, and local IT integration are entry points that small, regional firms can win.
Big picture
FAA accounts for nearly all of DOT’s IT spending—$3.9B for FAA vs. $5M for DOT’s Office of the CIO. That makes FAA the main stage for DOT IT modernization for years to come. Small businesses that get in now—whether as primes in set-aside slots or as savvy subs to major integrators—can ride a wave of stable, multi-year government contracting opportunities.
This is one of those rare cases where the federal budget is signaling loud and clear: the work is coming, and it’s going to be tech-heavy. Small businesses who align their NAICS code for government contractors, lock in federal contracting certifications, and position themselves as reliable cyber/cloud partners will have the inside track.
