In FY27, state and local governments are navigating a complex technology environment amid changes in policy, the accelerated adoption of emerging tech, and the rapid growth of digital services and citizen expectations. Cloud adoption continues to impact technology consumption; AI is introducing challenges around data, security, governance and contracting; and agencies are facing mounting pressures to modernize aging systems while becoming more efficient and generating measurable long-term ROI.

Over the last year, the Army has been undergoing significant transformation under the Army Transformation Initiative and the larger Pentagon reorganization efforts. This includes the more recent decision to change from Program Executive Offices (PEO) to Portfolio Acquisition Executives (PAEs) to have tighter alignment across missions, the Chief Information Office (CIO), contracting and functional owners. This reorganization will help reduce siloed IT modernization, speed up decision-making and better align acquisition with operational outcomes.

In the administration’s first 100 days in office, multiple executive orders (EO) were signed to update federal procurement. Several initiatives released across the federal market include the OneGov Strategy, procurement consolidation and the Army Transformation Initiative.

In the last week, the General Services Administration (GSA) officially launched the OneGov Strategy — a bold, long-term initiative to modernize the way agencies purchase goods and services, starting with IT.

In simple terms: GSA wants to move away from agencies buying software in silos and instead act like one large, coordinated customer. That means better pricing, stronger security and a more efficient process, according to the agency.

So what’s changing, and what does it mean for IT resellers and vendors in the public sector?