Executive Summary
The District of Columbia is not a state, but it buys like one — and like a county, a city and a school district at the same time. There is no state legislature: the 13-member Council of the District of Columbia passes the budget and laws, and Congress reviews them (and in February 2026 used that power to disapprove a DC tax law). The defining 2025–2026 story is the federal downsizing shock: the independent Chief Financial Officer reports DC lost 47,000 jobs year over year, driven by a 28,000 (15%) drop in federal jobs since January 2025, with unemployment at 6.1% against 4.3% nationally. Mayor Bowser's $21.2B FY2027 'Grow DC' proposal closed a $1.1B gap; the Council restored programs using one-time money and a $150M reserve draw over the CFO's objection, and Bowser returned the budget bills unsigned in July, warning of an $837M 'fiscal cliff' for her successor. Bowser is not seeking a fourth term, and Council member Janeese Lewis George won the June Democratic primary, so a new administration arrives in January 2027. Inside that squeeze, technology is being protected: the Office of the Chief Technology Officer (OCTO), led by CTO Stephen Miller, trimmed its local budget 7.9% but grew its FY27 capital request 41.9% to $22.6M, over half of it for cybersecurity and end-of-life infrastructure replacement. Procurement runs through the Office of Contracting and Procurement (OCP), which buys $5.2B a year for 79 agencies, with DC Public Schools running its own device solicitations.
- End-of-life hardware and network replacement on DC-NET — OCTO's FY27 capital plan carries $9.0M to replace end-of-life and end-of-support hardware and network appliances.
- Cybersecurity modernization for a nation's-capital threat profile — $13.3M of OCTO's FY27 capital is cyber, including $2.0M for new and enhanced security technologies alongside zero-trust, SSO and MFA rollout.
- DC Public Schools student and staff devices — an IDIQ solicitation (May 2026) to keep 1:1 devices in grades 3–12 and 3:1 in pre-K–2, including deployment and configuration services.
- Governed AI and data infrastructure — the Cloud Data Exchange, a generative-AI virtual agent, AI search on the redesigned DC.gov, and a mandatory responsible-AI training program for the entire workforce.
Dell Action Plan
- Lead with lifecycle and security on DC-NET: map Dell networking, compute and storage to OCTO's proposed $9.0M end-of-life replacement and $2.0M cybersecurity-technology lines, framed as lower total cost for a shrinking local budget.
- Track the DCPS student and staff device IDIQ (GAGA-2026-I-0154) to award, and line up a CBE partner that can meet the 35% subcontracting requirement and the deployment and configuration services.
- Get Dell products onto the DC Supply Schedule's IT Equipment & Software category through registered CBE partners, since DCSS is a CBE set-aside market.
- Protect the NASPO ValuePoint Computer Equipment participating addendum (current through June 30, 2027): start the renewal or follow-on conversation with OCP now, before the leadership transition.
- Build relationships that survive the January 2027 transition: engage CTO Miller's team and OCP on FY27-funded work now, and prepare a governed-AI and cost-reduction story for the incoming administration's FY2028 budget.
Budget & Fiscal
DC runs an October–September fiscal year, so FY2027 starts October 1, 2026. The Mayor proposes, the Council adopts a Local Budget Act and a companion Budget Support Act, and the budget then goes to Congress for review; the independent Office of the Chief Financial Officer (OCFO) certifies the revenue estimates the budget must live within. Mayor Bowser's FY2027 'Grow DC' proposal (April 10, 2026) was $21.2B gross (-3.7%) and $12.7B in general funds (-3.3%), closing a $1.1B gap that included about $700M in lost resources from slower revenue growth and federal workforce reductions. The Council passed the Local Budget Act on June 23 and took its second, final vote on the Budget Support Act on July 10, 2026, restoring programs with one-time funds and a $150M reserve draw that CFO Glen Lee called imprudent; Bowser returned the budget bills unsigned on July 24. There is no single IT budget line: technology sits in OCTO's budget (Mayor's proposal per OCTO's April testimony: $83.9M local, $26.7M special purpose revenue, $3.3M federal and $22.6M in new capital for FY27; the approved FY27 budget is $113.2M gross operating, including $83.6M local, plus $26.9M in FY27 capital) plus agency IT spend, and the Mayor's six-year capital plan includes $61M for IT and cybersecurity upgrades across DC government.
- Agency figures above are the Mayor's proposed FY2027 numbers from April 2026 oversight testimony. OCFO's FY2027 approved budget for OCTO (TO0) differs: $113.2M gross operating (-30.9% vs FY26, mostly a $42.6M federal-grant reduction), local funds $83.6M (-8.3%), special purpose revenue $26.3M, and $26.9M of FY27 capital (+68.9%, within $64.9M over FY27–32; it includes $4.8M for RFK campus telecom conduit that the $22.6M testimony figure did not itemize, less a $0.5M Council trim to the service-management platform). Citywide, the Council-adopted Local Budget Act (Bill 26-659, second reading June 23, 2026) caps FY27 operating appropriations at $21.88B, against $21.22B in the Mayor's introduced bill on the same basis; local funds rose from $11.79B proposed to $12.24B adopted. Press figures of '$21.2B' for the adopted budget repeat the proposal.
- Revenue: the OCFO's June 30, 2026 estimate left the forecast unchanged from February, but described the risks as weighted to the downside — property tax collections down 3.5% year to date, corporate franchise tax down 19%, office vacancy at 18.5%, and income-tax strength concentrated in capital gains and a few high-income sectors.
- Federal context: the 43-day federal shutdown (October 1 – November 12, 2025) and continuing federal job cuts weigh on withholding, sales and hotel taxes. In February 2026 Congress passed and the President signed H.J.Res. 142 disapproving DC's temporary tax-decoupling law; the CFO left about $180M of related FY2026 revenue out of the estimate because of the uncertainty.
- Budget politics: the Council's FY27 plan relies on one-time funds and a $150M reserve draw. Bowser returned the bills unsigned (not a veto) and warned of an $837M 'fiscal cliff' for the next administration, so expect FY2028 technology budgets to be scrutinised.
- Leadership change: Bowser's term ends January 2, 2027. Democratic nominee Janeese Lewis George is the heavy favourite in November, so the FY2028 budget will be built by a new mayor, and possibly new OCTO and OCP leadership.
Initiatives & Policy
DC-NET & End-of-Life Infrastructure Replacement3
Funded (FY27 capital, proposed)DC-NET, OCTO's fibre network, provides internet, voice, wireless, data-centre and data-transport services to more than 90 District agencies, 100+ nonprofits and federal partners, and earns special purpose revenue from federal customers. (Agency counts per OCTO's February 2026 oversight testimony.) OCTO's FY27 capital request includes $9.0M to keep replacing end-of-life and end-of-support hardware and network appliances, $1.5M to modernize 400 legacy life-safety phone lines at 50 sites, and $750K for in-building distributed antenna systems. This is the most direct refresh opportunity in District government.
Cybersecurity & Zero Trust3
Funded (FY27 capital, proposed)More than half of OCTO's proposed FY27 capital, $13.3M, is cybersecurity, including $2.0M for new and enhanced security technologies to protect the workforce, applications, systems and data. OCTO says tens of millions of security events are investigated every week. Its February 2026 oversight testimony reported more than 1 billion blocked breach attempts in FY25, about 12,000 vulnerability assessments, and a continuing rollout of zero-trust principles with single sign-on and multi-factor authentication across DC government.
Responsible AI (AI Task Force, Values & Workforce Training)15
ScalingDC's AI program runs on the six AI values in Mayor's Order 2024-028. In February 2026 DC became the first major U.S. city to require responsible-AI training for every government employee and contractor, delivered with InnovateUS and OCTO. CTO Miller's OCTO directs implementation. FY27 capital funds a generative-AI virtual agent, and AI-powered search is coming to the redesigned DC.gov. Local budgets are tight, so position AI infrastructure as governed and cost-efficient.
Digital Services & Data Modernization3
ActiveOCTO's proposed FY27 capital includes $7.6M for digital services: $5.6M for enterprise service workflows (grants management, a generative-AI virtual agent and a configuration management database) and $2.0M for a single Resident Portal. It also includes $1.8M for the Cloud Data Exchange platform that lets agencies share and analyse data. The DC.gov redesign continues so the site meets federal accessibility deadlines by April 2027. This work is mostly software and services, but it drives the data-platform, storage and hybrid-cloud capacity behind it.
DCPS Student & Staff Device Program21
Solicited (May 2026)DC Public Schools issued solicitation GAGA-2026-I-0154 on May 8, 2026 for an IDIQ contract covering specified hardware plus deployment and configuration services. The aim is to keep a 1:1 student-to-device ratio in grades 3–12 and 3:1 in pre-K–2. Proposals were due June 1, 2026, and the contract carries a 35% subcontracting requirement, so a local CBE partner matters. No award was posted at the time of this update.
PASS Procurement System Modernization12
In implementationOCP is replacing its 20-year-old Procurement Automated Support System (PASS) with $7.9M in proposed FY27 capital, working with OCFO and OCTO. A unified vendor phase that cuts vendor portals from three to one is due at the start of FY27, with full go-live in FY28. It is not a direct hardware play, but it will change how Dell partners register, bid and invoice with the District.
Procurement & Competition
Because DC is a single government, procurement is centralised. The Office of Contracting and Procurement (OCP), led by Chief Procurement Officer Nancy Hapeman, buys about $5.2B a year in goods, services and construction for 79 agencies. Some bodies, notably DC Public Schools, run their own solicitations. OCTO sets enterprise technology direction and, with OCP, manages enterprise licensing agreements for every agency. The DC Supply Schedule (DCSS) is the District's multiple-award schedule, and it is a set-aside market for registered Certified Business Enterprises (CBEs), so local CBE resellers and partners are central to any DC motion.
| Vehicle / gate | What it means for Dell |
|---|---|
| DC Supply Schedule (DCSS) | OCP's multiple-award schedule for commercial products and services, with an 'Information Technology, Equipment and Software' category. It is a set-aside for registered CBEs, so Dell participates through CBE partners. OCP runs a monthly vendor workshop and an online application. |
| NASPO ValuePoint Computer Equipment (Dell participating addendum) | The District has a participating addendum under Dell's NASPO ValuePoint Computer Equipment, Peripherals & Related Services master agreement (23026), covering desktops, laptops, tablets, servers, storage, peripherals and services. It is current through June 30, 2027, so plan the renewal or follow-on well ahead of that date. |
| Agency solicitations (OCP and DCPS) | Competitive solicitations such as DCPS's student and staff device IDIQ (GAGA-2026-I-0154). Watch for CBE subcontracting requirements, for example 35% on the DCPS device solicitation. |
| OCTO / OCP enterprise licensing | Enterprise agreements OCTO manages with OCP for all agencies, backed by licence audits to recapture spend. This is the route for enterprise software and subscription standards. |
| Key buying entity | Role |
|---|---|
| Office of the Chief Technology Officer (OCTO) | Central IT for DC government. Runs DC-NET, cybersecurity, enterprise cloud and infrastructure, data, AI governance and DC.gov, and sets technology standards. |
| Office of Contracting and Procurement (OCP) | Central procurement for 79 agencies ($5.2B a year). Owns the DC Supply Schedule and the PASS system being modernised. |
| Office of the Chief Financial Officer (OCFO) | Independent CFO who certifies revenue estimates; its position on reserves and revenue shapes how much the District can spend. |
| DC Public Schools (DCPS) | Large end-user device buyer that runs its own solicitations, including the 2026 student and staff device IDIQ. |
| Council of the District of Columbia | Acts as DC's legislature. Adopts the budget and oversees OCTO and OCP through the Committee on Public Works and Operations; Congress reviews its acts. |
DC sits in the middle of the most crowded federal-IT market in the country, so integrators and resellers with federal practices are everywhere. The District-specific filter is the CBE programme: the DC Supply Schedule is a CBE set-aside, and solicitations carry CBE subcontracting requirements, so which local CBE partners Dell is aligned with often decides access. With local budgets shrinking, differentiation comes from lowering lifecycle cost on the end-of-life estate, proven security for a nation-state threat profile, and governed AI, not unit price alone.
Power Structure
| Decision-maker | Why they matter |
|---|---|
| Muriel Bowser19 Mayor · District of Columbia | In office since 2015. Not seeking a fourth term; her term ends January 2, 2027. Proposed the FY27 'Grow DC' budget and returned the Council's version unsigned in July 2026. |
| Janeese Lewis George20 Democratic nominee for Mayor; Ward 4 Councilmember · Council of the District of Columbia | Won the June 2026 Democratic primary over Kenyan McDuffie and is the heavy favourite in November. She would take office in January 2027 and inherit the FY2028 budget. |
| Phil Mendelson7 Chairman · Council of the District of Columbia | Led the Council's FY27 budget, including the $150M reserve draw the CFO opposed. |
| Glen Lee6 Chief Financial Officer · Office of the Chief Financial Officer | Independent CFO who certifies revenue. Held the June 2026 forecast flat with downside risks and warned the Council against using reserves for spending. |
| Kevin Donahue23 City Administrator · Office of the City Administrator | Runs day-to-day operations and performance for DC government, the executive tier above agency directors including OCTO and OCP. |
| Stephen N. Miller24 Chief Technology Officer · OCTO | DC's 7th CTO, with 17 years in DC government. Leads the AI Task Force and owns DC-NET, cybersecurity, DC.gov and the FY27 capital plan. |
| Tehsin Faruk3 Chief Operating Officer · OCTO | Appeared with the CTO at the FY27 budget hearing; key operations and budget contact inside OCTO. |
| Nancy Hapeman11 Chief Procurement Officer · OCP | Leads District procurement ($5.2B a year) and the PASS modernisation. |
| Brianne Nadeau12 Chairperson, Committee on Public Works and Operations · Council of the District of Columbia | Chairs the committee that holds OCP's budget oversight and heard OCTO's 2026 privacy-bill testimony. |
News & Signals
Sources
- Office of the Mayor — Mayor Bowser Presents FY27 Budget That Builds on More Than a Decade of Growth (Apr 10, 2026)
- WJLA — DC Mayor Bowser unveils budget for FY 2027 (Apr 10, 2026)
- DC OCTO — CTO Stephen Miller's FY27 Budget Oversight Hearing Testimony (Apr 28, 2026, PDF)
- DC OCTO — CTO Stephen Miller's FY25–FY26 Performance Oversight Hearing Testimony (Feb 2026, PDF)
- DC OCFO — February 2026 Revenue Estimates letter (Feb 27, 2026, PDF)
- DC OCFO — June 2026 Revenue Estimates letter (Jun 30, 2026, PDF)
- NOTUS / Washington Sun — D.C. Council Passes Budget, but Fight With CFO Continues (Jun 2026)
- Brownstein — The Post-Primary Landscape: Political Dynamics, Budget Priorities and What Comes Next in D.C. (Jul 10, 2026)
- WJLA — Mayor Bowser rejects FY 2027 budget bills, cites fiscal responsibility concerns (Jul 28, 2026)
- Council of the District of Columbia — Council Wraps Up Budget Season with Second Vote on the Budget Support Act (Jul 2026)
- DC OCP — Key Personnel
- DC OCP — Testimony of Nancy Hapeman, FY2027 Budget Oversight Hearing (Apr 24, 2026, PDF)
- DC OCP — District of Columbia Supply Schedule (DCSS)
- DC OCP — DC Supply Schedule Workshop (CBE set-aside market)
- DC OCTO — DC Becomes First Major U.S. City to Require Responsible AI Training for Government Workforce (Feb 12, 2026)
- DC OCTO — Bowser Administration Unveils Reimagined DC.gov (Jun 11, 2026)
- Technical.ly — AI is coming to DC.gov, as the US capital overhauls its website for the first time in a decade
- DC OCTO — CTO Stephen Miller's District of Columbia Government Data Privacy and Protection Act of 2026 Testimony (Jun 29, 2026)
- WTOP — DC Mayor Muriel Bowser announces she won't run for a fourth term (Nov 25, 2025)
- WTOP — DC primary election results: McDuffie concedes to Lewis George in mayoral contest (Jun 2026)
- DC Public Schools — GAGA-2026-I-0154 Student & Staff Devices (solicitation)
- ArentFox Schiff — District of Columbia's Tax Decoupling Dispute: Congressional Disapproval and Ongoing Legal Uncertainty (Mar 4, 2026)
- DC Office of the City Administrator — Kevin Donahue, City Administrator
- DC OCTO — About the CTO: Stephen N. Miller
- DC OCFO — FY2027 Approved Budget: Office of the Chief Technology Officer (TO0) chapter
- DC OCFO — FY2027 Approved Capital Budget: Office of the Chief Technology Officer (TO0)
- Council of the District of Columbia — Fiscal Year 2027 Local Budget Act of 2026 (Bill 26-659), second-reading substitute (Jun 23, 2026, PDF)