$782.5M of the State’s Q4 IT and Related Spending Was Made by Three Agencies

The state of Texas spent some $1.7 billion on IT and related goods and services during the 2023 fourth quarter, according to the Comptroller’s “Payments to Payee” visualization. Of that, three agencies spent more than $782.5 million.

Here, with rounding, are those agencies with their top three vendors from Oct. 2 to Dec. 29, 2023.

The Texas Department of Transportation (TxDOT) spent $372.5 million total, and its top three vendors were:

• $180 million to Flatiron/Dragados LLC, a built infrastructure firm developing the New Harbor Bridge in Corpus Christi
• $17.8 million to TTEC Government Solutions LLC, which assists federal, state and local agencies in designing and delivering digital-first solutions
• $17.3 million to Texas Department of Information Resources, which offers technology solutions to state and local government entities

The Department of Information Resources (DIR) spent $217 million total, and its top three IT vendors were:

• $60.8 million to Rackspace US Inc., which offers IT services and public cloud management
• $43.3 million to Atos Governmental IT Outsourcing Services LLC, which offers IT services, mainframe services, provides Texas private cloud services, and is a reseller of products
• $37.6 million to Deloitte Consulting LLP, which offers multiple contracts including research, advisory, management and implementation services

The Health and Human Services Commission (HHSC) spent $193 million total, and its top three vendors were:

• $45 million to DIR, which offers technology solutions to state and local government entities.
• $22 million to Deloitte Consulting LLP, which offers multiple contracts including research, advisory, management and implementation services
• $18.8 million to UT Health Science Center at Houston, a comprehensive academic health center within the University of Texas system

Of note, the Texas Military Department will often climb into the top spenders during a month or a quarter, but a large portion of dollars falls under purchased contracted services in the “Other Expenditures” category. The agency’s purchases for Q4 2023 totaled $100.3 million, and its top three vendors were Storm Services LLC, Team Housing Solutions Inc. and DIR.

These periodic reports of spending on IT goods and services by agencies and departments in state government are compiled by Industry Insider — Texas as a way of highlighting procurements and trends.