Core Federal Sector

Federal Construction Contracts

The federal government is one of the largest construction buyers in the world, awarding over $80 billion annually in construction-related contracts. From military installations and federal courthouses to infrastructure modernization and environmental remediation, construction represents a cornerstone of federal procurement.

100M+ government records · 110+ gov/news sources · Synced from live federal sources

$80B+

Annual Federal Construction

23%

Set Aside for Small Biz

50+

Federal Agencies Buying

Overview of Federal Construction Contracting

Federal construction contracting encompasses the design, building, renovation, maintenance, and demolition of government-owned facilities across all 50 states, U.S. territories, and overseas military installations. Unlike commercial construction, federal projects follow strict procurement regulations under the Federal Acquisition Regulation (FAR) Part 36, which governs construction and architect-engineer contracts.

The federal construction market is uniquely structured around prevailing wage requirements (Davis-Bacon Act), bonding mandates (Miller Act), and competitive bidding procedures that differ significantly from private-sector construction procurement. Understanding these regulatory frameworks is essential for contractors looking to enter or expand within the federal market.

Federal construction projects range from small repair and alteration jobs under $2,000 to multi-billion-dollar military construction (MILCON) programs. The simplified acquisition threshold for construction was raised to $250,000, and the micro-purchase threshold for construction is $2,000, creating accessible entry points for small and emerging contractors.

Types of Federal Construction Work

New Construction

Ground-up construction of federal buildings, military barracks, research laboratories, border security infrastructure, VA medical centers, and federal courthouses. MILCON projects for the Department of Defense represent the largest share, often exceeding $500 million per project. New construction contracts typically use firm-fixed-price or design-build delivery methods.

Renovation & Modernization

Upgrading and modernizing existing federal facilities including HVAC replacements, electrical system upgrades, seismic retrofitting, ADA compliance modifications, and energy efficiency improvements. GSA manages the largest portfolio of federal buildings and consistently awards renovation contracts for aging infrastructure across the country.

Maintenance & Repair

Ongoing facility maintenance including roofing, painting, plumbing, electrical repairs, grounds maintenance, and preventive maintenance programs. These contracts are often structured as indefinite-delivery/indefinite-quantity (IDIQ) task orders, providing a steady revenue stream for contractors over multi-year periods with individual task orders issued as needs arise.

Environmental Remediation

Cleanup of contaminated federal sites including former military bases (BRAC sites), Superfund locations, and active installations. Work includes soil remediation, groundwater treatment, asbestos and lead abatement, unexploded ordnance removal, and PFAS contamination cleanup. Environmental remediation contracts require specialized certifications and safety protocols.

Key Agencies for Construction Contracts

USACE

U.S. Army Corps of Engineers

The largest federal construction agency, managing over $60 billion in civil works and military construction. Handles flood control, navigation, environmental restoration, and military facility construction. Uses the Projnet system for solicitations and the CCASS past performance database.

GSA

General Services Administration

Manages the federal building portfolio including construction, renovation, and leasing. The Public Buildings Service (PBS) oversees construction of new federal buildings and major modernization projects. Also manages construction-related schedules and contract vehicles.

Department of Veterans Affairs

Undertakes major hospital construction and renovation projects at VA Medical Centers and community-based outpatient clinics across the nation. VA construction contracts often include specialized medical facility requirements, infection control during renovation, and compliance with VA design standards.

DoD

Department of Defense

Beyond USACE, individual military branches award construction contracts through NAVFAC (Navy), AFCEC (Air Force), and IMCOM (Army). Defense construction includes hangars, training facilities, housing, and forward operating bases. Security clearances may be required for work on classified installations.

Relevant NAICS Codes for Construction

236220

Commercial & Institutional Building

General contractors for federal buildings, courthouses, medical facilities, and office construction.

237310

Highway, Street & Bridge

Road construction, bridge building, highway maintenance, and transportation infrastructure projects.

237990

Other Heavy & Civil Engineering

Dams, levees, harbors, military airfields, and specialized civil engineering infrastructure.

236210

Industrial Building Construction

Warehouses, manufacturing plants, maintenance depots, and industrial federal facilities.

237110

Water & Sewer Line Construction

Water treatment facilities, sewer systems, and utility infrastructure on federal lands.

238910

Site Preparation

Demolition, excavation, grading, and site preparation for federal construction projects.

Browse all NAICS codes →

Key Regulatory Requirements

Davis-Bacon Act

The Davis-Bacon Act requires contractors on federal construction projects exceeding $2,000 to pay their workers no less than the locally prevailing wages and fringe benefits. The Department of Labor publishes wage determinations by geographic area and construction type (building, heavy, highway, residential).

Contractors must submit certified weekly payrolls, maintain accurate records, and post wage determinations at the work site. Non-compliance can result in contract termination, debarment from future federal work, and withholding of contract payments. Understanding wage determinations for your trade and region is critical for accurate bid pricing.

Miller Act Bonding Requirements

The Miller Act requires performance and payment bonds on all federal construction contracts exceeding $150,000. Performance bonds guarantee that the contractor will complete the work according to contract terms. Payment bonds ensure that subcontractors, laborers, and material suppliers are paid.

For contracts between $35,000 and $150,000, agencies have discretion in requiring bonds. Securing bonding capacity is often the biggest hurdle for small construction firms entering the federal market. The SBA's Surety Bond Guarantee Program helps small and emerging contractors obtain bonds by guaranteeing a portion of the surety's loss.

Small Business Set-Asides in Construction

Federal agencies are required to set aside construction contracts for small businesses when there is a reasonable expectation that offers will be received from at least two responsible small business concerns and the award can be made at fair market prices. The small business size standard for most construction NAICS codes is based on average annual receipts over the past five years, typically ranging from $16.5 million to $45 million depending on the specific trade.

Construction is one of the strongest sectors for small business participation in federal contracting. Programs including 8(a) Business Development, HUBZone, Service-Disabled Veteran-Owned Small Business (SDVOSB), and Women-Owned Small Business (WOSB) all provide additional contracting advantages. Many USACE districts have dedicated small business offices that actively identify set-aside opportunities.

Mentor-protege programs allow small construction firms to joint venture with large established contractors, gaining access to bonding capacity, equipment, and past performance credentials. The SBA's All Small Mentor-Protege Program and agency-specific programs (like USACE's Mentor-Protege Program) provide structured paths for small business growth in federal construction.

All Set-Asides 8(a) Program HUBZone SDVOSB WOSB

Market Intelligence — Construction

Active Records

4,130

Total Award Value

$515,467,228,171

Average Value

$1,182,264,285

Record Types

Records by Type

Contracts3,410Regulations356Job Listings328Bills19Grants17

Set-Aside Distribution

Full and Open Competition48.1%Small Business Set-Aside25.4%Service-Disabled Veteran-Owned Small Business15.1%8(a) Business Development4.6%HUBZone Small Business2.6%NONE2.4%Women-Owned Small Business0.8%8(a) Business Development0.4%ISBEE0.4%LAS0.2%