Quarterly Report · March 2026
Federal Contracting Q2 FY2026
At the midpoint of FY2026, federal agencies have obligated 41% of projected annual spending. The pace is ahead of FY2025 and signals a strong second half, particularly in technology and professional services.
Data as of March 20, 2026
$155.2B
Total Obligations
Jan 1 - Mar 15, 2026
+5.1%
YoY Change
vs Q2 FY2025
$277.6B
Cumulative FY Spend
Q1 + Q2 combined
41%
Burn Rate
Of projected annual total
Fastest-Growing Sectors (Q2 vs Q2 FY2025)
Cloud & Data InfrastructureFedRAMP demand
+17.2%Cybersecurity ServicesZero trust deadlines
+15.8%R&D (Physical/Engineering)DOE + NASA priorities
+13.4%Healthcare ITVA modernization
+11.9%Facilities & ConstructionInfrastructure bill follow-on
+8.7%Mid-Year Outlook
Bullish Signals
- • Full-year appropriations enacted early = agency confidence
- • DoD spend rate 2.3% ahead of FY2025 pace
- • Record number of new SAM.gov registrations in Jan-Feb
- • Set-aside programs tracking above statutory goals
Watch Items
- • CMMC certification backlogs may delay some DoD awards
- • GSA spend rate slightly below prior year (-1.2% in Q1)
- • HUBZone participation continues to underperform
- • Protest volume up 8% — may signal increased competition
Position for the Q3-Q4 Spending Surge
Agencies will obligate the remaining 59% of their budgets in the next 6 months. Bureauify helps you find and track opportunities before they close.