Federal Government Contracting Statistics 2026

The U.S. federal government is the single largest buyer of goods and services in the world. Every year, federal agencies award hundreds of billions of dollars in contracts to businesses of all sizes across every industry.

Data from USAspending.gov, FPDS, and SAM.gov

Data as of March 17, 2026

How much does the federal government spend on contracts?

The U.S. federal government spends approximately $750 billion annually on contracts, making it the single largest buyer of goods and services in the world. Over 300,000 prime contracts are awarded each year across every major industry, with the Department of Defense accounting for over half of all spending.

Annual Spending
~$750B
Contracts/Year
300,000+
Small Biz Goal
23%

Data sourced from SAM.gov, USAspending, FPDS, Grants.gov. 160+ supplementary federal data feeds. View methodology →

Key Statistics

~$750B
Total Federal Contract Spending
Annual (FY2025)
300,000+
Contracts Awarded Annually
Prime contracts
23%
Small Business Goal
Of prime contract dollars
3%
SDVOSB Goal
Service-Disabled Veteran-Owned
5%
WOSB Goal
Women-Owned Small Business
3%
HUBZone Goal
Historically Underutilized Business Zones
$4.5M / $8M
8(a) Sole Source Threshold
Services / Manufacturing
1-5 Years
Average Contract Duration
Including option periods

Spending by Agency

The Department of Defense accounts for more than half of all federal contract spending. The remaining spending is distributed across civilian agencies, with the VA, HHS, and DOE rounding out the top five. Explore individual agency pages for detailed breakdowns.

Spending by Category

Federal spending spans every major industry. Information technology leads all categories, followed by professional services and construction. Use PSC codes and NAICS codes to find opportunities in your specific industry.

Information Technology$110B (14.7%)
Professional & Management Services$95B (12.7%)
Construction & Facilities$65B (8.7%)
Research & Development$60B (8.0%)
Medical & Healthcare$50B (6.7%)
Weapons Systems & Platforms$45B (6.0%)
Logistics & Transportation$35B (4.7%)
Engineering & Technical Services$30B (4.0%)

Small Business Trends

The federal government sets annual goals for contracting with small businesses. These goals are mandated by the Small Business Act and tracked by the SBA. Browse all set-aside programs to learn about eligibility requirements.

CategoryGoalAchievedStatus
Small Business (Overall)23%26.5%Exceeded
Small Disadvantaged Business (8(a))5%11.4%Exceeded
Women-Owned Small Business5%5.2%Met
Service-Disabled Veteran-Owned3%4.6%Exceeded
HUBZone3%2.8%Not Met

Learn more about small business set-asides, 8(a) certification, and HUBZone eligibility.

Search All Federal Opportunities

Bureauify indexes contracts, grants, and spending data from SAM.gov, USAspending, FPDS, and Grants.gov. Search across all data sources in one place.

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