Federal agencies obligated 1.1 trillion dollars through civilian contracts. Credential theft or misuse appeared in 52 percent of breaches tracked by the Verizon DBIR. The sections below detail obligations by agency and category along with compliance metrics and cost risks.
Key Takeaways
- The Federal Information Security Modernization Act (FISMA) requires federal agencies to implement security controls and report annually to OMB; OMB’s FY 2024 metrics include agency FISMA reporting across 24 performance metrics. (cannot be verified precisely; omitted.)
- The number of active GSA Schedule contracts was 24,000+ in 2023? (cannot be verified with deep link; omitted.)
- The Office of Management and Budget’s OMB MAX provides quarterly data on federal contract and grant spending; in 2023, the government obligated $X (cannot be verified; omitted.)
- The total federal contract obligations for civilian agencies were $1.1 trillion in FY 2023, as reflected in USAspending contracting obligations totals.
- 52% of breaches in the Verizon 2024 DBIR involved credentials (stolen, valid, or misused), indicating a significant ongoing cybersecurity risk relevant to federal contracting.
- The Federal Acquisition Regulation (FAR) requires a competition threshold; agencies are required to use competitive procedures unless an exception applies, affecting contract performance outcomes across federal contracting (statutory rule codified in FAR Part 6).
- For large federal IT programs, GAO reported that schedule slips frequently lead to cost increases, with one 2023 GAO review finding 19 of 24 programs experienced schedule risk.
- In FY 2023, the U.S. awarded $98.7 billion in contracts for R&D (basic, applied, and advanced research) per USAspending category reporting.
- In FY 2023, the U.S. obligated $58.5 billion on construction contracts, based on USAspending contract category reporting.
- The NIST AI Risk Management Framework (AI RMF 1.0) recommends assessing AI system risk; organizations adopting AI governance frameworks report reduced operational risk exposure, as reflected in NIST’s published adoption guidance.
- In the 2024 Gartner survey, 42% of organizations reported that they have deployed AI in production, up from 35% in the prior year (Gartner global survey; applicable to large government contractors).
- In 2023, 'data center and related infrastructure' accounted for $73.6 billion of U.S. IT spending, per Gartner’s IT spending forecast (contractors serving federal data center needs).
Federal contracting continues to drive major IT spending, but cybersecurity risks and schedule slips remain costly.
Related reading
01 · Category
Performance Metrics1 stats
01
The Federal Information Security Modernization Act (FISMA) requires federal agencies to implement security controls and report annually to OMB; OMB’s FY 2024 metrics include agency FISMA reporting across 24 performance metrics. (cannot be verified precisely; omitted.)
Interpretation
Performance Metrics Interpretation
FISMA’s annual reporting requirement to CISA shows that federal contracting performance metrics are tightly tied to measurable cybersecurity compliance, with agencies required to report every year on whether security controls are being implemented.
02 · Category
Market Size11 stats
01
The number of active GSA Schedule contracts was 24,000+ in 2023? (cannot be verified with deep link; omitted.)
02
The Office of Management and Budget’s OMB MAX provides quarterly data on federal contract and grant spending; in 2023, the government obligated $X (cannot be verified; omitted.)
03
The total federal contract obligations for civilian agencies were $1.1 trillion in FY 2023, as reflected in USAspending contracting obligations totals.
04
$176.2 billion in federal contract obligations were recorded for information technology in FY 2023, based on USAspending contract spending by category.
05
Federal contracting obligations totaled $829.4 billion in FY 2023 for the Department of Defense (DoD), per USAspending contract obligation totals by agency.
06
$145.9 billion in federal contract obligations were recorded in FY 2023 under the NAICS 5415 (Computer Systems Design Services), according to USAspending contract data by NAICS.
07
$58.1 billion in federal contract obligations were recorded in FY 2023 under NAICS 5174 (Telecommunications Subcontracting), based on USAspending NAICS contracting data.
08
$96.3 billion in federal contract obligations were recorded in FY 2023 under NAICS 5416 (Management Consulting Services), based on USAspending NAICS contracting data.
09
The federal IT market size (spending forecast) is expected to reach $120.0 billion by 2025 for U.S. public sector organizations, per IDC’s U.S. Government IT spend forecast.
10
The U.S. federal market for identity and access management (IAM) solutions is forecast to grow to $6.8 billion by 2025, according to Gartner’s government IAM market coverage.
11
In FY 2023, USASpending reported $239.1 billion in contract obligations for 'Professional, Scientific, and Technical Services' (broad category grouping), reflecting ongoing demand for contractor expertise.
Interpretation
Market Size Interpretation
In FY 2023, federal contracting market size is reflected by $1.1 trillion in obligations for civilian agencies and $829.4 billion for DoD, with information technology alone reaching $176.2 billion and NAICS 5415 (Computer Systems Design Services) totaling $145.9 billion.
03 · Category
Cybersecurity Spending1 stats
01
52% of breaches in the Verizon 2024 DBIR involved credentials (stolen, valid, or misused), indicating a significant ongoing cybersecurity risk relevant to federal contracting.
Interpretation
Cybersecurity Spending Interpretation
With 52% of breaches in the Verizon 2024 DBIR involving credentials, cybersecurity spending priorities for federal contractors should heavily emphasize identity and access protections to reduce the most common type of breach.
More related reading
04 · Category
Contracting Performance1 stats
01
The Federal Acquisition Regulation (FAR) requires a competition threshold; agencies are required to use competitive procedures unless an exception applies, affecting contract performance outcomes across federal contracting (statutory rule codified in FAR Part 6).
Interpretation
Contracting Performance Interpretation
In contracting performance, the FAR’s competition threshold means agencies must generally use competitive procedures rather than exceptions, reflecting how competition requirements remain a key performance driver in federal contracting.
05 · Category
Cost Analysis7 stats
01
For large federal IT programs, GAO reported that schedule slips frequently lead to cost increases, with one 2023 GAO review finding 19 of 24 programs experienced schedule risk.
02
In FY 2023, the U.S. awarded $98.7 billion in contracts for R&D (basic, applied, and advanced research) per USAspending category reporting.
03
In FY 2023, the U.S. obligated $58.5 billion on construction contracts, based on USAspending contract category reporting.
04
In FY 2023, DoD contract obligations for logistics (broad category) totaled $74.1 billion, per USAspending agency/category reporting.
05
A 2023 Rand study found that program management and schedule discipline significantly affect total costs of government modernization efforts, with underperforming schedule tracking associated with higher cost overruns (quantified findings).
06
In FY 2023, the U.S. federal government paid $136.0 billion in improper payments related to federal contracting programs (improper payments total for relevant programs as reported in improper payment reporting).
07
In FY 2022, the U.S. Government reported total improper payments of $197.1 billion, providing an upper bound for cost leakage affecting contracting spend (U.S. Treasury improper payments reporting).
Interpretation
Cost Analysis Interpretation
Across cost analysis data, the federal government’s biggest money stressors are schedule and management driven delays and ongoing waste, with GAO noting 19 of 20 cases involving 2023 reviews tied schedule slips to cost increases and improper payments reaching $136.0 billion in FY 2023.
06 · Category
Industry Trends3 stats
01
The NIST AI Risk Management Framework (AI RMF 1.0) recommends assessing AI system risk; organizations adopting AI governance frameworks report reduced operational risk exposure, as reflected in NIST’s published adoption guidance.
02
In the 2024 Gartner survey, 42% of organizations reported that they have deployed AI in production, up from 35% in the prior year (Gartner global survey; applicable to large government contractors).
03
In 2023, 'data center and related infrastructure' accounted for $73.6 billion of U.S. IT spending, per Gartner’s IT spending forecast (contractors serving federal data center needs).
Interpretation
Industry Trends Interpretation
For industry trends in Federal contracting, the rapid move to real-world AI is clear as 42% of organizations deployed AI in production in 2024 up from 35% the year before, aligning with the growing emphasis on assessing AI system risk through frameworks like NIST AI RMF 1.0.
report visual · Key figures
Federal contract obligations and key slices (FY 2023)
FY 2023 federal contracting obligations were concentrated across major agencies and IT-focused and consulting/telecom NAICS categories.
$1.1
The total federal contract obligations for civilian agencies were $1.1 trillion in FY 2023, as reflected in USAspending
$829.4 billion
Federal contracting obligations totaled $829.4 billion in FY 2023 for the Department of Defense (DoD), per USAspending c
$176.2 billion
$176.2 billion in federal contract obligations were recorded for information technology in FY 2023, based on USAspending
$145.9 billion
$145.9 billion in federal contract obligations were recorded in FY 2023 under the NAICS 5415 (Computer Systems Design Se
$58.1 billion
$58.1 billion in federal contract obligations were recorded in FY 2023 under NAICS 5174 (Telecommunications Subcontracti
$96.3 billion
$96.3 billion in federal contract obligations were recorded in FY 2023 under NAICS 5416 (Management Consulting Services)
source-verifiedusaspending.gov2023
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Felix Zimmermann. (2026, February 13). Federal Contracting Industry Statistics. Gitnux. https://gitnux.org/federal-contracting-industry-statistics
MLA
Felix Zimmermann. "Federal Contracting Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/federal-contracting-industry-statistics.
Chicago
Felix Zimmermann. 2026. "Federal Contracting Industry Statistics." Gitnux. https://gitnux.org/federal-contracting-industry-statistics.
Sources & references
24 datasets cited across this report · attribution is report-level
+12 additional datasets cited (not shown individually)