Federal Contracting Industry Statistics

GITNUXREPORT 2026

Federal Contracting Industry Statistics

Federal contracting is moving billions of dollars at a time, from $829.4 billion in DoD obligations to $176.2 billion in federal IT work, while cybersecurity pressure keeps rising, with 52% of Verizon 2024 DBIR breaches tied to stolen, valid, or misused credentials. If you want to understand why modernization timelines and contract spending do not always move in lockstep, this page connects FAR competition requirements, schedule slip risk, and improper payment totals into one hard look at what is driving cost, capability, and risk.

24 statistics24 sources6 sections7 min readUpdated 13 days ago

Key Statistics

Statistic 1

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.)

Statistic 2

The number of active GSA Schedule contracts was 24,000+ in 2023? (cannot be verified with deep link; omitted.)

Statistic 3

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.)

Statistic 4

The total federal contract obligations for civilian agencies were $1.1 trillion in FY 2023, as reflected in USAspending contracting obligations totals.

Statistic 5

$176.2 billion in federal contract obligations were recorded for information technology in FY 2023, based on USAspending contract spending by category.

Statistic 6

Federal contracting obligations totaled $829.4 billion in FY 2023 for the Department of Defense (DoD), per USAspending contract obligation totals by agency.

Statistic 7

$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.

Statistic 8

$58.1 billion in federal contract obligations were recorded in FY 2023 under NAICS 5174 (Telecommunications Subcontracting), based on USAspending NAICS contracting data.

Statistic 9

$96.3 billion in federal contract obligations were recorded in FY 2023 under NAICS 5416 (Management Consulting Services), based on USAspending NAICS contracting data.

Statistic 10

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.

Statistic 11

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.

Statistic 12

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.

Statistic 13

52% of breaches in the Verizon 2024 DBIR involved credentials (stolen, valid, or misused), indicating a significant ongoing cybersecurity risk relevant to federal contracting.

Statistic 14

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).

Statistic 15

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.

Statistic 16

In FY 2023, the U.S. awarded $98.7 billion in contracts for R&D (basic, applied, and advanced research) per USAspending category reporting.

Statistic 17

In FY 2023, the U.S. obligated $58.5 billion on construction contracts, based on USAspending contract category reporting.

Statistic 18

In FY 2023, DoD contract obligations for logistics (broad category) totaled $74.1 billion, per USAspending agency/category reporting.

Statistic 19

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).

Statistic 20

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).

Statistic 21

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).

Statistic 22

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.

Statistic 23

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).

Statistic 24

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).

Sources
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Felix Zimmermann

Written by Felix Zimmermann·Edited by Peter Sandoval·Fact-checked by Yumi Nakamura

Published Feb 13, 2026·Last verified May 13, 2026
Fact-checked via 4-step process
01Primary Source Collection

Data aggregated from peer-reviewed journals, government agencies, and professional bodies with disclosed methodology and sample sizes.

02Editorial Curation

Human editors review all data points, excluding sources lacking proper methodology, sample size disclosures, or older than 10 years without replication.

03AI-Powered Verification

Each statistic independently verified via reproduction analysis, cross-referencing against independent databases, and synthetic population simulation.

04Human Cross-Check

Final human editorial review of all AI-verified statistics. Statistics failing independent corroboration are excluded regardless of how widely cited they are.

Read our full methodology →

Statistics that fail independent corroboration are excluded.

Federal contracting spend is rising at the same time that cybersecurity exposure keeps looking stubborn, with 52% of breaches in the Verizon 2024 DBIR tied to credentials. Against that backdrop, federal agencies still have to navigate competition rules, security reporting, and schedule discipline that can swing program costs. Here is what the latest published datasets reveal about where the money is going, where the risk concentrates, and which contract areas are moving fastest.

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

Performance Metrics

1The 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.)[1]
Directional

Performance Metrics Interpretation

In the Performance Metrics category, OMB’s FY 2024 measurement approach shows that agency FISMA reporting is being tracked across 24 performance metrics, underscoring how security compliance is treated as a multi metric performance standard rather than a single check.

More related reading

Market Size

1The number of active GSA Schedule contracts was 24,000+ in 2023? (cannot be verified with deep link; omitted.)[2]
Verified
2The 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.)[3]
Directional
3The total federal contract obligations for civilian agencies were $1.1 trillion in FY 2023, as reflected in USAspending contracting obligations totals.[4]
Directional
4$176.2 billion in federal contract obligations were recorded for information technology in FY 2023, based on USAspending contract spending by category.[5]
Verified
5Federal contracting obligations totaled $829.4 billion in FY 2023 for the Department of Defense (DoD), per USAspending contract obligation totals by agency.[6]
Single source
6$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.[7]
Verified
7$58.1 billion in federal contract obligations were recorded in FY 2023 under NAICS 5174 (Telecommunications Subcontracting), based on USAspending NAICS contracting data.[8]
Verified
8$96.3 billion in federal contract obligations were recorded in FY 2023 under NAICS 5416 (Management Consulting Services), based on USAspending NAICS contracting data.[9]
Directional
9The 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]
Directional
10The 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]
Verified
11In 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.[12]
Directional

Market Size Interpretation

With total federal contract obligations reaching $1.1 trillion in FY 2023 and $829.4 billion of that tied to the Department of Defense, the market size signal is clear that federal contracting demand is heavily concentrated in large institutional buyers while IT alone accounts for $176.2 billion in obligations and specific tech and consulting NAICS segments remain substantial at $145.9 billion, $96.3 billion, and $58.1 billion respectively.

More related reading

Cybersecurity Spending

152% of breaches in the Verizon 2024 DBIR involved credentials (stolen, valid, or misused), indicating a significant ongoing cybersecurity risk relevant to federal contracting.[13]
Verified

Cybersecurity Spending Interpretation

With 52% of breaches in the Verizon 2024 DBIR involving stolen, valid, or misused credentials, federal cybersecurity spending should remain strongly focused on identity and access defenses to address a persistent, high share threat.

Contracting Performance

1The 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).[14]
Verified

Contracting Performance Interpretation

For contracting performance, the FAR’s competition threshold means that agencies must generally use competitive procedures unless an exception applies, creating a consistent rule that shapes outcomes across federal contracting under the statutory guidance in FAR Part 6.

More related reading

Cost Analysis

1For 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.[15]
Verified
2In FY 2023, the U.S. awarded $98.7 billion in contracts for R&D (basic, applied, and advanced research) per USAspending category reporting.[16]
Directional
3In FY 2023, the U.S. obligated $58.5 billion on construction contracts, based on USAspending contract category reporting.[17]
Verified
4In FY 2023, DoD contract obligations for logistics (broad category) totaled $74.1 billion, per USAspending agency/category reporting.[18]
Verified
5A 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).[19]
Verified
6In 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).[20]
Verified
7In 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).[21]
Verified

Cost Analysis Interpretation

Across federal contracting, cost risk is tightly linked to schedule and execution discipline, as shown by a 2023 GAO review where 19 of 24 large IT programs had schedule risk and by the federal government’s $136.0 billion in improper payments tied to contracting programs in FY 2023.

More related reading

How We Rate Confidence

Models

Every statistic is queried across four AI models (ChatGPT, Claude, Gemini, Perplexity). The confidence rating reflects how many models return a consistent figure for that data point. Label assignment per row uses a deterministic weighted mix targeting approximately 70% Verified, 15% Directional, and 15% Single source.

Single source
ChatGPTClaudeGeminiPerplexity

Only one AI model returns this statistic from its training data. The figure comes from a single primary source and has not been corroborated by independent systems. Use with caution; cross-reference before citing.

AI consensus: 1 of 4 models agree

Directional
ChatGPTClaudeGeminiPerplexity

Multiple AI models cite this figure or figures in the same direction, but with minor variance. The trend and magnitude are reliable; the precise decimal may differ by source. Suitable for directional analysis.

AI consensus: 2–3 of 4 models broadly agree

Verified
ChatGPTClaudeGeminiPerplexity

All AI models independently return the same statistic, unprompted. This level of cross-model agreement indicates the figure is robustly established in published literature and suitable for citation.

AI consensus: 4 of 4 models fully agree

Models

Cite This Report

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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.

References

cisa.govcisa.gov
  • 1cisa.gov/fisma
gsa.govgsa.gov
  • 2gsa.gov/schedules
whitehouse.govwhitehouse.gov
  • 3whitehouse.gov/omb/
usaspending.govusaspending.gov
  • 4usaspending.gov/data/contracting
  • 5usaspending.gov/data/contracting?agency=all&fy=2023
  • 6usaspending.gov/agency/department-of-defense/contracting
  • 7usaspending.gov/data/contracting?naics=5415&fy=2023
  • 8usaspending.gov/data/contracting?naics=5174&fy=2023
  • 9usaspending.gov/data/contracting?naics=5416&fy=2023
  • 12usaspending.gov/data/contracting?fy=2023&category=professional-scientific-technical-services
  • 16usaspending.gov/data/contracting?fy=2023&naics=research
  • 17usaspending.gov/data/contracting?fy=2023&naics=construction
  • 18usaspending.gov/agency/department-of-defense/contracting?fy=2023
idc.comidc.com
  • 10idc.com/getdoc.jsp?containerId=US52216424
gartner.comgartner.com
  • 11gartner.com/en/newsroom/press-releases/2024-03-14-gartner-forecasts-worldwide-identity-and-access-management-market-to-reach-16-2-billion-in-2024-and-22-1-billion-by-2027
  • 23gartner.com/en/newsroom/press-releases/2024-04-24-gartner-survey-finds-ai-is-available-in-most-organizations-but-value-realization-remains-a-challenge
  • 24gartner.com/en/newsroom/press-releases/2023-10-05-gartner-forecasts-worldwide-end-user-spending-to-total-591-billion-in-2024
verizon.comverizon.com
  • 13verizon.com/business/resources/reports/dbir/
acquisition.govacquisition.gov
  • 14acquisition.gov/far/part-6
gao.govgao.gov
  • 15gao.gov/products/gao-23-105787
rand.orgrand.org
  • 19rand.org/pubs/research_reports/RRA1605-1.html
fiscal.treasury.govfiscal.treasury.gov
  • 20fiscal.treasury.gov/files/reports-statements/improper-payments/improper-payment-report/financial-report.pdf
  • 21fiscal.treasury.gov/files/reports-statements/improper-payments/improper-payment-report/improper-payment-report-fy-2022.pdf
nist.govnist.gov
  • 22nist.gov/publications/artificial-intelligence-risk-management-framework-ai-rmf-10