GITNUXREPORT 2026

Federal Government Contracting Industry Statistics

Federal contracting grew overall in 2023, led strongly by Department of Defense spending.

124 statistics5 sections9 min readUpdated 1 mo ago

Statistic 1

In fiscal year 2023, the total value of federal contract obligations reached $791.3 billion, marking a 3.2% increase from FY2022.

Statistic 2

Federal IT spending through contracts in FY2023 totaled $105.4 billion, representing 13.3% of overall federal contracting.

Statistic 3

The Department of Defense accounted for 62% of all federal contract spending in FY2023, obligating $490.5 billion.

Statistic 4

In FY2022, civilian agency contract spending was $252.8 billion, up 5.1% from the previous year.

Statistic 5

Federal contracts for professional services reached $128.7 billion in FY2023, comprising 16.3% of total obligations.

Statistic 6

The value of federal construction contracts awarded in FY2023 was $42.1 billion, a 7.8% rise year-over-year.

Statistic 7

R&D contracts by the federal government totaled $68.9 billion in FY2023, primarily driven by DoD needs.

Statistic 8

In FY2023, indefinite-delivery contracts (IDVs) accounted for $389.2 billion in obligations, or 49.2% of total.

Statistic 9

Federal spending on engineering and technical services contracts hit $89.4 billion in FY2023.

Statistic 10

The top 100 federal contractors received 26% of total contract dollars in FY2023, amounting to $206.1 billion.

Statistic 11

GSA's Multiple Award Schedule (MAS) program facilitated $38.2 billion in contracts in FY2023.

Statistic 12

Federal healthcare-related contract spending reached $55.7 billion in FY2023.

Statistic 13

In FY2023, contracts under $250,000 (micro-purchases) totaled $12.4 billion across all agencies.

Statistic 14

DoD's Operation and Maintenance contracts obligated $210.3 billion in FY2023.

Statistic 15

NASA's contract spending in FY2023 was $22.6 billion, focused on space exploration programs.

Statistic 16

Federal contracts for cybersecurity services grew to $18.9 billion in FY2023.

Statistic 17

VA's contract obligations in FY2023 reached $32.1 billion, largely for medical services.

Statistic 18

DHS awarded $28.4 billion in contracts in FY2023, with border security as a key area.

Statistic 19

DOE's contract spending on energy R&D was $14.7 billion in FY2023.

Statistic 20

Federal logistics and supply chain contracts totaled $76.5 billion in FY2023.

Statistic 21

In FY2023, sole-source contracts amounted to $45.2 billion, or 5.7% of total obligations.

Statistic 22

Army Corps of Engineers awarded $9.8 billion in civil works contracts in FY2023.

Statistic 23

Federal environmental services contracts reached $11.3 billion in FY2023.

Statistic 24

DOJ's contract spending in FY2023 was $7.6 billion, focused on law enforcement tech.

Statistic 25

USDA obligated $6.2 billion in contracts for agricultural research in FY2023.

Statistic 26

Federal aircraft and ship maintenance contracts totaled $15.4 billion in FY2023.

Statistic 27

Treasury Department's contract awards in FY2023 reached $4.1 billion.

Statistic 28

Federal education and training contracts amounted to $3.9 billion in FY2023.

Statistic 29

Interior Department's contracting in FY2023 was $2.8 billion for land management.

Statistic 30

Federal transportation contracts (non-DoD) totaled $18.7 billion in FY2023.

Statistic 31

In FY2023, 42% of federal contract actions were competed fully, up from 39% in FY2022.

Statistic 32

Use of commercial item acquisitions rose to 28.5% of total dollars in FY2023.

Statistic 33

Simplified acquisitions under SAT grew 6.2% to $145.3 billion in FY2023.

Statistic 34

Multiple award contracts (MACs) obligated $210.4 billion in FY2023.

Statistic 35

Fair opportunity task orders under IDIQs totaled $189.7 billion in FY2023.

Statistic 36

Sole-source awards decreased 2.1% to 4.8% of total obligations in FY2023.

Statistic 37

IT services contracts grew 9.4% year-over-year to $112.6 billion in FY2023.

Statistic 38

Cloud computing contract spending surged 22.7% to $14.3 billion in FY2023.

Statistic 39

Use of Other Transaction Authorities (OTAs) reached $18.2 billion in FY2023.

Statistic 40

Fixed-price contracts comprised 85.3% of total contract actions in FY2023.

Statistic 41

Cost-reimbursement contracts declined to 12.1% of dollars in FY2023.

Statistic 42

Average federal contract size increased 4.7% to $156,000 in FY2023.

Statistic 43

Number of new contracts awarded dropped 3.8% to 12.4 million in FY2023.

Statistic 44

Professional, administrative, and management support services were 22.4% of FY2023 spending.

Statistic 45

Sustainment contracts grew 5.6% to $320.1 billion in DoD FY2023 budget.

Statistic 46

AI and machine learning contracts reached $2.7 billion in FY2023.

Statistic 47

Federal procurement of electric vehicles and charging infrastructure hit $1.4 billion in FY2023.

Statistic 48

Use of GSA Schedules increased 7.2% to $41.6 billion in FY2023.

Statistic 49

Blanket Purchase Agreements (BPAs) facilitated $28.9 billion in FY2023.

Statistic 50

Federal acquisition of software-as-a-service (SaaS) grew 18.3% in FY2023.

Statistic 51

DoD's adaptive acquisition framework led to 15% faster awards in FY2023 pilots.

Statistic 52

Civilian IT modernization contracts totaled $22.1 billion in FY2023.

Statistic 53

Procurement protests filed with GAO increased 4.2% to 2,456 in FY2023.

Statistic 54

Sustainment-to-development spending ratio was 65:35 in DoD FY2023.

Statistic 55

Federal spending on agile software development rose 12.6% in FY2023.

Statistic 56

In FY2023, small businesses received 26.8% of prime contract dollars, totaling $212.4 billion.

Statistic 57

Small disadvantaged businesses (SDB) captured 10.2% of federal contract awards in FY2023, worth $80.7 billion.

Statistic 58

Women-owned small businesses (WOSB) achieved 5.4% of prime contracts in FY2023, amounting to $42.8 billion.

Statistic 59

HUBZone-certified small businesses received 3.1% of federal dollars in FY2023, or $24.5 billion.

Statistic 60

Service-disabled veteran-owned small businesses (SDVOSB) got 4.8% in FY2023, totaling $38 billion.

Statistic 61

In FY2023, DoD small business goaling was met at 23.1% of eligible contracts.

Statistic 62

GSA awarded 45.2% of its prime contract dollars to small businesses in FY2023.

Statistic 63

NASA achieved 32.7% small business participation in FY2023 contracts.

Statistic 64

Number of small business prime contractors grew to 112,400 in FY2023.

Statistic 65

Small businesses won 78.5% of contracts by number (but lower by value) in FY2023.

Statistic 66

8(a) program participants received $28.6 billion in FY2023, up 4.5% from prior year.

Statistic 67

Mentor-Protégé program facilitated $1.2 billion in small business subcontracts in FY2023.

Statistic 68

Small business set-asides accounted for 67.3% of all small business awards in FY2023.

Statistic 69

WOSB set-asides awarded $12.4 billion in FY2023.

Statistic 70

HUBZone sole-source awards totaled $3.7 billion in FY2023.

Statistic 71

SDVOSB joint ventures received $4.1 billion in FY2023.

Statistic 72

Small business R&D contracts reached $15.9 billion in FY2023 via SBIR/STTR programs.

Statistic 73

DoD's small business subcontracting goals were exceeded by 12 firms in FY2023.

Statistic 74

Civilian agencies' small business goaling rate was 24.6% in FY2023.

Statistic 75

Number of HUBZone firms grew 8.2% to 7,200 in FY2023.

Statistic 76

Federal contract awards to small businesses in IT sector hit $32.1 billion in FY2023.

Statistic 77

Small businesses in construction received $18.4 billion in FY2023.

Statistic 78

8(a) graduates continued to win $9.2 billion post-program in FY2023.

Statistic 79

Small business participation in GWACs reached 41% in FY2023.

Statistic 80

Federal awards to small businesses via IDIQs totaled $112.7 billion in FY2023.

Statistic 81

Lockheed Martin was the top federal contractor in FY2023, receiving $69.1 billion in awards.

Statistic 82

Boeing secured $33.2 billion in federal contracts in FY2023, primarily aircraft-related.

Statistic 83

General Dynamics received $24.8 billion in DoD contracts in FY2023 for shipbuilding.

Statistic 84

Raytheon Technologies (RTX) was awarded $22.4 billion in missile defense contracts in FY2023.

Statistic 85

Northrop Grumman obtained $17.9 billion in federal awards in FY2023, focused on aeronautics.

Statistic 86

Leidos Holdings won $13.6 billion in IT and health contracts in FY2023.

Statistic 87

Huntington Ingalls Industries received $11.2 billion for naval ship construction in FY2023.

Statistic 88

Deloitte Consulting secured $9.7 billion in civilian agency contracts in FY2023.

Statistic 89

Booz Allen Hamilton was awarded $8.4 billion, mainly in intelligence services in FY2023.

Statistic 90

L3Harris Technologies received $7.9 billion in communications contracts in FY2023.

Statistic 91

SAIC (Science Applications International Corp) got $7.2 billion in engineering awards in FY2023.

Statistic 92

Fluor Corporation secured $6.8 billion in construction contracts in FY2023.

Statistic 93

ManTech International received $5.3 billion in cybersecurity contracts in FY2023.

Statistic 94

CACI International won $4.9 billion in IT support contracts in FY2023.

Statistic 95

Jacobs Engineering Group was awarded $4.6 billion for infrastructure in FY2023.

Statistic 96

Accenture Federal Services secured $4.2 billion in digital transformation contracts in FY2023.

Statistic 97

BAE Systems received $3.8 billion in electronics contracts in FY2023.

Statistic 98

KBR Inc. won $3.5 billion in logistics support awards in FY2023.

Statistic 99

Parsons Corporation secured $3.1 billion in engineering services in FY2023.

Statistic 100

Peraton Labs received $2.9 billion in mission services contracts in FY2023.

Statistic 101

Amentum Services won $2.7 billion in O&M contracts in FY2023.

Statistic 102

IBM Corporation was awarded $2.4 billion in cloud computing contracts in FY2023.

Statistic 103

Oracle America Inc. secured $2.1 billion in software licenses in FY2023.

Statistic 104

Microsoft Corporation received $1.9 billion in federal software and services in FY2023.

Statistic 105

General Electric received $1.7 billion in aviation contracts in FY2023.

Statistic 106

In FY2024 projections, federal contracting market expected to grow 2.5% to $812 billion.

Statistic 107

DoD contracting forecasted at $510 billion in FY2024, driven by modernization.

Statistic 108

IT contracting projected to reach $118 billion in FY2024, up 12%.

Statistic 109

Cybersecurity market in federal contracts expected to grow 15.3% to $22.1 billion in FY2024.

Statistic 110

Cloud services spending forecasted at $18.9 billion in FY2024, CAGR 21%.

Statistic 111

Small business participation projected to hit 28.2% in FY2024.

Statistic 112

AI/ML federal investments to exceed $5.2 billion by FY2025.

Statistic 113

Federal R&D contracting expected to rise 4.8% to $72.3 billion in FY2024.

Statistic 114

Infrastructure contracts from IIJA to total $550 billion over 5 years through 2026.

Statistic 115

Hypersonics and space domain awareness contracts to grow 25% annually to 2028.

Statistic 116

Federal healthcare IT spending projected at $12.4 billion in FY2024.

Statistic 117

OTA usage expected to double to $36 billion by FY2025.

Statistic 118

Digital engineering adoption to reduce acquisition timelines by 30% by FY2027.

Statistic 119

Federal electric vehicle procurement to reach 650,000 units by 2032.

Statistic 120

Software modernization initiatives to allocate $8.7 billion in FY2024.

Statistic 121

Quantum computing R&D contracts forecasted at $1.2 billion in FY2024.

Statistic 122

Supply chain resilience contracts to surge 18% to $45.6 billion in FY2024.

Statistic 123

Federal 5G deployments expected to cost $4.3 billion through FY2026.

Statistic 124

Climate resilience and sustainability contracts projected at $28 billion annually by 2025.

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Sources

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Written by Alexander Schmidt·Edited by Nikolas Papadopoulos·Fact-checked by Claire Beaumont

Published Feb 13, 2026·Last verified Mar 31, 2026·Next review: Oct 2026

Fact-checked via 4-step process— how we build this report

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.

Unlocking a market of nearly $800 billion in annual federal spending, the government contracting landscape in FY2023 revealed powerful trends from the Department of Defense's massive budget dominance to surging investments in cybersecurity, cloud computing, and small business success.

Key Takeaways

In fiscal year 2023, the total value of federal contract obligations reached $791.3 billion, marking a 3.2% increase from FY2022.
Federal IT spending through contracts in FY2023 totaled $105.4 billion, representing 13.3% of overall federal contracting.
The Department of Defense accounted for 62% of all federal contract spending in FY2023, obligating $490.5 billion.
Lockheed Martin was the top federal contractor in FY2023, receiving $69.1 billion in awards.
Boeing secured $33.2 billion in federal contracts in FY2023, primarily aircraft-related.
General Dynamics received $24.8 billion in DoD contracts in FY2023 for shipbuilding.
In FY2023, small businesses received 26.8% of prime contract dollars, totaling $212.4 billion.
Small disadvantaged businesses (SDB) captured 10.2% of federal contract awards in FY2023, worth $80.7 billion.
Women-owned small businesses (WOSB) achieved 5.4% of prime contracts in FY2023, amounting to $42.8 billion.
In FY2023, 42% of federal contract actions were competed fully, up from 39% in FY2022.
Use of commercial item acquisitions rose to 28.5% of total dollars in FY2023.
Simplified acquisitions under SAT grew 6.2% to $145.3 billion in FY2023.
In FY2024 projections, federal contracting market expected to grow 2.5% to $812 billion.
DoD contracting forecasted at $510 billion in FY2024, driven by modernization.
IT contracting projected to reach $118 billion in FY2024, up 12%.

Federal contracting grew overall in 2023, led strongly by Department of Defense spending.

Market Size and Spending

1In fiscal year 2023, the total value of federal contract obligations reached $791.3 billion, marking a 3.2% increase from FY2022.

Verified

2Federal IT spending through contracts in FY2023 totaled $105.4 billion, representing 13.3% of overall federal contracting.

Verified

3The Department of Defense accounted for 62% of all federal contract spending in FY2023, obligating $490.5 billion.

Verified

4In FY2022, civilian agency contract spending was $252.8 billion, up 5.1% from the previous year.

Single source

5Federal contracts for professional services reached $128.7 billion in FY2023, comprising 16.3% of total obligations.

Verified

6The value of federal construction contracts awarded in FY2023 was $42.1 billion, a 7.8% rise year-over-year.

Verified

7R&D contracts by the federal government totaled $68.9 billion in FY2023, primarily driven by DoD needs.

Verified

8In FY2023, indefinite-delivery contracts (IDVs) accounted for $389.2 billion in obligations, or 49.2% of total.

Verified

9Federal spending on engineering and technical services contracts hit $89.4 billion in FY2023.

Verified

10The top 100 federal contractors received 26% of total contract dollars in FY2023, amounting to $206.1 billion.

Directional

11GSA's Multiple Award Schedule (MAS) program facilitated $38.2 billion in contracts in FY2023.

Verified

12Federal healthcare-related contract spending reached $55.7 billion in FY2023.

Verified

13In FY2023, contracts under $250,000 (micro-purchases) totaled $12.4 billion across all agencies.

Single source

14DoD's Operation and Maintenance contracts obligated $210.3 billion in FY2023.

Directional

15NASA's contract spending in FY2023 was $22.6 billion, focused on space exploration programs.

Single source

16Federal contracts for cybersecurity services grew to $18.9 billion in FY2023.

Verified

17VA's contract obligations in FY2023 reached $32.1 billion, largely for medical services.

Verified

18DHS awarded $28.4 billion in contracts in FY2023, with border security as a key area.

Verified

19DOE's contract spending on energy R&D was $14.7 billion in FY2023.

Verified

20Federal logistics and supply chain contracts totaled $76.5 billion in FY2023.

Verified

21In FY2023, sole-source contracts amounted to $45.2 billion, or 5.7% of total obligations.

Directional

22Army Corps of Engineers awarded $9.8 billion in civil works contracts in FY2023.

Verified

23Federal environmental services contracts reached $11.3 billion in FY2023.

Verified

24DOJ's contract spending in FY2023 was $7.6 billion, focused on law enforcement tech.

Verified

25USDA obligated $6.2 billion in contracts for agricultural research in FY2023.

Directional

26Federal aircraft and ship maintenance contracts totaled $15.4 billion in FY2023.

Verified

27Treasury Department's contract awards in FY2023 reached $4.1 billion.

Verified

28Federal education and training contracts amounted to $3.9 billion in FY2023.

Verified

29Interior Department's contracting in FY2023 was $2.8 billion for land management.

Verified

30Federal transportation contracts (non-DoD) totaled $18.7 billion in FY2023.

Directional

Market Size and Spending Interpretation

The federal government, in a relentless and costly game of "keep the lights on and the planes in the air," spent nearly $800 billion last year, with the DoD predictably eating the lion's share of the pie, IT quietly powering the whole enterprise, and a handful of corporate giants pocketing one out of every four taxpayer dollars.

Procurement Trends

1In FY2023, 42% of federal contract actions were competed fully, up from 39% in FY2022.

Directional

2Use of commercial item acquisitions rose to 28.5% of total dollars in FY2023.

Directional

3Simplified acquisitions under SAT grew 6.2% to $145.3 billion in FY2023.

Directional

4Multiple award contracts (MACs) obligated $210.4 billion in FY2023.

Verified

5Fair opportunity task orders under IDIQs totaled $189.7 billion in FY2023.

Directional

6Sole-source awards decreased 2.1% to 4.8% of total obligations in FY2023.

Verified

7IT services contracts grew 9.4% year-over-year to $112.6 billion in FY2023.

Directional

8Cloud computing contract spending surged 22.7% to $14.3 billion in FY2023.

Verified

9Use of Other Transaction Authorities (OTAs) reached $18.2 billion in FY2023.

Verified

10Fixed-price contracts comprised 85.3% of total contract actions in FY2023.

Directional

11Cost-reimbursement contracts declined to 12.1% of dollars in FY2023.

Verified

12Average federal contract size increased 4.7% to $156,000 in FY2023.

Verified

13Number of new contracts awarded dropped 3.8% to 12.4 million in FY2023.

Verified

14Professional, administrative, and management support services were 22.4% of FY2023 spending.

Verified

15Sustainment contracts grew 5.6% to $320.1 billion in DoD FY2023 budget.

Verified

16AI and machine learning contracts reached $2.7 billion in FY2023.

Single source

17Federal procurement of electric vehicles and charging infrastructure hit $1.4 billion in FY2023.

Directional

18Use of GSA Schedules increased 7.2% to $41.6 billion in FY2023.

Verified

19Blanket Purchase Agreements (BPAs) facilitated $28.9 billion in FY2023.

Directional

20Federal acquisition of software-as-a-service (SaaS) grew 18.3% in FY2023.

Verified

21DoD's adaptive acquisition framework led to 15% faster awards in FY2023 pilots.

Verified

22Civilian IT modernization contracts totaled $22.1 billion in FY2023.

Verified

23Procurement protests filed with GAO increased 4.2% to 2,456 in FY2023.

Verified

24Sustainment-to-development spending ratio was 65:35 in DoD FY2023.

Verified

25Federal spending on agile software development rose 12.6% in FY2023.

Verified

Procurement Trends Interpretation

The federal marketplace is cautiously streamlining its baroque bureaucracy, as evidenced by a slight uptick in competition and commercial buying alongside a significant shift toward IT modernization, cloud, and agile methods, all while trying to balance the relentless need for sustainment with the pressure to innovate and the persistent hum of procurement protests.

Small Business Participation

1In FY2023, small businesses received 26.8% of prime contract dollars, totaling $212.4 billion.

Verified

2Small disadvantaged businesses (SDB) captured 10.2% of federal contract awards in FY2023, worth $80.7 billion.

Verified

3Women-owned small businesses (WOSB) achieved 5.4% of prime contracts in FY2023, amounting to $42.8 billion.

Verified

4HUBZone-certified small businesses received 3.1% of federal dollars in FY2023, or $24.5 billion.

Verified

5Service-disabled veteran-owned small businesses (SDVOSB) got 4.8% in FY2023, totaling $38 billion.

Verified

6In FY2023, DoD small business goaling was met at 23.1% of eligible contracts.

Directional

7GSA awarded 45.2% of its prime contract dollars to small businesses in FY2023.

Verified

8NASA achieved 32.7% small business participation in FY2023 contracts.

Verified

9Number of small business prime contractors grew to 112,400 in FY2023.

Verified

10Small businesses won 78.5% of contracts by number (but lower by value) in FY2023.

Verified

118(a) program participants received $28.6 billion in FY2023, up 4.5% from prior year.

Verified

12Mentor-Protégé program facilitated $1.2 billion in small business subcontracts in FY2023.

Verified

13Small business set-asides accounted for 67.3% of all small business awards in FY2023.

Verified

14WOSB set-asides awarded $12.4 billion in FY2023.

Directional

15HUBZone sole-source awards totaled $3.7 billion in FY2023.

Verified

16SDVOSB joint ventures received $4.1 billion in FY2023.

Verified

17Small business R&D contracts reached $15.9 billion in FY2023 via SBIR/STTR programs.

Verified

18DoD's small business subcontracting goals were exceeded by 12 firms in FY2023.

Directional

19Civilian agencies' small business goaling rate was 24.6% in FY2023.

Single source

20Number of HUBZone firms grew 8.2% to 7,200 in FY2023.

Directional

21Federal contract awards to small businesses in IT sector hit $32.1 billion in FY2023.

Single source

22Small businesses in construction received $18.4 billion in FY2023.

Verified

238(a) graduates continued to win $9.2 billion post-program in FY2023.

Verified

24Small business participation in GWACs reached 41% in FY2023.

Directional

25Federal awards to small businesses via IDIQs totaled $112.7 billion in FY2023.

Single source

Small Business Participation Interpretation

While the federal government has indeed become a sugar daddy for small businesses, sprinkling over $212 billion in contracts and celebrating with goal-meeting confetti, the feast is still served unequally at the table, with diverse slices like those for women-owned firms remaining frustratingly small.

Top Contractors and Awards

1Lockheed Martin was the top federal contractor in FY2023, receiving $69.1 billion in awards.

Verified

2Boeing secured $33.2 billion in federal contracts in FY2023, primarily aircraft-related.

Verified

3General Dynamics received $24.8 billion in DoD contracts in FY2023 for shipbuilding.

Verified

4Raytheon Technologies (RTX) was awarded $22.4 billion in missile defense contracts in FY2023.

Directional

5Northrop Grumman obtained $17.9 billion in federal awards in FY2023, focused on aeronautics.

Verified

6Leidos Holdings won $13.6 billion in IT and health contracts in FY2023.

Single source

7Huntington Ingalls Industries received $11.2 billion for naval ship construction in FY2023.

Directional

8Deloitte Consulting secured $9.7 billion in civilian agency contracts in FY2023.

Single source

9Booz Allen Hamilton was awarded $8.4 billion, mainly in intelligence services in FY2023.

Single source

10L3Harris Technologies received $7.9 billion in communications contracts in FY2023.

Directional

11SAIC (Science Applications International Corp) got $7.2 billion in engineering awards in FY2023.

Directional

12Fluor Corporation secured $6.8 billion in construction contracts in FY2023.

Verified

13ManTech International received $5.3 billion in cybersecurity contracts in FY2023.

Verified

14CACI International won $4.9 billion in IT support contracts in FY2023.

Verified

15Jacobs Engineering Group was awarded $4.6 billion for infrastructure in FY2023.

Verified

16Accenture Federal Services secured $4.2 billion in digital transformation contracts in FY2023.

Verified

17BAE Systems received $3.8 billion in electronics contracts in FY2023.

Verified

18KBR Inc. won $3.5 billion in logistics support awards in FY2023.

Verified

19Parsons Corporation secured $3.1 billion in engineering services in FY2023.

Verified

20Peraton Labs received $2.9 billion in mission services contracts in FY2023.

Verified

21Amentum Services won $2.7 billion in O&M contracts in FY2023.

Verified

22IBM Corporation was awarded $2.4 billion in cloud computing contracts in FY2023.

Verified

23Oracle America Inc. secured $2.1 billion in software licenses in FY2023.

Verified

24Microsoft Corporation received $1.9 billion in federal software and services in FY2023.

Verified

25General Electric received $1.7 billion in aviation contracts in FY2023.

Single source

Top Contractors and Awards Interpretation

In FY2023, the federal budget played a game of "choose your own adventure" and spent the vast majority on a familiar cast of characters, with Lockheed Martin as the undisputed king of the hill at $69.1 billion, proving that while the threats may be new, the business of national security is a well-funded and deeply entrenched tradition.

Trends and Future Outlook

1In FY2024 projections, federal contracting market expected to grow 2.5% to $812 billion.

Verified

2DoD contracting forecasted at $510 billion in FY2024, driven by modernization.

Verified

3IT contracting projected to reach $118 billion in FY2024, up 12%.

Single source

4Cybersecurity market in federal contracts expected to grow 15.3% to $22.1 billion in FY2024.

Directional

5Cloud services spending forecasted at $18.9 billion in FY2024, CAGR 21%.

Verified

6Small business participation projected to hit 28.2% in FY2024.

Verified

7AI/ML federal investments to exceed $5.2 billion by FY2025.

Directional

8Federal R&D contracting expected to rise 4.8% to $72.3 billion in FY2024.

Verified

9Infrastructure contracts from IIJA to total $550 billion over 5 years through 2026.

Verified

10Hypersonics and space domain awareness contracts to grow 25% annually to 2028.

Verified

11Federal healthcare IT spending projected at $12.4 billion in FY2024.

Single source

12OTA usage expected to double to $36 billion by FY2025.

Single source

13Digital engineering adoption to reduce acquisition timelines by 30% by FY2027.

Verified

14Federal electric vehicle procurement to reach 650,000 units by 2032.

Single source

15Software modernization initiatives to allocate $8.7 billion in FY2024.

Verified

16Quantum computing R&D contracts forecasted at $1.2 billion in FY2024.

Verified

17Supply chain resilience contracts to surge 18% to $45.6 billion in FY2024.

Verified

18Federal 5G deployments expected to cost $4.3 billion through FY2026.

Verified

19Climate resilience and sustainability contracts projected at $28 billion annually by 2025.

Verified

Trends and Future Outlook Interpretation

While the DoD's half-a-trillion-dollar iron grip on modernization is busy building tomorrow's weapons, the rest of the government is quietly spending just as much to wire it all together, shield it from hackers, shrink its carbon footprint, and teach its software to think for itself.

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

ChatGPT

Claude

Gemini

Perplexity

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

ChatGPT

Claude

Gemini

Perplexity

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

ChatGPT

Claude

Gemini

Perplexity

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

This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.

APA

Alexander Schmidt. (2026, February 13). Federal Government Contracting Industry Statistics. Gitnux. https://gitnux.org/federal-government-contracting-industry-statistics

MLA

Alexander Schmidt. "Federal Government Contracting Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/federal-government-contracting-industry-statistics.

Chicago

Alexander Schmidt. 2026. "Federal Government Contracting Industry Statistics." Gitnux. https://gitnux.org/federal-government-contracting-industry-statistics.