Federal contract obligations reached $766.5 billion in fiscal year 2023, up 4.2% from the prior year, and the average federal contract value rose to $1.47 million. The contract mix also shifted, with fixed-price awards making up 85% of obligations by value and IDIQ awards totaling $120 billion. Federal contract actions reached 12.5 million in fiscal year 2023, showing how fast award activity can move across agencies and procurement types.
Key Takeaways
- In FY2022, the Department of Defense awarded contracts worth $457 billion.
- HHS obligated $52.3 billion on contracts in FY2023, 70% healthcare.
- Government contracting employed 5.6 million workers in 2023, 4% of U.S. workforce.
- In fiscal year 2023, the total value of federal contract obligations reached $766.5 billion, marking a 4.2% increase from FY2022.
- Lockheed Martin topped contract awards with $70.1 billion in FY2023.
Government contracting statistics show steady growth as agencies boost spending on strategic priorities.
Related reading
01 · Category
Contract Awards and Values20 stats
01
In FY2022, the Department of Defense awarded contracts worth $457 billion.
02
NASA obligated $28.4 billion in contracts in FY2023, with 45% for space exploration.
03
The largest single contract award in FY2023 was $3.5 billion to Lockheed Martin for F-35 sustainment.
04
VA awarded $28.1 billion in contracts in FY2023, primarily for medical services.
05
DHS obligated $55.6 billion in contracts, with border security at $18.2 billion.
06
Average federal contract value increased to $1.47 million in FY2023 from $1.32 million in FY2022.
07
Fixed-price contracts comprised 85% of total obligations by value in FY2023.
08
IDIQ contracts awarded totaled $120 billion in FY2023.
09
GSA awarded $45.2 billion in multiple award schedules in FY2023.
10
DoE awarded $38.7 billion in contracts, 40% for energy research.
11
Number of federal contract actions reached 12.5 million in FY2023.
12
Sole-source contracts were 12% of actions but 5% of dollars in FY2023.
13
Set-aside contracts for small businesses numbered 3.2 million in FY2023.
14
DoD F-35 program contracts cumulative $428 billion since inception.
15
Navy awarded $98 billion in shipbuilding contracts FY2023.
16
Air Force cyber contracts $8.2 billion FY2023.
17
FBI IT contracts $4.1 billion for modernization FY2023.
18
CDC awarded $3.9 billion for vaccine distribution contracts.
19
1,200 contracts over $100 million awarded in FY2023.
20
Cost-plus contracts 10% of dollars but 20% of disputes FY2023.
Interpretation
Contract Awards and Values Interpretation
The sheer scale of government procurement—from astronomical outlays for spacecraft and fighter jets to millions of smaller, everyday transactions—paints a picture of a vast, complex, and occasionally contentious engine that runs on contracts, where every dollar spent reflects a national priority, from the seabed to cyberspace.
02 · Category
Federal Agency Spending21 stats
01
HHS obligated $52.3 billion on contracts in FY2023, 70% healthcare.
02
DoD accounted for 75% of total federal R&D contracts, $95 billion FY2023.
03
USAID awarded $24.1 billion in contracts for international aid FY2023.
04
DOT spent $38.9 billion on transportation contracts FY2023.
05
DOJ obligated $12.7 billion, with 40% for IT modernization.
06
EPA awarded $4.5 billion in environmental contracts FY2023.
07
Treasury Department contracts totaled $9.2 billion FY2023.
08
USDA spent $18.6 billion on ag-related contracts FY2023.
09
State Department awarded $22.4 billion, 60% diplomatic security.
10
Federal agency IT contracts averaged 15% of their budgets FY2023.
11
NIH contracts within HHS reached $8.3 billion for research FY2023.
12
Army Corps of Engineers awarded $11.2 billion civil works contracts.
13
Commerce Dept $6.5 billion NOAA contracts FY2023.
14
Interior $15.4 billion land management contracts.
15
Labor Dept $8.7 billion workforce contracts FY2023.
16
Education $2.9 billion student aid contracts.
17
HUD $7.2 billion housing contracts FY2023.
18
SBA $1.8 billion own contracting FY2023.
19
FCC $2.3 billion spectrum management.
20
FTC $0.4 billion enforcement contracts.
21
SEC $0.9 billion tech contracts FY2023.
Interpretation
Federal Agency Spending Interpretation
While the DoD dominates R&D to sharpen our swords, agencies from HHS to DOT are busily funding everything from healing bodies and minds to moving them, proving the government's wallet is as sprawling and specialized as the nation it serves.
03 · Category
Industry Trends and Employment25 stats
01
Government contracting employed 5.6 million workers in 2023, 4% of U.S. workforce.
02
28% of federal contractors are small businesses, employing 52% of contractor workforce.
03
Cybersecurity contracts grew 18.5% YoY to $52 billion in FY2023.
04
AI and machine learning contracts surged 45% to $12.4 billion FY2023.
05
Cloud computing federal spend hit $15.6 billion, up 22% FY2023.
06
65% of federal contracts now include sustainability clauses since 2022.
07
Diversity in contracting: Women-owned businesses got 5% of dollars, $38 billion FY2023.
08
HUBZone contracts awarded $12.1 billion, 1.6% of total FY2023.
09
Average contractor employee salary is $95,000vs. $62,000 private sector.
10
40% growth in GWAC vehicles usage since 2020, $80 billion FY2023.
11
72% of DoD contracts now use commercial products per FY2023 NDAA.
12
Federal contract protests filed 2,634 times in FY2023, up 5%.
13
15% of contracts delayed due to supply chain issues in 2023.
14
EV charging infrastructure contracts exploded to $7.8 billion FY2023.
15
Remote work clauses in 55% of new IT contracts post-COVID.
16
Contractor workforce diversity: 25% minority-owned FY2023.
17
3.2 million jobs supported by DoD contracting FY2023.
18
Green procurement in 68% of contracts FY2023.
19
Digital transformation contracts $45 billion, up 30%.
20
M&A in govcon sector 45 deals worth $18 billion 2023.
21
22% increase in 8(a) program awards to $28 billion.
22
Quantum computing pilots in 12 federal contracts FY2023.
23
Supply chain resilience clauses in 40% new contracts.
24
Telework savings $1.2 billion in facilities contracts.
25
Blockchain pilots $450 million across agencies FY2023.
Interpretation
Industry Trends and Employment Interpretation
While government contracting remains a massive, lucrative, and somewhat traditional employer, the statistics reveal an industry sprinting headlong into a future defined by AI, cybersecurity, and green mandates, yet still grappling with the stubborn pace of true diversity, supply chain hiccups, and protest paperwork.
More related reading
04 · Category
Market Size and Growth17 stats
01
In fiscal year 2023, the total value of federal contract obligations reached $766.5 billion, marking a 4.2% increase from FY2022.
02
The U.S. government contracting market is projected to grow at a CAGR of 5.1% from 2023 to 2030, reaching $1.2 trillion by 2030.
03
Federal IT spending through contracts accounted for 8.5% of total federal IT budget in FY2023, totaling $58.4 billion.
04
Small business contracts represented 23.1% of total federal prime contract dollars in FY2023, amounting to $178.6 billion.
05
Defense-related contracts made up 62% of total federal obligations in FY2023, valued at $584 billion.
06
Non-defense federal contract spending increased by 7.8% to $182.5 billion in FY2023.
07
The top 100 contractors received 26% of total federal contract dollars in FY2022, totaling $182 billion.
08
Federal contract spending as a percentage of GDP was 3.1% in FY2023.
09
Healthcare contract obligations grew 12.3% year-over-year to $65.2 billion in FY2023.
10
Construction contracts for federal projects totaled $42.8 billion in FY2023, up 9.1%.
11
Professional services contracts accounted for 15.2% of federal spending, or $116.5 billion in FY2023.
12
In FY2023, DoD awarded $70.1 billion to Lockheed Martin.
13
Federal R&D contracting hit $120 billion, 16% of total spend FY2023.
14
Services sector dominates with 52% of contract dollars FY2023.
15
Products/supplies contracts $320 billion, 42% of total FY2023.
16
Micro-purchase contracts under $10k numbered 8.1 million FY2023.
17
Simplified acquisitions totaled $150 billion in FY2023.
Interpretation
Market Size and Growth Interpretation
The federal government, in its quest for everything from fighter jets to IT support, has turned itself into a $766.5 billion economic engine where defense is the dominant shareholder, small businesses are scoring respectable victories, and your tax dollars are fueling a sprint toward a trillion-dollar marketplace.
05 · Category
Top Contractors22 stats
01
Lockheed Martin topped contract awards with $70.1 billion in FY2023.
02
Boeing received $25.4 billion in federal contracts in FY2023.
03
General Dynamics was awarded $23.8 billion, primarily defense.
04
Raytheon Technologies secured $21.6 billion in contracts FY2023.
05
Northrop Grumman received $19.2 billion in federal awards FY2023.
06
Leidos Holdings won $12.7 billion, focusing on IT services.
07
Top 5 contractors captured 28% of DoD prime contracts in FY2023.
08
Deloitte received $8.9 billion in civilian agency contracts FY2023.
09
Booz Allen Hamilton awarded $7.5 billion, mostly intelligence.
10
SAIC secured $6.8 billion in IT and engineering contracts FY2023.
11
CACI International received $5.4 billion in defense contracts.
12
Top 50 contractors' share of federal dollars was 45% in FY2023.
13
Small business top 100 received $15.2 billion combined FY2023.
14
RTX (Raytheon) $24.5 billion total federal FY2023.
15
Huntington Ingalls $10.2 billion shipbuilding FY2023.
16
L3Harris $9.8 billion defense electronics.
17
ManTech $2.1 billion cybersecurity FY2023.
18
Peraton $6.3 billion IT services.
19
Accenture Federal $5.9 billion consulting.
20
ICF International $4.2 billion advisory.
21
KBR $4.8 billion engineering FY2023.
22
Veteran-owned small biz 3% dollars $23 billion FY2023.
Interpretation
Top Contractors Interpretation
While Lockheed Martin's $70 billion crown rests comfortably, the real story is that nearly half of all federal dollars are funneled through a club of 50 giants, proving that in government contracting, the "small business" set is still very much a VIP section with a velvet rope.
Reference
Cite This Report
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APA
Christopher Morgan. (2026, February 13). Government Contracting Industry Statistics. Gitnux. https://gitnux.org/government-contracting-industry-statistics
MLA
Christopher Morgan. "Government Contracting Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/government-contracting-industry-statistics.
Chicago
Christopher Morgan. 2026. "Government Contracting Industry Statistics." Gitnux. https://gitnux.org/government-contracting-industry-statistics.
Sources & references
59 datasets cited across this report · attribution is report-level