Federal contracting touches millions of jobs and communities, with spending concentrated across agencies such as Defense, Health and Human Services, Veterans Affairs, and Homeland Security. In FY2023, total contract obligations reached $764 billion, up 4.5% from FY2022, supporting 5.3 million federal contract jobs and a contracting workforce that grew 2.1% year over year. This page also covers who wins—especially small businesses—and the rules and requirements that shape bids, from FAR updates and CMMC 2.0 to sustainability goals and AI adoption.
Key Takeaways
- Department of Defense accounted for 59.8% of all federal contract spending in FY2023.
- Department of Veterans Affairs awarded $48.2 billion in contracts FY2023.
- Health and Human Services (HHS) contracts totaled $55.1 billion in FY2023.
- Federal contract employment totaled 5.3 million jobs supported in 2023.
- Government contracting workforce grew 2.1% YoY to 2023.
- Average salary in federal contracting: $95,000 annually in 2023.
- In fiscal year 2023, the total value of federal contract obligations reached $764 billion, marking a 4.5% increase from FY2022.
- Federal contracting accounted for 52% of total federal discretionary spending in FY2023.
- The Department of Defense awarded $457 billion in contracts in FY2023, representing 60% of all federal contracts.
- Small businesses received 28.4% of federal prime contract dollars in FY2023, totaling $202 billion.
- Women-Owned Small Businesses (WOSB) got 5.1% or $36 billion in FY2023.
- Service-Disabled Veteran-Owned Small Businesses (SDVOSB): 3.7% or $26 billion FY2023.
- Lockheed Martin received $45.4 billion in DoD contracts in FY2023.
- Boeing was awarded $26.7 billion in federal contracts in FY2023.
- Raytheon Technologies (RTX) secured $24.1 billion in FY2023.
Related reading
01 · Category
Contract Awards By Agency24 stats
01
Department of Defense accounted for 59.8% of all federal contract spending in FY2023.
02
Department of Veterans Affairs awarded $48.2 billion in contracts FY2023.
03
Health and Human Services (HHS) contracts totaled $55.1 billion in FY2023.
04
Department of Homeland Security (DHS) obligated $46.7 billion FY2023.
05
Department of Energy (DOE) contracts: $38.4 billion FY2023.
06
NASA procurement spending: $24.9 billion in FY2023.
07
General Services Administration (GSA) awards: $42.3 billion FY2023.
08
Department of Justice (DOJ) contracts: $12.8 billion FY2023.
09
Department of Transportation (DOT) obligated $15.6 billion FY2023.
10
Department of the Interior (DOI): $10.2 billion contracts FY2023.
11
Department of Agriculture (USDA): $8.7 billion FY2023.
12
Department of Education: $2.1 billion contracts FY2023.
13
Environmental Protection Agency (EPA): $3.4 billion FY2023.
14
National Aeronautics and Space Administration sub-agencies: 95% of budget via contracts.
15
Army Corps of Engineers: $9.5 billion civil works contracts FY2023.
16
Air Force: $62.3 billion procurement FY2023.
17
Navy: $78.1 billion shipbuilding contracts FY2023.
18
NIH (under HHS): $18.2 billion extramural contracts FY2023.
19
FEMA (DHS): $12.4 billion disaster contracts FY2023.
20
Treasury Department: $4.6 billion IT contracts FY2023.
21
State Department: $11.9 billion overseas contracts FY2023.
22
Commerce Department: $2.3 billion FY2023.
23
HUD: $1.8 billion contracts FY2023.
24
Labor Department: $1.5 billion FY2023.
02 · Category
Employment And Workforce30 stats
01
Federal contract employment totaled 5.3 million jobs supported in 2023.
02
Government contracting workforce grew 2.1% YoY to 2023.
03
Average salary in federal contracting: $95,000annually in 2023.
04
STEM jobs in contracting: 1.2 million positions FY2023.
05
Clearance-required jobs: 1.8 million in federal contracting 2023.
06
Women in federal contracting workforce: 42% in 2023.
07
Veterans employed by top contractors: 25% of workforce 2023.
08
IT contracting jobs: 850,000 full-time equivalents FY2023.
09
Engineering roles in DoD contracts: 450,000 jobs 2023.
10
Acquisition workforce: 15,000 civilian positions in 2023.
11
Contractor overhead rates averaged 35% in FY2023 audits.
12
Remote work in contracting: 28% of positions post-COVID 2023.
13
Turnover rate in federal IT contracting: 12% annually 2023.
14
Unionized contracting workforce: 18% in 2023.
15
Diversity hiring goals met: 35% minorities in new hires 2023.
16
Cybersecurity certifications held: 300,000+ in workforce 2023.
17
DoD contractor personnel: 700,000 overseas in 2023.
18
Health IT contracting jobs: 120,000 FY2023.
19
Logistics support roles: 650,000 jobs supported 2023.
20
R&D scientist positions: 180,000 in federal contracts 2023.
21
Administrative contracting jobs: 900,000 FTEs 2023.
22
Training programs funded: $2.5 billion for workforce FY2023.
23
Gig economy in contracting: 5% of workforce 2023.
24
Age demographics: 45% under 40 in contracting 2023.
25
Benefits cost as % of salary: 32% average 2023.
26
Labor shortage in cleared IT: 50,000 openings 2023.
27
Federal contracting supported 4.1% of U.S. manufacturing jobs in 2023.
28
Cloud migration created 200,000 new jobs in FY2023.
29
Sustainability/ESG roles: 15,000 new positions 2023.
30
AI ethics specialists in contracts: 2,500 hires FY2023.
03 · Category
Market Size And Growth30 stats
01
In fiscal year 2023, the total value of federal contract obligations reached $764 billion, marking a 4.5% increase from FY2022.
02
Federal contracting accounted for 52% of total federal discretionary spending in FY2023.
03
The Department of Defense awarded $457 billion in contracts in FY2023, representing 60% of all federal contracts.
04
From 2018 to 2023, federal contract spending grew at a compound annual growth rate (CAGR) of 3.2%.
05
In FY2023, IT services contracts totaled $92 billion, up 7% year-over-year.
06
Federal construction contracts reached $45.6 billion in FY2023.
07
Healthcare-related federal contracts amounted to $68 billion in FY2023.
08
The top 100 contractors received 25% of all federal contract dollars in FY2023, totaling $191 billion.
09
Federal R&D contracts were valued at $58 billion in FY2023.
10
Between FY2019 and FY2023, contract spending inflation-adjusted growth was 1.8% annually.
11
In FY2023, indefinite-delivery contracts (IDVs) obligated $320 billion, or 42% of total.
12
Fixed-price contracts made up 85% of federal obligations by value in FY2023.
13
The average federal contract value in FY2023 was $1.2 million.
14
Federal contracts under $250,000numbered 8.4 million in FY2023.
15
Multi-year contracts increased by 12% in number from FY2022 to FY2023.
16
In FY2023, 78% of federal contract dollars went to services, 15% to products, and 7% to construction.
17
Defense contracts grew 5.1% in FY2023 while civilian grew 2.8%.
18
Total federal prime contract awards in FY2023: 11.2 million actions.
19
Contract spending as % of GDP was 2.9% in FY2023.
20
Projected federal contract spending for FY2024: $780 billion.
21
In FY2023, GSA schedules obligated $38 billion.
22
NASA contracts totaled $22 billion in FY2023.
23
DHS contracts: $52 billion in FY2023.
24
VA healthcare contracts: $29 billion in FY2023.
25
DOE contracts: $34 billion in FY2023.
26
Federal contract backlog estimated at $1.2 trillion in FY2023.
27
IT contract ceiling value: $150 billion across GWACs in 2023.
28
Professional services contracts: $120 billion in FY2023.
29
Engineering services: $45 billion in FY2023 federal spend.
30
Facilities support contracts: $28 billion in FY2023.
More related reading
04 · Category
Small Business Participation28 stats
01
Small businesses received 28.4% of federal prime contract dollars in FY2023, totaling $202 billion.
02
Women-Owned Small Businesses (WOSB) got 5.1% or $36 billion in FY2023.
03
Service-Disabled Veteran-Owned Small Businesses (SDVOSB): 3.7% or $26 billion FY2023.
04
HUBZone small businesses: 3.3% share, $23 billion FY2023.
05
Number of small business prime contractors: 84,000 in FY2023.
06
Small business set-asides: 25% of actions, 28% by dollars FY2023.
07
DoD small business goal achievement: 27.5% in FY2023.
08
Civilian agencies small business: 29.8% FY2023.
09
Subcontracting small business spend: $150 billion FY2023.
10
8(a) program awards: $28 billion FY2023.
11
Mentor-Protégé program small business gains: $12 billion FY2023.
12
Small business IT contracts: $25 billion FY2023.
13
Construction small business share: 45% by number, 22% dollars FY2023.
14
R&D small business: 35% of awards FY2023.
15
Sole-source small business awards: 15% of small business dollars FY2023.
16
Small disadvantaged businesses (SDB): 10.2% FY2023.
17
Number of WOSB certifications: 45,000 in 2023.
18
SDVOSB verified firms: 12,500 active FY2023.
19
HUBZone designated areas: 11,000+ counties FY2023.
20
Small business protest sustain rate: 2.1% FY2023.
21
Federal cloud computing small business: 18% FY2023.
22
Veteran-owned small business growth: 8% YoY FY2023.
23
Minority-owned small business contracts: $85 billion FY2023.
24
Small business penetration in top 100 agencies: 26% average FY2023.
25
Emerging small business tech firms: 5,200 awards FY2023.
26
Small business sustainability contracts: $4 billion FY2023.
27
Cybersecurity small business set-asides: $6.2 billion FY2023.
28
AI/ML small business R&D: $1.8 billion FY2023.
05 · Category
Top Contractors30 stats
01
Lockheed Martin received $45.4 billion in DoD contracts in FY2023.
02
Boeing was awarded $26.7 billion in federal contracts in FY2023.
03
Raytheon Technologies (RTX) secured $24.1 billion in FY2023.
04
General Dynamics got $23.4 billion in federal awards FY2023.
05
Northrop Grumman received $21.8 billion in FY2023 contracts.
06
McKesson Corporation topped healthcare contractors with $37.2 billion in FY2023.
07
Leidos Holdings Inc. awards totaled $14.5 billion in FY2023.
08
Huntington Ingalls Industries: $11.3 billion in FY2023.
09
Booz Allen Hamilton: $7.1 billion federal revenue FY2023.
10
CACI International: $6.5 billion in contracts FY2023.
11
ManTech (now part of Carlyle): $2.4 billion pre-acquisition FY2023.
12
Deloitte Consulting: Estimated $8 billion federal FY2023.
13
Accenture Federal Services: $7.8 billion in FY2023.
14
IBM: $5.6 billion federal contracts FY2023.
15
General Electric: $4.2 billion in FY2023 awards.
16
L3Harris Technologies: $15.6 billion FY2023.
17
BAE Systems Inc.: $13.2 billion U.S. federal FY2023.
18
SAIC: $7.4 billion in FY2023 contracts.
19
Peraton: $6.9 billion FY2023 federal.
20
KBR Inc.: $4.8 billion FY2023.
21
Fluor Corporation: $3.9 billion federal FY2023.
22
Jacobs Engineering: $3.5 billion FY2023.
23
Parsons Corporation: $2.8 billion FY2023.
24
Amentum: $5.7 billion FY2023.
25
DynCorp International: $1.2 billion FY2023.
26
Top 5 contractors captured 22% of DoD budget in FY2023.
27
Small business share among top 100: 0% in FY2023.
28
Average revenue per top 100 contractor: $6.4 billion FY2023.
29
DoD awarded 52% of top 100 contracts in FY2023.
30
Civilian agencies to top contractors: 28% FY2023.
06 · Category
Trends And Regulations23 stats
01
Federal acquisition regulation (FAR) updates occurred 12 times in 2023.
02
Cybersecurity requirements (CMMC 2.0) impacted 80,000 contractors in 2023.
03
Sustainable acquisition goals: 65% of contracts green-certified FY2023.
04
AI adoption in procurement: 25% of agencies using AI tools 2023.
05
Commercial item acquisitions rose to 75% of dollars FY2023.
06
OTAs (Other Transaction Authorities) used in $15 billion awards 2023.
07
Diversity, Equity, Inclusion mandates in 40% of new RFPs 2023.
08
Inflation Reduction Act allocated $50 billion for clean energy contracts.
09
CHIPS Act funded $39 billion in semiconductor contracts 2023.
10
Buy American Act waivers: 1,200 issued FY2023.
11
Digital acquisition platforms adopted by 22 agencies 2023.
12
Zero-trust architecture mandates for 95% of contracts 2023.
13
Micro-purchase threshold raised to $10,000in 2023.
14
SBIR/STTR awards doubled to $4 billion in FY2023.
15
Climate-related contract clauses in 55% of solicitations 2023.
16
Data rights reforms proposed in NDAA 2024 affecting 2023 bids.
17
Insider threat programs required for 100% of cleared contractors 2023.
18
Quantum computing R&D contracts: $1.2 billion FY2023.
19
Space Force commercial partnerships: 300 agreements 2023.
20
Blockchain pilots in supply chain: 15 agencies 2023.
21
Post-pandemic remote bid protests: 40% increase 2023.
22
EV charging infrastructure contracts: $7.5 billion IRA-funded 2023.
23
Generative AI policy issued by OMB in 2023.
report visual · Key figures
Us Government Contracting Industry Statistics statistics snapshot
Selected headline statistics from verified sources for a stable visual baseline.
59.8%
Department of Defense accounted for 59.8% of all federal contract spending in FY2023.
$48.2 billion
Department of Veterans Affairs awarded $48.2 billion in contracts FY2023.
$55.1 billion
Health and Human Services (HHS) contracts totaled $55.1 billion in FY2023.
$46.7 billion
Department of Homeland Security (DHS) obligated $46.7 billion FY2023.
$38.4 billion
Department of Energy (DOE) contracts: $38.4 billion FY2023.
$24.9 billion
NASA procurement spending: $24.9 billion in FY2023.
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
Isabelle Moreau. (2026, February 13). Us Government Contracting Industry Statistics. Gitnux. https://gitnux.org/us-government-contracting-industry-statistics
MLA
Isabelle Moreau. "Us Government Contracting Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/us-government-contracting-industry-statistics.
Chicago
Isabelle Moreau. 2026. "Us Government Contracting Industry Statistics." Gitnux. https://gitnux.org/us-government-contracting-industry-statistics.
Sources & references
99 datasets cited across this report · attribution is report-level