TOP GOVERNMENT AGENCIES BY CONTRACT SPENDING

It goes without saying that the government is the largest buyer in the U.S. Hundreds of federal, state and municipal agencies and organizations spend billions of dollars every year, purchasing virtually everything from airplane jets to paper towels. But what government agencies spend the most? And how exactly do they spend their budgets? Knowing this can be a tangible advantage, because it enables you to target such potential clients more accurately and selectively. Ok, let’s take a look at statistics.

Overall GSA contract spending in FY 2023

Fiscal year 2022 displayed a major increase in GSA contract spending. Federal agencies have spent over $650 billion which is almost $20 billion more than the year before. And that increase came despite enormous spending in the preceding FY 2021 due to unequaled COVID-19 measures.

In 2022, there were over 5.7 millions of contracts awarded to GSA Schedule contractors. Below we will look at the top government agencies, by volume of spending.

Top government agencies by spending

As you might guess, the government agency spending the most is DoD. The Department of Defense is responsible for over $380 billion of contract dollars of which the Navy spent more than $110 billion, the Army spent over $100 billion, Air Force is responsible for $80 billion of contract spending, and over $80 billion is the total spending of the rest of defense agencies.

Other top spending federal agencies are:

Health and Human Services
Department of Energy
Veterans Affair
NASA
Department of Homeland Security
GSA
Department of State
USDA
Department of Justice
Treasury

Top contract spending by NAICS codes

Another great source for insights is analysis of contracts by NAICS codes. This way you can see what types of products and services are procured the most, and then take this into account when marketing your GSA Schedule.

Here are top 10 NAICS codes that are responsible for the highest awarded government contracts.

541330 Engineering Services ($42 billion total and $11 billion of them is awarded to small businesses)
325412 Pharmaceutical Preparation Manufacturing ($38 billion/$1.5 billion)
336411 Aircraft Manufacturing ($37 billion/$750 million)
524114 Direct Health and Medical Insurance Carriers ($37 billion/$100 million)
541715 R&D in the Physical, Engineering and Life Sciences ($36 billion/$8 billion)
561210 Facilities Support Services ($35 billion/$4 billion)
541512 Computer Systems Design Services ($30 billion/$8 billion)
236220 Commercial and Institutional Building Construction ($28 billion/$12 billion)
541519 Other Computer Related Services ($22 billion/$13 billion)
336611 Ship Building and Repairing ($22 billion/$1.9 billion)

Need help?

If you need GSA contract help, please don’t hesitate to leverage the expertise of true GSA professionals who have already assisted dozens of businesses in winning GSA Schedule awards. Price Reporter’s specialists will be glad to provide a consultation to help you win Schedule contracts and then get the most of them.

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