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Federal Contract Awards Hit $773.68B in FY24 – What’s Next for FY25?

Federal Contract Awards Hit $773.68B in FY24 – What’s Next for FY25?

Introduction

Federal contract spending remains robust, but FY25 signals a new era. With rising competition, evolving procurement methods, and fewer set-asides, contractors must act strategically to stay competitive—especially small businesses riding a $4B increase in awards.

 

FY24 at a Glance

  • Massive Spending – The federal government awarded $773.68 billion in contracts.

  • Small Business Gains – 23.3% of awards—$4B more than FY23—went to small businesses.

  • Defense Dominates – Top spenders were Navy, Air Force, and Army. .

  • Industry Leaders – Facilities & Construction, Professional Services, and IT made up 50%+ of total spending.

What FY25 Means for Contractors

  • Reduced Total Spending –Expect leaner budgets as agencies tighten spending.

  • More Acquisition Vehicles – Vehicles like CIO-SP4, Polaris, and Alliant will drive awards as agencies seek efficient buys.

  • Fewer Set-Asides – Small business-specific awards may shrink, requiring sharper positioning.

  • Innovation-Focused Buying – Agencies are shifting toward agile, modular, and pilot-first solutions, favoring flexibility over scale..

How to Stay Competitive in FY25

  • Double Down on IDIQs & GWACs – Position your solutions for governmentwide vehicles that agencies increasingly prefer. Expect leaner budgets as agencies tighten spending.

  • Refine Your Value Prop – With tighter budgets, agencies want cost-effective, low-risk solutions with measurable impact.

  • Adapt to Modular Delivery – Be prepared to showcase pilot capabilities and proof-of-concept readiness.

  • Strategic Teaming is Key – Join forces with partners offering AI, cloud, cybersecurity, and compliance expertise.

Positioning for Success

  • Build Agency Relationships – Engage with procurement leaders at DoD, VA, DHS, HHS, and GSA early.

  • Watch the Trendlines – Track RFIs, budget forecasts, and set-aside policies to align with emerging opportunities.

  • Align to Agency Missions – Show how your capabilities support modernization, savings, and mission success.

At Contragenix, we help businesses decode federal trends, optimize capture strategies, and win high-impact contracts. Whether you’re expanding into AI, positioning on CIO-SP4, or building a teaming strategy—we’ve got your back.

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