Where federal IT services contract money moved
Federal IT services obligations rose +7% between Feb–May 2024 and Feb–May 2026, against +40% for federal contracting as a whole. The Department of Defense is the largest buyer, at $12.7B.
USAspending.gov, IT services contract obligations (NAICS 51 and 5415) by action date · Feb–May 2024 vs Feb–May 2026 · snapshot 2026-09-24
Federal IT services contracting went from $28.4B to $30.4B in matching four-month windows — +7% — while federal contracting as a whole rose +40%. IT services went from 12.6% of every federal contract dollar to 9.7%, so it is a smaller slice of what the government buys than it was.
Computer systems design and programming (5415), plus the information sector — software publishing, data processing and hosting, and telecommunications (51). Everything below is filtered to that scope throughout; the methodology note says exactly which measure was used and what it can and cannot support.
Who buys federal IT services
The Department of Defense is the largest buyer, at $12.7B in Feb–May 2026 — about 42% of the sector. The largest gain was the Department of Defense's, $10.2B to $12.7B; the largest fall, the Department of the Treasury's, $1.3B to $839M.
| Agency | Dollar change, as a bar | Dollar change | Feb–May 2024 | Feb–May 2026 |
|---|---|---|---|---|
| Department of Defense | +$2.5B | $10.2B | $12.7B | |
| Department of Veterans Affairs | +$616M | $2.4B | $3.0B | |
| Department of Health and Human Services | −$192M | $2.6B | $2.4B | |
| General Services Administration | −$402M | $2.6B | $2.2B | |
| Department of Homeland Security | −$226M | $1.9B | $1.7B | |
| Department of Transportation | +$318M | $791M | $1.1B | |
| Department of Justice | −$12M | $939M | $927M | |
| Department of State | −$46M | $889M | $843M | |
| Department of the Treasury | −$504M | $1.3B | $839M | |
| Department of Commerce | −$34M | $818M | $784M | |
| Department of Agriculture | +$102M | $596M | $698M | |
| Department of the Interior | +$22M | $632M | $654M |
NAICS 51 and 5415. Agencies below $50M in both windows are omitted.
Who gets paid
Every one of the ten largest IT services contractors in Feb–May 2026 was already among the 100 largest of Feb–May 2024. Three climbed into the top ten from lower in the ranking, and three of the baseline's top ten dropped out of it. The ten largest took 28% of the sector's dollars in Feb–May 2026, about the same share as in Feb–May 2024.
| Recipient | Rank Feb–May 2024 | Feb–May 2024 | Rank Feb–May 2026 | Feb–May 2026 |
|---|---|---|---|---|
| GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. | #2 | $1.0B | #1 | $1.3B |
| LEIDOS, INC. | #3 | $977M | #2 | $1.2B |
| DELL FEDERAL SYSTEMS L.P | #6 | $802M | #3 | $1.1B |
| BOOZ ALLEN HAMILTON INC | #1 | $1.3B | #4 | $954M |
| ACCENTURE FEDERAL SERVICES LLC | #4 | $970M | #5 | $895M |
| CARAHSOFT TECHNOLOGY CORP | #10 | $479M | #6 | $660M |
| PALANTIR USG INC | #79 | $46M | #7 | $637M |
| ORACLE HEALTH GOVERNMENT SERVICES, INC. | #23 | $182M | #8 | $627M |
| CACI, INC. - FEDERAL | #11 | $404M | #9 | $561M |
| PERATON INC. | #9 | $495M | #10 | $526M |
Names are the source's own. Recipients are rolled up from its per-UEI rows, because reading those rows as published understates every large contractor several times over; see the methodology note.
The same churn, drawn as ranks
- held a place in both
- rose from 11–100
- outside the top 100
- left the top 10
Grey lines join firms that held a place in both windows. Blue lines rise from the band under the divider: three firms ranked in Feb–May 2024 but below the top ten, each drawn at the rank it actually held. Amber lines converge from “outside the top 100”: the no true arrivals. The three dashed lines are firms that dropped out of the top ten, most of them still ranked, simply lower.
When it turned
Monthly IT services obligations, January 2023 to May 2026, for the sector's largest buyers and its largest movers. The annual shape dominates — every September is the fiscal-year close and every October the trough after it — which is why the windows on this page are matched February to May.
The series stops at May 2026 rather than at the present because Defense and the Army Corps of Engineers withhold contract actions for 90 days — see the note on the defence hold. Months after that read near zero for defence, which is an embargo and not a decline.
peak $5.6B/mo
peak $2.0B/mo
peak $1.7B/mo
peak $1.9B/mo
peak $2.6B/mo
peak $469M/mo
peak $889M/mo
peak $733M/mo
peak $877M/mo
peak $575M/mo
The figure beside each agency compares its average month after January 2025 with its average month before — a different span from the inauguration-to-date window comparisons elsewhere on this page, and so a different number.
Where the work moved
Change in IT services obligations by place of performance, Feb–May 2024 to Feb–May 2026. California gained the most, going from $904M to $1.7B. 22 states and territories obligated less than in the baseline window.
- DC +$189M
- PR +$2M
- VI $0
- GU +$2M
- AS −$1M
- MP $0
| State or territory | Feb–May 2024 | Feb–May 2026 | Change | % |
|---|---|---|---|---|
| California | $904M | $1.7B | +$838M | +93% |
| Virginia | $9.4B | $10.1B | +$749M | +8% |
| Kansas | $185M | $661M | +$476M | +257% |
| Massachusetts | $143M | $363M | +$220M | +154% |
| District of Columbia | $4.7B | $4.8B | +$189M | +4% |
| Georgia | $383M | $505M | +$122M | +32% |
| Washington | $165M | $266M | +$101M | +61% |
| Ohio | $240M | $325M | +$85M | +35% |
| Arizona | $333M | $396M | +$63M | +19% |
| South Carolina | $252M | $307M | +$55M | +22% |
| Colorado | $663M | $702M | +$39M | +6% |
| Oklahoma | $129M | $168M | +$39M | +30% |
| South Dakota | $20M | $59M | +$39M | +195% |
| Mississippi | $67M | $104M | +$37M | +55% |
| Kentucky | $51M | $82M | +$31M | +61% |
| Indiana | $86M | $116M | +$30M | +35% |
| Illinois | $196M | $223M | +$27M | +14% |
| Nebraska | $80M | $98M | +$18M | +23% |
| Oregon | $14M | $31M | +$17M | +121% |
| Nevada | $22M | $38M | +$16M | +73% |
| Hawaii | $98M | $108M | +$10M | +10% |
| Michigan | $70M | $80M | +$10M | +14% |
| Delaware | $18M | $28M | +$10M | +56% |
| Alaska | $140M | $148M | +$8M | +6% |
| Wisconsin | $11M | $18M | +$7M | +64% |
| Guam | $2M | $4M | +$2M | +100% |
| North Dakota | $13M | $15M | +$2M | +15% |
| Puerto Rico | $3M | $5M | +$2M | +67% |
| Minnesota | $20M | $21M | +$1M | +5% |
| Vermont | $34M | $35M | +$1M | +3% |
| Iowa | $8M | $8M | $0 | 0% |
| Wyoming | $2M | $2M | $0 | 0% |
| Northern Mariana Islands | $0 | $0 | $0 | — |
| U.S. Virgin Islands | $0 | $0 | $0 | — |
| American Samoa | $1M | $0 | −$1M | −100% |
| Rhode Island | $5M | $3M | −$2M | −40% |
| Montana | $11M | $9M | −$2M | −18% |
| Idaho | $5M | $2M | −$3M | −60% |
| Maine | $8M | $3M | −$5M | −63% |
| West Virginia | $172M | $163M | −$9M | −5% |
| New Mexico | $74M | $64M | −$10M | −14% |
| Louisiana | $54M | $41M | −$13M | −24% |
| New Hampshire | $51M | $30M | −$21M | −41% |
| Tennessee | $61M | $37M | −$24M | −39% |
| Arkansas | $9M | −$19M | −$28M | net negative |
| Connecticut | $54M | $20M | −$34M | −63% |
| Pennsylvania | $312M | $273M | −$39M | −13% |
| Florida | $899M | $855M | −$44M | −5% |
| Alabama | $500M | $453M | −$47M | −9% |
| North Carolina | $227M | $171M | −$56M | −25% |
| Utah | $168M | $111M | −$57M | −34% |
| Missouri | $239M | $180M | −$59M | −25% |
| New York | $293M | $186M | −$107M | −37% |
| Texas | $1.6B | $1.5B | −$120M | −7% |
| Maryland | $4.4B | $4.1B | −$218M | −5% |
| New Jersey | $464M | $123M | −$341M | −73% |
What the money buys
Two views of the same dollars: the industry the recipient is classified in, and the product or service code the government bought. Both are read within NAICS 51 and 5415, so these are shares of IT services rather than of federal contracting.
Largest industries
| NAICS industry | Feb–May 2024 | Feb–May 2026 |
|---|---|---|
| Computer Systems Design Services | $10.1B | $10.1B |
| Other Computer Related Services | $7.4B | $7.8B |
| Custom Computer Programming Services | $3.1B | $4.2B |
| Software Publishers | $2.8B | $3.2B |
| Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services | $1.0B | $1.4B |
| Computer Facilities Management Services | $1.1B | $1.2B |
| Wired Telecommunications Carriers | $1.0B | $811M |
| Satellite Telecommunications | $396M | $561M |
| Telecommunications Resellers | $276M | $455M |
| All Other Telecommunications | $382M | $299M |
Largest product & service codes
| PSC | Feb–May 2024 | Feb–May 2026 |
|---|---|---|
| IT and Telecom - Business Application/Application Development Support Services (Labor) | $5.9B | $7.0B |
| IT and Telecom - Business Application/Application Development Software as a Service | $1.8B | $3.6B |
| IT and Telecom - Business Application Software (Perpetual License Software) | $2.3B | $2.7B |
| Support- Professional: Other | $1.6B | $1.7B |
| IT and Telecom - IT Management Support Services (Labor) | $1.0B | $1.4B |
| IT and Telecom - Network Support Services (Labor) | $867M | $1.0B |
| Support- Professional: Engineering/Technical | $1.1B | $886M |
| IT and Telecom - Network: Satellite Communications and Telecom Access Services | $658M | $745M |
| IT and Telecom - Service Delivery Support Services: Itsm, Operations Center, Project/Pm (Labor) | $594M | $689M |
| IT and Telecom - IT Management Tools/Products (Hardware and Perpetual License Software) | not in top 20 | $647M |
Some industries were renumbered between the 2017 and 2022 editions of NAICS, and the source reports each edition's code separately. Those are listed once here, with both codes' dollars combined.
Small-business IT services dollars fell
Obligations on IT services contracts reserved for small business went from $4.7B to $4.6B — −1%, against the sector as a whole rising +7%. As a share of federal IT services dollars, set-asides went from 16.6% to 15.3%.
That is the dollars. The opportunity count is a different story. Of the 148 IT services solicitations open on SAM.gov right now, at least 24 — 16% — are explicitly reserved for small business.
- 16 Small business
- 3 Veteran-owned
- 2 8(a)
- 2 Tribal & Native
- 1 Women-owned
Open SAM.gov notices classified under NAICS 51 and 5415 — the same codes as every other figure on this page. “At least”, because 62 of those 148 notices do not publish a set-aside field at all, and are counted here as unreserved rather than guessed at. Among the 86 that do state a status, 28% are reserved for small business. Open-notice counts confirmed Oct 2, 2026, 9:49 PM UTC.
What this means if you bid
This section is our reading of the figures above, not a finding of the data: the award record describes what happened, and this is what we would do with it. Every number here is computed from the same snapshot as the rest of the page.
Larger firms and primes
Federal IT services rose +7% between Feb–May 2024 and Feb–May 2026, against +40% for federal contracting as a whole.
This market grew more slowly than federal contracting overall, so growth here comes more from taking share than from a rising tide. Win rate on the bids you choose matters more than the number of pursuits.
The buyers adding the most: Department of Defense (+$2.5B), Department of Veterans Affairs (+$616M) and Department of Transportation (+$318M). Falling most: Department of the Treasury (−$504M) and General Services Administration (−$402M).
Point capture effort at the gaining agencies. A contract with a falling buyer is the one most likely to be cut back, merged or not recompeted.
The ten largest recipients took 28% of the dollars in Feb–May 2026, about the same share as in Feb–May 2024.
Concentration is holding steady: the same small group of firms takes a stable share, so the openings are in the recompetes and in what they subcontract.
None of the ten largest recipients in Feb–May 2026 is new — every one was already in the top hundred in Feb–May 2024.
The same firms hold the top of this market, so the openings come at recompete. Know when the leaders’ contracts expire, and whether they are subcontracting parts of the work.
The work grew most in California (+$838M), Virginia (+$749M) and Kansas (+$476M), by place of performance.
For work done on site, that is where people, subcontractors and local suppliers are worth having in place before the solicitation drops.
Small businesses
Contracts reserved for small business were 15.3% of the dollars in Feb–May 2026, from 16.6% in Feb–May 2024 (−1.3 pts) — $4.7B to $4.6B.
Reserved dollars fell outright. Do not rely on set-asides alone: subcontracting to the primes, and joint ventures or mentor-protégé teaming, are the ways into the unreserved work.
Right now at least 24 of the 148 open IT services solicitations on SAM.gov (16%) are explicitly reserved for small business.
The shrinking dollar share and the count of opportunities are different things: the reserved work is still there in volume. The practical question is which of it is worth the bid.
The agencies adding the most here: Department of Defense, Department of Veterans Affairs and Department of Transportation.
Each has an Office of Small and Disadvantaged Business Utilization and publishes a procurement forecast. Both exist to connect small firms with upcoming buys, and both cost nothing to use.
The product and service codes growing fastest: “IT and Telecom - Business Application/Application Development Software as a Service”, “IT and Telecom - Business Application/Application Development Support Services (Labor)” and “IT and Telecom - Business Application Software (Perpetual License Software)”. New to the top twenty: “IT and Telecom - IT Management Tools/Products (Hardware and Perpetual License Software)”, “IT and Telecom - Network as a Service” and “IT and Telecom - Compute as a Service: Mainframe/Servers”.
Make sure the codes on your SAM.gov registration and your capability statement match what is being bought now, not what was bought when you registered. That is what search and matching read.
Other sectors in this study
The same study, on the same windows and the same snapshot, for the rest of federal contracting.
All sectors
$314B Feb–May 2026
+40% from $225B in Feb–May 2024
Reserved for small business: 7.7% → 6.0%
Construction
$34.0B Feb–May 2026
+166% from $12.8B in Feb–May 2024
10.8% of federal contract dollars
Reserved for small business: 17.9% → 9.0%
Professional services
$62.8B Feb–May 2026
+16% from $54.1B in Feb–May 2024
20.0% of federal contract dollars
Reserved for small business: 9.1% → 7.4%
Facilities & support services
$28.2B Feb–May 2026
+5% from $26.8B in Feb–May 2024
9.0% of federal contract dollars
Reserved for small business: 7.1% → 6.7%
Manufacturing & supplies
$119B Feb–May 2026
+59% from $74.8B in Feb–May 2024
38.0% of federal contract dollars
Reserved for small business: 3.2% → 2.5%
How this was measured
Every figure comes from USAspending.gov's own aggregation endpoints, queried directly. No estimate, model or projection is involved, and any number here can be reproduced against the same source. Snapshot taken 2026-09-24.
- Everything on this page is IT services — NAICS 51 and 5415
- Computer systems design and programming (5415), plus the information sector — software publishing, data processing and hosting, and telecommunications (51). Every chart, table, map and share here is filtered to NAICS 51, 5415, which the source accepts as prefixes so no industry beneath them is left out — the map, the industry and product-code tables, the monthly timeline, the small-business share and the count of open solicitations alike. The five sectors of this study never overlap, so no dollar is counted in two of them. The same study across all federal contracting is a separate page.
- Obligations, not contracts signed
- Amounts are contract obligations by action date, which includes money added to awards signed in earlier years. It measures where federal dollars went in a period, not how many new contracts were let. Award types A, B, C and D only — definitive contracts, purchase orders, delivery orders and BPA calls. Grants, loans and direct payments are a different question and are excluded.
- Matched February–May windows
- The federal year ends 30 September and the quarter before it is always the largest of the year by a wide margin, so any comparison that includes September in one year and not another is measuring the calendar. February is also the first full month after a 20 January inauguration. May is the ceiling, for the reason in the next note.
- The defence hold, and why it bounds every window here
- The Department of Defense and the U.S. Army Corps of Engineers withhold contract actions from the Federal Procurement Data System — and so from USAspending — for 90 days after the action, under an operational-security rule that applies to no civilian agency. Nothing in the data marks it. A month inside the hold simply shows almost no defence activity, and nothing distinguishes that from a real collapse except knowing the rule exists. For scale, defence obligated a median of $39.8B a month across the most recent eighteen months charted here; a month still inside the hold reads at a small fraction of that, then fills in as the actions are released. Every window and the monthly series on this page therefore stop at May 2026, the most recent month for which the defence record is complete, rather than at the present. Anyone reproducing these figures over a more recent period should expect defence to look absent there, and should not read that as a decline. Because the Army Corps is one of the largest federal construction buyers, the effect lands twice on anything measuring construction.
- Recipients are rolled up from per-UEI rows
- The source returns one row per registered entity, not one per company — LOCKHEED MARTIN CORPORATION alone comes back as eight separate rows. They are summed here by normalised legal name, so a parent's total is the sum of its registered entities. Reading the rows as published would understate the largest contractors several times over.
- “Outside the top 100” does not mean zero
- Each ranking is read 100 rows deep. A firm described as arriving from outside that list had no place in it, which is not the same as having had no federal work at all.
- Place of performance is where the source says the work happens
- Not where the benefit lands, and not always where the work physically occurs. Federal records skew toward the contracting office — the same bias described on our coverage map, where Navy supply depots in Mechanicsburg and Philadelphia and DLA Columbus post nationwide contracts from their own addresses.
- Recent months are provisional
- Separately from the defence hold, obligations for recent months revise upward for several weeks as modifications post, so the right-hand end of the monthly series will grow slightly after this snapshot was taken. Both effects push the same way: the most recent figures here are floors.
- Grants are excluded, so the infrastructure law is invisible here
- This matters more than it sounds. Money from the 2021 infrastructure act mostly reaches contractors as grants and formula funds passed to state departments of transportation, which then let their own contracts. None of that is a federal prime contract, so none of it appears anywhere on this page. Its absence here is a fact about the measure, not about the spending. The Census Bureau's construction series is the instrument for that channel.
- What is not claimed
- This is a description of the award record, not an explanation of it. Appropriations, procurement lead times and contract vehicles all sit between a policy and a number on this page, and none of them are visible here.
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