State profile

Federal contracting in Minnesota

$2.5B in federal prime contracts went to work performed in Minnesota in FY2025 — 41st of 56 states and territories, 0.3% of the national total.

Federal obligations $2.5B FY2025 from $2.9B in FY2020 · −14%
Manufacturing $1.7B FY2025 from $2.0B in FY2020 · −15%
Per resident $436 FY2025 from $509 in FY2020 · −14%
Small-business share 8.8% FY2025 from 8.8% in FY2020 · 0.0 pts

Federal figures: USAspending snapshot 2026-09-08, fiscal years 2020–2025 complete plus FY2026 through 2026-05. Obligations in US dollars.

What the money does here

Federal buyers obligated $2.5B on prime contracts performed in Minnesota in fiscal 2025, which ranks it 41st of 56 states and territories and is 0.3% of everything the federal government contracted for that year. That is $436 per resident.

Since fiscal 2020 the total has moved −14%, from $2.9B. The largest single buyer is Department of Defense, at $1.4B — 56% of the state's federal total, out of 43 federal agencies that obligated anything here.

Of the sectors broken out here, manufacturing is the largest in Minnesota: $1.7B, or 68.6% of the state's federal spending, having moved −15% since fiscal 2020. The single busiest place of performance is Hennepin County ($1.4B).

Seven years of federal contracting

Obligations by fiscal year, attributed to the state where the work is performed. Switch between every sector and each break-out on its own, and between full fiscal years and a matched window that makes the current year comparable.

$2.9BFY2020$2.6BFY2021$2.4BFY2022$2.7BFY2023$3.0BFY2024$2.5BFY2025$1.2BFY2026part year

FY2026 is hatched because it is 8 months, not twelve (2025-10 to 2026-05), and its defence figures stop where the Pentagon's 90-day reporting hold begins. It is not comparable to the columns beside it. Across the complete years, FY2020 to FY2025, all sectors obligations moved −14%.

Who buys here

Federal agencies by what they obligated on work performed in Minnesota in fiscal 2025.

Federal agencies by obligations in Minnesota, fiscal year 2025.
AgencyShare of the state's federal totalShareObligated
Department of Defense 56.0%$1.4B
Department of Veterans Affairs 15.6%$388M
Department of Agriculture 12.9%$320M
Department of Justice 2.7%$67M
Department of Homeland Security 2.4%$59M
Department of Health and Human Services 2.2%$55M
General Services Administration 1.9%$48M
Department of the Interior 1.3%$32M
Department of State 0.9%$23M
Department of Energy 0.7%$18M
Social Security Administration 0.7%$18M
Department of Labor 0.5%$12M
All other agencies2.2%$55M

What they buy

The industries that federal money in Minnesota actually lands in, by NAICS code.

Industries by federal obligations in Minnesota, fiscal year 2025.
IndustryShare of the state's federal totalShareObligated
Ammunition (except Small Arms) Manufacturing NAICS 33299322.1%$551M
Small Arms Ammunition Manufacturing NAICS 3329928.2%$205M
Cheese Manufacturing NAICS 3115135.5%$138M
Electromedical and Electrotherapeutic Apparatus Manufacturing NAICS 3345105.1%$128M
All Other Miscellaneous Fabricated Metal Product Manufacturing NAICS 3329993.3%$81M
Explosives Manufacturing NAICS 3259202.9%$71M
Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology) NAICS 5417152.4%$59M
Poultry Processing NAICS 3116152.4%$59M

Where in the state

Places of performance within Minnesota, which is a different question from where the buying office sits.

Counties by federal obligations in Minnesota, fiscal year 2025.
CountyShare of the state's federal totalShareObligated
Hennepin County 55.8%$1.4B
Anoka County 12.2%$303M
Dakota County 5.6%$140M
Stearns County 3.8%$94M
Ramsey County 3.7%$91M
Kandiyohi County 2.0%$51M
Wabasha County 2.0%$51M
Otter Tail County 1.7%$42M

Who wins here

The largest prime contractors on work performed in Minnesota. Companies registered under several entity IDs are summed into one row — the federal data reports each registration separately, which understates large parents three to five times if taken at face value.

Largest prime contractors in Minnesota, fiscal year 2025.
Prime contractorShare of the state's federal totalShareObligated
NORTHROP GRUMMAN SYSTEMS CORPORATION 28.9%$719M
BAE SYSTEMS LAND & ARMAMENTS L.P. 6.3%$156M
STARKEY LABORATORIES INC 3.2%$80M
THE KINETIC GROUP SALES LLC 3.1%$78M
ASSOCIATED MILK PRODUCERS INC 2.6%$65M
BONGARDS CREAMERIES 2.3%$57M
GN HEARING CARE CORPORATION 2.2%$55M
3M COMPANY 2.1%$52M

Prime contracts only. A firm working as a subcontractor to one of these names does not appear, however much of the work it does.

Small business

Of the $1.2B obligated in Minnesota over the matched window, $104M — 8.8% — went out under a small-business set-aside, against 6.7% nationally. In fiscal 2020 the state's share was 8.8%.

Set-asides are the part of the federal market a small firm can compete in on something other than scale, so the share matters more than the dollars. Open set-aside work in Minnesota is listed in the portal.

Open in Minnesota right now

Offra is tracking 6 open public solicitations in Minnesota — federal, state and local. Public record last confirmed Oct 1, 2026, 9:49 PM UTC.

Busiest industries

  • Other support services1
  • Other amusement & recreation industries1
  • Offices of dentists1
  • Pharmaceutical & medicine manufacturing1
  • Electronic & precision equipment repair1
  • Architectural & engineering services1

Where the notices come from

  • SAM.gov6

Browse 6 open tenders in Minnesota →

How to read this page

The two halves measure different things.
Everything above the live section is federal prime-contract obligations from USAspending, attributed to the state where the work is performed. The live counts are our own open-notice corpus, where a federal notice is filed against the contracting office's address, because that is what the source publishes — only about a third of SAM.gov notices carry a usable place of performance. The two are not interchangeable and are deliberately not added together.
Obligations, not award value.
What was actually put on contract in the window, including modifications to older awards. A negative figure is not an error: it means money came back off existing contracts faster than new money went out.
Prime contracts only — so infrastructure money is largely invisible.
Award types A–D. Grants, loans and direct payments are excluded because they are not contracts. Most federal infrastructure money reaches contractors as grants or formula funds to state agencies, which then let their own contracts; none of that is a federal prime contract and none of it appears here. That is a fact about the measure, not about the spending.
Fiscal 2026 is 8 months, and its defence figures stop early.
The Department of Defense and the U.S. Army Corps of Engineers withhold contract actions from federal reporting for 90 days. Nothing in the data marks it — a recent month simply shows almost no defence activity, which reads exactly like a collapse and is not one. This snapshot treats the record as complete only through 2026-05, a boundary found by reading the monthly defence series and locating where it falls off a shelf rather than by counting days. Use the like-for-like window on the chart to compare the current year to its predecessors.
Contractors are rolled up; subcontractors are absent.
Federal data reports one row per registered entity, not per company, so a large parent appears several times. Those rows are summed here. Subcontract work is not reported at this level at all.
The figures move after publication.
Recent months revise upward for weeks as modifications post, so the most recent year on this page is provisional by construction. Snapshot taken 2026-09-08.

The wider federal picture — which agencies moved, which contractors arrived, and what changed nationally — is in the federal contracting study. Every state's open-tender count is on the coverage map.

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