One of the requirements GSA Schedule contractors tend to worry about the most is the minimum sales requirement. Under this requirement, contractors must generate $25,000 in sales within the first 2 years, and $25,000 every year thereafter. This can seem like an intimidating number, especially for some smaller businesses that aren’t used to reporting $1 million in commercial sales each quarter. So, what can you do to stay on top of this and successfully meet the minimum sales requirement? One thing to do is study spending trends and identify the top government customers. Which government agency is spending the most through government contracts, and what are they spending it on? Here’s what you need to know.
Top Government Agencies by Contract Spending
Let’s dive right into it—which agencies spent the most money through federal contracts in Fiscal Year (FY) 2021?
|
Navy |
$112.1 billion |
|
Army |
$111.7 billion |
|
Air Force |
$83.9 billion |
|
Other Department of Defense (DoD) Agencies |
$79 billion |
|
Department of Health and Human Services (HHS) |
$39.9 billion |
|
Department of Veterans Affairs (VA) |
$39.7 billion |
|
Department of Energy (DOE) |
$38.2 billion |
|
National Aeronautics and Space Administration (NASA) |
$20.1 billion |
|
Department of State (DOS) |
$9.9 billion |
|
Department of Agriculture (USDA) |
$9.6 billion |
|
Department of Treasury (USDT) |
$9.4 billion |
|
Department of Justice (DOJ) |
$9.1 billion |
|
Department of Transportation (DOT) |
$7.5 billion |
|
Agency for International Development (USAID) |
$5.6 billion |
|
General Services Administration (GSA) |
$5 billion |
It’s important to note that although we are at the frontend of FY 2023, all the numbers for FY 2022 haven’t been reported yet, so FY 2021 is the most complete data we have. It’s also important to note that these numbers are for how much money has been spent through federal government contracts. The agency dollar amounts and order may be different if we account for total obligated budget amount for FY 2021.
What Did Government Agencies Buy?
Now that we know the top agencies, what were they interested in procuring? Under civilian agencies, roughly $200 billion was spend on services and $51 on products.
The most popular types of civilian services included:
- Professional services
- Building operation
- Research & development operation
- Engineering/technical support
- IT and telecommunications
The most procured types of civilian products included:
- IT software
- Precious metals
- Medical and surgical supplies/equipment
- Drugs and Biologicals (through the VA Schedule)
Under the defense umbrella, roughly $193 billion was spent in services and $193 billion on products as well.
Some of the top services under defense contracts were:
- Engineering/technical support
- Professional services
- Management logistics support
- Maintenance/repair/rebuild of equipment-aircraft and airframe structural components
The top products under defense contracts were:
- Drugs and biologicals (through the VA Schedule)
- Aircraft (fixed wing)
- Combat ships and landing vessels
- Aircraft (rotary wing)
Top Industries
There are endless ways to break down and display data, but we’ll leave you with one last list. What are the top industries? Looking into industries gives us really unique insight into what trends the government is following and where they might lead in the coming years. While it was useful to learn about of the specific products and services being procured, following top industries helps us see the bigger picture.
To calculate top industries, we’re going to use North American Industry Classification (NAICS) Codes. NAICS Codes are used to classify types of products and services that contractors offer, and they also help determine business size.
The top industries are:
- Professional, Scientific, and Technical Services
- Information
- Administrative and Support, Waste Management and Remediation Services
- Manufacturing
For more in depth research into industries, check out our blog about the top NAICS Codes in Fiscal Year 2022.
Marketing Your GSA Schedule
Now that you are aware of the top government agencies by contract spend and what they were allocating most of their funds to, it’s time to focus on marketing your GSA Schedule. Marketing in the government sphere looks a little different from the commercial space. It’s important you are aware of all the procurement sites and tools you have access to, you know what materials to prepare and what to include on them to capture agencies’ attention, and how to search for contracting opportunities. If you want to learn more about marketing your GSA Schedule, check out our blog, “GSA Schedule Marketing 101.” If you have questions about your GSA Schedule or are interested in getting one, feel free to contact one of our consultants.
