Which Federal Government Agencies Are Spending the Most?

 As a GSA Multiple Awards Schedule (MAS) contractor, there are a plethora of exclusive opportunities to sell your products and services to the government that you may not have otherwise. You have access to a whole new marketplace including federal agencies as well as some state, local, educational, and tribal entities.

While having a government contract by your side can connect you with government customers, you still need to conduct adequate research and stay informed about government spending to enhance your marketing efforts. As we approach federal government Q4 (July- September), one of the most exciting quarters of the year in terms of increased revenue, let’s take a glance at federal spending.  

Top 10 Government Agencies by Contract Spending  

Which agencies spent the most money through federal contracts in Fiscal Year (FY) 2022- present? Let’s take a look at each agency and how much was spent through acquisition.  

What’s important to keep in mind is these numbers are a good indication of where the government may continue to allocate its budget in the following months. With the high spending dollars in mind, you can leverage your contract or perhaps acquire a contract if you’re considering selling to the government.   

Overview of Top 3 Government Agencies’ Contract Spending  

1. Department of Defense (DOD)  

The numbers show the DOD has spent over $57 billion dollars on the Department of the Navy alone. While the current total spending of DOD is $584.5 Billion, the DOD has access to $2.01 trillion in budgetary resources.  

2. Department of Veterans Affairs (VA)  

Similarly, the Department of Veterans Affairs has access to a substantial budget. For example, the VA has $378.7 Billion in budgetary resources and has so far only spent $77.7 Billion. We'll see an increase in spending when Q4 begins on July 1, 2023.

3. Department of Energy (DOE)  

As noted in the top 2 agencies, the same can be said for the Department of Energy. The DOE has simply hit the tip of the iceberg with their spending. In 2022, the Office of Small & Disadvantaged Business Utilization (OSDBU) co-hosted 69 small business outreach events that led more than 1,000 one-on-one small business consultations on doing business with Department. While working with the government can sometimes be intimidating for small businesses, GSA has practices in place that help small companies reach success and ultimately obtain increased wins.   

How to Market and Prepare Your Schedule for Q4 

Understanding your target market and how you can reach them is critical to being a successful contractor. There are many imperative steps you can take to prepare your Schedule for Q4. Q4 may be one of the most important quarters for your company, so be sure to conduct some market research and follow a few of these tips:  

• Make sure your SAM.gov is active. 
• Strengthen your website presence and use GSA approved logos. 
• Ensure your pricelist is up to date. 
• Search and track contracting opportunities.  
• Utilize GSA eBuy and GSA Advantage and take advantage of their offerings. 

To learn more proactive tips, check out our blog, “GSA Schedule Marketing 101” and “How to Get Your GSA Schedule Contract Ready for Government Q4 Spending.”    

Understanding Your Place in the Marketplace 

We understand market research takes time and can be overwhelming. However, taking the time to look through and analyze numbers can help you better understand the government’s spending priorities. Once you’ve learned some of the government’s spending habits, ensure that your SAM.gov registration, GSA Advantage, and GSA eBuy, are all up to date so that your potential clients can easily access your most current offerings.  

If you need any assistance with your contract or have any questions about your GSA Schedule, you can check out our blogs or contact one of our consultants.