Department of Defense Leads Federal 8(a) Spending with $19.3 Billion in FY2025

When it comes to federal contracting opportunities for diverse suppliers, one agency stands dramatically above the rest: the Department of Defense. According to data from USASpending.gov, DOD awarded an extraordinary $19.3 billion in prime contracts to 8(a) Business Development Program participants during fiscal year 2025.

To put this in perspective, that's more than eight times the amount awarded by the second-largest agency, the Department of Health and Human Services ($2.4 billion). For 8(a) certified businesses looking to grow through federal contracting, DOD represents the single largest opportunity in the federal marketplace.

The Numbers: DOD's Dominance in 8(a) Spending

Here's how DOD compares to other top federal agencies in 8(a) contract awards for FY2025:

• Department of Defense: $19.3 billion
• Health and Human Services: $2.4 billion
• Homeland Security: $2.3 billion
• Department of State: $1.7 billion
• General Services Administration: $1.2 billion

Combined, all other federal agencies barely match what DOD spends alone with 8(a) firms.

Where the Money Goes: Top DOD Sub-Agencies

Within DOD, three military branches account for the vast majority of 8(a) spending:

• Department of the Army: $6.9 billion (36% of DOD total)
• Department of the Navy: $4.3 billion (22%)
• Department of the Air Force: $4.2 billion (22%)
• Defense Logistics Agency: $1.3 billion (7%)
• Defense Health Agency: $975 million (5%)

These five sub-agencies alone represent over 90% of DOD's 8(a) spending, making them the primary targets for diverse suppliers seeking defense contracts.

Industries in Highest Demand

Understanding which industries receive the most DOD 8(a) contracts can help you position your business for success. The top NAICS codes by spending are:

1. 236220 - Commercial and Institutional Building Construction: $2.9 billion
2. 541330 - Engineering Services: $2.0 billion
3. 541519 - Other Computer Related Services: $1.5 billion
4. 561210 - Facilities Support Services: $1.2 billion
5. 541512 - Computer Systems Design Services: $1.1 billion
6. 541611 - Administrative Management Consulting: $1.1 billion
7. 541513 - Computer Facilities Management: $615 million
8. 541511 - Custom Computer Programming: $549 million
9. 541990 - Other Professional Services: $491 million
10. 562910 - Remediation Services: $375 million

Construction, engineering, IT services, and facilities management dominate the spending. If your 8(a) business operates in any of these industries, DOD should be a primary focus of your business development efforts.

Geographic Hotspots for DOD 8(a) Contracts

Contract performance locations cluster around major military installations and the National Capital Region:

• Virginia: $3.5 billion (proximity to Pentagon, numerous military bases)
• California: $1.7 billion (Navy presence, Air Force bases)
• Maryland: $1.3 billion (NSA, Fort Meade, defense contractors)
• Texas: $1.2 billion (Fort Hood, Fort Bliss, multiple Air Force bases)
• Florida: $1.0 billion (Naval stations, Air Force installations)
• North Carolina: $887 million (Fort Bragg, Camp Lejeune)
• Alabama: $749 million (Redstone Arsenal)
• Alaska: $728 million (strategic military importance)

While you don't need to be located in these states to win contracts, understanding where work is performed can help with strategic positioning and partnership development.

Year-Over-Year Growth

DOD's 8(a) spending continues to grow. In FY2024, the department spent $18.7 billion with 8(a) firms—meaning FY2025's $19.3 billion represents a 3.4% increase year-over-year. This sustained growth demonstrates DOD's ongoing commitment to the 8(a) program and suggests continued opportunities for certified businesses.

How to Position Your 8(a) Business for DOD Success

If you're an 8(a) certified business looking to capture DOD contracts, consider these strategies:

1. Register in SAM.gov - Ensure your System for Award Management profile is complete and current with all relevant NAICS codes
2. Target specific sub-agencies - Focus on the Army, Navy, or Air Force based on your capabilities and past performance
3. Build relationships with Offices of Small Business Programs (OSBP) - Each military branch has dedicated staff to help small businesses connect with contracting opportunities
4. Pursue mentor-protégé relationships - DOD's mentor-protégé program can help you build capacity and win larger contracts
5. Monitor contract opportunities - Use SAM.gov and agency-specific procurement forecasts to identify upcoming opportunities
6. Consider teaming arrangements - Partner with larger firms or other small businesses to pursue contracts beyond your current capacity

Explore the Data Yourself

Want to dive deeper into federal spending with diverse suppliers? Our Federal Spending Data tool lets you search and filter contracts by agency, certification type, NAICS code, and more. See exactly which companies are winning contracts in your industry and identify opportunities for your business.

All data is sourced directly from USASpending.gov, the official federal spending database mandated by the DATA Act of 2014 and managed by the U.S. Department of the Treasury.

The Bottom Line

For 8(a) certified businesses, the Department of Defense isn't just another federal agency—it's the agency. With $19.3 billion in annual 8(a) spending across construction, IT, engineering, and facilities services, DOD offers more opportunity than all other federal agencies combined.

The data is clear: if you're serious about growing your 8(a) business through federal contracting, a DOD-focused strategy should be at the top of your list.