The Department of Agriculture runs one of the more accessible federal contracting shops for diverse businesses. It spends roughly $6 billion per year across hundreds of buying offices, and its mission mix — food procurement, rural infrastructure, forest management, IT modernization — maps well to the industries where minority, women, veteran, and disadvantaged businesses are concentrated.
This guide covers where the money actually goes, which set-aside vehicles USDA uses most, and what to do in your first 90 days if you want to compete here.
What USDA buys and how much it spends
USDA's annual contract spend has run between $5.5 billion and $6.5 billion in recent fiscal years, according to USASpending.gov. The agency is organized into 29 agencies and offices, several of which are large buyers in their own right.
Food and Nutrition Service (FNS) is the biggest single food buyer in the federal government. FNS administers SNAP, school meals, WIC, and related programs. It purchases commodity foods directly — dairy, grains, produce, protein — and distributes them through state agencies and school districts. Annual commodity purchases routinely exceed $3 billion. FNS also contracts for technology systems, program evaluation, and nutrition research.
Forest Service is USDA's largest contract spender by volume after FNS. It buys timber harvesting, prescribed fire, trail and road construction, equipment, and IT. The Forest Service alone obligates over $1 billion per year in contracts, with significant spend in the Pacific Northwest, Rocky Mountain, and Southern regions.
Rural Development funds broadband infrastructure, housing loans, water system construction, and community facility grants across rural America. The construction and engineering work that flows from these programs creates substantial subcontracting opportunities for small and diverse businesses.
Agricultural Research Service and Natural Resources Conservation Service together account for several hundred million dollars in research contracts, lab supplies, and technical services.
Animal and Plant Health Inspection Service (APHIS) buys veterinary and inspection services, laboratory equipment, and pest control services — categories where small businesses compete well.
How USDA uses set-asides
USDA's Office of Small and Disadvantaged Business Utilization (OSDBU) publishes annual small business goals and tracks performance by sub-agency. In FY2023, USDA reported meeting or exceeding its small business prime contracting goal. The agency has historically been one of the stronger performers among cabinet-level departments on 8(a) and HUBZone utilization.
8(a): USDA uses the SBA 8(a) Business Development program heavily in IT services, professional services, and some construction categories. The Forest Service and FNS both award direct 8(a) sole-source contracts under the $4.5 million threshold for services and $7 million for manufacturing without competition among 8(a) firms. If you hold an 8(a) certification, USDA contracting officers can award you a contract directly — no competitive bid required below those thresholds.
HUBZone: Rural USDA missions align naturally with HUBZone-eligible geographies. The Forest Service in particular awards HUBZone set-aside contracts for trail maintenance, facilities work, and resource management in rural counties. If your business is located in a qualified HUBZone area and you hold the certification, the Forest Service is worth targeting directly.
WOSB and EDWOSB: USDA uses Women-Owned Small Business set-asides across administrative services, food services, and some professional services categories. Economically Disadvantaged WOSB (EDWOSB) set-asides carry a lower revenue cap and are used in categories where women-owned firms are underrepresented.
SDVOSB: Veteran-owned set-asides at USDA follow SBA rules (not VA rules). USDA uses SDVOSB set-asides in IT, facilities management, and professional services. Unlike the VA's VETS First program, USDA set-asides for veteran firms go through the standard SAM.gov/beta.SAM.gov procurement process.
SDB price evaluation adjustments: USDA still applies Small Disadvantaged Business price evaluation adjustments in certain competitive procurements, giving SDB-certified firms a bid price preference of up to 10 percent.
Finding USDA opportunities
beta.SAM.gov is the starting point. Use the Contract Opportunities search and filter by: - Department/Ind. Agency: "Agriculture, Department of" - Set-aside type: the specific certification you hold (8(a), HUBZone, WOSB, SDVOSB) - NAICS code: your primary code(s)
Save the search and set up email alerts. USDA posts sources sought notices before formal solicitations; responding to those puts you on the contracting officer's radar before the RFP drops.
USDA Forecast of Contract Opportunities: USDA publishes an annual procurement forecast at acquisition.usda.gov. The forecast lists planned acquisitions by agency, estimated value, NAICS code, and anticipated set-aside type for the fiscal year. It is not exhaustive, but it covers most contracts above $150,000. This is where you find out whether FNS is planning a new IT systems contract or whether the Forest Service is recompeting a regional maintenance IDIQ.
FPDS-NG: The Federal Procurement Data System (fpds.gov) shows historical awards. Search for USDA awards to businesses with your NAICS code, your size, and your certification type. This tells you who already wins contracts here, what vehicles they use, and which contracting offices award the most relevant work. It is one of the most underused research tools in federal contracting.
USDA eSRS and subcontracting plans: Large prime contractors awarded USDA contracts above $750,000 (services) or $1.5 million (construction) must submit subcontracting plans. Those plans are filed in the Electronic Subcontracting Reporting System (eSRS). You can find the names of the large primes and then approach them directly about subcontracting.
Specific registration requirements beyond SAM.gov
SAM.gov registration is the baseline requirement for all federal prime contracts. Beyond that, USDA has a few specific steps.
USDA Vendor and Citizen Application Portal (VCAP): Certain USDA agencies — particularly FNS for commodity programs — require registration in VCAP to receive payments and participate in commodity purchasing programs. If you are pursuing food supply contracts with FNS, confirm with the contracting officer whether VCAP enrollment applies to your specific contract vehicle.
USDA eAuthentication: Some USDA systems and grant portals require eAuthentication credentials. If you are bidding on USDA contracts that require access to agency data systems or submitting through USDA-specific portals, you will need an eAuthentication Level 2 account. Registration is free at eauth.usda.gov.
Organic and food safety certifications: If you supply food commodities to FNS, you will need USDA-AMS grading/certification, FDA registration, and in some cases organic certification through the National Organic Program. These are product qualifications, not vendor registrations, but contracting officers will verify them before award.
Subcontracting through major USDA primes
Several large prime contractors hold long-running USDA contracts and are required to subcontract to small and diverse firms.
Leidos and Booz Allen Hamilton hold major IT modernization and data analytics contracts with USDA, including work on the FNS payment systems and USDA's enterprise IT infrastructure. Both firms have active small business subcontracting programs and dedicated supplier diversity contacts.
Peraton holds USDA IT support contracts. They publish a small business subcontracting plan with USDA and list subcontracting opportunities through their supplier portal.
Tetra Tech and Michael Baker International are frequent Forest Service primes on environmental and engineering contracts. Both firms subcontract environmental services, GIS, soil science, and construction management to small businesses.
The Sievert Group and other regional construction primes hold Forest Service and Rural Development construction contracts in specific regions. These are harder to find through a web search; use FPDS to identify regional primes and reach out through their procurement contact.
To find current subcontracting opportunities, go to SAM.gov's Subcontracting Directory and search for USDA primes with active subcontracting plans. You can also call USDA's OSDBU directly at (202) 720-7117 and ask for the small business specialist assigned to the agency you are targeting.
Practical first steps for a diverse business
Week 1. Confirm your SAM.gov registration is active and your certifications (8(a), HUBZone, WOSB, SDVOSB, or SDB) are correctly coded in your profile. A lapsed registration or a missing certification code will disqualify you from set-aside awards automatically.
Week 2. Pull 24 months of USDA awards in your NAICS code from FPDS. Identify the top five contracting offices awarding work in your category, the contract vehicles they use (IDIQ, BPA, open market), and which firms are winning. This research takes two to three hours and shapes everything that follows.
Week 3. Identify the USDA OSDBU small business specialist for the sub-agency you are targeting. USDA's OSDBU directory is at dm.usda.gov/osdbu. Request an introduction meeting. These specialists exist specifically to connect diverse businesses with contracting officers; they are not gatekeepers, they are resources.
Week 4. Respond to at least one sources sought notice in your target category. A sources sought response is not a proposal — it is a brief capability statement showing the contracting officer that qualified small businesses exist. Responding plants your name in the file before the formal solicitation is written.
Month 2. If you are 8(a) certified, identify two or three USDA contracts currently held by other 8(a) firms that are expiring within 18 months using FPDS. Approach the contracting office about competing for the follow-on. Expiring 8(a) contracts are the most predictable pipeline in federal contracting.
Month 3. Reach out to two large USDA primes in your category about subcontracting. Lead with your certifications, your NAICS codes, and one or two concrete past performance examples. Primes that hold USDA contracts with subcontracting plans are under obligation to use you; they want qualified small businesses in their network.
USDA is not a fast sales cycle. Contracting officers have full pipelines and move on fiscal year timelines. The businesses that win here consistently show up early, respond to sources sought notices, and maintain relationships with OSDBU specialists across multiple fiscal years. Start that process now.
