February 2026 Federal Contracting Update

February 2026 saw $25.9B in federal contract obligations, marking month 5 of FY2026. This represents a +30% change from January's $20.0B.

Key Statistics: - Total Contract Obligations: $25.9B - Top Agency: Department of Energy ($13.3B - 51.3% of total) - Leading Industry: Facilities Support Services ($9.5B) - Small Business Set-Asides: $1.1B combined

Notable Trends: - DOE led spending with major program investments - Facilities Support Services saw strong contract activity - 8(a) Business Development program led small business awards at $730M

Federal contract spending in February 2026 totaled $25.9B. This is +30% compared to January's $20.0B.

FY2026 Month 5 Analysis: - January 2026 (Month 4): $20.0B - February 2026 (Month 5): $25.9B - Change: +30% increase

Spending Velocity: Contract obligations increased this month, reflecting typical federal spending patterns for FY month 5. Mid-fiscal-year spending patterns reflect ongoing program execution.

Department of Energy led all agencies in February 2026.

Top 15 Agencies by Spending: 1. Department of Energy (DOE): $13.3B - 51.3% 2. Department of Homeland Security (DHS): $3.3B - 12.8% 3. Department of Veterans Affairs (VA): $1.9B - 7.4% 4. General Services Administration (GSA): $1.4B - 5.5% 5. Department of Health and Human Services (HHS): $1.2B - 4.8% 6. National Aeronautics and Space Administration (NASA): $922M - 3.6% 7. Department of Transportation (DOT): $630M - 2.4% 8. Department of Agriculture (USDA): $597M - 2.3% 9. Department of Justice (DOJ): $492M - 1.9% 10. Department of the Treasury (TREAS): $484M - 1.9% 11. Department of the Interior (DOI): $356M - 1.4% 12. Agency for International Development (USAID): $312M - 1.2% 13. Department of State (DOS): $308M - 1.2% 14. Department of Commerce (DOC): $192M - 0.7% 15. Department of Labor (DOL): $82M - 0.3%

Agency Insights: - Department of Energy spending reflects major program investments and ongoing operations - Department of Homeland Security maintained strong contract activity - Civilian agencies showed robust spending this month

Facilities Support Services led February contracting activity.

Top 10 Industries (by NAICS): 1. Facilities Support Services (561210): $9.5B 2. Research and Development in the Physical, Engineering, and Life Sciences (541710): $2.1B 3. Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology) (541715): $1.9B 4. Process, Physical Distribution, and Logistics Consulting Services (541614): $1.5B 5. Computer Systems Design Services (541512): $1.0B 6. Direct Health and Medical Insurance Carriers (524114): $883M 7. Other Computer Related Services (541519): $862M 8. Engineering Services (541330): $498M 9. All Other Professional, Scientific, and Technical Services (541990): $411M 10. Custom Computer Programming Services (541511): $394M

Industry Analysis: - Facilities Support Services led with $9.5B in contract obligations - Professional services and IT continue to see strong federal demand - Healthcare services maintained steady investment levels

Small business set-aside programs recorded $1.1B in February 2026 obligations.

Set-Aside Performance: - 8(a) Business Development Program: $730M - Service-Disabled Veteran-Owned (SDVOSB): $346M - HUBZone: $10M - Women-Owned Small Business (WOSB): $30M

Analysis: The 8(a) Business Development program continues to lead small business contracting, with Service-Disabled Veteran-Owned (SDVOSB) showing strong performance.

Set-Aside as Percentage of Total: At 4.3% of total February spending, set-asides are below the 23% annual goal. This is typical for individual months—small business percentages are measured annually and often increase in Q3/Q4 as agencies push to meet goals.

March 2026 outlook and upcoming opportunities.

Expected Trends: - Steady contract activity anticipated - IT modernization and cybersecurity contracts continue strong - Professional services demand remains robust across agencies

Opportunities to Watch: - Major agency IT modernization initiatives - Healthcare services contracts (VA, HHS) - Defense program task orders - Infrastructure and facilities management

Key Dates: - Normal monthly contracting cycle continues

Contractor Recommendations: 1. Monitor SAM.gov for new solicitations in your target agencies 2. Track agency forecast and procurement schedules 3. Prepare for upcoming recompetes and new requirements 4. Engage with small business offices for set-aside opportunities