Monthly Highlights
July 2026 saw $38.2B in federal contract obligations, marking month 10 of FY2026. This represents a +15% change from June's $33.1B.
Key Statistics: - Total Contract Obligations: $38.2B - Top Agency: Department of Veterans Affairs ($15.2B - 39.8% of total) - Leading Industry: Direct Health and Medical Insurance Carriers ($13.4B) - Small Business Set-Asides: $2.3B combined
Notable Trends: - VA led spending with major program investments - Direct Health and Medical Insurance Carriers saw strong contract activity - 8(a) Business Development program led small business awards at $1.5B
Spending Overview
Federal contract spending in July 2026 totaled $38.2B. This is +15% compared to June's $33.1B.
FY2026 Month 10 Analysis: - June 2026 (Month 9): $33.1B - July 2026 (Month 10): $38.2B - Change: +15% increase
Spending Velocity: Contract obligations increased this month, reflecting typical federal spending patterns for FY month 10. End-of-fiscal-year spending tends to accelerate as agencies work to obligate remaining funds.
Agency Breakdown
Department of Veterans Affairs led all agencies in July 2026.
Top 15 Agencies by Spending: 1. Department of Veterans Affairs (VA): $15.2B - 39.8% 2. Department of Homeland Security (DHS): $6.5B - 17.1% 3. Department of Energy (DOE): $3.7B - 9.7% 4. General Services Administration (GSA): $2.8B - 7.4% 5. Department of Health and Human Services (HHS): $2.2B - 5.9% 6. National Aeronautics and Space Administration (NASA): $1.3B - 3.4% 7. Department of Transportation (DOT): $1.0B - 2.7% 8. Department of Agriculture (USDA): $934M - 2.4% 9. Department of State (DOS): $719M - 1.9% 10. Department of Justice (DOJ): $681M - 1.8% 11. Department of the Interior (DOI): $598M - 1.6% 12. Department of the Treasury (TREAS): $525M - 1.4% 13. Department of Labor (DOL): $509M - 1.3% 14. Department of Commerce (DOC): $417M - 1.1% 15. Department of Education (ED): $256M - 0.7%
Agency Insights: - Department of Veterans Affairs spending reflects major program investments and ongoing operations - Department of Homeland Security maintained strong contract activity - Civilian agencies showed robust spending this month
Industry Trends
Direct Health and Medical Insurance Carriers led July contracting activity.
Top 10 Industries (by NAICS): 1. Direct Health and Medical Insurance Carriers (524114): $13.4B 2. Ship Building and Repairing (336611): $3.6B 3. Computer Systems Design Services (541512): $1.9B 4. Commercial and Institutional Building Construction (236220): $1.8B 5. Other Computer Related Services (541519): $1.6B 6. Engineering Services (541330): $1.2B 7. Facilities Support Services (561210): $1.1B 8. Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology) (541715): $1.0B 9. Other Basic Inorganic Chemical Manufacturing (325180): $932M 10. All Other Professional, Scientific, and Technical Services (541990): $779M
Industry Analysis: - Direct Health and Medical Insurance Carriers led with $13.4B in contract obligations - Professional services and IT continue to see strong federal demand - Healthcare services maintained steady investment levels
Small Business Set-Asides
Small business set-aside programs recorded $2.3B in July 2026 obligations.
Set-Aside Performance: - 8(a) Business Development Program: $1.5B - Service-Disabled Veteran-Owned (SDVOSB): $692M - HUBZone: $43M - Women-Owned Small Business (WOSB): $60M
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 6.1% of total July 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.
August Outlook
August 2026 outlook and upcoming opportunities.
Expected Trends: - End-of-fiscal-year spending surge expected - 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
Data sources & methodology
Analysis based on prime contract awards only; sub-contract spending excluded. Federal spending figures sourced directly from USASpending.gov (U.S. Department of the Treasury). Typical 30–90 day publication lag from award date. Methodology and figures may be updated as additional data becomes available.
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