November 2025 Federal Contracting Update

November 2025 saw $20.9B in federal contract obligations, marking month 2 of FY2026. This represents a +155% change from October's $8.2B.

Key Statistics: - Total Contract Obligations: $20.9B - Top Agency: Department of Energy ($9.9B - 47.3% of total) - Leading Industry: Facilities Support Services ($5.6B) - Small Business Set-Asides: $489M 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 $286M

Federal contract spending in November 2025 totaled $20.9B. This is +155% compared to October's $8.2B.

FY2026 Month 2 Analysis: - October 2025 (Month 1): $8.2B - November 2025 (Month 2): $20.9B - Change: +155% increase

Spending Velocity: Contract obligations increased this month, reflecting typical federal spending patterns for FY month 2. Early fiscal year months typically see accelerating spending as new appropriations become available.

Department of Energy led all agencies in November 2025.

Top 15 Agencies by Spending: 1. Department of Energy (DOE): $9.9B - 47.3% 2. Department of Veterans Affairs (VA): $4.1B - 19.5% 3. Department of Homeland Security (DHS): $1.4B - 6.8% 4. National Aeronautics and Space Administration (NASA): $1.1B - 5.2% 5. General Services Administration (GSA): $1.0B - 5.0% 6. Department of Health and Human Services (HHS): $937M - 4.5% 7. Department of Transportation (DOT): $767M - 3.7% 8. Department of Agriculture (USDA): $462M - 2.2% 9. Department of Justice (DOJ): $241M - 1.2% 10. Department of the Treasury (TREAS): $227M - 1.1% 11. Department of Housing and Urban Development (HUD): $173M - 0.8% 12. Department of the Interior (DOI): $119M - 0.6% 13. Department of Commerce (DOC): $112M - 0.5% 14. Department of State (DOS): $82M - 0.4% 15. Department of Education (ED): $74M - 0.4%

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

Facilities Support Services led November contracting activity.

Top 10 Industries (by NAICS): 1. Facilities Support Services (561210): $5.6B 2. Research and Development in the Physical, Engineering, and Life Sciences (541710): $2.0B 3. Direct Health and Medical Insurance Carriers (524114): $1.7B 4. Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology) (541715): $1.4B 5. Offices of Physicians (except Mental Health Specialists) (621111): $880M 6. Remediation Services (562910): $703M 7. Commercial and Institutional Building Construction (236220): $613M 8. Process, Physical Distribution, and Logistics Consulting Services (541614): $604M 9. Other Computer Related Services (541519): $603M 10. Computer Systems Design Services (541512): $583M

Industry Analysis: - Facilities Support Services led with $5.6B 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 $489M in November 2025 obligations.

Set-Aside Performance: - 8(a) Business Development Program: $286M - Service-Disabled Veteran-Owned (SDVOSB): $192M - HUBZone: $6M - Women-Owned Small Business (WOSB): $4M

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 2.3% of total November 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.

December 2025 outlook and upcoming opportunities.

Expected Trends: - Continued ramp-up as new FY programs execute - 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