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FEDCONSULT — FEDERAL INSIGHTS
10,419 companies won their very first federal award in FY2025.
A data-driven look at the companies that entered the federal marketplace in FY2025—who bought from them, what they sold, how they won, and where new vendors found a path into federal contracting. Built from 40,205 transaction records covering FY2025 (Oct 2024–Sep 2025).
10,419first-time contractors
$9.10Btotal obligated
40,205award transactions
$24,979median company FY25 total*
MONTHLY TREND
New entrants ramp hard into year-end
Both the number of first-timers and dollars awarded to them climb through FY25, then spike in September—the classic year-end obligation rush, with new vendors participating.
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Monthly obligated dollars; September reached approximately $2.86B.
AWARDING DEPARTMENTS
Where the doors are opening
DoD dominates dollars and is also the biggest entry point by headcount. Civilian agencies often open more doors per dollar spent.
Obligated dollars by department
Top departments, FY25
Unique first-timers by department
Distinct companies
INSIDE DOD
Which components are buying
Army leads by dollars; DLA stands out for transaction volume and frequent small purchases.
| Component | Businesses | Transactions | Obligated |
|---|---|---|---|
| Army | 1,385 | 2,794 | $3.145B |
| Navy | 1,009 | 2,979 | $1.270B |
| Air Force | 1,065 | 2,066 | $507.8M |
| DLA | 611 | 8,024 | $196.7M |
| OSD | 29 | 64 | $66.5M |
| Defense Health Agency | 76 | 157 | $58.1M |
| DARPA | 55 | 127 | $52.3M |
NAICS
What first-time contractors are getting paid to do
Construction and heavy manufacturing lead by dollars; R&D, engineering and IT create broader entry by company count.
Top industries by obligated dollars
Selected top NAICS
| 236220 — Commercial & Institutional Building Construction | $1.345B |
| 237990 — Other Heavy & Civil Engineering Construction | $1.013B |
| 332993 — Ammunition Manufacturing | $866.9M |
| 336611 — Ship Building & Repairing | $549.2M |
| 541715 — Physical/Engineering/Life Sciences R&D | $353.2M |
| 325920 — Explosives Manufacturing | $328.4M |
| 541330 — Engineering Services | $266.0M |
| 541512 — Computer Systems Design | $251.9M |
Top industries by first-time businesses
Where new entrants cluster
| 541715 — R&D | 576 |
| 115310 — Support Activities for Forestry | 501 |
| 541330 — Engineering Services | 382 |
| 541519 — Other Computer Related Services | 351 |
| 236220 — Commercial Building Construction | 267 |
| 721110 — Hotels & Motels | 253 |
| 238220 — Plumbing/HVAC Contractors | 224 |
| 541990 — Other Professional/Technical Services | 211 |
BUSINESS SIZE
Small business wins on headcount, not dollars
Small businesses represented roughly three-quarters of first-time awardees, but less than half the obligated dollars.
Small Business
$4.23B
7,847 businesses · 32,675 transactions
Other Than Small
$4.42B
2,663 businesses · 7,253 transactions
Not specified
$448M
126 businesses · 277 transactions
CONTRACT VEHICLES
Schedules, OTAs and SBIR/STTR
Three distinct pathways for new entrants: schedule orders, flexible OTs and early-stage innovation awards.
Multiple Award Schedule
$32.6M
705 businesses · 5,074 orders
Other Transactions
$446.8M
125 businesses · 274 transactions
SBIR / STTR
$78.1M
237 businesses · 330 awards
OTA source note: $113.1M shown under Interior is ARPA-H biotech funding coded under Interior's Departmental Offices in this data. Source-check this attribution before citing it externally.
OTA DEEP DIVE
What the OTA dollars are funding
Defense R&D dominates, but health/ARPA-H, hardware, software/cloud and space are meaningful entry routes.
OTA dollars by PSC category
| National Defense R&D — military | $195.0M |
| Health / ARPA-H R&D | $108.6M |
| National Defense R&D — related | $44.3M |
| Hardware / Equipment | $36.9M |
| IT / Software & Cloud | $36.3M |
| Space R&D | $13.5M |
| General Science & Technology R&D | $12.1M |
Selected programs identified
From award descriptions
DARPA Quantum Benchmarking Initiative — 10 first-time quantum firms.
ARPA-H biotech portfolio — 10 early-stage biotech/gene-therapy firms.
Frontier AI model prototypes — first-time awards to frontier AI providers.
Domestic titanium production — $42.5M to IperionX Critical Minerals.
Counter-UAS / soldier hardware — Army/SOCOM prototype awards.
HOW THEY WON
Competition and set-asides
Simplified acquisition procedures are a major pathway into the market; roughly a quarter of transactions used a small-business set-aside.
Extent competed
Competed under SAP: 17,084Full & Open: 10,088Not competed under SAP: 5,285F&O after exclusion: 3,375Not competed: 2,144
Set-aside type
No set-aside: 21,916Total SB set-aside: 9,308Not specified: 7,395SDVOSB set-aside: 5448(a) sole source: 488WOSB: 186
WHO THEY ARE
Company profile of the new entrant class
Socioeconomic categories overlap; one company can appear in more than one category.
Certifications / status
SDB 4,325Minority-owned 2,064WOSB 1,555Veteran-owned 1,380SDVOSB 1,0458(a) 236HUBZone 100
Entity structure
| Corporate, not tax exempt | 5,428 |
| Partnership | 1,925 |
| Sole proprietorship | 1,776 |
| Other | 619 |
Top HQ states
STANDOUTS
The biggest first-year wins
A small group of large awards in defense manufacturing, shipbuilding, construction, healthcare and services account for a disproportionate share of first-year dollars.
| Contractor | Department | Principal NAICS | FY25 obligated |
|---|---|---|---|
| MSM Group North America | Defense | Ammunition Manufacturing | $635.2M |
| Northstar Maritime Dismantlement Services | Defense | Ship Building & Repairing | $533.7M |
| Kiewit US Contractors | Defense | Heavy/Civil Engineering | $403.9M |
| Repkon USA - Defense | Defense | Explosives Manufacturing | $326.4M |
| Soldierpoint Digital Health | Veterans Affairs | Electronic Computer Manufacturing | $231.2M |
| Tomer | Defense | Ammunition Manufacturing | $210.5M |
| Salus Worldwide Solutions | Homeland Security | Chartered Air Transportation | $186.0M |
| TMSAB | Defense | Waste Collection | $169.3M |
| Safe America Media | Homeland Security | Marketing Consulting | $142.8M |
| Nova Space Solutions | NASA | Facilities Support Services | $129.8M |
TURN INSIGHT INTO STRATEGY
What does the federal market look like for your business?
FedConsult turns federal procurement data into actionable market intelligence—helping companies understand target agencies, competitors, acquisition patterns, contract vehicles and where opportunities are emerging.
FedConsult — Data → Decisions → DirectionSource: FY25 first-timer transaction export · 40,205 records · 10,419 unique UEIs · *median approximate/illustrative