State of Small Business Government Contracting 2026
A data-driven look at 90,924 government contract opportunities across federal, state, and local sources — who is buying, what they need, and where small businesses fit in.
Researched by the BidStride Research Team
Executive Summary
90,924
Total opportunities tracked
$284 billion
Estimated total value
73,876
Federal (SAM.gov)
17,048
State & local
As of 2026-04-14, BidStride tracks 90,924 active government contract opportunities with an estimated combined value of $284 billion. Federal opportunities from SAM.gov account for 73,876 listings (81.3%), while state and local sources contribute 17,048 additional opportunities across 25+ procurement portals.
Opportunity Volume by Federal Agency
The Department of Defense accounts for 38.6% of all federal contract opportunities — more than the next 4 agencies combined. The top 10 agencies represent over 84% of all federal solicitations.
| Agency | Opportunities |
|---|---|
| Department of Defense | 28,500 |
| Department of Veterans Affairs | 8,200 |
| Department of Health and Human Services | 5,900 |
| General Services Administration | 5,100 |
| Department of Homeland Security | 3,800 |
| Department of Energy | 2,900 |
| NASA | 2,400 |
| Department of Justice | 2,100 |
| Department of the Interior | 1,900 |
| Department of Agriculture | 1,800 |
Set-Aside Breakdown
Nearly half (48.3%) of all federal opportunities include a small business set-aside or preference. The federal government is required by statute to award at least 23% of prime contract dollars to small businesses — and the data shows agencies are actively working to exceed that target.
Why this matters for small businesses
SDVOSB set-asides represent 5.6% of opportunities, significantly exceeding the 3% statutory goal. Women-Owned Small Business (WOSB) set-asides account for 3.8%, and 8(a) program opportunities make up 7.0% of the total. If you hold any of these certifications, you are competing in a smaller pool with meaningfully better odds.
Top NAICS Codes in Federal Contracting
IT services (NAICS 541512) is the single largest contracting category with 8,200 active opportunities, reflecting the federal government's ongoing digital transformation and cybersecurity priorities. Engineering services and facilities support round out the top three.
Contract Size Distribution
Over 50% of all government contract opportunities are valued under $500,000. These smaller contracts are the sweet spot for small businesses — they rarely require large bonding capacity, extensive past performance, or facility clearances that create barriers on larger awards.
Small business sweet spot
The 22,100 micro-purchases under $25,000 are often awarded using simplified acquisition procedures, meaning faster turnaround and less proposal overhead. Combined with the $25K-$500K range, over 52,300 opportunities (70.7%) are accessible to businesses with limited contracting history.
Federal Contracting Spend by State
Virginia, Maryland, and the District of Columbia together account for 24.6% of all federal contract opportunities, driven by their proximity to the Pentagon, federal civilian agencies, and the intelligence community. California and Texas rank third and fourth, respectively, due to large military installations and defense industrial bases.
| State | Opportunities | Est. Spend |
|---|---|---|
| VAVirginia | 8,200 | $42B |
| MDMaryland | 5,400 | $28B |
| CACalifornia | 5,100 | $26B |
| TXTexas | 4,800 | $24B |
| DCDistrict of Columbia | 4,600 | $22B |
| FLFlorida | 3,200 | $16B |
| GAGeorgia | 2,800 | $14B |
| COColorado | 2,400 | $12B |
| MAMassachusetts | 2,100 | $10B |
| PAPennsylvania | 1,900 | $9B |
Key Insights
- 1
The Department of Defense accounts for 38.6% of all federal contract opportunities — more than the next 4 agencies combined.
- 2
Nearly half (48.3%) of all opportunities include a small business set-aside or preference, representing the government's commitment to the 23% statutory small business contracting goal.
- 3
IT services (NAICS 541512) is the single largest contracting category, reflecting the government's ongoing digital transformation initiatives.
- 4
Over 50% of opportunities are valued under $500,000 — a sweet spot for small businesses that don't need large bonding capacity.
- 5
Virginia, Maryland, and DC together account for 24.6% of all federal contract opportunities due to proximity to federal agencies.
- 6
SDVOSB set-asides represent 5.6% of opportunities, significantly exceeding the 3% statutory goal — veteran-owned businesses have strong federal support.
- 7
State and local procurement adds 17,048 additional opportunities across 25+ sources, with significant growth expected as more portals are integrated.
Methodology & Sources
Data sourced from SAM.gov (federal opportunities via daily bulk CSV download), state procurement portals (25+ states via automated scrapers), and city procurement systems (15+ cities). Federal data updated daily at 3:30 AM ET. State/local data updated on tiered schedules. Opportunity counts reflect active listings as of April 14, 2026. Dollar values are estimated based on solicitation data where available.
Source: BidStride Research Team | Data as of 2026-04-14
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