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Top Federal Contractors by Spending (2026)

Published 2026-02-14

The federal government spends over $700 billion annually on contracts, and a relatively small number of companies capture the majority of that spending. Understanding who the biggest federal contractors are helps BD teams identify competitive dynamics, investors assess market position, and small businesses find teaming partners.

This ranking is based on total contract obligations reported to USAspending.gov across fiscal years 2020-2026, covering 32.9 million individual contract awards to over 200,000 companies.

How to Read This Ranking

Each company listed below shows their total federal contract obligations, number of contracts, and concentration risk score (HHI). Here is what each metric means:

  • Total obligations: The cumulative dollar value of all federal contracts awarded to the company across FY2020-2026. This includes the base contract and any modifications.
  • Contract count: The number of distinct contract awards. A single large contract can represent more revenue than hundreds of small ones.
  • HHI concentration: The Herfindahl-Hirschman Index measures how concentrated a company's revenue is across agencies. HIGH means heavy dependence on one customer; LOW means well-diversified.

The Largest Federal Contractors

The top 10 federal contractors by total obligations include the names you'd expect: Lockheed Martin, RTX (formerly Raytheon), Boeing, Northrop Grumman, and General Dynamics dominate the defense sector. Beyond defense, companies like Humana, McKesson, and various construction firms command significant federal spending in healthcare, logistics, and infrastructure.

You can search for any contractor on ContractCliff to see their full contract portfolio, including upcoming contract cliffs, agency breakdown, and spending trends.

Concentration Risk Among Top Contractors

Even among the largest contractors, concentration risk varies significantly. Some companies derive the vast majority of their federal revenue from a single agency (typically the Department of Defense), while others spread their work across multiple civilian and defense agencies.

A high concentration score does not necessarily mean a company is at risk. A defense contractor with deep DoD relationships and long-term programs may be well-positioned even with high HHI. But for investors and competitors, understanding where revenue is concentrated helps assess the impact of budget shifts, sequestration, or policy changes.

Learn more about concentration risk in our guide to understanding HHI concentration scores.

Small Business vs. Large Business

The federal government sets a goal of awarding at least 23% of federal contracting dollars to small businesses. In practice, the top 50 contractors receive a disproportionate share of total spending. However, thousands of small businesses compete successfully for set-aside contracts and subcontracting opportunities.

If you're a small business looking to break into federal contracting, start by understanding which agencies spend the most in your NAICS code and which incumbents hold the current contracts. When those contracts expire, you have a window to compete. See our guide on finding small business set-aside opportunities.

Explore the Data

ContractCliff tracks over 200,000 federal contractors with contract cliff dates, concentration scores, and spending trends. You can explore the data by:

Data Source & Methodology

Rankings are based on total contract obligations from USAspending.gov bulk award archives covering fiscal years 2020-2026. This includes definitive contracts, purchase orders, BPAs, and other contract types. Only prime contracts are included; subcontracts are not tracked. Company names reflect the legal entity name as reported in USAspending records.

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