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August 12, 2025 22 mins

Get ready to uncover the record-setting opportunities in federal small-business contracting for FY2025! This podcast episode reveals the Top 10 federal agencies that are driving the vast majority of small-business contract obligations, as identified through detailed FPDS and USAspending data up to August 11, 2025.

We break down where the billions are going, providing a clear roadmap for your government contracting strategy:

  • Department of Defense (DoD) leads by absolute dollars, obligating an estimated $55–$60 billion to small firms, representing about one-third of all federal small-business dollars. It's the largest source for Small Disadvantaged Business (SDB), Service-Disabled Veteran-Owned Small Business (SDVOSB), and HUBZone work.
  • The Department of Veterans Affairs (VA) is a powerhouse for SDVOSBs, with roughly $22 billion in obligations, where SDVOSB awards can make up about 45% of its small-business total due to its "Vets First" program.
  • The Department of Homeland Security (DHS) stands out with one of the highest small-business percentages, hovering near 35-40% of its total contracting, and excelling across all socio-economic categories.
  • You'll also discover how agencies like HHS lean on small firms for R&D and health IT, while the USDA and Department of Transportation (DOT) award exceptionally high percentages (40-50%) to small businesses, often with strong HUBZone and SDB participation.

This isn't just a scoreboard; it's a guide to help you align your NAICS codes and federal contracting certifications (such as SBA 8(a), Women-Owned Small Business, HUBZone, or SDVOSB) with the agencies that are exceeding their goals in your specific category.

Learn why Q4 (July–September) is the prime time for a spending surge, with up to 40% of small-business obligations historically occurring in this final quarter, particularly in September. We'll discuss how understanding these trends can help you invest in capture and proposal readiness now for both current and upcoming FY2026 opportunities.

Tune in to tailor your business development to where you fit best and ride the wave of federal small-business contracting success!

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