DOD’s Noncompetitive Contracting Belies Message of Open Bidding

March 13, 2026, 9:20 AM UTC

The Pentagon increased its use of noncompetitive procurement in fiscal 2025, an uptick at odds with the agency’s messaging about the value of supplier base competition in getting cheaper, innovative products into the field faster.

The Defense Department awarded $235 billion using noncompetitive solicitation procedures in fiscal 2025, up 23.9% from the previous year, a Bloomberg Government analysis found. As a result, the share of all unclassified defense procurement going to noncompetitive contracts climbed to 45% from 40%.

DOD’s supplier base plateaued between fiscal 2024 and 2025, pointing to reliance on legacy vendors.

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