The largest government vendors tightened their grip on the $810 billion federal procurement market as companies with lower contracting revenue dropped out of competition.
The total number of federal contractors fell 3% in fiscal 2025 from the previous year’s levels, with most of the loss coming from the largest cohort of vendors: companies with less than $50 million in annual prime contract obligations.
There are nearly 95,000 companies in the group of small-tier vendors, and they collectively secured $124 billion in fiscal 2025. That’s a 6% drop from fiscal 2024, according to Bloomberg Government analysis.
Small-tier companies represented more than ...