Gloomy Third Quarter for Federal Vendors Has a Month to Rebound

June 2, 2025, 9:00 AM UTCUpdated: June 2, 2025, 12:02 PM UTC

Editor’s note: The previously sent version of this analysis did not include a chart image because of a technical issue.

Uncertainty surrounding the government contracting landscape and an increase in reported deobligations has slowed civilian agency procurement, according to Bloomberg Government analysis.

Historically, federal procurement grows as the year progresses, with Q3 contract spending building up to Q4 highs.

With one month remaining in the third fiscal quarter, aggregate obligations total $33.4 billion — the same agencies spent $49.6 billion in April and May last year.

Data analyzed by Bloomberg Government for civilian agency procurement in fiscal 2025 excludes a ...

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