Report: Federal Government Awarded Record $765B in FY 2023 Contracts

Source: GOVCONWIRE

A HigherGov analysis of government contracting activity showed that federal contracts awarded in fiscal year 2023 reached a record high of $765 billion, reflecting a 9.5 percent growth from FY 2022.

The market research company said Wednesday the increase was driven by the exercise of options associated with F-35 fighter jet production, rebound in construction spending and direct and indirect awards related to weapons supply in support of the war in Ukraine, among other factors.

According to the report, contract awards at the Department of Defense rose by 11.5 percent from $422 billion in FY 2022 to $470 billion in 2023, accounting for 61 percent of total federal contract awards in FY 2023.

The Navy saw the largest jump in contract awards in 2023, recording $154 billion. HigherGov attributed the growth to aircraft manufacturing, engineering services, shipbuilding and repair and navigational equipment.

The last fiscal year witnessed a slight increase in the number of contractors receiving DOD awards, rising from 37,057 contractors in FY 2022 to 37,092 vendors in FY 2023.

The value of contracts awarded by civilian agencies also rose 6.3 percent to $295.1 billion in FY 2023, up from $277.5 billion in FY 2022.

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