As prime federal contract spending reached a record high $595 billion in fiscal 2019, spending on subcontractors also surged to a new high of $83 billion, fueled particularly by work on large aircraft, ships, and missile systems.
Transparency in the subcontracting market has improved, and emerging trends indicate growth in the number of sub-vendors and opportunities. Through analysis and the creation of our new Subcontracts Dashboard, BGOV allows you to systematically monitor and track all reported federal subcontract dollars with weekly updates. As a result, subcontract data can become a meaningful part of your business development planning.
Takeaways from BGOV’s 2020 Subcontracts Market Analysis include:
- Reported federal subcontract dollars totaled $83 billion in fiscal 2019.
- The number of sub-vendors topped 17,000 for the first time.
- The number of prime contracts linked to subcontract awards reached a record high in FY 2019.
- Prime vendors issued 102,000 sub-awards in FY 2019.
- Lockheed Martin Corp. awarded 46% of all reported subcontracting dollars in FY 2019.
- Southern California companies lead all regions in the amount of subcontracting obligations.