About DOD

Department of Defense is a federal executive branch agency that participates in the federal acquisition process as an awarding agency. Through its contracting offices, DOD issues solicitations, evaluates proposals, awards contracts, and administers the resulting agreements. The agency's procurement activity is governed by the Federal Acquisition Regulation (FAR).

The $688,034,220,924 in total obligations represents the cumulative value of contracts, modifications, and exercised options reported through the Federal Procurement Data System (FPDS) and published on USASpending.gov. This figure includes all contract types — fixed-price, cost-reimbursement, time-and-materials, and indefinite-delivery/indefinite-quantity (IDIQ) vehicles.

Contract Spending by Fiscal Year

The chart below shows DOD's annual contract obligations over the most recent fiscal years. Changes in year-over-year spending can reflect budget shifts, new program starts, contract recompetitions, or changes in procurement strategy. Contractors should monitor these trends to anticipate future opportunities and identify growing or declining markets within the agency.

How to Sell to DOD

Selling to Department of Defense requires preparation, persistence, and an understanding of the agency's procurement processes. The following steps outline the typical path for contractors seeking to establish or expand their relationship with DOD.

• Register on SAM.gov: All contractors must maintain an active registration in the System for Award Management before receiving any federal contract. See our SAM.gov registration guide.
• Identify the right office: Large agencies have multiple contracting offices with different areas of responsibility. Research which office handles the products or services you offer.
• Monitor solicitations: Watch for opportunities on SAM.gov filtered by this agency. Set up saved searches to receive automatic notifications when relevant solicitations are posted.
• Build past performance: Agencies heavily weight past performance in their evaluation criteria. Consider subcontracting or pursuing smaller contracts to build a track record. See our past performance guide.
• Attend industry days: Many agencies host pre-solicitation conferences and industry days where they brief potential offerors on upcoming requirements. These events are valuable for understanding agency needs and making connections with contracting staff.

• How much does DOD spend on contracts?

  Department of Defense has obligated $688,034,220,924 in total federal contract dollars, ranking #5 among federal agencies by spending.

• How do I sell to DOD?

  Start by registering on SAM.gov, then search for active solicitations from Department of Defense on SAM.gov. Contact the agency's OSDBU office for guidance on small business opportunities. Consider attending industry days and pre-solicitation conferences to learn about upcoming requirements. For a complete walkthrough, see our guide to getting government contracts.

• What percentage of DOD contracts go to small businesses?

  Small business data for Department of Defense is tracked through the SBA's goaling system. The federal government-wide statutory goal is 23% of prime contract dollars to small businesses, with additional sub-goals for socioeconomic categories including 8(a), HUBZone, WOSB, and SDVOSB.

• Where can I find DOD contract opportunities?

  All federal contract opportunities above the micro-purchase threshold ($10,000) are posted on SAM.gov. Filter by awarding agency to find opportunities from Department of Defense. You can also search for historical awards on USASpending.gov to understand the agency's buying patterns, typical contract sizes, and incumbent contractors.