Texas Federal Contracting Overview
Texas ranks #3 among U.S. states with $311,416,667,412 in federal contract obligations flowing to organizations headquartered or performing work in the state. There are 27 prime contractors in our database with a Texas address, led by Health & Human SVC Commn TX. This page provides an overview of federal procurement activity in Texas, including top contractors, resources for small businesses pursuing government contracts, and links to state and local procurement portals.
Federal Contracting in Texas
Federal contracting represents a significant economic driver in Texas. The $311,416,667,412 in obligations reported through USASpending.gov includes contracts, grants, loans, and other financial assistance flowing to Texas-based organizations. This spending supports jobs, infrastructure, research institutions, healthcare facilities, and defense installations across the state.
The federal government awards contracts through a competitive process governed by the Federal Acquisition Regulation (FAR). Businesses in Texas can compete for these contracts by registering on SAM.gov, identifying relevant NAICS codes, and monitoring solicitations posted to the government's central procurement portal. Small businesses may qualify for additional advantages through certification programs including 8(a), HUBZone, WOSB, and SDVOSB.
Top Contractors in Texas
The following table lists the largest federal award recipients headquartered in Texas, ranked by total obligated dollars. These figures reflect cumulative obligations reported to USASpending.gov and include all contract types, grants, and other federal financial assistance. Click any contractor name to view their full profile, including agency relationships, award history, and competitive analysis.
Small Business Resources in Texas
Texas offers several resources for businesses pursuing federal contracts. The federal government is required to award at least 23% of prime contract dollars to small businesses, creating significant opportunities for qualified firms across the state. The following organizations provide free or low-cost assistance to businesses entering the federal market.
APEX Accelerator (formerly PTAC): The Texas APEX Accelerator provides free, one-on-one counseling to businesses pursuing government contracts at the federal, state, and local levels. Services include assistance with SAM.gov registration, bid preparation, proposal writing, and identifying relevant contract opportunities. APEX Accelerators are funded by the Department of Defense and operate in every state.
Small Business Development Center (SBDC): The Texas SBDC network provides training, consulting, and resources for small businesses, including guidance on government contracting. SBDCs operate through partnerships with local colleges, universities, and economic development organizations.
SBA District Office: The U.S. Small Business Administration maintains district offices in Texas that provide information about federal small business certification programs, including 8(a), HUBZone, WOSB, and SDVOSB.
Getting Started with Federal Contracting in Texas
If your business is based in Texas and you're interested in pursuing federal contracts, the process begins with several key steps. First, obtain a Unique Entity Identifier (UEI) and register your business on SAM.gov — this is mandatory for all federal contractors. Next, identify the NAICS codes that best describe your business and review the SBA size standards to determine if you qualify as a small business. Finally, begin monitoring solicitations on SAM.gov and consider reaching out to your local APEX Accelerator for personalized guidance.
For a comprehensive walkthrough, see our guide on how to get government contracts.
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How much federal contract money flows to Texas?
Texas receives $311,416,667,412 in federal contract obligations, ranking #3 among U.S. states and territories. This includes contracts, grants, loans, and other financial assistance to organizations headquartered in or performing work in the state.
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Who are Texas's biggest federal contractors?
The largest federal contractor in Texas is Lockheed Martin Corporation with $62.6B in total obligations, followed by Raytheon Company ($22.6B). See the full ranked list above.
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How do I start a government contracting business in Texas?
Begin by registering on SAM.gov, selecting appropriate NAICS codes, and contacting your local APEX Accelerator for free counseling. If you qualify as a small business, consider pursuing SBA certifications for additional advantages. See our complete guide to getting government contracts.
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Where is the APEX Accelerator in Texas?
APEX Accelerators (formerly Procurement Technical Assistance Centers or PTACs) operate throughout Texas. Find your nearest location at apexaccelerators.us. These centers provide free, one-on-one counseling on government contracting, including help with SAM registration, bid preparation, and proposal writing.
Data sourced from USASpending.gov . Federal contracting data is public domain.