Federal Contracting in FY 2024: Insights from GAO’s Interactive Dashboard
In fiscal year 2024, the U.S. federal government obligated approximately $755 billion through contracts, marking a $22.5 billion decrease from the previous fiscal year after adjusting for inflation. This substantial expenditure underscores the government's reliance on contracts to procure a wide array of goods and services essential for its operations. The Government Accountability Office (GAO) provides a comprehensive overview of this spending through its interactive dashboard, offering valuable insights into the distribution and nature of federal contracting activities. See this link.
The Department of Defense (DoD) continues to dominate federal contracting, accounting for a significant portion of the total obligations. Civilian agencies also play a crucial role, with departments such as Health and Human Services, Veterans Affairs, and Energy contributing notably to the overall spending. The dashboard reveals that services constitute a larger share of the obligations compared to products, reflecting the government's ongoing need for expertise in areas like information technology, professional services, and construction.
Analyzing the types of products and services procured, the dashboard highlights the top five categories for both civilian and defense agencies. For civilian agencies, professional services, medical services, and information technology services are among the most significant expenditures. In contrast, the DoD's spending is heavily concentrated on aircraft, ships, and related maintenance services, emphasizing the department's focus on maintaining and enhancing military capabilities.
The dashboard also sheds light on the recipients of federal contracts. A diverse range of contractors, including large corporations and small businesses, benefit from federal spending. The data indicates that while a substantial portion of contracts is awarded to major defense contractors, small businesses receive a significant share, particularly in sectors like construction and professional services. This distribution aligns with federal initiatives aimed at promoting small business participation in government contracting.
Procurement methods employed by federal agencies are another focal point of the dashboard. The data illustrates a preference for competitive procedures, which are designed to ensure fairness and value for money. However, the use of other transaction agreements (OTAs) has been on the rise, especially within the DoD. OTAs offer a more flexible contracting mechanism, allowing for rapid acquisition of innovative technologies and services, particularly in areas where traditional procurement methods may be less effective.
The GAO's interactive dashboard serves as a valuable tool for stakeholders seeking to understand the intricacies of federal contracting. By providing detailed data on spending patterns, contractor demographics, and procurement methods, the dashboard enhances transparency and accountability in government operations. It also offers insights that can inform policy decisions, support oversight activities, and guide businesses interested in pursuing federal contracts.
Disclaimer: The information presented in this blog post is based on the GAO's interactive dashboard and accompanying data. While efforts have been made to ensure accuracy, readers are advised to consult the original GAO resources for the most current and detailed information.