In fiscal year (FY) 2025, the Federal Government spent more than $793 billion on contracts, representing about 2 percent growth from the previous year. Federal contracting continues to represent a significant share of the discretionary budget and remains a central mechanism for delivering goods and services across the government.
Here are some of the significant developments from FY25:
- Spending through the GSA Multiple Award Schedule (MAS) Program neared $51 billion in FY25. While MAS sales declined by about 4.5 percent compared to the previous year, FY25 still represents one of the highest annual spending levels in the program’s history.
- Spending through the VA Federal Supply Schedule (FSS) Program exceeded $25 billion in FY25, an increase from FY24, reflecting continued strong utilization of the program for pharmaceuticals, medical supplies, and healthcare services.
- Blanket Purchase Agreement (BPA) spending remained a significant component of Schedule use. In FY25, BPAs accounted for approximately 46 percent of total Schedule spending, continuing the long-term trend of agencies leveraging BPAs to streamline ordering and increase efficiency.
- FY25 marked the fifth consecutive year in which more than half of all Federal contract spending was obligated through Indefinite Delivery/Indefinite Quantity (IDIQ) contracts.
Federal healthcare spending increased from approximately $79.5 billion in FY24 to more than $86 billion in FY25, representing roughly 8 percent growth and continuin
To view the Federal Market Report, click the button below. Note: The Federal Market Report is available to Coalition members only. For any questions, please contact Michael Hanafin at mhanafin@thecgp.org.