State

Department of State

Manages diplomatic operations, foreign aid, and international programs. Buyer of IT, security services, and international logistics.

FY2026 Budget

$55B+

diplomatic operations, foreign aid, international programs

OSDBU Contact

Office of Small Business Programs - OSBP@state.gov

2026 Trend

Diplomatic IT modernization, cybersecurity upgrades for embassies, foreign aid systems, international development initiatives

Market Intelligence

Real-time spending data via USAspending.gov

Annual Spend (FY2025)

Total obligated amount for contract awards in the current fiscal year.

$0

Obligated to date

Budget UtilizationNaN%

Top Contract Awardees

$9.5B
$8.9B
$7.3B
$5.2B
$5.1B

WinBidIQ Insight: Department of State is showing high competition among the top 5 vendors. Small businesses should focus on subcontracting opportunities with these leaders or targeting niche set-asides where these giants are restricted.

How to Win Contracts from Department of State

As a major federal contracting entity, Department of State (State) commands a FY2026 budget of $55B+. Recent market intelligence indicates a highly active procurement cycle, with obligated spend distributed among 5 primary vendors.With a strategic focus on security clearance requirements (top secret/sci common) and international experience and language capabilities valued, this agency presents targeted opportunities for contractors operating within critical NAICS codes like 541511 and 541512.

For emerging contractors, the most effective entry strategy is to identify recompete opportunities — contracts currently held by incumbents that are expiring within the next 12 to 18 months.State recompetes often have predictable scopes and defined evaluation criteria, making them significantly easier to bid intelligently than entirely new requirements.

State Department offers specialized opportunities in IT, security, and international operations. Requires security clearances and global capability. Smaller contract volume than DoD but higher specialization = less competition. Compliance burden high.

Procurement Focus & Requirements

  • Security clearance requirements (Top Secret/SCI common)
  • International experience and language capabilities valued
  • Compliance with State Department security protocols
  • Global delivery and support coordination required

Top NAICS Codes — State

These NAICS codes appear most frequently in Department of State solicitations. Include these in your SAM.gov registration to appear in agency searches and qualify for relevant set-asides.

Common Recompete Categories at State

Recompetes — contracts currently held by an incumbent that are coming up for renewal — are the highest-probability opportunity for new entrants. These categories see recurring recompetes at Department of State:

1

Embassy IT infrastructure and support

2

Diplomatic communications and security systems

3

International development and capacity building programs

4

Logistics and supply chain management (global)

Track live recompete opportunities in WinBidIQ

Department of State Contracting: FAQs

How much does Department of State spend on contracts annually?+
Department of State (State) has a FY2026 budget of $55B+ (diplomatic operations, foreign aid, international programs). Contract spending goes toward 5 primary NAICS code categories, with diplomatic it modernization, cybersecurity upgrades for embassies, foreign aid systems, international development initiatives. Small businesses compete for set-aside contracts across all major spending categories.
What NAICS codes does State use for small business contracts?+
Department of State most frequently awards contracts under NAICS codes 541511, 541512, 561210, 238210, 334220. These cover Security clearance requirements (Top Secret/SCI common), International experience and language capabilities valued, Compliance with State Department security protocols. Register in SAM.gov with these codes and ensure your size is within SBA size standards for each code to qualify for set-asides.
How do I contact State's small business office?+
Department of State's small business contact is: Office of Small Business Programs - OSBP@state.gov. This office — typically called the OSDBU or OSBP — runs small business outreach events, matchmaking sessions, and subcontracting fairs. Attending these events is one of the most effective ways to get pre-RFP visibility with contracting officers.
What types of contracts does State award to small businesses?+
Department of State awards set-aside contracts under multiple socioeconomic programs including small business, 8(a) Business Development, WOSB (Women-Owned Small Business), SDVOSB (Service-Disabled Veteran-Owned), and HUBZone. Common contract vehicles include Embassy IT infrastructure and support and Diplomatic communications and security systems. Most contracts over $25K are posted on SAM.gov.
What is the best strategy to win a first State contract?+
Start by identifying recompete opportunities — contracts expiring within 12 months where the incumbent may be vulnerable. Department of State recompete categories include: Embassy IT infrastructure and support; Diplomatic communications and security systems; International development and capacity building programs. Build past performance through subcontracting first, then bid on small set-asides. Attend OSDBU outreach events to meet program managers before RFPs drop.
What is State's procurement trend for 2026?+
Diplomatic IT modernization, cybersecurity upgrades for embassies, foreign aid systems, international development initiatives. State Department offers specialized opportunities in IT, security, and international operations. Requires security clearances and global capability. Smaller contract volume than DoD but higher specialization = less competition. Compliance burden high. Monitor SAM.gov and USASpending.gov for emerging solicitations and forecast notices — ideally 6-12 months before RFP release.

Find State Contracts Matched to Your Company

WinBidIQ monitors SAM.gov daily and scores every Department of State solicitation by fit to your company profile — NAICS codes, certifications, size, and past performance.