Executive Summary
$650B
Total federal contracting spend (FY2025)
28-42%
Win rate by company size
+9%
Set-aside growth YoY 2024-2025
Federal contracting spending reached $650B in FY2025, with small businesses capturing 28% of competitive awards and mid-market firms at 35%. Set-aside opportunities grew 9% year-over-year, representing $73.2B in reserved procurement. Average RFP-to-award cycle is 102-145 days depending on agency.
Why Set-Asides Matter
- •Small businesses win 35-45% of set-aside contracts vs 28% on open competitions
- •8a, WOSB, SDVOSB, HUBZone certifications reserve $73B+ annually for eligible contractors
- •Set-aside opportunities grew 32% from 2022-2025
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