TX · #3 Federal Spend

Federal Contracting in Texas

$65.8B in FY2025 federal contract awards · Top buyers: DoD, VA, HHS, DHS, NASA

National Rank

#3

of 50 states

FY2025 Federal Spend

$65.8B

Total contract awards

National Rank

#3

By federal spend

Top Buyer

DoD

By contract volume

Free PTAC

Available

Texas PTAC

Federal Contracting Overview: Texas

Texas (TX) is the #3 state for federal contracting activity, with $65.8B in federal contract awards in FY2025. The state's contracting market is anchored by DoD and VA, which together account for the majority of contract dollars flowing into the state.

For small and mid-size contractors, Texas offers significant opportunities in Defense Electronics, Construction, Healthcare. These sectors see consistent set-aside competitions under small business, 8(a), WOSB, SDVOSB, and HUBZone programs — giving eligible firms a competitive advantage over large contractors.

The primary NAICS codes driving federal contract activity in Texas include 541512, 336411, 236220, corresponding to Defense Electronics, Construction, Healthcare work respectively. Major federal installations including Fort Hood and Lackland AFB serve as procurement anchors, generating continuous demand for base support, logistics, IT, and professional services.

Why Texas is a Strong Federal Contracting Market

  • Top 3 federal spending state with massive DoD presence
  • 3rd largest VA healthcare system in the US
  • NASA Johnson Space Center drives R&D and engineering contracts
  • Border security contracts through DHS/CBP are Texas-specific

Best Entry Points for Contractors in Texas

Base support services, healthcare at VA facilities, construction, border security technology.

Recommended first steps for Texas contractors:

  1. Register in SAM.gov with your correct NAICS codes (541512, 336411)
  2. Apply for relevant set-aside certifications (8(a), WOSB, SDVOSB, HUBZone)
  3. Contact Texas PTAC for free counseling and bid matching
  4. Start as a subcontractor under primes operating near Fort Hood
  5. Monitor SAM.gov daily for new solicitations — or use WinBidIQ to auto-score matches

Major Federal Agencies Buying in Texas

These agencies have significant procurement activity in Texas. Each has an OSDBU (Office of Small & Disadvantaged Business Utilization) that runs small business programs — contacting them directly is a legitimate and often effective strategy.

DoD

Active buyer in TX

VA

Active buyer in TX

HHS

Active buyer in TX

DHS

Active buyer in TX

NASA

Active buyer in TX

View full agency guides with budgets and OSDBU contacts

Major Federal Installations in Texas

Federal installations generate enormous local contracting demand — base operations, facilities management, IT services, food service, transportation, construction, and professional services are all procured locally. Contractors within 50 miles have a significant competitive advantage for services contracts.

Fort Hood

Lackland AFB

Fort Sam Houston

Dyess AFB

Top NAICS Codes for Federal Contracts in Texas

NAICS codes determine which contracts you're eligible to bid on and whether you qualify as "small" under SBA size standards. These codes appear most frequently in Texas federal solicitations — if your business performs this work, add these codes to your SAM.gov registration.

NAICS CodeIndustrySBA Size Standard
541512Defense ElectronicsSee SBA table
336411ConstructionSee SBA table
236220HealthcareSee SBA table
622110LogisticsSee SBA table
488190IT ServicesSee SBA table
Browse all NAICS codes with SBA size standards

Texas PTAC — Free Counseling for Texas Contractors

Procurement Technical Assistance Centers (PTACs) are federally funded through the DoD and provide free one-on-one business counseling to companies pursuing government contracts. Texas PTAC covers Texas and offers:

  • SAM.gov registration and profile review
  • Capability statement writing and critique
  • Bid matching — they notify you of relevant opportunities
  • Proposal writing review before submission
  • SBA certification application assistance (8(a), WOSB, HUBZone, SDVOSB)
  • Debriefing support after a lost bid

All services are free of charge. This is taxpayer-funded support for small businesses.

Visit Texas PTAC

Federal Contracting in Texas: FAQs

How much does the federal government spend on contracts in Texas?+
The federal government awarded $65.8B in contracts in Texas in FY2025, ranking it #3 nationally. Major buyers include DoD, VA, HHS, DHS, NASA. This includes both prime contracts awarded directly to Texas-based firms and contracts with place of performance in the state.
What types of federal contracts are most common in Texas?+
The most active contract categories in Texas are Defense Electronics, Construction, Healthcare, Logistics, IT Services. These correspond to NAICS codes 541512, 336411, 236220 which appear most frequently in Texas contract awards. Base support services, healthcare at VA facilities, construction, border security technology.
How do I find federal contracting opportunities in Texas?+
Register on SAM.gov (System for Award Management) — this is mandatory for any federal contractor. Then search SAM.gov contract opportunities filtered by place of performance = Texas. You can also contact Texas PTAC for free one-on-one counseling. Tools like WinBidIQ monitor SAM.gov daily and score opportunities by fit to your company profile.
Does Texas have small business set-aside opportunities?+
Yes. All federal agencies operating in Texas must meet small business contracting goals set by the SBA (typically 23% of all awards). DoD alone sets aside hundreds of millions annually for small businesses in Texas. Set-aside categories include Small Business, 8(a), WOSB (Women-Owned), SDVOSB (Service-Disabled Veteran-Owned), and HUBZone contractors.
What is PTAC and how can it help me in Texas?+
PTAC (Procurement Technical Assistance Center) is a free government-funded counseling program. Texas PTAC provides no-cost services including SAM.gov registration help, capability statement review, bid match notifications, proposal writing guidance, and contract performance support. Every contractor pursuing federal contracts in Texas should contact their PTAC before bidding.
What NAICS codes are most active for federal contracts in Texas?+
The top NAICS codes by federal contract volume in Texas are: 541512, 336411, 236220, 622110, 488190. These represent Defense Electronics, Construction, Healthcare, Logistics, IT Services sectors. When registering in SAM.gov, make sure your NAICS codes match the work you actually perform — contracting officers filter by NAICS when running set-aside competitions.
How long does it take to win a first federal contract in Texas?+
Most new federal contractors in Texas win their first award within 12-24 months of getting SAM.gov registered, if they bid consistently. The fastest path is subcontracting under a prime contractor already operating in Texas, especially near Fort Hood. Subcontracting builds past performance, which is required for most prime contract bids.

Explore Other States

Virginia (VA)

$98.4B

Rank #1

California (CA)

$72.1B

Rank #2

Maryland (MD)

$54.3B

Rank #4

Florida (FL)

$42.7B

Rank #5

Washington (WA)

$38.2B

Rank #6

Georgia (GA)

$31.5B

Rank #7

Find Texas Federal Contracts Matched to Your Profile

WinBidIQ monitors SAM.gov every day and scores every new contract by fit to your company — NAICS codes, certifications, company size, and past performance. See only the Texas opportunities you can actually win, with a go/no-go recommendation.

Start Free Trial — See TX Contracts Free Bid Go/No-Go Tool