Industry Contracting Guide
Government Contracts for Construction
Federal construction obligations exceed $40B annually across MILCON, USACE civil works, GSA buildings, and VA medical facilities. Small businesses win the majority of awards under $4M and are routinely teamed in as subcontractors on mega-projects.
Industry snapshot
- Average contract size
- $500K–$15M
- Common certifications
- DBE · 8(a) · HUBZone · Bonded $5M+
Common government buyers
- U.S. Army Corps of Engineers (USACE)
Civil works, military construction, and environmental restoration
- General Services Administration (GSA)
Federal real estate, vehicles, and acquisition support
- Department of Veterans Affairs (VA)
Healthcare and benefits for veterans
- Department of the Navy (Navy)
Maritime power projection and amphibious operations
Typical contract types
- Firm-fixed-price
- Design-build
- IDIQ MATOC
- JOC
Challenges to expect
- Bonding capacity ceilings
- Davis-Bacon wage compliance
- FAR Part 36 progress payments
Where the opportunities are right now
- 8(a) sole-source up to $7M
- USACE MATOC pools
- MILCON expansion at B-21 bases
Most relevant NAICS codes
- NAICS 237310 — Highway, Street & Bridge Construction
- NAICS 236220 — Commercial & Institutional Building Construction
- NAICS 237990 — Other Heavy Construction
States with the most construction contracting activity
- Virginia — ~$105.4B annual
- Texas — ~$53.6B annual
- California — ~$73.5B annual
FAQs
- What agencies buy the most construction services?
- Top federal buyers for construction include U.S. Army Corps of Engineers, General Services Administration, Department of Veterans Affairs, Department of the Navy.
- What is the typical contract size in construction?
- Average federal contract size in construction ranges $500K–$15M, with the largest awards typically flowing through IDIQ MATOC pools and BPAs.
- Which NAICS codes apply to construction?
- The most relevant NAICS codes are 237310 (Highway, Street & Bridge Construction); 236220 (Commercial & Institutional Building Construction); 237990 (Other Heavy Construction).
- What certifications matter most in construction contracting?
- Common gating certifications include DBE, 8(a), HUBZone, Bonded $5M+. Set-aside certifications (8(a), HUBZone, WOSB, SDVOSB) layer on top for small businesses.
- What are the biggest challenges for new entrants?
- Bonding capacity ceilings; Davis-Bacon wage compliance; FAR Part 36 progress payments. These are surmountable but should be priced into your B&P investment.