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What is the average federal contract size?

Short Answer

What is the average federal contract size? Average contract sizes vary enormously by category. The median is around $150,000, but averages are skewed by billion-dollar contracts. Over 90% of contract actions are under $250,000.

As of 2024USASpending.gov

Detailed Answer

Federal contract sizes vary dramatically based on contract type, agency, and industry: **General statistics (approximate):** - Median contract: ~$150,000 - Mean contract: ~$1-5 million (skewed by large contracts) - Over 90% of actions under SAT ($250,000) - Top 100 contracts account for huge portion of total spend **By contract type:** - Micro-purchases: Under $10,000 - Simplified acquisitions: $10,000-$250,000 - Standard contracts: $250,000-$10 million - Major programs: $10 million-$1 billion+ - Mega contracts: $1 billion+ (relatively few, high dollar) **By industry (typical ranges):** - IT services: $500K-$50M typical - Professional services: $200K-$10M typical - Construction: Wide range, $100K-$500M - Healthcare: $500K-$100M - Defense systems: $10M-$100B+ **By small business set-aside:** - Small business contracts average smaller - Many fall in $100K-$5M range - 8(a) contracts often $500K-$10M - HUBZone contracts typically under $5M **Entry-level opportunities:** - Target contracts matching your capacity - Start with smaller awards to build past performance - Subcontracting on larger contracts - Simplified acquisition opportunities **Finding right-sized opportunities:** - Filter SAM.gov by estimated value - Focus on what you can realistically perform - Build toward larger contracts over time - Consider agency patterns in your market

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This answer is part of our comprehensive guide on this topic.

Read Full Guide: Getting Started with Federal Contracting: Complete Beginner Guide

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