Cyber Industry

CybersecurityGovernment Contracts

Cybersecurity is one of the fastest-growing segments of federal contracting, driven by increasing threats and executive orders mandating zero-trust architecture across all agencies. Federal cybersecurity spending exceeds $20 billion annually, with significant growth expected as agencies implement CISA directives, zero trust mandates, and CMMC requirements.

Definition

Cybersecurity government contracts are federal procurement opportunities for protecting government networks, systems, and data from cyber threats. These contracts cover penetration testing, security operations, incident response, compliance assessment, zero trust implementation, and managed security services for federal agencies.

Key Takeaways

  • Federal cybersecurity spending exceeds $20 billion annually and is growing at 10-15% per year.
  • Zero trust architecture implementation is mandated across all federal agencies under Executive Order 14028.
  • CISA (Cybersecurity and Infrastructure Security Agency) plays a central coordinating role alongside agency-specific cyber programs.
  • Security clearances are required for most cybersecurity contracts, particularly in DoD and intelligence communities.
  • CMMC certification is becoming required for all defense contractors handling controlled unclassified information.

Market Snapshot

Average Contract Size

$500K - $100M

Competition Level

High

Growth Trend

Growing

Top NAICS Codes for Cybersecurity

NAICS CodeDescription
541512Computer Systems Design Services
541519Other Computer Related Services
561621Security Systems Services (except Locksmiths)
541511Custom Computer Programming Services

Search contracts by NAICS code to find opportunities matching your cybersecurity capabilities.

Key Federal Agencies

These agencies are the largest buyers of cybersecurity services and products in the federal market.

Department of Defense (DoD)
Cybersecurity and Infrastructure Security Agency (CISA)
National Security Agency (NSA)
Department of Homeland Security (DHS)
Intelligence Community (IC)

Relevant Certifications & Set-Asides

These certifications and set-aside programs can give your cybersecurity business a competitive advantage in federal contracting.

8(a)
SDVOSB
WOSB
HUBZone
CMMC Level 2+
FedRAMP

Tips for Winning Cybersecurity Contracts

1

Invest in obtaining and maintaining security clearances for key staff - cleared cybersecurity professionals are in extreme demand.

2

Align your offerings with the NIST Cybersecurity Framework and zero trust architecture principles, as agencies use these as evaluation criteria.

3

Pursue CMMC certification early to position for the wave of defense contracts requiring certified assessors and compliant contractors.

4

Build relationships with CISA and agency CISOs through industry days and public-private partnership programs.

5

Develop specialized capabilities in areas like supply chain security, cloud security, or OT/ICS security where demand outpaces supply.

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Frequently Asked Questions

What contract vehicles are used for federal cybersecurity work?

Major cybersecurity contract vehicles include CIO-SP4 (NIH NITAAC), Alliant 2/3 (GSA), SEWP V (NASA), DHS EAGLE II, and the DoD Cyberspace Operations BPA. GSA MAS with IT SINs also supports cybersecurity services. Many agencies also issue agency-specific IDIQs for cyber operations and security assessments.

Do all cybersecurity contractors need security clearances?

Most federal cybersecurity contracts require at least Secret clearance, and many DoD and intelligence community positions require Top Secret/SCI. Some civilian agency work (compliance assessments, policy development) may only need Public Trust. However, having cleared personnel dramatically increases your addressable market.

How is zero trust changing federal cybersecurity contracting?

Executive Order 14028 mandates zero trust architecture across all federal agencies, creating massive demand for identity management, micro-segmentation, continuous monitoring, and SASE/SSE solutions. Agencies are allocating significant budgets to zero trust implementation, making it one of the largest growth areas in federal IT spending.

What certifications do cybersecurity companies need for government work?

Key certifications include CMMC (for DoD work), FedRAMP (for cloud security products), ISO 27001, and SOC 2 Type II. Individual staff certifications like CISSP, CEH, Security+, and CISM are often required in solicitations. Having staff with these credentials is frequently an evaluation factor in contract awards.

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