Federal contracts by state
Federal Contracts in Alabama: Spending, Agencies & Vendors
Data through 2026-08-24 · FY2026 to date
- Obligations, FY2026 to date
- $12.4B
- Contract awards
- 86,449
- Average award size
- $144K
- vs. prior full fiscal year
- 31.6% decline
| Item | Obligations |
|---|---|
| FY21 | $13.1B |
| FY22 | $14.1B |
| FY23 | $14.9B |
| FY24 | $17.3B |
| FY25 | $18.1B |
| FY26 | $12.4B |
Obligations fell 31.6% year over year, from $18.1B in FY2025 to $12.4B in FY2026 to date.
Total federal contract obligations in Alabama are $12.4B in FY2026 to date. The Department of Defense obligated $9B, making the Department of Defense the dominant buyer by a wide margin. Award activity includes 86,449 awards and an average award size of $144K. Obligations fell 31.6% year over year. Annual context shows a fiscal progression of $13.1B in FY21, $14.1B in FY22, $14.9B in FY23, $17.3B in FY24, $18.1B in FY25, and $12.4B in FY26. Top buying agencies after the Department of Defense are the National Aeronautics and Space Administration with $1.8B, the General Services Administration with $425M, and the Department of Homeland Security with $418M. Top vendors include THE BOEING COMPANY with $1.2B, LOCKHEED MARTIN CORPORATION with $1.2B, and DYNETICS, INC. with $1B. Research and Development in the Physical, Engineering, and Life Sciences is the largest industry with $3.6B in obligations, followed by Guided Missile and Space Vehicle Manufacturing with $2B. The data cover contract obligations; current-year totals are partial (fiscal year to date).
How concentrated is federal spending in Alabama?
The Department of Defense is the largest buyer, obligating $9B in FY2026 to date. The National Aeronautics and Space Administration is the second-largest buyer with $1.8B. Total obligations are $12.4B across 86,449 awards with an average award size of $144K. Obligations fell 31.6% year over year.
| Item | Obligations |
|---|---|
| Department of Defense | $9B |
| National Aeronautics and Space Administration | $1.8B |
| General Services Administration | $425M |
| Department of Homeland Security | $418M |
| Department of Veterans Affairs | $365M |
| Department of Justice | $269M |
| Department of Agriculture | $53.8M |
| Department of Labor | $28.6M |
| Department of the Interior | $15.6M |
| Department of Commerce | $15.5M |
Department of Defense was the top federal buyer in Alabama, obligating $9B (72.2% of the state total).
Which industries and vendors dominate Alabama contract obligations?
Research and Development in the Physical, Engineering, and Life Sciences is the largest industry with $3.6B in obligations. Guided Missile and Space Vehicle Manufacturing is the second-largest industry with $2B. THE BOEING COMPANY and LOCKHEED MARTIN CORPORATION each have $1.2B in obligations, and DYNETICS, INC. has $1B.
| Item | Obligations |
|---|---|
| THE BOEING COMPANY | $1.2B |
| LOCKHEED MARTIN CORPORATION | $1.2B |
| DYNETICS, INC. | $1B |
| SCIENCE APPLICATIONS INTERNATIONAL CORPORATION | $508M |
| NORTHROP GRUMMAN SYSTEMS CORPORATION | $485M |
| M1 SUPPORT SERVICES, L.P. | $387M |
| AUSTAL USA, LLC | $342M |
| TORCH TECHNOLOGIES INC | $341M |
| BLUE ORIGIN MANUFACTURING, LLC | $300M |
| DELL MARKETING L.P. | $288M |
THE BOEING COMPANY led all contractors in Alabama with $1.2B, 10.0% of the state total.
| Item | Obligations |
|---|---|
| Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology) | $3.6B |
| Guided Missile and Space Vehicle Manufacturing | $2B |
| Engineering Services | $1B |
| Ship Building and Repairing | $609M |
| Other Aircraft Parts and Auxiliary Equipment Manufacturing | $470M |
| Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) | $433M |
| Commercial and Institutional Building Construction | $432M |
| Other Support Activities for Air Transportation | $426M |
| Custom Computer Programming Services | $325M |
| Software Publishers | $302M |
Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology) was the largest industry in Alabama, with $3.6B obligated.
| Rank | Vendor | Obligations |
|---|---|---|
| 1 | THE BOEING COMPANY | $1.2B |
| 2 | LOCKHEED MARTIN CORPORATION | $1.2B |
| 3 | DYNETICS, INC. | $1B |
| 4 | SCIENCE APPLICATIONS INTERNATIONAL CORPORATION | $508M |
| 5 | NORTHROP GRUMMAN SYSTEMS CORPORATION | $485M |
| 6 | M1 SUPPORT SERVICES, L.P. | $387M |
| 7 | AUSTAL USA, LLC | $342M |
| 8 | TORCH TECHNOLOGIES INC | $341M |
| 9 | BLUE ORIGIN MANUFACTURING, LLC | $300M |
| 10 | DELL MARKETING L.P. | $288M |
| Rank | Recipient | Award Amount | Awarding Agency |
|---|---|---|---|
| 1 | THE BOEING COMPANY | $10.5B | National Aeronautics and Space Administration |
| 2 | THE BOEING COMPANY | $6.5B | Department of Defense |
| 3 | LOCKHEED MARTIN CORPORATION | $5.3B | Department of Defense |
| 4 | M1 SUPPORT SERVICES, L.P. | $4.5B | Department of Defense |
| 5 | THE BOEING COMPANY | $4.4B | Department of Defense |
| 6 | AUSTAL USA, LLC | $2.8B | Department of Defense |
| 7 | THE BOEING COMPANY | $2.7B | National Aeronautics and Space Administration |
| 8 | AMENTUM TECHNOLOGY, INC. | $2B | National Aeronautics and Space Administration |
| 9 | BLUE ORIGIN MANUFACTURING, LLC | $2B | National Aeronautics and Space Administration |
| 10 | SCIENCE APPLICATIONS INTERNATIONAL CORPORATION | $1.4B | General Services Administration |
| 11 | AUSTAL USA, LLC | $1.4B | Department of Homeland Security |
| 12 | THE BOEING COMPANY | $1.3B | National Aeronautics and Space Administration |
| 13 | AUSTAL USA, LLC | $1.3B | Department of Defense |
| 14 | PARSONS GOVERNMENT SERVICES INC. | $1.2B | Department of Defense |
| 15 | NORTHROP GRUMMAN SYSTEMS CORPORATION | $880M | Department of Defense |
| 16 | GENERAL ELECTRIC COMPANY | $880M | Department of Defense |
| 17 | NORTHROP GRUMMAN SYSTEMS CORPORATION | $849M | Department of Defense |
| 18 | SCIENCE APPLICATIONS INTERNATIONAL CORPORATION | $801M | Department of Defense |
| 19 | AMENTUM SERVICES, INC. | $648M | Department of Defense |
| 20 | SCIENCE APPLICATIONS INTERNATIONAL CORPORATION | $641M | General Services Administration |
| 21 | AUSTAL USA, LLC | $632M | Department of Defense |
| 22 | DYNETICS, INC. | $617M | Department of Defense |
| 23 | TORCH TECHNOLOGIES INC | $615M | Department of Defense |
| 24 | LOCKHEED MARTIN CORPORATION | $564M | Department of Defense |
| 25 | NORTHROP GRUMMAN SYSTEMS CORPORATION | $560M | Department of Defense |
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Frequently asked questions
How much federal contract money goes to Alabama?
Alabama received $12.4B in federal contract obligations in FY2026 to date. Total obligations across prior fiscal years were $13.1B in FY21, $14.1B in FY22, $14.9B in FY23, $17.3B in FY24, $18.1B in FY25, and $12.4B in FY26. The state recorded 86,449 awards in FY2026 to date and an average award size of $144K. Obligations fell 31.6% year over year.
Which agencies award the most contracts in Alabama?
The Department of Defense awards the most contracts in Alabama, obligating $9B in FY2026 to date. The National Aeronautics and Space Administration is the second-largest buyer with $1.8B, followed by the General Services Administration with $425M and the Department of Homeland Security with $418M. Other significant buyers include the Department of Veterans Affairs with $365M and the Department of Justice with $269M.
Who are the largest federal contractors in Alabama?
THE BOEING COMPANY and LOCKHEED MARTIN CORPORATION are the largest federal contractors in Alabama, each with $1.2B in obligations in FY2026 to date. DYNETICS, INC. is the next-largest contractor with $1B. Other top vendors include SCIENCE APPLICATIONS INTERNATIONAL CORPORATION with $508M, NORTHROP GRUMMAN SYSTEMS CORPORATION with $485M, and M1 SUPPORT SERVICES, L.P. with $387M.
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