On average, 12% of the federal budget is allotted to national defense every fiscal year. In FY2021 alone, a total of $754 billion was spent by the US government on national defense, and around $141 billion was spent on the procurement of weapons and systems. The Department of Defense has the third most budgetary resources of any department this upcoming fiscal year.
There are a lot of opportunities for your business within the US national defense sector. The Department of Defense is always procuring goods and services to implement improvements to the country’s national security. The administration has requested a budget of $737 billion for the Department of Defense this upcoming fiscal year, meaning many more opportunities to come.
There are many reasons why you should do business with the Defense sector. One of the reasons is the increased spending on contractors. The Department of Defense has increased its spending on contractors from $373.5 billion in 2018 to $408.2 billion in 2021. In 2020, Texas, Virginia, and California received the most Defense spending, with Texas receiving $83 billion or 18% of the overall spending.
There are various areas where the Department of Defense is looking for contractors, including construction, engineering, IT applications, aircraft, and facility-related services. In 2022, the projected spending on these categories is:
The current administration requested $773 billion for the Department of Defense, seeking a 4% increase from the previous fiscal year. The bill is currently in the works in Congress, and it’s called the National Defense Authorization Act for Fiscal Year 2023.
As of July 14, 2022, the House passed the National Defense Authorization Act for FY23 which allows the Department of Defense to procure various items, including destroyers and aircraft. The House passed a whopping $839 billion budget for Defense, $37 billion more than the White House asked for. Currently, the Senate is working on its budgetary measures. In June, the Senate Armed Services Committee approved an $817 billion budget that will be voted on as soon as it’s scheduled.
There are many ways to find contracting opportunities from the Department of Defense. The best way is to use a bidding platform like Periscope S2G to automatically notify you when a solicitation is published. On Periscope S2G, there’s a value-added option to access and receive military-related bid opportunities straight to your inbox. You can choose to access and get real-time matching Department of Defense solicitations from state-level, regional, or the entire United States – depending on your business needs.
The US national defense has a lot of opportunities for your business to grow. You can find out more about the Military add-on and start finding your next contract!