Sacramento Federal GovCon Roundup 2025

This is a deep dive into Federal Government contract awards to companies in the Greater Sacramento Region (“Sacramento”) in 2025. I dig deeper into the areas of my particular interest: manufacturing and technology. Contact me if you’re interested in more detailed numbers or additional analysis.

The big picture

Over four hundred Sacramento organizations, public and private, were awarded contracts in 2025 with total awards of $1.76 billion dollars. Individual companies brought in annual awards ranging from $200 to $455M with a median of $133,000.

A few well-known, large organizations sit on the list of top awardees, but most of what you’ll see below are small businesses.

Awards by Federal Dapartment

Contractors big and small heavily weight the region toward defense

Looking at awards from a top-down perspective, we start with awards by federal department. The region brought in $1.76B in awards, representing 0.2% of the nation’s total of $841B.

Defense awards are more heavily weighted in Sacramento, representing 79% of contract awards vs 60% nationwide. Department of Agriculture awards are also more significantly weighted in Sacramento at just over 7% vs only 1% nationwide. The departments of Energy and Homeland Security, both with a meaningful slice of the pie nationwide, sit under 1% in Sacramento.

Sector Breakdown

A few large contractors shift sector focus to health insurance and construction

Now let’s look at North American Industry Classification System (NAICS) codes to see what types of work we’re doing in Sacramento.

Direct Health and Medical Insurance Carriers (NAICS 524114) is the massive outlier, representing a quarter of the region’s awards in 2025. Every dollar went to a single contractor, Health Net Federal Services LLC as part of the TRICARE West Region contract. That contract is now in the hands of TriWest Healthcare Alliance, based in Arizona.

Following far behind, we have Other Heavy and Civil Engineering Construction at 15%, Facilities Support Services at 10%, and the combination of Aircraft Manufacturing and Other Aircraft Parts manufacturing at 10% as well.

Top Awardees

These top 10 awardees brought in 69% of the region’s federal awards in 2025. These big players are the ones that shift the NAICS sector concentration that we saw in the NAICS code breakdown above. Seven out of the ten, indicated with (SB), are considered small businesses.

A note on small business status:

Federal contracts are often set-aside for small businesses, preventing larger organizations from bidding. The size limit for a small business depends on the NAICS code of the contract. In some cases the size limit is based on revenue and in other cases it’s based on employee count. This makes for an interesting situation where we have some “small businesses” with over a billion dollars in annual revenue.

Awards by NAICS Sector

Zip Code Breakdown

Notes about this data

The source of this data is public contract award information. If there are errors in the public source data, they will carry through to this analysis.

I have used dollars obligated for contract amounts. In some cases, efforts associated with obligated dollars may never be completed and billed. These dollars will be subsequently deobligated. Indefinite Delivery Vehicle (IDV) / Indefinite Delivery Indefinite Quantity (IDIQ) contracts likely have award ceilings that are well above dollars actually obligated. Using dollars obligated is most representative of actual expecting revenue/billing. I have used date signed for contract dates.

The small business status of each organization is based on the most common NAICS code under which recent contracts were awarded. A company may not qualify as a small business under other codes.

The Greater Sacramento area refers to these six counties: Sacramento, Yolo, Placer, El Dorado, Sutter, and Yuba. The zip code of the vendor/contractor is used to identify these awards. The contract’s place of performance may be different. In other words, the work may not be performed in the region or by employees from the region. The contractor is located in the region.

AI tools were not used in this data analysis to ensure the results were deterministic and accurately reflect the source data. AI tools were not used to create or edit the content of this report. In some cases, AI tools were used to for layout/formatting purposes.