March is Women’s History Month – a time to celebrate and recognize the achievements that women have made over the course of American history in a variety of fields. Expanded by Congress to a month-long celebration, from its original one-week celebration, it is also a time to celebrate the women-owned small businesses in federal contracting.
The US Census Bureau, in its Annual Business Survey, reported that of the 5.9 million Employer businesses in the United States, 1.3 million (22%) were owned by women.
In FY25, 17,451 women-owned businesses won a total of $34.51B in federal contracts. Of this total, 21.5%, or $7.36B, were awarded as Other Than Small Business (OTSB) contracts to 2,348 companies. Defense agencies, including the Air Force, Army, and Navy, are the top agencies spanning a wide range of sectors, from aircraft manufacturing to construction.
Focusing specifically on Women-Owned Small Businesses (WOSBs), more than $26.4B was awarded to 14,451 WOSBs. This represents less than 3.2% of the total contract awards of $834B in FY25.
Despite steady participation, WOSB award share continues to hover around 3% —remaining well below the federal government’s 5% target and underscoring ongoing challenges for both businesses and federal agencies.
Despite federal contract awards reaching $834B in FY25, the actual dollars obligated to WOSBs fell by 5% over FY24.
| FY 2022 | FY 2023 | FY 2024 | FY 2025 | |
| Contracts awarded as WOSBs in FY25 – in Billions | $24.40 | $27.59 | $27.78 | $26.39 |
| Total Contracts in FY 25 – in Billions | $706.66 | $777.01 | $775.84 | $834.47 |
| % of Total Contracts awarded to WOSB | 3.45% | 3.55% | 3.58% | 3.16% |
| Increase/(Decrease) in awards to WOSB Year over Year | 13.07% | 0.69% | -5.00% |
How did the WOSBs do in FY25?
Agency Analysis
FY25 saw the value of federal contracts awarded reach a high of $834B, an increase of almost $60B or 7.5% over FY24. Many agencies, such as the Department of the Navy, the Department of the Army, the Department of Veterans Affairs, the Department of Homeland Security, and the Defense Logistics Agency, saw multi-billion-dollar increases over FY24. Unfortunately, this increase did not necessarily translate into increased awards to WOSBs.
FY 25 – WOSB Contracts Awarded by Agency
| Top 15 Agencies | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
| 2100 – ARMY | $ 3,954,580,715 | $ 3,978,388,979 | $ 4,043,581,387 | $ 3,743,997,669 |
| 1700 – NAVY, DEPARTMENT OF | $ 2,622,963,763 | $ 2,945,580,510 | $ 3,017,914,241 | $ 3,010,050,546 |
| 5700 – AIR FORCE | $ 2,428,895,646 | $ 2,624,211,130 | $ 2,751,923,822 | $ 2,673,654,704 |
| 97AS – DEFENSE LOGISTICS AGENCY (DLA) | $ 1,436,570,600 | $ 1,477,969,579 | $ 1,784,514,570 | $ 2,531,791,224 |
| 7000 – HOMELAND SECURITY | $ 1,738,342,613 | $ 1,844,102,028 | $ 1,988,754,424 | $ 2,032,661,404 |
| 9700 – DEFENSE, DEPARTMENT OF | $ 1,531,291,867 | $ 1,923,503,200 | $ 1,723,558,805 | $ 1,743,247,387 |
| 7500 – HEALTH AND HUMAN SERVICES | $ 1,698,096,478 | $ 2,440,153,322 | $ 1,937,803,889 | $ 1,511,479,302 |
| 2000 – TREASURY, DEPARTMENT OF | $ 532,130,418 | $ 883,254,187 | $ 853,821,742 | $ 1,086,907,118 |
| 4700 – GENERAL SERVICES ADMINISTRATION | $ 1,173,062,096 | $ 1,281,542,366 | $ 1,239,384,714 | $ 1,011,696,576 |
| 3600 – DEPARTMENT OF VETERANS AFFAIRS | $ 1,023,909,591 | $ 993,578,285 | $ 1,063,410,914 | $ 931,448,251 |
| 1200 – AGRICULTURE, DEPARTMENT OF | $ 847,234,104 | $ 1,186,721,867 | $ 1,250,859,745 | $ 912,074,007 |
| 8000 – NATIONAL AERONAUTICS AND SPACE ADMINISTRATION | $ 738,228,789 | $ 754,453,037 | $ 811,451,953 | $ 850,319,751 |
| 1300 – COMMERCE, DEPARTMENT OF | $ 685,558,767 | $ 810,349,941 | $ 814,016,770 | $ 698,902,237 |
| 1500 – JUSTICE, DEPARTMENT OF | $ 460,123,496 | $ 764,795,069 | $ 574,746,478 | $ 589,002,206 |
| 6900 – TRANSPORTATION | $ 564,530,534 | $ 603,580,683 | $ 599,082,815 | $ 566,250,912 |
A look at the top 15 agencies awarding contracts provides us with some key insights:
- The top 15 agencies account for 91% of the total awards to WOSBs
- Defense agencies account for 52% of the total awards to WOSBs
- 22 agencies saw an increase in the dollars obligated to WOSBs, totaling $1.12B, with the following agencies showing the highest increase:
- DLA $747.27M
- Dept of Treasury $233.08M
- Homeland Security $ 43.91M
- NASA $ 38.87M
- DoD $ 19.69M
- 45 agencies saw a decrease in contracts to WOSBs, totaling $2.5B, with the following agencies accounting for the highest decrease:
- Health & Human Services ($426.32)M
- Dept of Agriculture ($338.78)M
- Army ($299.58)M
- USAID ($239.76)M
- GSA ($227,68)M
When analyzing WOSB spending by agency, it is critical to look beyond year-over-year dollars and pay attention to trends within the agency, as well as their goaling achievements. Many agencies award substantial funding to WOSBs, yet still fall short of meeting their mandated targets.
Industry Analysis
Industry analysis provides a clear view of where WOSBs are winning, highlighting sector-level differences across agencies. More importantly, it surfaces actionable trends that can inform growth strategy and positioning.
In terms of categories (based on GSA categories), Professional Services, IT, Facilities & Construction are the top categories accounting for almost 70% of the contracts awarded to WOSBs, and are similar to the distribution in FY24.
It is essential to point out that while the top three categories have seen a decline in FY25 compared to FY 24, categories such as R&D, Industrial Products & Services, Transportation, and Logistics Services have all seen increases, signaling emerging diversification and expansion by these WOSBs.
| WOSB Awards – by Categories | FY 2024 | FY 2025 | ||
| Total | % | Total | % | |
| Professional Services | $7,646,706,511 | 28.62 | $6,171,143,646 | 24.54 |
| IT | $6,723,393,155 | 25.16 | $6,403,456,545 | 25.47 |
| Facilities & Construction | $5,055,156,341 | 18.92 | $4,952,881,521 | 19.7 |
| Medical | $1,222,912,015 | 4.58 | $1,105,431,392 | 4.4 |
| Research and Development | $847,834,991 | 3.17 | $875,808,374 | 3.48 |
| Industrial Products & Services | $742,131,264 | 2.78 | $886,964,778 | 3.53 |
| Transportation and Logistics Services | $549,925,916 | 2.06 | $690,816,819 | 2.75 |
| Electronic & Communication Equipment | $508,300,356 | 1.9 | $663,349,577 | 2.64 |
| Sustainment S&E | $460,117,644 | 1.72 | $653,938,297 | 2.6 |
| Human Capital | $654,281,293 | 2.45 | $459,097,681 | 1.83 |
| Clothing, Textiles & Subsistence S&E | $558,881,015 | 2.09 | $523,050,913 | 2.08 |
| Security and Protection | $460,509,451 | 1.72 | $482,012,181 | 1.92 |
| Equipment Related Services | $385,639,644 | 1.44 | $355,588,233 | 1.41 |
| Weapons & Ammunition | $367,737,883 | 1.38 | $306,593,815 | 1.22 |
| Office Management | $275,250,847 | 1.03 | $301,763,236 | 1.2 |
| Travel & Lodging | $159,863,886 | 0.6 | $175,723,747 | 0.7 |
| Electronic & Communication Services | $49,935,349 | 0.19 | $46,190,950 | 0.18 |
| Aircraft, Ships/Submarines & Land Vehicles | $27,428,581 | 0.1 | $54,664,490 | 0.22 |
| Miscellaneous S&E | $24,833,912 | 0.09 | $35,359,274 | 0.14 |
The top NAICS codes in FY25 follow the top categories, so it is no surprise to see Computer-related services as the top NAICS, followed by Engineering Services and Construction.
Use of Set-Aside
The use of set-asides provides us with a quick look at how the companies are awarded contracts and if a specific set-aside is utilized. In 2000, the Small Business Reauthorization Act authorized WOSB set-asides. The SBA identified 83 four-digit NAICS industry groups in its final rule implementing the WOSB program (October 7, 2010; effective February 4, 2011). While the program has gone through changes, making it easier for WOSBs with streamlined certifications and by expanding the underrepresented NAICS codes and broadening access for WOSBs, the total dollar amount has remained flat in the $26B range.
More notable when we look at the use of set-asides in awarding contracts to WOSBs, the small-business set-aside program is the most widely used, accounting for approximately 21% of total awards to WOSBs.The 8(a) sole source and competed set-asides account for a little less than 12% of the total contracts to WOSB.
The WOSB set-aside program accounts for $1.12B in awards, or 4.37% of the total WOSB awards, and the WOSB sole-source program accounts for less than 0.5%. In total, less than $1.23B is awarded under the WOSB programs, representing less than 0.2% of total contract awards in FY25.
Place of Performance
In terms of place of performance, and given the industries the WOSBs win work, it is no surprise to see Virginia, Maryland, and DC as the top three states. Colorado, Alabama, Georgia, and Illinois all form the top 10 states.
Company Analysis
The top companies in FY25 include companies from FY24 that were in the top 10. These include FCN Inc, Countertrade Products, and DMS Pharmaceuticals. However, we see a few new companies, namely Fairwinds Technologies, Halvik, and Salus Worldwide.
In terms of company headquarters, Virginia, Maryland, California, Florida, and Texas are the top states where the companies are based.
SBIRs & STTRs
In FY25, $657.4M was awarded to 372 companies under the SBIR/STTR programs, with Sabel Systems, Kratos S2, and MI Technical Solutions as the top three companies winning work. The top NAICS was 541715, Research and Development, which accounted for $448M, or 68% of the awards.
Other Transaction Agreement (OTA)
It is encouraging to see an increase in the dollars awarded to WOSBs under the OTA program. In FY25, 54 WOSBs won $156.6M in awards compared to $121M in FY24. Arlo Systems, PavCon LLC, and Mistral Inc were the top three companies winning OTAs.
There is no doubt that FY25 has been a year of change and challenges. We did see the federal spending reach a high of $834B. While women-owned small businesses are active and competitive across all sectors of federal contracting, their total market share has remained stagnant, hovering around $26B over the past couple of years. The disconnect between rising obligations and declining WOSB dollars, combined with limited utilization of WOSB-specific programs, highlights gaps that cannot be ignored.
I hope that agencies will focus on aligning procurement strategies and leverage the WOSB program authorities. For WOSBs, the opportunity lies in remaining abreast of the changing federal environment and positioning themselves strategically: expanding into growth sectors, aligning with the right contract vehicles, and strengthening teaming and subcontracting relationships.
As always, I remain hopeful that we will see our WOSBs grow and exceed the statutory expectations.
Note: The above analysis is based on FPDS data on the Fedmine platform from 3/17/26-3/21/26
About the Author: Archisha Mehan
