How to Find Your Target Market in Government Contracting (DHS Case Study: $32.9B)

What DHS’s FY25 Contract Awards Really Tell Us About How the Government Buys

Every year, I spend time breaking down federal spending data—not because I enjoy spreadsheets, but because this is where the truth lives.

If you want to sell to the government, advise companies that do, or build a serious career in federal contracting, you have to understand how agencies actually buy, not how people assume they buy.

In this analysis, I want to walk you through what the Department of Homeland Security’s FY25 contract awards reveal about government procurement, competition, timing, and strategy—and more importantly, how you can use this information to position yourself intelligently in the market.

DHS is often talked about in abstract terms: border security, cybersecurity, immigration, infrastructure protection. But when you strip away the headlines and look at the data, DHS is also one of the largest, most diverse buyers in the federal government.

And the numbers tell a very clear story.

DHS by the Numbers: A Massive, Underestimated Buyer

In fiscal year 2025, DHS awarded over 34,000 contracts totaling roughly $32.9 billion.

That alone should recalibrate how you think about this agency.

This level of spending places DHS firmly among the federal government’s most significant buyers, with procurement needs spanning:

• Construction and facilities

• Information technology and cybersecurity

• Security and guard services

• Infrastructure support

• Program management and professional services

What this tells us immediately is that DHS is not a niche buyer. It’s a complex ecosystem of sub-agencies, contracting offices, and mission-specific requirements.

If you’ve ever thought, “DHS isn’t really for companies like mine,” the data says otherwise.

Competition at DHS: Not Easy, But Far From Impossible

One of the most important metrics I look at is average competition per contract.

At DHS, the average number of offers per award sits at about 3.6 bids per solicitation.

That’s meaningful.

In many defense or civilian agencies, it’s not uncommon to see 15, 20, or even 30 bidders chasing a single award. Compared to that, DHS competition is moderate and manageable—if you’re positioned correctly.

But averages can be misleading.

Some DHS offices see closer to 8–10 offers per contract, especially in popular IT or professional services categories. Other areas—like aviation-related procurement or highly specialized security work—can see far fewer competitors.

This is why blanket strategies fail.

Winning at DHS isn’t about “selling to DHS.”
It’s about understanding which office, which mission, which requirement, and how crowded that lane really is.

The September Spending Surge: The Most Predictable Chaos in Government Contracting

One of the clearest patterns in DHS spending is when the money moves.

Nearly 40% of DHS contract dollars are awarded in September, the final month of the federal fiscal year.

This isn’t accidental. It’s driven by a simple rule: if agencies don’t obligate funds before the fiscal year ends, they risk losing them.

For contractors, this creates both opportunity and danger.

September is:

• Fast

• Compressed

• Documentation-heavy

• Unforgiving if you’re unprepared

The companies that benefit from this surge are not scrambling in August. They’re already known to the contracting office. They’ve responded to sources sought. They’re on the right contract vehicles. They’re ready.

There’s also a quieter opportunity many people miss: fallout funds.

When awards slip, get protested, or collapse earlier in the year, agencies often reallocate funds in spring and early summer. Companies that engage early—and stay visible—can benefit from this second wave of spending.

Timing matters in government sales. DHS data makes that impossible to ignore.

Contract Vehicles: The Gatekeepers of DHS Spending

Another major takeaway from DHS’s FY25 data is the heavy reliance on contract vehicles.

Tools like:

• GSA Schedules

• DHS-specific IDIQs

• Agency-wide acquisition contracts

These vehicles exist to streamline procurement by limiting purchases to pre-approved vendors.

Here’s the hard truth:
If you’re not on the right vehicle, you’re not competing—no matter how good your solution is.

Getting onto these vehicles is not quick. It can take six months to a year. But once you’re on, you gain access to faster-moving, lower-friction opportunities.

It’s also critical to understand that GSA is not used universally across DHS. Some offices rely heavily on it. Others barely touch it.

Smart companies research:

• Which vehicles their target offices actually use

• Which NAICS and PSC codes dominate those vehicles

• Whether the investment aligns with real demand

Vehicle strategy isn’t administrative—it’s competitive positioning.

DHS Is Not One Buyer — It’s Hundreds of Them

One of the biggest mistakes I see is treating DHS as a single customer.

It’s not.

DHS is made up of:

• ICE

• CBP

• TSA

• CISA

• FEMA

• Coast Guard

• And dozens of specialized contracting offices underneath them

Each office has:

• A different mission

• Different buyers

• Different acquisition habits

• Different competition levels

For example:

• ICE administrative facilities offices focus on detention and removal operations

• CBP IT divisions prioritize cybersecurity and large-scale systems integration

• TSA has unique needs tied to aviation security and passenger screening

When companies align their sales strategy to a specific buying office, everything improves—messaging, timing, relationships, and win rates.

Precision beats volume every time in federal sales.

Using NAICS and PSC Codes as Market Intelligence

DHS data also reinforces the value of understanding how the government categorizes what it buys.

NAICS codes tell you the broad industry categories DHS spends in most:

• Commercial building construction

• Computer systems design

• Security and guard services

Product Service Codes go deeper:

• Housekeeping and facilities support

• IT operations and maintenance

• Program and acquisition support

These codes are not just labels. They’re filters, trend indicators, and competitive signals.

If you know which codes DHS spends the most money in—and which offices use them—you can:

• Identify underserved niches

• Track incumbents

• Spot shifts in buying behavior

• Avoid chasing low-probability opportunities

This is how data turns into strategy.

DHS Contracting as a Business and Career Opportunity

One thing I always emphasize when reviewing data like this is that government contracting isn’t just about selling products or services.

It’s also a career market.

There are:

• High-paying account executive roles

• Consulting businesses

• Advisory and capture support careers

I’ve seen people with no prior federal experience leverage this exact type of analysis to:

• Land six-figure roles

• Build consulting practices

• Become trusted advisors to contractors

The common thread is not luck. It’s understanding how agencies buy—and positioning accordingly.

Final Thoughts: DHS Rewards Prepared Sellers

What DHS’s FY25 data makes clear is this:

• The money is real

• The competition is manageable

• The timing is predictable

• The process favors preparation

DHS contracting is not about reacting faster—it’s about thinking earlier.

If you understand:

• Where DHS spends

• When it spends

• How it buys

• Which offices matter

• And how competition actually plays out

you stop guessing—and start operating strategically.

That’s how real government sales careers and businesses are built.

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