ArmyUnited States Army
Part of Department of Defense (DoD)
Annual Spend
$180B+ annually
CMMC Level
Level 2
Key Offices
ACC, PEO Soldier, PEO Aviation
Overview
The U.S. Army is the largest military branch by procurement volume, spending over $180 billion annually on contracts ranging from combat vehicles and aviation systems to IT modernization and base operations support. Army contracting is managed through the Army Contracting Command (ACC) and numerous Program Executive Offices.
Mission Focus & Priorities
The Army's FY2026 priorities center on four critical modernization pillars that will drive contract opportunities. First, the Army Network Tactical (AN/TAC) modernization under PEO C3T represents a $12B+ initiative focusing on unified network architecture, 5G integration, and software-defined networking capabilities. Second, the Integrated Visual Augmentation System (IVAS) program under PEO Soldier continues expanding beyond the initial $22B Microsoft HoloLens contract, creating opportunities in AR/VR, training simulation, and soldier-centric computing. Third, AI/ML implementation through the Army AI Task Force and Project Convergence exercises is driving demand for edge computing, autonomous systems, and predictive analytics solutions across combat platforms. The Army Communications-Electronics Command (CECOM) and Army Contracting Command-Aberdeen Proving Ground (ACC-APG) lead most IT procurement activity, while Army Materiel Command (AMC) drives platform modernization contracts. Program Executive Office Enterprise Information Systems (PEO EIS) manages enterprise IT infrastructure worth $8B+ annually. Emerging technology investments include quantum-resistant cybersecurity ($500M+ projected), directed energy weapons systems ($1.2B through FY2026), and autonomous ground vehicles under the Robotic Combat Vehicle program ($2.7B). The Army's Future Vertical Lift program represents $100B+ in rotorcraft modernization. CMMC 2.0 implementation is accelerating across Army Cyber Command and Network Enterprise Technology Command (NETCOM) contracts, with Level 2 requirements now appearing in 40% of new IT solicitations above $1M. The Army's distributed operational environment creates unique cybersecurity compliance challenges, particularly for forward-deployed systems and contractor-owned/contractor-operated (COCO) facilities supporting training and logistics operations globally.
Budget & Spending Trends
The Army's FY2025 budget totals $185.9B, representing a 3.2% increase from FY2024's $180.1B, with procurement accounting for $47.2B and RDT&E at $15.8B. Information technology modernization receives $15.2B (+12% YoY), while aviation procurement maintains $13.8B despite slight decline (-2.3%). Ground vehicle modernization increases to $8.9B (+15%) driven by Armored Multi-Purpose Vehicle and M1A2 Abrams upgrades. NAICS 541511 (Custom Computer Programming) and 541512 (Computer Systems Design) show 18% and 22% growth respectively, while traditional manufacturing sectors like 336411 (Aircraft Manufacturing) decline 5%. The prime-to-subcontract ratio has shifted from 65:35 to 62:38 over two years, reflecting increased teaming arrangements for complex IT integrations. Small business set-asides now represent 28.5% of Army contract dollars ($51.2B), with SDVOSB awards growing 35% to $14.7B annually. Service-Disabled Veteran-Owned Small Business participation increased dramatically in cybersecurity contracts, capturing 22% of that sector. HUBZone awards total $8.3B (+19%), concentrated in software development and professional services. Geographic distribution shows 34% of contract dollars flowing to the National Capital Region, 18% to Huntsville/Alabama corridor, 12% to Texas (Austin-San Antonio), and 11% to California defense clusters. Aberdeen Proving Ground, Fort Belvoir, and Redstone Arsenal drive the highest procurement volumes, with emerging activity at Fort Gordon supporting cyber mission expansion.
How to Win Contracts with Army
Army contract success requires leveraging specific IDIQ vehicles aligned with procurement patterns. For IT modernization, prioritize GSA IT Schedule 70 ($2.8B Army usage annually), SEWP V ($1.9B), and CIO-SP3 ($3.2B across all task orders). The Army's ITES-3S vehicle remains crucial for enterprise IT with $12B ceiling through 2027. DISA's Encore III supports network infrastructure requirements worth $800M+ annually to Army users. For R&D opportunities, target ARPA-E and SBIR/STTR programs, which award $450M annually in Army-relevant technologies. Key procurement offices include ACC-APG for Aberdeen-based programs, ACC-New Jersey for CECOM requirements, ACC-Redstone for aviation and missile systems, and PEO EIS for enterprise IT. Search SAM.gov using NAICS 541511, 541512, and 518210 for IT opportunities, with PSC codes D307 (IT&T Integrated Solutions), D302 (Systems Development), and R425 (Engineering Support Services). Filter for SDVOSB and small business set-asides, as Army exceeds federal goals in these categories. Teaming strategies should emphasize mentor-protégé relationships under SBA guidelines, particularly for CMMC compliance support. Past performance requirements typically demand three relevant contracts within past five years, with preference for federal work over $1M demonstrating similar technical complexity. Army RFP cycles average 90-120 days with emphasis on technical approach (40%), past performance (35%), and price (25%). This week, BD professionals should: (1) Register for Army Industry Days at Aberdeen and Redstone, (2) Schedule capability briefings with PEO EIS and CECOM contracting officers, (3) Submit capability statements to ACC-APG for upcoming IT modernization solicitations, (4) Join Army-sponsored CMMC readiness sessions, (5) Review FY2025 unfunded priorities list for emerging opportunities, and (6) Establish relationships with prime contractors holding Army ITES-3S positions.
CMMC Requirements for Army Contractors
Army CMMC implementation follows a phased approach with Level 2 requirements appearing in 65% of IT contracts above $5M and all contracts involving Controlled Unclassified Information (CUI). Unlike other services, the Army requires CMMC Level 2 for tactical communications systems, simulation environments, and maintenance support contracts due to extensive CUI handling in operational contexts. The Army Cyber Command leads CMMC enforcement, with full clause inclusion projected for 90% of relevant solicitations by Q3 2025. Current timeline shows CMMC requirements in 100% of new enterprise IT contracts and 75% of platform modernization contracts by December 2024. Subcontractor flowdown creates particular challenges in Army's complex supply chains, especially for ground vehicle manufacturers where Tier 2 and Tier 3 suppliers must achieve compliance for components containing embedded IT systems. The Army's compliance culture emphasizes operational security over administrative burden, resulting in evaluation criteria weighting CMMC readiness at 15-20% of technical scoring for IT contracts. Early CMMC adopter offices include NETCOM (100% implementation for network contracts), PEO EIS (95% for enterprise systems), and CECOM (80% for communications equipment). Compliance costs average $750K-$1.2M per facility for Level 2 certification, with Army contractors reporting 12-18 month implementation timelines. The Army's global footprint requires CMMC compliance at OCONUS contractor facilities, adding complexity for maintenance and logistics support contracts. Cost implications include 3-7% price increases for CMMC-required contracts, with evaluation criteria now including CMMC readiness as a responsibility determination factor rather than just a contract requirement.
Top NAICS Codes
Common Contract Types
Key Procurement Offices
Recent Contract Awards
Total Awards
1,258
Last 30 Days
281
30-Day Value
$15.3B
Avg Amount
$54.3M
All-Time Value
$327.4B
FPDS
| Contract | Awardee | Amount |
|---|---|---|
| LIFERAFT INSPECTIONS | AIR-SEA SAFETY & SURVIVAL, INC. | $183K |
| Fort Peck Area Mowing and Trimming - Tract Descriptions: Powerplant, Interpretive Center and Administration Building | MATTHEW CALVIN POOLE | $164K |
| NDARNG- HSC 141 AT Meals 7-21 May | BOBSAITH LLC | $24K |
| WBAMC Washer Disinfector Maintenance | SUSTAINMENT TECHNOLOGIES, LLC | $106K |
| 120th RSG Portable Latrine Rental | RED ORANGE NORTH AMERICA INC. | $6K |
| Yakima Training Center Grounds Maintenance | COMPLETION GROUND MAINTENANCE & LANDSCAPING LLC | $688K |
| LMA STS Motors | AMERICORE SYSTEMS LLC | $34K |
| Pine Creek Janitorial Services | GERMRIP LLC | $45K |
| Tsubaki Brand STS Roller Chains for Delivery to Bonneville Project | NIDAZ LLC | $207K |
| CJAG K-Span Materials | GRANDIDA, LLC | $66K |
Top Awardees
Top Contractors (FPDS)
| Contractor | Total Obligation |
|---|---|
| MISCELLANEOUS FOREIGN AWARDEES | $18.9B |
| GENERAL DYNAMICS MISSION SYSTEMS, INC. | $4.9B |
| RAYTHEON COMPANY | $4.3B |
| L3HARRIS TECHNOLOGIES, INC. | $4.2B |
| THE BOEING COMPANY | $3.5B |
| FOREIGN AWARDEES (UNDISCLOSED) | $2.8B |
| DELL FEDERAL SYSTEMS L.P | $2.7B |
| GENERAL ELECTRIC COMPANY | $2.4B |
| AM GENERAL LLC | $2.3B |
| L3HARRIS GLOBAL COMMUNICATIONS, INC. | $2.2B |
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Frequently Asked Questions
How do I find contracts with Army?
Search SAM.gov for active United States Army solicitations. Monitor the Army procurement forecast published annually. Register in the System for Award Management (SAM.gov) and set up saved searches for relevant NAICS codes.
Does Army require CMMC?
Yes, United States Army requires CMMC certification for contracts involving CUI. Most contracts require Level 2. Contractors should begin the certification process well in advance of bidding.
What are the top NAICS codes for Army contracts?
The most commonly used NAICS codes for United States Army contracts include 541330, 541511, 336411, 334511, 541715. These codes cover the primary contracting areas for Army. Check SAM.gov for specific opportunities under each code.
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