Defense Agency

USACEU.S. Army Corps of Engineers

Part of United States Army (Army)

Annual Spend

$40B+ annually

CMMC Level

Level 1-2

Key Offices

NWD, NAD, SAD

Overview

USACE is one of the world's largest public engineering organizations, managing over $40 billion annually in military construction, civil works, and environmental remediation. USACE contracts are primarily for construction and engineering services.

Mission Focus & Priorities

USACE's FY2026 priorities center on four critical modernization initiatives. First, the Engineering and Construction Intelligence (ECI) program is driving $800M+ in IT infrastructure upgrades across 45 district offices, emphasizing cloud-native solutions and data analytics platforms. Second, the Digital Engineering Transformation Initiative (DETI) is allocating $1.2B for AI/ML implementation in design and project management workflows, particularly within the Engineering and Support Center Huntsville and the Geospatial Center of Excellence. Third, zero trust architecture deployment across the Enterprise Infrastructure Modernization (EIM) program represents $600M in network security investments, led by the Information Technology Laboratory and Cybersecurity Division. Fourth, climate resilience technology integration through the Engineering With Nature program is expanding with $2B in environmental remediation and flood control systems incorporating IoT sensors and predictive modeling. The Military Programs Directorate drives 60% of contract activity ($24B annually), followed by Civil Works ($12B) and Environmental and Munitions ($4B). The Research and Development Center and Cold Regions Research and Engineering Laboratory are emerging as key technology adoption centers. CMMC 2.0 implementation is accelerating across Military Construction contracts exceeding $5M, with the Huntsville Engineering and Support Center leading compliance initiatives. The Transatlantic Programs Center and Pacific Ocean Division are piloting advanced cybersecurity requirements for international construction projects, while the Institute for Water Resources is developing CMMC frameworks for critical infrastructure protection programs.

Budget & Spending Trends

USACE's FY2025 budget of $41.2B represents a 6.8% increase from FY2024's $38.6B, with FY2026 projections reaching $44.1B. Military construction accounts for $15.8B (38% of total), civil works $14.2B (34%), and environmental programs $11.2B (28%). Growing NAICS categories include 541330 (Engineering Services) expanding 12% to $8.2B, 541512 (Computer Systems Design) increasing 18% to $3.7B, and 237310 (Highway/Street Construction) rising 9% to $5.1B. Declining areas include 541620 (Environmental Consulting) down 7% to $2.8B due to consolidation efforts. Prime contractor ratios shifted from 72/28 to 68/32 prime/sub as USACE emphasizes subcontractor diversity. Small business set-asides increased 15% to $16.5B (40% of total spend), with 8(a) contracts growing 22% to $4.9B and SDVOSB awards expanding 19% to $3.2B. HUBZone utilization reached $2.8B (6.8% of total). Geographic concentration remains highest in Texas ($4.2B), California ($3.8B), and Virginia ($3.1B), driven by major construction projects. The South Pacific Division accounts for 18% of total spending, while the Great Lakes and Ohio River Division represents 14%. Environmental remediation contracts are increasingly concentrated in the Formerly Utilized Sites Remedial Action Program (FUSRAP) regions, with 35% of environmental spending occurring in the Mid-Atlantic and Southeast regions.

How to Win Contracts with USACE

USACE leverages multiple preferred contract vehicles, with the Construction and Equipment Multiple Award Task Order Contract (MATOC) handling $12B+ annually in construction services. The Architect-Engineer MATOC serves 85% of design requirements across all districts. IT procurement flows primarily through GSA MAS IT Schedule 70, SEWP V ($2.1B in USACE awards annually), and CIO-SP3 ($1.8B). The Ordnance and Explosives MATOC exclusively serves environmental remediation requirements exceeding $3B annually. Key procurement offices include the Huntsville Engineering and Support Center (40% of IT acquisitions), the Engineering and Support Center Vicksburg (environmental contracts), and individual district contracting offices for local construction. SAM.gov search strategies should target NAICS 237310, 541330, 541512, and 541620 with PSC codes Z1AD (Construction of Buildings), R425 (Engineering Support Services), and D302 (IT Systems Development). Filter for unrestricted and small business set-asides, particularly 8(a) opportunities exceeding $10M. Teaming is essential for prime contracts above $25M; the Small Business Innovation Research (SBIR) Mentor-Protégé Program offers structured partnerships. Past performance requirements demand three relevant contracts within seven years, with construction projects requiring similar complexity and environmental work needing hazardous materials experience. RFP cycles average 90-120 days with emphasis on technical approach (40%), past performance (35%), and cost (25%). This week, BD professionals should: register for upcoming MATOC recompetes, attend virtual industry days, identify district-specific requirements through USACE's Acquisition Forecast, establish relationships with incumbent subcontractors, and pursue GSA Schedule modifications to add relevant SINs for USACE requirements.

CMMC Requirements for USACE Contractors

USACE contract types requiring CMMC Level 2 include all military construction exceeding $5M annually (approximately 450 contracts worth $18B), cybersecurity services contracts, and IT infrastructure projects handling Controlled Unclassified Information (CUI). Level 1 suffices for civil works projects, environmental remediation without CUI, and commercial construction services. CMMC clause inclusion accelerated in Q2 2024, with 100% implementation expected for applicable contracts by December 2025. The Military Programs Directorate leads early adoption, followed by the Engineering and Support Center Huntsville. Subcontractor flowdown impacts are significant given USACE's 32% subcontracting ratio; prime contractors must verify subcontractor CMMC compliance for CUI-handling work, adding 15-20% to compliance costs. USACE's engineering culture emphasizes rigorous documentation and risk management, making CMMC evaluation criteria worth 15-20% of technical scoring for applicable contracts. The Cyber Security Division within the Information Technology Laboratory provides CMMC guidance, while district offices conduct local compliance assessments. Cost implications vary by contract type: military construction sees 8-12% cost increases for CMMC Level 2 implementation, IT services contracts experience 12-18% increases due to infrastructure requirements, while civil works projects face minimal impact. The Engineering and Construction Intelligence program allocates $120M specifically for CMMC compliance across the enterprise, including contractor support and assessment services.

Top NAICS Codes

NAICS 237990 NAICS 237310 NAICS 541330 NAICS 541310 NAICS 562910

Common Contract Types

FFPDesign-BuildMATOCSATOCIDIQ

Key Procurement Offices

NWDNADSADSWDPODLRDSPDMVD

Frequently Asked Questions

How do I find contracts with USACE?

Search SAM.gov for active U.S. Army Corps of Engineers solicitations. Monitor the USACE procurement forecast published annually. Register in the System for Award Management (SAM.gov) and set up saved searches for relevant NAICS codes.

Does USACE require CMMC?

U.S. Army Corps of Engineers does not currently require CMMC for most contracts. However, USACE may have its own cybersecurity requirements. Contractors should review individual solicitations for specific requirements.

What are the top NAICS codes for USACE contracts?

The most commonly used NAICS codes for U.S. Army Corps of Engineers contracts include 237990, 237310, 541330, 541310, 562910. These codes cover the primary contracting areas for USACE. Check SAM.gov for specific opportunities under each code.