Microsoft Government Contracts
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Microsoft government contracts totaled $1.6B across 429 awards from FY2024 to FY2026. Obligations were up 3.8% in FY2026 vs FY2025, and the Department of Defense was the largest buyer, accounting for $1.3B, or 80% of the total over the period.
Key figures
In FY2026, contract obligations were $551,977,546 across 196 awards with activity that year, a change of +3.8% from $531,571,633 in FY2025. From FY2024 to FY2026, obligations totaled $1,601,795,171 across 429 awards.
- Obligated in FY2026
- $552M
- Awards in FY2026
- 196
- Change vs FY2025
- +3.8%
- Total, FY2024 to FY2026
- $1.6B
Note: FY2026 ended on Sep 30, 2026. The Department of Defense publishes contract data with a 90-day delay, so FY2026 totals may still rise as late reports arrive.
Microsoft federal contracts by year
Microsoft federal contract obligations per fiscal year (October to September). The table below lists the same numbers.
| Fiscal year | Obligated | Awards | Change |
|---|---|---|---|
| FY2026 | $551,977,546 | 196 | +3.8% |
| FY2025 | $531,571,633 | 267 | +2.6% |
| FY2024 | $518,245,991 | 304 | n/a |
About Microsoft's federal contracts
Microsoft's federal contract obligations rose 7% from FY2024 ($518M) to FY2026 ($552M). FY2026 closed recently, and Defense Department contracts are reported up to 90 days late, so its total may still rise.
Microsoft works for at least 10 federal agencies. The largest customer is the Department of Defense with 80% of its contract dollars, followed by the Department of Agriculture (7%).
Its main line of government work is computer systems design services (NAICS 541512), 64% of its federal contract dollars.
The states with the most Microsoft contract work are District of Columbia, Virginia and Maryland; District of Columbia alone accounts for 16%.
Which agencies award Microsoft contracts
Federal agencies ranked by contract dollars obligated to Microsoft Corporation. Microsoft DoD contracts account for 80% of its federal contract dollars.
| # | Agency | Obligated | Share |
|---|---|---|---|
| 1 | Department of Defense | $1,279,959,789 | 79.9% |
| 2 | Department of Agriculture | $107,308,916 | 6.7% |
| 3 | Department of State | $81,278,056 | 5.1% |
| 4 | Department of Justice | $61,217,552 | 3.8% |
| 5 | Social Security Administration | $36,022,845 | 2.2% |
| 6 | Department of Transportation | $15,511,299 | 1.0% |
| 7 | Department of Homeland Security | $14,401,713 | 0.9% |
| 8 | Smithsonian Institution | $5,541,444 | 0.3% |
| 9 | District of Columbia Courts | $777,152 | <0.1% |
| 10 | Department of the Treasury | $278,050 | <0.1% |
Microsoft contracts by industry (NAICS)
The industry codes on Microsoft's contracts with the government, ranked by dollars.
| # | Industry | Obligated | Share |
|---|---|---|---|
| 1 | Computer Systems Design ServicesNAICS 541512 | $1,019,351,887 | 63.6% |
| 2 | Computing Infrastructure Providers, Data Processing, Web Hosting, and Related ServicesNAICS 518210 | $441,836,266 | 27.6% |
| 3 | Other Computer Related ServicesNAICS 541519 | $100,786,165 | 6.3% |
| 4 | Custom Computer Programming ServicesNAICS 541511 | $30,122,822 | 1.9% |
| 5 | Computer Facilities Management ServicesNAICS 541513 | $7,768,404 | 0.5% |
| 6 | Computer and Computer Peripheral Equipment and Software Merchant WholesalersNAICS 423430 | $777,152 | <0.1% |
| 7 | All Other Business Support ServicesNAICS 561499 | $626,000 | <0.1% |
| 8 | Software PublishersNAICS 513210 | $484,350 | <0.1% |
| 9 | Media Streaming Distribution Services, Social Networks, and Other Media Networks and Content ProvidersNAICS 516210 | $116,900 | <0.1% |
| 10 | Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument ManufacturingNAICS 334511 | $1,000 | <0.1% |
Where Microsoft contract work is performed
States ranked by contract dollars, using the place of performance on each award.
| # | State | Obligated | Share |
|---|---|---|---|
| 1 | District of Columbia | $258,876,311 | 16.2% |
| 2 | Virginia | $248,035,421 | 15.5% |
| 3 | Maryland | $238,544,655 | 14.9% |
| 4 | Washington | $219,962,351 | 13.7% |
| 5 | California | $180,891,976 | 11.3% |
| 6 | Georgia | $111,619,326 | 7.0% |
| 7 | Arizona | $57,259,113 | 3.6% |
| 8 | Florida | $53,855,465 | 3.4% |
| 9 | Alabama | $42,527,617 | 2.7% |
| 10 | Texas | $33,805,729 | 2.1% |
Companies similar to Microsoft
Other federal contractors whose largest industry is also Computer Systems Design Services (NAICS 541512), ranked by total contract dollars.
| # | Contractor | Obligated |
|---|---|---|
| 1 | Booz Allen Hamilton Inc | $19,738,252,564 |
| 2 | General Dynamics Information Technology, Inc. | $14,351,829,382 |
| 3 | Science Applications International Corporation | $13,193,642,066 |
| 4 | Accenture Federal Services LLC | $10,099,130,985 |
| 5 | CACI, Inc. - Federal | $9,581,468,850 |
Recent Microsoft contract awards
The latest Microsoft contract awards, newest first. Each award ID links to its record on USAspending.gov.
| Start date | Agency and description | Amount | Record |
|---|---|---|---|
| Sep 30, 2026 | Department of StateMICROSOFT UNIFIED SUPPORT | $298,454 | 19AQMM26F1558 |
| Sep 30, 2026 | Social Security AdministrationMICROSOFT CONSULTING SERVICES (MCS) AND UNIFIED SUPPORT SERVICES. MICROSOFT TEAMS AND EXCHANGE MODERNIZATION | $757,909 | 28321326FDS030141 |
| Sep 29, 2026 | Department of StateUNIFIED SUPPORT | $287,543 | 19AQMM26F0931 |
| Sep 29, 2026 | Department of Homeland SecurityMICROSOFT INDUSTRY SOLUTIONS | $116,900 | 70RSAT26C00000031 |
| Sep 22, 2026 | Department of StateMICROSOFT UNIFIED SUPPORT | $626,560 | 19AQMM26F0806 |
| Sep 18, 2026 | Department of StateMICROSOFT UNIFIED SUPPORT | $23,240 | 19AQMM26F1302 |
| Sep 1, 2026 | Department of TransportationCALL ORDER FOR MICROSOFT UNIFIED SUPPORT RENEWAL FOR DOT OIG UNDER FAA BPA 692M15-25-A-00001. | $387,111 | 693JK426F70001N |
| Jul 23, 2026 | Department of DefenseF-35 CLOUD | $2,698,583 | HC105026F0028 |
| Jul 1, 2026 | Department of DefenseTHE NAVAL OCEANOGRAPHIC OFFICE (NAVOCEANO) IS ACQUIRING MICROSOFT UNIFIED ENTERPRISE FOR FEDERAL SERVICES TO SUPPORT ITS MISSION-CRITICAL OPERATIONS ON BOTH UNCLASSIFIED AND SECRET NETWORKS. | $118,790 | N0018926PL199 |
| Jun 25, 2026 | Department of DefenseMICROSOFT UNIFIED FOR DFAS | $1,330,729 | HC102826F0563 |
| Jun 23, 2026 | Department of DefenseOLYMPUS FOUNDATIONS II | $143,000 | HC105026F0024 |
| Jun 22, 2026 | Department of JusticeMS UNIFIED SUPPORT SERVICES | $8,644,635 | 15JPSS26F00001365 |
| Jun 18, 2026 | Department of DefenseNAVY CYBER DEFENSE OPERATIONS COMMAND MICROSOFT UNIFIED SUPPORT | $1,000,693 | HC102826F0559 |
| Jun 14, 2026 | Department of StateMICROSOFT UNIFIED SUPPORT | $227,801 | 19AQMM26F0678 |
| Jun 12, 2026 | Department of DefenseCLOUD STORAGE AND SUPPORT | $159,704 | FA240126F0011 |
| Jun 11, 2026 | Department of DefenseSIPRNET ACQUISITION AND SUSTAINMENT MISSION APPLICATION ENCLAVE (AS-MAE) | $100,000 | HC105026F0022 |
| Jun 8, 2026 | Department of StateMICROSOFT ADDITIVE SUPPORT SERVICES | $13,475,440 | 19AQMM26F0655 |
| Jun 8, 2026 | Department of StateMICROSOFT UNIFIED SUPPORT | $6,696,010 | 19AQMM26F0611 |
| Jun 2, 2026 | Department of DefenseAZURE CLOUD SERVICES | $6,813 | N6660426F0282 |
| Jun 2, 2026 | Department of StateMICROSOFT UNIFIED SUPPORT SERVICES | $586,900 | 19AQMM26F0682 |
| May 29, 2026 | Department of StateMICROSOFT UNIFIED SUPPORT AND ISD | $8,062,134 | 19AQMM26F0487 |
| May 28, 2026 | Department of DefenseNEPTUNE ENTERPRISE CLOUD | $2,768,213 | HC105026F0019 |
| May 21, 2026 | Department of DefenseUNITED STATES ARMY CORPS OF ENGINEERS (USACE), CIO/G6 MICROSOFT CONSULTING SERVICES (MCS) FOR AZURE CLOUD ENVIRONMENT CIO/G6 | $1,610,457 | HC102826F0242 |
| May 11, 2026 | Department of DefenseCLOUD ENVIRONMENT-OFF PREMISE SEGMENT 1 | $4,468,012 | HC105026F0012 |
| May 7, 2026 | Department of DefenseDEFENSE INFORMATION SYSTEMS AGENCY (DISA) CONCIERGE ARTIFICIAL INTELLIGENCE-SECRET (DCAI-S) | $136,314 | HC105026F0015 |
Subcontracting opportunities with Microsoft
Large prime contractors such as Microsoft buy goods and services from smaller firms for parts of their government contracts. If you work in the same industries or states, Microsoft is a possible teaming partner: read its recent contract awards above, then contact its small business or supplier diversity office with your capability statement.
Explore government contracts related to Microsoft
- Government IT contracts
- Government computing infrastructure providers, data processing, web hosting, and related services contracts
- Government computer services contracts
- Government software development contracts
- Government computer facilities management services contracts
- Department of Defense contracts
- Department of Agriculture contracts
- Department of State contracts
- Department of Justice contracts
- Social Security Administration contracts
- Government contracts in District of Columbia
- Government contracts in Virginia
- Government contracts in Maryland
- Government contracts in Washington
- Government contracts in California
Frequently asked questions
- How much does Microsoft make from government contracts?
- Microsoft Corporation received $1.6B in federal contract obligations from FY2024 to FY2026, across 429 contract awards. In FY2026 alone it received $552M. Figures are federal contract obligations reported on USAspending.gov.
- Which agency spends the most with Microsoft?
- The Department of Defense obligated $1.3B to Microsoft from FY2024 to FY2026, 80% of its federal contract dollars.
- What does Microsoft do for the government?
- By contract dollars, Microsoft's largest federal contract industries are computer systems design services (NAICS 541512), computing infrastructure providers, data processing, web hosting, and related services (NAICS 518210) and other computer related services (NAICS 541519).
- Where does Microsoft perform its government contracts?
- By place of performance, the most Microsoft contract dollars went to work in District of Columbia ($259M), Virginia ($248M) and Maryland ($239M).
- Are Microsoft's government contracts growing?
- Microsoft's federal contract obligations rose 7% from FY2024 ($518M) to FY2026 ($552M). FY2026 closed recently, and Defense Department contracts are reported up to 90 days late, so its total may still rise.
- How can a small business subcontract with Microsoft?
- Look at the agencies and industries Microsoft works in on this page, then contact its small business or supplier diversity office with a capability statement. Large prime contractors often have to meet small business subcontracting goals, and you will need a free SAM.gov registration.