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USAFacts
USAFacts
National

What is a defense contract?

In Fiscal Year 2020, the Department of Defense (DOD) spent about $439 billion on contracts, more than 60% of its spending for the year. It accounts for about two-thirds of all government contracts.[1]

But for the last 30 years, the Government Accountability Office (GAO) has criticized the department’s handling of those contracts. The GAO has pointed out the department is improperly using contractors for essential government work. It has also admonished the DOD for insufficient oversight into whether companies receiving government contracts are based in the US or not.

What is a defense contract?

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