Minority- and Women-Owned Business Contracting: Analysis of DOD Contract Awards, Fiscal Years 2010-2016

The Department of Defense—like other federal agencies—encourages minority-owned and women-owned businesses to apply for contracts to supply products and services.

We looked into DOD's spending on products and services supplied by these types of businesses, and found that it spent $32 billion in FY 2016. Although that is 12% less than in FY 2010, overall spending by DOD decreased 27% during the same period.

About 77 percent of the contracts were for services (such as engineering or technical support), and the rest were for products (such as IT software).

DOD's Obligations to Minority- and Women-Owned Businesses, FYs 2010-2016

DOD spent $36 billion on minority-<a href=owned and women-owned businesses in FY 2010—12 percent more than they spent in FY 2016." width="650" height="328" />

DOD spent $36 billion on minority-owned and women-owned businesses in FY 2010—12 percent more than they spent in FY 2016.