Sacramento Federal GovCon Roundup 2025

Sacramento’s federal contractors raked in $1.76B of contract awards in 2025, including big dollars in the healthcare, construction, facilities support, and defense manufacturing spaces. That number is likely to drop by about 25% in 2026 with the loss of a single, massive healthcare contract by Rancho Cordova-based Health Net Federal Services.

However, that outlier obscures more than it reveals. This dive into Federal Government contract awards to Greater Sacramento Region¹ companies reveals a diverse ecosystem of small businesses with particular depth in the defense manufacturing space.

For those looking to enter the federal market, economic development professionals, or anyone curious about the region’s industrial base, this analysis offers a view into Sacramento’s federal contracting landscape.

Have a question, spot an error, or interested in custom analysis - your sector, your region, your competitors? Contact me.

By the numbers

Over four hundred Sacramento organizations, public² and private, were awarded contracts in 2025 with total awards of $1.76 billion. Individual companies brought in annual awards ranging from $200 to $455M with a median of $133,000.

A few well-known, large organizations sit on the list of top awardees. The top 5 awardees make up 60% ($1.05B) of the obligations, and the top 5% (about 20 orgs) pulled in 80% of the dollars. Most of the awardees in the region are classified as small businesses.

Below the top tier, 169 companies brought in between $100K and $2M, a substantial base that reflects the region’s depth in federal contracting.

Awards by Federal Department

By total dollars obligated³, the region is heavily weighted toward defense, representing 79% of contract awards vs 60% nationwide. The top five awardees are responsible for this shift - when removed from the data the region shifts to the national average of around 60%. Sacramento’s awards represent 0.2% of the nation’s total $841B obligations.

Most notable is a single massive outlier representing a quarter of the region’s awards in 2025: Health Net Federal Services LLC’s TRICARE West Region contract. This contract has since transitioned to TriWest Healthcare Alliance, based in Arizona⁴.

Who’s Winning: The Top Awardees

These top 10 awardees brought in 69% of the region’s federal awards in 2025. These big players are the ones responsible for the sector concentrations explored in the next section. Seven out of the ten, indicated with (SB), are considered small businesses⁵.

According to its website, Health Net Federal Services, a wholly owned subsidiary of Centene Corporation, held TRICARE contracts for 36 years, ending in 2025. TRICARE provides civilian health benefits for US Armed Forces military personnel, military retirees, dependents, and some reserve members.

Pride Industries provided facilities support, landscaping, janitorial, and other support services to multiple federal departments at locations spanning from California to Virginia.

Forgen-Odin JV, a joint venture of Forgen and Odin Construction Solutions based in Roseville, was awarded a contract for portions of a reservoir located in Palm Beach County, Florida. This is an example of the nationwide reach and opportunity that Federal contracting can bring to the region’s federal contractors.

The 800-pound gorilla in the region’s defense industry, Kratos, provided products and services falling into categories ranging from unmanned aircraft and guided missile components to maintenance, repair, and R&D services. Kratos is headquartered in San Diego and has two locations in the Sacramento region, including the Unmanned Systems division headquarters.

Siller Helicopters, based in Yuba City, provided fire suppression services to the Forest Service in California and Montana. Capitol Helicopters, based in the City of Sacramento, provided the same services in California, Georgia, Missouri, Utah, Idaho, and Montana. Siller Helicopters was acquired in March 2025 by Helicopter Express, based in Chamblee, Georgia.

Spectrum Services Group, Inc. provided healthcare staffing services to the Departments of Defense, Justice, and Veterans Affairs covering 20+ states.

Ahtna-Great Lakes E&I JV, a joint venture of Forgen, formerly known as Great Lakes Environmental and Infrastructure, and Ahtna Government Services Corporation, provided construction services in Texas and California.

Aerometals, Inc. manufactured aircraft parts and auxiliary equipment for the Department of Defense - the largest portion coming from a Special Operations Command sole-source award.

Sustainable Furniture, Inc. delivered furniture primarily to the General Services Administration (GSA), the bulk of which fell under its GSA Blanket Purchase Agreement contract.

A note on small business status:

Federal contracts are often set-aside for small businesses, preventing larger organizations from bidding. The size limit for a small business depends on the NAICS code of the contract. In some cases the size limit is based on revenue and in other cases it’s based on employee count. This makes for an interesting situation where we have some “small businesses” with over a billion dollars in annual revenue.

What They’re Winning: Sector Breakdown

Turning to NAICS⁶ codes reveals what types of work the region’s contractors are winning.

Direct Health and Medical Insurance Carriers (NAICS 524114) tops the list at 25%. Every dollar went to HNFS for the TRICARE contract.

Following far behind: Other Heavy and Civil Engineering Construction at 15%, Facilities Support Services at 10%, and the combination of Aircraft Manufacturing and Other Aircraft Parts manufacturing at 10%.

The concentrations in healthcare, construction, and facilities support services are driven by a few entities with a few large contracts. The manufacturing concentration, however, appears to be a more structural statement about the region with multiple vendors and many contracts. Setting aside the outliers, the region’s signature is manufacturing and professional services.

Sacramento’s Defense Ecosystem

As part of this analysis, I developed views into the Opportunity Workbench dataset to assess companies by total awards, consistency, and other factors. I took a subjective look at this data to identify companies that stood out as contributors to the Sacramento technology and manufacturing industries. Below I focus on the defense ecosystem: an area that pops out of the data in dollars, interesting technology, and consistent awards.

Only 24 companies had awards at least 10 months out of the year; these are the consistent winners. Some of those companies achieved this via one or more Indefinite Delivery Vehicles (IDVs)⁷ with consistent delivery/task orders placed monthly. Others achieved this through more diverse individual contracts.

Precision Manufacturing

Six of the consistent winners fall into the category of defense manufacturing. Sacramento has a diverse aerospace and defense manufacturing industry including these primes that are often focused on Defense Logistics Agency (DLA) contracts.

Precision metal fabrication is the common thread. These companies collectively push aircraft parts manufacturing to the top of Sacramento’s sector rankings.

Both Defense & Aerospace Manufacturing LLC and Sam’s Airpack Plus, Inc. tend to have more diverse awards spanning defense-related NAICS codes outside aircraft parts.

While this data is focused on prime contractors, it’s important to note that the Sacramento region has many other companies in this sector including sub-contractors in the defense and aviation supply chains. The Sacramento Valley Manufacturer’s Alliance is a good starting point for identifying some of those organizations.

Defense Technology and Services

Looking beyond precision manufacturing, a handful of other defense technology and services companies broaden the region’s capabilities across a range of NAICS categories.

Teledyne Defense Electronics, LLC and Mesotech International, Inc.⁸ appear at the top of the “Other Services” category, but both maintain electronics manufacturing/repair facilities in Rancho Cordova. “Other Services” includes the category “Electronic and Precision Equipment Repair and Maintenance.” Teledyne provided manufacturing and repair services associated with radar and electronic warfare systems, while Mesotech provided services associated with meteorological measurement systems.

Trofholz Technologies, Inc. sits atop the Information category. They provided security systems services and other related services to a diverse set of customers across the country including the Departments of Veterans Affairs, Defense, Interior, and Agriculture.

In the Professional, Scientific, and Technical services category we find Infinite Technologies, Inc. and Cenith Innovations, LLC. Based in El Dorado Hills, Infinite Technologies’s top contracts were to provide the company’s Centralized Access for Data Exchange (CAFDEx) platform to the Army and Air Force.

While based in Sacramento, Cenith Innovations provided software services associated with the U-2 program and received a number of Small Business Innovation Research (SBIR) awards. According to the company’s website and subsequent awards, it is now headquartered in Ashburn, VA.

What to Watch in 2026

Federal contracting in 2025 was erratic and volatile, with massive changes associated with DOGE affecting the federal workforce in the first half and an extended government shutdown near the end. Today’s geopolitical climate makes for continuing volatility for federal contractors in 2026 and beyond.

Since 2017, US defense priorities have pivoted to peer/near-peer competition with China and Russia⁹ and remained consistent across administrations. Layered on top, near-term events like the Iran conflict are accelerating and directly affecting spending.

The current administration’s proposed FY27 budget is heavily weighted to defense. If Congress enacts a budget that trends in the same direction, defense contractors would likely benefit, while opportunities would be reduced for those working in the non-defense Federal space.

A defense-weighted budget impacts contractors differently depending on whether the dollars flow to platforms, sustainment, or R&D. Since Sacramento’s manufacturing base is concentrated in aircraft parts and DLA work, spending focused on sustainment and readiness may benefit that segment of the region. Equipment attrition associated with the Iran conflict is a potential driver for sustainment and readiness spending. Civil construction and non-defense services companies may face headwinds in this scenario.

Data and Reference

Where They Are

By contractor count, the geographic distribution is largely what you would expect with clusters in the region’s established business corridors: Folsom takes the top spot with 28 contractors, followed by Downtown Sacramento, West Sacramento, North Natomas and El Dorado Hills.

By dollars obligated, things shift a bit: North Natomas (driven by the HNFS contract) takes the top spot followed by two Roseville zip codes, North Highlands, and Downtown Sacramento.

Full Sector Rankings

For reference, below is a complete ranked list of the top 5 awardees in each general NAICS category. Every top-level NAICS category is represented in Sacramento, though the Utilities, Retail Trade, Finance and Insurance, Arts and Entertainment, and Public Administration categories all had fewer than 5 awardees total.