Contracting Spotlight: The Navy is breaking up price contracts to increase small business participation

By Jonathan Sanders, Director, Research, GovExec

In FY 2022, nearly $18.4 billion of the U.S. Navy’s prime contract awards went to small businesses— $1.4 billion (8.2%) increase from $17 billion last year. 

Over the last five years, the Navy has typically spent the following amounts with small businesses: 

  • Engineering Services – $4 billion 
  • Commercial and Institutional Building Construction – $3 billion
  • Ship Building & Repairing – $3 billion 
  • Deep Sea Freight Transportation – $2 billion 
  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology & Biotechnology) – $2 billion 
  • Other Computer Related Services – $1 billion 
  • Computer Systems Design Services – $926 million 
  • Facilities Support Services – $690 million
  • Administrative Management and General Management Consulting Services – $675 million
  • Aircraft Manufacturing – $652million

More opportunities in FY2023

In FY2023, the Navy plans to create even more opportunities for small businesses by breaking up five major contracts into smaller awards, thus providing small businesses opportunities to compete for contract work. The Navy has not yet said which contracts will be included. 

However, Jimmy Smith, Director of the Office of Small Business Programs at the Department of the Navy said: “… we know all the contracts that are sun-setting on the horizon. If they fall into the right time frame, we’re breaking them up into many parts to create opportunities for small businesses to increase our small business participation.” (source)

A search in GovTribe highlights awards in the top 10 NAICSs that are ending in the next 12 months and are not small business set asides:

  • Submarines (Electric Boat Corporation)
  • Aircraft Fixed Wing (Lockheed Martin Corporation) 
  • Combat Ships and Landing Vessels (Lockheed Martin Corporation) 
  • Combat Ships and Landing Vessels (Huntington Ingalls Corporation) 
  • Combat Ships and Landing Vessels (Huntington Ingalls Corporation) 
  • Destroyers (Bath Iron Works Corporation) 
  • Combat Ships and Landing Vessels (Lockheed Martin Corporation) 
  • Aircraft, Fixed Wing (Lockheed Martin Corporation) 
  • Aircraft, Rotary Wing (Bell Textron Incorporated)
  • Aircraft, Fixed Wing (Lockheed Martin Corporation) 

What this means for you

There is opportunity for small businesses in the Navy in the coming months. Now is the time to prepare your small business to win these contracts. 

Insights, Research, and YOUR Path to More Awards

GovExec’s Insights & Research Group (comprising Market Connections, Government Business Council, and Leading Brands) and GovTribe can keep you up to date on what is happening in this rapidly changing contract environment. 

GovTribe is a collaborative platform that lends business development teams a hand through research and tracking of contracting vehicles as well as targeted intelligence on GSA Federal Supply Schedules, GWACS, IDIQs, and other multiple award vehicles.

Combining the data, insights, and expert analysis you get at Market Connections with the ease, agility, and usability of GovTribe can help you strategically position yourself right where you want to be for future opportunities.

Questions? Please reach out to Jonathan Sanders at