Q3 2025
Civilian Agency Realignments: US Government Contracts Shift Beyond Defence
Federal procurement trends in 2025 show a decisive pivot: while military spending remains dominant, non-defence civilian agency expenditure has contracted significantly—dropping 23% compared to 2024. Yet within that reprioritisation lies opportunity. Agencies such as the Department of Energy, Health and Human Services, and the Department of Transportation are rebalancing procurement budgets, focusing on digital transformation, healthcare services, clean energy infrastructure, and mobility programs.
This reallocation, while leaner in raw spending, introduces new contract vehicles and opens procurement lanes for companies capable of agile, multidisciplinary delivery. The shift has also increased interest in joint venture consortia, subcontracting strategies, and socioeconomic set-asides—especially for vendors that bring sector-specific depth without the fixed cost of a traditional federal supplier.
Atlas⁰⁷, through Atlas⁰⁷ | Services and Atlas⁰⁷ | Digital, is actively positioned to support civilian agency realignments—bringing scalable teams, smart logistics, and secure service delivery to rapidly changing federal mandates. Whether in records digitisation, clean-facility operations, or localised program staffing, we provide the speed and reliability needed to deliver at scale in today’s more competitive civilian contract landscape.
Atlas⁰⁷ is a globally networked, full-service government contractor supporting critical operations for public sector clients across the United Kingdom, European Union, and United States. Atlas⁰⁷ delivers integrated, in-house solutions spanning goods supply, infrastructure construction, digital systems, and essential services. By partnering closely with government agencies, Atlas⁰⁷ helps maintain resilient supply chains, accelerate procurement, and meet complex delivery requirements with scale and reliability. Further information is available here.
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