One of the most adjacent and promising career fields for transitioning federal employees is the booming government contracting industry. This sector consists of thousands of contractors of all sizes, contributing to a $759 billion annual industry. You may be familiar with major players such as GDIT, Leidos, Northrop Grumman, and Raytheon, but the industry also includes small, mid-sized, and minority-owned businesses, as well as Hawaiian-owned and other socioeconomically classified government contractors. 

These firms provide a vast range of services, from IT and social media to construction and janitorial work.  They also provide all types of products ranging from medical scrubs, toilet paper, tanks, airplanes, hardware, and more.

To remain competitive, government contractors must bid against other firms to win contracts, typically awarded for three to five years. Over the last 30 years, an entire industry has developed around the art and science of securing federal government contracts. Many of the largest government contractors are publicly traded organizations, employing anywhere from 5,000 to over 30,000 professionals.

The Role of Government Contractors and Their Workforce

Government contractors operate within a highly regulated and competitive environment, facing significant barriers of entry. Some estimates suggest that government contractors collectively employ over 3.7M professionals, working in both billable roles supporting federal agencies and internal, non-billable roles that sustain the contracting business.

If you are a transitioning federal employee, you have likely worked alongside government contractors for years—perhaps even managing, evaluating, or selecting them for projects. This familiarity makes government contracting one of the most natural and logical career transitions for individuals leaving federal service.

Since the industry mirrors the scope, scale, and complexity of government operations, it provides an opportunity for you to apply your existing functional and technical expertise without venturing too far outside your current skill set.

Understanding the Business Drivers of Government Contractors

While government contractors are focused on supporting federal agency missions, it is critical to recognize that they are ultimately private sector businesses driven by profit and growth. Their success is measured by how many contracts they win, renew, and expand. Growth is essential—without it, contractors risk failure in the eyes of investors, business owners, and shareholders.

One key factor fueling rapid decision-making in the industry is the increasing number of mergers and acquisitions. Private investment groups are actively funding government contractors, enabling them to acquire smaller firms and expand their business portfolios. This financial backing intensifies the pressure on government contractors to continuously secure new contract awards.

As a result, while contractors remain committed to delivering on their contractual obligations, they are also driven by the need to grow, secure new contracts, and maximize profitability. Understanding this dynamic will help you navigate the hiring landscape and align your job search with the industry's priorities.

Two Main Categories of Government Contracting Jobs

Government contractors hire professionals in two primary categories:

1.     Direct Billable Roles
These positions are tied directly to contract performance requirements. If a contractor wins a cybersecurity contract with the Department of Commerce, for example, they will hire cybersecurity professionals with the specific qualifications outlined in the contract. Similarly, contracts may require hiring nurses, engineers, IT specialists, or construction staff  [SM1] to fulfill government needs. Employees in these roles often work alongside federal personnel and contribute directly to agency operations.

2.     Internal, Non-Billable Roles
These positions are not tied to any specific government contract but are essential for running and growing the government contracting firm. Examples include:

• • Human Resources
  • Finance & Accounting
  • Legal & Compliance
  • Business Development & Proposal Writing
  • Contracts & Procurement
  • Corporate Strategy & Growth Teams

If you are considering a career in government contracting, you can explore both of these categories. 

Targeting the Right Employers and Opportunities

To maximize your job search effectiveness, focus on identifying the right government contractors. We have compiled a list of:

• The top 35 most in-demand labor categories in government contracting along with estimated salary ranges. (See Table 1)
• The top 100 largest government contractors in the United States whose Job Boards you may want to monitor (See Table 2)

However, every government contractor, large or small, is constantly hiring based on newly awarded contracts. The key to success is narrowing your search to 10-20 firms that align with your expertise and your specific agency knowledge. Then, you must track their job postings and apply consistently.

For example, if you work for NASA, start by researching the top government contractors currently supporting NASA. Since all federal contracts are publicly reported, you can find this information through government databases (such as Sam.gov or USASpending.gov[SM2] ), AI-driven searches, or simple Google searches. Consider searching for:

• “Top 50 large businesses supporting NASA”
• “Top 50 small businesses supporting NASA”

By targeting contractors already working with your agency, you increase your chances of securing interviews and leveraging your insider knowledge. Your agency-specific expertise is a significant advantage—contractors will often prioritize candidates who understand federal operations over those without agency experience.

Final Steps: Proactive Job Search & Branding Yourself

Once you've identified the right companies, the real work begins:

• Regularly monitor job postings on your target firms’ career pages
• Tailor your resume and LinkedIn profile to reflect key industry terminology and  contract-specific experience, which I’ll address shortly.
• Apply persistently—the government contracting hiring process is competitive
• Highlight your federal experience—government contractors highly value professionals who understand agency cultures and procurement processes.

A government contracting firm choosing between a program manager with zero agency experience and one with deep knowledge of agency operations will almost always prefer the latter. By effectively communicating your value and expertise, you can position yourself as a highly attractive candidate in this competitive industry.