The US federal government awards over $700 billion in contracts annually. For companies dependent on government business — defense contractors, IT services, healthcare providers, engineering firms — these awards directly translate to revenue, often with multi-year visibility.
This tutorial shows how to use FinBrain Terminal to find and analyze companies winning government contracts.
Why Track Government Contracts?
Government contracts differ from commercial revenue in important ways:
| Characteristic | Government Contracts | Commercial Revenue |
|---|---|---|
| Visibility | Award announcements are public | Often not disclosed until earnings |
| Duration | Multi-year performance periods | Varies widely |
| Payment risk | Federal government has low default risk | Depends on customer |
| Competition | Formal procurement process, often limited bidders | Open market |
| Timing | Awards often cluster around fiscal year end (September) | Distributed |
For government-dependent companies, tracking new awards provides forward revenue visibility that earnings reports only confirm after the fact.
Step 1: Screen for Contract Activity
Navigate to the Screeners page and select the Government Contracts Screener.
Filtering Options
| Filter | How to Use It |
|---|---|
| Contract value | Set minimum award amount to focus on material contracts |
| Awarding agency | Filter by agency (DoD, HHS, NASA, DOE, etc.) to focus on sectors |
| Contract type | Definitive contracts, BPAs, IDIQs — each has different revenue implications |
| Date range | Focus on recent awards to spot current momentum |
| NAICS code | Filter by industry classification |
What to Look For
Large new awards — A single contract worth $100M+ to a mid-cap company can materially impact revenue for years. Look for awards that represent a significant percentage of the company’s current revenue.
Award clusters — Multiple contracts awarded to the same company in a short period suggests the company is winning competitive procurements, which indicates strong execution and positioning.
New agencies — A company winning its first contract from a new agency is expanding its addressable market. This is often missed by analysts focused on existing customer relationships.
Contract type matters:
- Definitive contracts — Firm, funded work. Most directly translatable to revenue.
- IDIQs (Indefinite Delivery, Indefinite Quantity) — Framework contracts that may or may not result in task orders. The ceiling value is potential, not guaranteed.
- BPAs (Blanket Purchase Agreements) — Simplified purchasing agreements. Usually lower value but indicate ongoing relationships.
Step 2: Analyze Individual Tickers
Once you’ve identified interesting companies in the screener, click through to their Ticker Page.
Government Contracts Table
The Ticker Page includes a Government Contracts table showing all awards for that company:
| Column | What to Check |
|---|---|
| Award Date | Are contracts accelerating (more frequent) or decelerating? |
| Awarding Agency | Is the company diversified across agencies or concentrated? |
| Description | What kind of work? Services, products, R&D, maintenance? |
| Award Amount | Size relative to company’s annual revenue |
| Contract Type | Definitive (firm revenue) vs IDIQ (potential revenue) |
| End Date | How far into the future does the revenue stream extend? |
Cross-Reference with Other Data
The real signal comes from combining contract data with other alternative datasets on the same Ticker Page:
Contracts + Insider Trading — Are executives buying shares around the time of large contract wins? Insider buying alongside contract momentum is a strong signal — management is putting personal capital behind the business outlook.
Contracts + Lobbying — Is the company increasing lobbying spend in the same agencies where it’s winning contracts? Rising lobbying spend often precedes contract wins, especially in defense and healthcare.
Contracts + Price Forecasts — Does the price forecast align with the fundamental contract momentum? If contracts are accelerating but the forecast is bearish, investigate what other factors might be weighing on the stock.
Contracts + Analyst Ratings — Are analysts factoring in recent wins? Sometimes contract awards are announced weeks before analysts update their models, creating a window.
Step 3: Build a Watchlist
After screening and analyzing, build a focused watchlist:
High-Conviction Criteria
Look for companies that check multiple boxes:
- Material contract wins — Awards represent more than 5% of trailing annual revenue
- Accelerating momentum — Contract frequency or size is increasing vs prior periods
- Insider buying — Executives purchasing shares near contract announcements
- Expanding agency base — Winning contracts from new departments
- Multi-year duration — Awards with performance periods extending 3+ years
Monitoring
Add these companies to a FinBrain Portfolio for ongoing tracking. Check the Government Contracts screener weekly for new awards.
Sector Focus Areas
Government contract data is most useful for companies in these sectors:
| Sector | Key Agencies | What to Watch |
|---|---|---|
| Defense | DoD, Army, Navy, Air Force | Large platform awards, maintenance contracts |
| IT/Cyber | DHS, NSA, various agencies | Cloud, cybersecurity modernization |
| Healthcare | HHS, VA, CDC | Healthcare IT, pharmaceutical contracts |
| Aerospace | NASA, Space Force | Launch services, satellite programs |
| Engineering | Army Corps, DOE | Infrastructure, environmental remediation |
| Consulting | Multiple agencies | Professional services, advisory |
Limitations
- Contract vs revenue timing — A contract award doesn’t mean immediate revenue. Multi-year contracts generate revenue over their performance period, not all upfront.
- IDIQ ceiling vs actual — IDIQ contract ceiling values represent maximum potential, not guaranteed spending. Actual revenue depends on task orders issued.
- Subcontracting — A company may receive a large prime contract but subcontract a significant portion. Net revenue impact is lower than the award value.
- Protest risk — Competitors can protest contract awards, potentially delaying or reversing them.
Despite these nuances, government contract data provides a uniquely public window into future revenue that most commercial companies never disclose.
Government Contracts Screener →