Why Now?

Mergers, acquisitions, and investment decisions are among the most complex and high-stakes choices executives face—even in stable market conditions. In today's turbulent GovCon environment, these decisions carry even greater risk and uncertainty. FMW provides the intelligence and connections necessary to navigate this evolving landscape.

What is the Federal Market Index (FMI)?

The Federal Market Index (FMI) is a unique economic barometer for the U.S. federal marketplace. Unlike other stock indices, which focus on aerospace and defense, the FMI reflects a broader perspective of the Federal contracting economy.

The U.S. Government committed approximately $759 billion in FY23, (the most recent report from Sam.gov) an increase of $33 billion over the previous year (per GAO). Given its vast scale and diverse procurement needs—ranging from aerospace, technology, healthcare, shipping, energy and more—the federal government functions more like an economy than a market. The FMI helps stakeholders assess trends and shifts within this massive economic engine.

Important: The FMI is not an investment advisory tool and does not provide buy/sell recommendations.

How is the FMI Calculated?

The FMI is based on data from the FY23 Largest Contractors Static Report (Sam.gov), which identifies the top 100 contractors by federal contract awards. In FY23 (the government's most recent published data), these companies secured $433 billion in contracts across multiple industries.

From this group, 40 companies are publicly traded, accounting for $299 billion in awarded contracts (approximately 70% of total contract value).

What makes the FMI unique is its proprietary weighting system:

• • Companies are weighted based on the significance of U.S. federal contracts to their overall business.


• • Federal system integrators, for example, often rely heavily on government contracts, whereas technology and shipping firms may have a more diversified revenue base.


• • The weighting formula is proprietary and considers multiple financial factors beyond revenue share.

The FMI reflects the weighted stock performance of these 40 publicly traded contractors.

Should the FMI Be Used for Investment Decisions?

No. The FMI is an economic indicator - a barometer - not a stock-picking tool. It is designed to provide insights into the federal contracting ecosystem, not to guide individual investment decisions.

Who Uses the FMI?

The FMI is valuable for:

• • C-suite executives within the federal contracting industry involved in these consequential strategic investment decisions.


• • M&A, Venture Capital, Private Equity professionals involved in government market transactions.


• • Industry analysts, law firms and consultants monitoring economic trends in the federal sector.

Is the FMI Calculated in Real Time?

Yes—though there is a 15-minute delay in reported figures.

How Are Companies Weighted?

Each of the 40 publicly traded companies in the Sam.gov Top 100 Contractors list is weighted according to the importance of federal contracts to their overall business. The exact weighting formula remains proprietary.

Want to learn more?

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