The first half of FY26 (July-December 2025) saw strong procurement activity across federal agencies, with $12.4 billion in contracts awarded.
Key Highlights
Defence Dominates
The Department of Defence accounted for 34% of total contract value, driven by:
- Major IT modernisation programs
- Ongoing sustainment contracts
- New capability acquisitions
Services Australia Growth
Services Australia increased procurement spending by 18% compared to H1 FY25, primarily in:
- Digital service delivery
- Customer contact centres
- Fraud detection systems
Top Categories
| Category | Value | YoY Change |
|---|---|---|
| IT Services | $4.2B | +12% |
| Professional Services | $3.1B | +8% |
| Construction | $2.8B | +15% |
| Healthcare | $1.4B | +22% |
Looking Ahead to H2 FY26
Key opportunities emerging:
- Cybersecurity panels - Multiple agencies refreshing arrangements
- Cloud migration - Continued shift to hyperscaler platforms
- AI/ML initiatives - Growing investment in automation
Data sourced from TenderTracker analysis of AusTender records, July-December 2025.