The U.S. federal government has mapped out a $3 trillion budget for GFY2011. That number includes all government spending, from military salaries to grants to real estate costs. Of that $3 trillion, $720 billion is contractor addressable – money available to pay government contractors for existing and new work.

While $720 billion is a hefty market, it represents a $36 billion decline from GFY2010 – a nearly five percent drop in the amount of money the federal government plans to spend on contracts.

According to the report, the biggest cuts in contract spending in the GFY2011 budget are in professional services and real property, while the most significant increase in contractor-addressable spending is in blue collar operations and maintenance.

The report also highlights drivers for growth and IT opportunities, and provides advice for contractors looking to continue to compete in the federal government market.