The U.S. federal government spends huge sums buying goods and services from outside of the public sector. Given the sums involved, strategic government purchasing can have electoral consequences. In this article, we suggest that more politicized agencies show favoritism to businesses in key electoral constituencies and to firms connected to political parties. We evaluate these claims using new data on U.S. government contracts from 2003 to 2015. We find that executive departments, particularly more politicized department-wide offices, are the most likely to have contracts characterized by noncompetitive procedures and outcomes, indicating favoritism. Politically responsive agencies-but only those-give out more noncompetitive contracts in battleground states. We also observe greater turnover in firms receiving government contracts after a party change in the White House, but only in the more politicized agencies. We conclude that agency designs that limit appointee representation in procurement decisions reduce political favoritism.Verification Materials: The data and materials required to verify the computational reproducibility of the results, procedures, and analyses in this article are available on the American Journal of Political Science Dataverse within the Harvard Dataverse Network, at: https://doi.org/10.7910/DVN/4NEPI7. G overnments in developed countries like the United States spend over one-quarter of their budget buying goods and services from suppliers outside the public sector, with contracts typically set up between agencies and private firms (OECD 2017). The U.S. federal government spends $350 billion per year on procurement in the Department of Defense alone. This is greater than half the entire domestic discretionary budget in a given year, and it provides the president and his or her administration with a powerful political vehicle (Gitterman 2013). Although the Competition in Contracting Act (CICA) prescribes open competition for government contracts, this article explains that there are ways for agencies to circumvent the spirit of the law, which opens up avenues for politically motivated favoritism in procurement. And, indeed, there are clear signs of noncompetitive procedures and outcomes, with about 35% of federal contracts showing such features (Brunjes 2020).Politically motivated favoritism exists in situations where the procurer deliberately sets competition aside for electoral reasons, to cultivate relationships with connected firms, or in other ways to allow the incentives of the party in power to influence the procurement process. The opportunities to engage in favoritism are shaped by federal law and vary across agency contexts. Many