Federal Procurement Market Report 2022
Market-At-A-Glance
The U.S. federal government spend for medical supplies in FY 2021 was estimated at $8.2 billion. Purchases dropped 38% from FY 2020, but remained well above pre-pandemic numbers. In FY 2021, civilian departments/agencies accounted for $4.7 billion and defense departments/agencies accounted for $3.4 billion in medical supply purchases.
Small Businesses Account For Nearly One-Third Of Federal Government Medical Supply Purchases
In FY 2021, $2.4 billion in federal contracts were awarded to small businesses selling medical goods. Thirtyeight percent of the Department of Defense (DOD) and 22% of civilian department medical supply purchases
in FY 2021 were small business contracts. Top defense epartments/agencies for small business contracts were the Defense Logistics Agency (DLA) and the Air Force, while top civilian departments/agencies were Veterans Affairs and Department of Homeland Security.
The DLA Accounts For 27% Of All Federal Government Medical Supply Purchases
The DLA accounts for 65% of all medical supplies sold to the Defense Department and 27% of the total federal government spend. The DLA purchased $2.25 billion in medical supplies in FY 2021, with the remainder of the DOD’s purchases taking place mainly through the Air Force and Army. In FY 2021, 27% of DLA’s medical supply purchases were through small business contracts.
Diverse Small Businesses Awarded $1.35 Billion In “Set-Aside” Medical Supply Contracts With Federal Government
Top “set-aside” small business contracts with the DOD in FY 2021 went to socially and economically disadvantaged businesses: Small Business Administration (SBA) 8(a) and Service-Disabled Veteran-Owned Businesses (SDVOSB). Civilian department top set-aside small business contracts in FY 2021 went to Service-Disabled Veteran-Owned businesses (SDVOSB) and Indian-owned businesses. Set-asides refer to federal contracts reserved for small businesses within the categories: Women-Owned, Veteran-Owned, HUB Zone and 8(a) businesses.
- Executive Summary
- Description Of Research Methodology
- Federal Government Spent $8.2 Billion On Medical Supplies In FY 2021
- The Defense Department Spent $3.4 Billion On Medical Supplies In FY 2021
- DLA Spent Over $2.25 Billion In FY 2021 On Medical Supplies
- DLA Purchases A Wide Variety Of Medical Supplies
- Ten Civilian Agency/Bureaus Purchased Over $10 Million In Medical Supplies In FY 2021
- U.S. Government Purchases Billions Of Dollars In Medical Goods Through Small Businesses
- Federal Government “Set-Asides” Help Small Businesses Compete For Contracts
- Defense Department Purchases $1.3 Billion Of Medical Supplies Through Small Businesses
- Small Businesses Awarded Nearly One-Quarter Of Civilian Medical Supply Contracts
- NAICS Code 423450 Includes Medical And Diagnostic Equipment; Accounts For 24% Of Total
- Medical Supply Purchases
- NAICS Code 339112 Includes Catheters, Needles, And Syringes; Sizeable Share Goes To
- Small Businesses
- Two-Thirds Of Defense Department’s Surgical Appliance And Supplies Contracts Awarded To
- Small Businesses
- NAICS Code 334517 Includes X-Ray Equipment And CAT Scanners; Veterans Affairs Accounts
- For Nearly 40% Of Purchases
- Departments Of Defense And Veterans Affairs Lead Electromedical/Electrotherapeutic Purchases
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