Federal Procurement Market Report

Federal Procurement Market Report

Market-At-A-Glance

The U.S. federal government spent an estimated $5.5 billion on medical supplies in FY 2022, a 33% declinein purchases from FY 2021 but near pre-pandemic FY 2019 levels. Defense departments/agencies accountedfor 51% of the total spend at $2.8 billion in medical supply purchases, the highest share in five years. Civiliandepartments/agencies accounted for $2.7 billion in medical supply purchases in FY 2022.

Thirty Percent Of Total Federal Medical Supply Purchase Contracts

Were Awarded To Small BusinessesIn FY 2022, the U.S. government awarded $1.7 billion in federal contracts to small businesses selling medicalproducts, a 43% decrease from a record high of $3 billion in FY 2020. Twenty percent of Department ofDefense (DOD) and 44% of civilian department medical supply purchase contracts were awarded to smallbusinesses. Within defense departments/agencies, the Defense Logistics Agency (DLA) and the Army awardedthe most in small business contracts in FY 2022. Top civilian agencies for small business contracting awardswere the Department of Veterans Affairs (VA) and the Agency for International Development.

The Department Of Veterans Affairs Accounted For 56% of TotalMedical Supply Purchases By Civilian Departments

The VA purchased $3.1 billion in medical supplies in FY 2022, 56% of all medical supply purchases by thecivilian departments/agencies, with $250 million in contracts awarded to small businesses. The VeteransHealth Administration (VHA) is the largest integrated health care system in the U.S. providing care to 9.1million Veterans and their families every year. In FY 2022, the VHA spent $608 million on nursing carefacilities and $488 million on surgical appliances and supplies.

$300 Million In Federal Contracting Assistance Programs Help

Diverse Businesses Compete For Government ContractsDefense departments’ top “set-aside” contracts went to small disadvantaged businesses (8(A)) and servicedisabledveteran-owned small businesses (SDVOSB) in FY 2022. Top civilian department set-aside contractswent to SDVOSBs and Indian-owned small businesses. The federal government seeks to award at least 23% ofall contracts to small businesses every year through small business set-asides. A portion of the set-asides arereserved for small businesses that also meet specific socio-economic criteria including women-owned smallbusinesses, small disadvantaged businesses, SDVOSB, and HUBZone small businesses in historicallyunderutilized business zones.