Federal Procurement Market Report 2022

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.