The U.S. federal government spent an estimated $5.5 billion on medical supplies in FY 2022, a 33% decline in purchases from FY 2021 but near pre-pandemic FY 2019 levels. Defense departments/agencies accounted for 51% of the total spend at $2.8 billion in medical supply purchases, the highest share in five years. Civilian departments/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 Businesses
In FY 2022, the U.S. government awarded $1.7 billion in federal contracts to small businesses selling medical products, a 43% decrease from a record high of $3 billion in FY 2020. Twenty percent of Department of Defense (DOD) and 44% of civilian department medical supply purchase contracts were awarded to small businesses. Within defense departments/agencies, the Defense Logistics Agency (DLA) and the Army awarded the most in small business contracts in FY 2022. Top civilian agencies for small business contracting awards were the Department of Veterans Affairs (VA) and the Agency for International Development.
The Department Of Veterans Affairs Accounted For 56% of Total Medical Supply Purchases By Civilian Departments
The VA purchased $3.1 billion in medical supplies in FY 2022, 56% of all medical supply purchases by the civilian departments/agencies, with $250 million in contracts awarded to small businesses. The Veterans Health Administration (VHA) is the largest integrated health care system in the U.S. providing care to 9.1 million Veterans and their families every year. In FY 2022, the VHA spent $608 million on nursing care facilities and $488 million on surgical appliances and supplies.
$300 Million In Federal Contracting Assistance Programs Help Diverse Businesses Compete For Government Contracts
Defense departments’ top “set-aside” contracts went to small disadvantaged businesses (8(A)) and service- disabled veteran-owned small businesses (SDVOSB) in FY 2022. Top civilian department set-aside contracts went to SDVOSBs and Indian-owned small businesses. The federal government seeks to award at least 23% of all contracts to small businesses every year through small business set-asides. A portion of the set-asides are reserved for small businesses that also meet specific socio-economic criteria including women-owned small businesses, small disadvantaged businesses, SDVOSB, and HUBZone small businesses in historically underutilized business zones.
Table of Contents
- Executive Summary
- Description Of Research Methodology
- Federal Government Spend On Medical Supplies Down 33% In FY 2022
- The Department Of Defense Spent $2.8 Billion On Medical Supplies In FY 2022
- Four Civilian Agencies/Bureaus Purchased Over $50 Million In Medical Supplies In FY 2022
- The Veterans Health Administration Is The Largest Health System In The U.S.
- VA Spent $3.1 Billion On Medical Supplies In FY 2022
- U.S. Government Spends Billions On Medical Goods Through Small Businesses
- Federal Government “Set-Asides” Through Contracting Assistance Programs Help Small Businesses Compete.
- Department Of Defense Medical Supply Purchases Through Small Businesses Exceed Half A Billion Dollars
- Civilian Departments Awarded Almost 50% Of Medical Supply Contracts To Small Businesses
- NAICS CODE 423450: Includes Medical And Diagnostic Equipment; Accounts For 31% Of Total Federal Spend
- NAICS CODE 339112: 29% Of Contracts Were Awarded To Small Businesses
- The Department Of Veterans Affairs And The Department Of Defense Accounted For 90% Of Surgical Appliances And Supplies Purchases
- NAICS CODE 334517 Includes X-Ray Equipment; 13% Of Total Federal Spend
- VA And Department Of Defense Continue To Lead Electrometrical And Electrotherapeutic Purchases
