Healthcare Industry

HealthcareGovernment Contracts

Federal healthcare contracting spans clinical services, health IT, medical supplies, and pharmaceutical distribution across agencies serving millions of beneficiaries. The VA alone operates over 1,300 healthcare facilities and is the largest integrated health system in the country.

Definition

Healthcare government contracts are federal procurement opportunities for medical services, health IT systems, clinical staffing, medical equipment, pharmaceuticals, and public health programs. Major buyers include the VA, Department of Defense Military Health System, HHS, and Indian Health Service.

Key Takeaways

  • The VA is the largest single federal healthcare buyer, operating over 1,300 facilities nationwide.
  • Health IT modernization (VA EHR, DoD MHS GENESIS) represents billions in ongoing contract spending.
  • Medical staffing contracts are among the most accessible entry points for small healthcare businesses.
  • VA-specific set-aside programs (SDVOSB, VOSB) provide strong competitive advantages for veteran-owned firms.
  • Compliance with HIPAA, FISMA, and agency-specific security requirements is mandatory for all health IT work.

Market Snapshot

Average Contract Size

$100K - $10M

Competition Level

Medium

Growth Trend

Growing

Top NAICS Codes for Healthcare

NAICS CodeDescription
621111Offices of Physicians (except Mental Health Specialists)
621999All Other Miscellaneous Ambulatory Health Care Services
561320Temporary Staffing Services
541511Custom Computer Programming Services (Health IT)
339113Surgical Appliance and Supplies Manufacturing

Search contracts by NAICS code to find opportunities matching your healthcare capabilities.

Key Federal Agencies

These agencies are the largest buyers of healthcare services and products in the federal market.

Department of Veterans Affairs (VA)
Department of Health and Human Services (HHS)
Defense Health Agency (DHA)
Indian Health Service (IHS)
Centers for Disease Control and Prevention (CDC)

Relevant Certifications & Set-Asides

These certifications and set-aside programs can give your healthcare business a competitive advantage in federal contracting.

SDVOSB
VOSB
8(a)
WOSB
HUBZone

Tips for Winning Healthcare Contracts

1

Register in the VA VetBiz database if you are SDVOSB or VOSB - the VA has mandatory SDVOSB set-aside requirements that other agencies do not.

2

Target VA medical center procurement offices directly, as much of VA healthcare contracting is decentralized to individual facilities.

3

Build expertise in interoperability standards (HL7 FHIR, C-CDA) if pursuing health IT work, as agencies prioritize standards-based solutions.

4

Pursue GSA MAS with medical and health IT SINs to access the broadest range of federal healthcare buyers.

5

Consider the Indian Health Service as an often-overlooked buyer with less competition and strong small business preferences.

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Frequently Asked Questions

What is the VA SDVOSB set-aside program?

The VA has a unique statutory requirement (38 U.S.C. 8127) to set aside contracts for Service-Disabled Veteran-Owned Small Businesses (SDVOSB) and Veteran-Owned Small Businesses (VOSB) before considering other set-aside categories. This makes SDVOSB/VOSB certification particularly valuable for VA healthcare contracts. Firms must be verified through the SBA VetCert program.

How do I sell medical supplies to the federal government?

The primary channels are the VA Federal Supply Schedule (FSS), Defense Logistics Agency (DLA) Troop Support medical supply chain, and GSA MAS. For VA FSS, you negotiate pricing and terms directly with the VA. DLA manages medical/surgical supplies for DoD. Both require FDA compliance and often GPO-competitive pricing.

What health IT opportunities exist in federal contracting?

Major opportunities include the VA Electronic Health Record Modernization (EHRM) program, DoD MHS GENESIS deployment, CDC surveillance systems, and HHS data analytics platforms. Health IT spending is growing as agencies modernize legacy systems, implement telehealth, and build interoperable health information exchanges.

Can staffing agencies compete for federal healthcare contracts?

Yes. Federal healthcare staffing is a large and accessible market segment. The VA, DoD, and IHS all use contract staffing for physicians, nurses, allied health professionals, and administrative staff. Contracts range from single-facility staffing to multi-region IDIQs. SDVOSB set-asides at the VA are particularly common for staffing.

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