Last reviewed on June 5, 2026 by the Government.biz editorial team.

$200B+
Annual Federal Healthcare Spend
VHA
Largest U.S. Integrated Health System
Vets First
VA Veteran-Business Priority

Federal healthcare is one of the largest and most durable government markets — spanning direct care, pharmaceuticals, medical devices, health IT, clinical staffing, and facilities. It is also one of the most rules-heavy, layering FDA approval, federal pricing law, and trade-agreement requirements on top of normal acquisition rules. This guide maps the major buyers, the contract vehicles that move the most volume, and the compliance you'll need to clear.

The major buyers

Department of Veterans Affairs (VA)

The Veterans Health Administration operates the nation's largest integrated health system — hundreds of medical centers and outpatient clinics. The VA buys care, pharmaceuticals, devices, IT, and facilities, and gives strong preference to veteran-owned firms (see Vets First below).

Health & Human Services (HHS)

HHS spans NIH (research), CDC (public health), CMS (Medicare/Medicaid systems and services), FDA, the Indian Health Service, and preparedness agencies. A huge buyer of health IT, research support, and professional services.

Defense Health Agency (DHA)

DHA supports military treatment facilities and the TRICARE system across the DoD. The Defense Logistics Agency (DLA Troop Support) runs the medical supply chains that serve both DoD and the VA.

The contract vehicles that move volume

Vets First: the VA's veteran preference

At the VA, the Vets First Contracting Program gives verified SDVOSBs and VOSBs first priority. The Supreme Court's Kingdomware decision confirmed the VA must apply the Rule of Two — setting an acquisition aside for veteran firms whenever at least two are expected to compete at a fair price — before using other vehicles. For a healthcare company that can certify as veteran-owned, this is the single highest-leverage advantage in the entire federal health market.

Strategy: if your ownership qualifies, certify as SDVOSB/VOSB and prioritize the VA. If it doesn't, look for teaming and subcontracting with veteran-owned primes on VA work.

Where small businesses find an entry point

Healthcare-specific compliance

Frequently asked questions

Who are the largest federal healthcare buyers?

The VA (through the Veterans Health Administration), HHS (NIH, CDC, CMS, FDA, IHS), and the Defense Health Agency. The Defense Logistics Agency runs the medical supply chains serving DoD and the VA.

What is the VA Federal Supply Schedule?

A set of Schedules the VA manages for pharmaceuticals, medical equipment, and supplies on behalf of all agencies. A VA FSS contract pre-negotiates your pricing and gets you into federal catalogs; pharma pricing is further governed by federal ceiling prices.

Do veteran-owned businesses have an advantage in healthcare?

Yes — particularly at the VA, where Vets First and the Kingdomware decision require setting work aside for verified SDVOSBs/VOSBs under the Rule of Two before using other vehicles.

Related pages

Authoritative sources: VA Office of Acquisition, Logistics & Construction and DLA Troop Support — Medical. General information, not legal advice.