Sector Analysis

Healthcare & Life Sciences Government Contracting

HHS, VA, and NIH Procurement Analysis

Bidara Research Team·July 10, 2024·14 min read

Sector Overview

Healthcare and life sciences represent one of the largest sectors in federal contracting.

Combined Annual Spending: HHS, VA, and related agencies spend over $100 billion annually on healthcare-related contracts.

Key Agencies: - Department of Health and Human Services (HHS) - Department of Veterans Affairs (VA) - National Institutes of Health (NIH) - Centers for Medicare & Medicaid Services (CMS) - Centers for Disease Control and Prevention (CDC)

Growth Drivers: - Aging population increasing healthcare demand - Technology modernization requirements - Public health infrastructure needs - Research and development investment

HHS Contracting

HHS is responsible for protecting health of all Americans.

Budget Overview: $1.7 trillion total budget (mostly mandatory spending) $15+ billion in discretionary contract spending

Operating Divisions: - CMS: Medicare/Medicaid systems - CDC: Public health programs - NIH: Research funding - FDA: Regulatory support - ACF: Human services programs

Key Contracting Priorities: - Healthcare IT modernization - Data analytics and management - Public health infrastructure - Program management support - Research support services

VA Healthcare

VA operates the nation's largest integrated healthcare system.

Healthcare System: - 170+ medical centers - 1,000+ outpatient sites - 9+ million enrolled veterans

Contract Spending: $30+ billion in annual contract spending

Key Initiatives: - Electronic Health Record Modernization - Telehealth expansion - Community care network - Infrastructure improvements - Medical supply chain

Vets First Program: SDVOSB and VOSB receive contracting priority.

NIH Research

NIH is the nation's medical research agency.

Research Investment: $45+ billion annual budget $5+ billion in contract research

Research Priorities: - Cancer research (NCI) - Infectious disease (NIAID) - Heart and lung (NHLBI) - Aging research (NIA) - Mental health (NIMH)

SBIR/STTR Programs: NIH has the largest SBIR/STTR program: - $1+ billion annually - Phase I/II/III funding - Commercialization support

Key Opportunities

Major opportunity areas in healthcare contracting:

IT Modernization: - Claims processing systems - Electronic health records - Data analytics platforms - Telehealth infrastructure - Cybersecurity

Research Support: - Clinical trial management - Laboratory services - Data management - Scientific consulting - Research administration

Healthcare Delivery: - Community care networks - Staffing and workforce - Medical equipment - Facility management - Supply chain

Compliance Considerations: - HIPAA requirements - Healthcare data security - Clinical quality standards - Research ethics (IRB)

Data Sources

USASpending.govHHS Budget DocumentsVA Budget SubmissionNIH Research Portfolio

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