VADepartment of Veterans Affairs
Annual Spend
$35B+ annually
CMMC Level
Level 1 for IT contracts
Key Offices
OIT, VHA, Technology Acquisition Center
Overview
The VA procures over $35 billion annually in healthcare services, IT modernization, medical devices, and construction. The VA Technology Acquisition Center (TAC) manages major IT contracts.
Mission Focus & Priorities
VA's FY2026 priorities center on four critical areas driving massive procurement opportunities. First, IT modernization through the Electronic Health Record Modernization (EHRM) program continues its $16B Cerner implementation, with the Office of Information and Technology (OIT) managing infrastructure upgrades and system integrations. Second, cloud migration accelerates under the VA Enterprise Cloud (VAEC) initiative, targeting hybrid cloud architectures and data center consolidation. Third, AI/ML investments focus on clinical decision support and veteran service delivery through the National Artificial Intelligence Institute, with $200M+ allocated for predictive analytics and automation tools. Fourth, zero trust architecture implementation spans network segmentation, identity management, and endpoint security across 1,200+ facilities. The Veterans Health Administration (VHA) drives 60% of contract activity through medical equipment, pharmaceuticals, and healthcare IT. The Veterans Benefits Administration (VBA) focuses on claims processing automation and digital transformation. The National Cemetery Administration generates construction and grounds maintenance contracts. Emerging technology areas include robotic process automation ($50M+ growth), cybersecurity mesh architecture, and Internet of Medical Things (IoMT) devices. CMMC 2.0 significantly impacts VA's IT procurement strategy, with the Technology Acquisition Center (TAC) requiring Level 2 certification for all cloud services and EHR-related contracts exceeding $7.5M. The Office of Acquisition, Logistics, and Construction (OALC) coordinates CMMC compliance across regional offices, affecting vendor qualification and subcontractor relationships throughout the supply chain.
Budget & Spending Trends
VA's FY2025 budget totals $369.7B with procurement representing $37.2B, marking a 6.8% increase from FY2024's $34.8B. IT services (NAICS 541511, 541512) show strongest growth at 12% YoY, reaching $4.3B driven by EHRM and cybersecurity investments. Medical equipment (NAICS 339112, 334510) increased 8% to $2.1B, while construction (NAICS 236220) declined 3% to $1.8B due to infrastructure completion. The prime-to-subcontract ratio shifted from 65:35 to 62:38, reflecting increased teaming requirements for complex IT integrations. Service-Disabled Veteran-Owned Small Business (SDVOSB) set-asides grew 15% to $8.9B (24% of total spend), exceeding statutory requirements. Small Business set-asides reached $11.2B (30%), while 8(a) contracts increased to $2.8B. HUBZone utilization remained stable at $1.4B. Geographic concentration shows 35% of contracts awarded to NCR companies, 18% to California firms, and 12% to Texas contractors. Regional Medical Centers drive local procurement, with 45% of healthcare services contracts awarded within 100 miles of facilities. The Veterans Integrated Service Networks (VISNs) demonstrate growing preference for regional contractors in construction and grounds maintenance, while IT contracts remain nationally competed through centralized vehicles.
How to Win Contracts with VA
Success in VA procurement requires strategic positioning across multiple contract vehicles. Primary IT vehicles include GSA MAS (Multiple Award Schedule), particularly IT Schedule 70 for software and services, NASA SEWP V for hardware, and NITAAC CIO-SP3 for enterprise IT solutions. VA-specific vehicles include the Technology Solutions-2 Government-Wide Acquisition Contract (T4NG) and the Veterans Technology Services (VETS) contract. The Technology Acquisition Center (TAC) in Austin manages major IT procurements, while Strategic Acquisition Center (SAC) handles enterprise-wide requirements. Regional Acquisition Centers focus on facility-specific needs. Effective SAM.gov searches should target NAICS 541511 (Custom Computer Programming), 541512 (Computer Systems Design), 334111 (Electronic Computer Manufacturing), and 621111 (Physician Offices). Use PSC codes D307 (IT Services), R425 (Support Services), and Q201 (Medical Services). Filter by SDVOSB and small business set-asides for maximum opportunity access. Teaming requirements favor partnerships between large system integrators and veteran-owned small businesses. The VIP-VOSB Mentor-Protege Program provides developmental opportunities. Past performance requires demonstrable healthcare IT experience, preferably with Epic or Cerner systems, contracts valued $10M+, and federal healthcare experience within five years. RFP cycles average 8-12 months with technical evaluation weighted 60%, cost 30%, and past performance 10%. This week, BD professionals should: register for VA Vendor Outreach events, complete VOSB certification if applicable, identify SDVOSB teaming partners, review EHRM program requirements, and establish relationships with VHA regional contracting officers.
CMMC Requirements for VA Contractors
VA's CMMC implementation follows a phased approach affecting different contract categories distinctly. Level 2 certification is required for all IT contracts exceeding $7.5M involving Federal Contract Information (FCI) or Controlled Unclassified Information (CUI), particularly EHRM-related services, cloud hosting, and network infrastructure. Level 1 applies to basic IT support services and non-sensitive administrative functions. The Technology Acquisition Center plans full CMMC clause integration by Q2 FY2025, with pilot programs already underway for cloud services contracts. Subcontractor flowdown requirements create significant supply chain impacts, as prime contractors must ensure all subs handling CUI maintain appropriate CMMC levels. VA's risk-averse compliance culture means evaluation criteria heavily weight cybersecurity posture, often representing 20-30% of technical scoring. Early CMMC adopters include the Office of Information Security and the EHRM Integration Office, which require preliminary assessments even before final CMMC rules. The estimated cost impact for VA contractors ranges from $300K-$1.2M for Level 2 certification, with annual maintenance costs of $150K-$400K. This significantly affects the competitive landscape, as smaller firms may struggle with certification costs, potentially consolidating market share among larger systems integrators and well-capitalized small businesses. VA's medical device procurement increasingly requires CMMC compliance for connected devices, expanding certification requirements beyond traditional IT contracts to include Internet of Medical Things (IoMT) equipment and telemedicine platforms.
Top NAICS Codes
Common Contract Types
Key Procurement Offices
Recent Contract Awards
Total Awards
814
Last 30 Days
362
30-Day Value
$575.4M
Avg Amount
$1.6M
All-Time Value
$429.9B
FPDS
| Contract | Awardee | Amount |
|---|---|---|
| Prosthetic Device Emulator | Human Motion Technologies LLC. | $679K |
| V212--36C250-26-AP-0790 - 36C25026P0538 - TRANSPORTATION SERVICE - BEACHWOOD TRANSPORTATION - 5/1/2026 to 4/30/2027 - BASE YEAR - 541D60003 | BEACHWOOD TRANSPORTATION LLC | $29K |
| MOBILE MRI PARMA | INSIGHT HEALTH CORP | $511K |
| S222--MEDICAL WASTE SERVICES Salisbury VAMC | NEIE Medical Waste Services, LLC | $651K |
| McAllen Vet Center New Replacing award | SAZ-RAM, LTD. | $4.6M |
| 7290--Laundry Weight Carts with Digital Indicator and Load Cell | AJ INDUSTRIES WEST, INC. | $43K |
| Landscape Materials Riverside National Cemetery -- 5610 | The Tracy Phillips Group Inc | $1.2M |
| 6515--Supply - Probe for Neoprobe System - FARGO | MARATHON MEDICAL CORPORATION | $19K |
| 7220--Carpet and Luxury Vinyl Tiles | CHIEFS CONSTRUCTION, INC | $24K |
| Y1NZ--598-23-107 Med Gas Deficiencies - Both Campuses | MGI, INC. | $1.7M |
Top Awardees
Top Contractors (FPDS)
| Contractor | Total Obligation |
|---|---|
| MCKESSON CORPORATION | $108.8B |
| OPTUM PUBLIC SECTOR SOLUTIONS, INC. | $84.6B |
| TRIWEST HEALTHCARE ALLIANCE CORP | $60.0B |
| MCKESSON HBOC, INC. | $7.3B |
| QTC MEDICAL SERVICES INC | $5.0B |
| OPTUMSERVE HEALTH SERVICES, INC. | $4.1B |
| VETERANS EVALUATION SERVICES, INC | $3.9B |
| DAVITA INC. | $3.4B |
| FRESENIUS MEDICAL CARE HOLDINGS INC | $3.2B |
| CARDINAL HEALTH 200, LLC | $3.2B |
Get real-time alerts for VA contracts and track opportunities matching your profile.
Get AlertsFrequently Asked Questions
How do I find contracts with VA?
Search SAM.gov for active Department of Veterans Affairs solicitations. Monitor the VA procurement forecast published annually. Register in the System for Award Management (SAM.gov) and set up saved searches for relevant NAICS codes.
Does VA require CMMC?
Department of Veterans Affairs does not currently require CMMC for most contracts. However, VA may have its own cybersecurity requirements. Contractors should review individual solicitations for specific requirements.
What are the top NAICS codes for VA contracts?
The most commonly used NAICS codes for Department of Veterans Affairs contracts include 541511, 541512, 621999, 339112, 524114. These codes cover the primary contracting areas for VA. Check SAM.gov for specific opportunities under each code.
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