Why Now Is the Best Time to Enter the Federal Procurement Market Through a VA Contract

The United States government is one of the largest buyers of medical products and healthcare services in the world. At the center of this system stands the Department of Veterans Affairs (VA), which manages the country’s largest integrated healthcare network, serving over 9 million veterans annually. To meet this critical demand efficiently, the VA relies on specialized contracting vehicles known as VA contracts, also referred to as VA Schedule Contracts.

A VA Schedule Contract is part of the Federal Supply Schedule (FSS) program. It allows qualified businesses to offer pre-approved pricing and terms for medical equipment, pharmaceuticals, laboratory services, and other healthcare-related products. This streamlined approach reduces administrative burden for both the supplier and the government, enabling faster procurement and more predictable sales cycles.

For businesses operating in healthcare, medical devices, diagnostics, or life sciences, this represents a major opportunity. Unlike the open market, VA contracts are designed to establish long-term relationships with trusted vendors. These contracts provide access to a high-volume, recurring revenue stream while positioning businesses as reliable partners within the federal healthcare system.

In today’s evolving market, where government investment in healthcare continues to grow, the VA Schedule offers more than just sales. It offers stability, credibility, and scale – especially when supported by expert consulting firms such as Price Reporter, a company with nearly two decades of experience helping vendors successfully navigate the federal contracting process. Their deep knowledge of compliance, documentation, and procurement strategy makes them a trusted partner for businesses entering the VA space.

Federal Spending Trends: A Favorable Climate

In the years following the COVID-19 pandemic, federal spending on healthcare has not only remained high but continues to accelerate. Agencies like the Department of Veterans Affairs have expanded their budgets to meet growing healthcare needs, invest in infrastructure modernization, and strengthen preparedness for future public health challenges.

The VA has committed to long-term initiatives that require steady and reliable procurement of medical products and services. This includes upgrades to medical facilities, integration of digital health systems, and expanded care for aging and chronically ill veterans. These initiatives depend on dependable suppliers who can meet rigorous standards while delivering consistent value.

As part of this shift, the demand for essential categories like pharmaceuticals, diagnostic tools, laboratory equipment, and patient mobility devices has surged. These are no longer niche markets. They are central to the VA’s mission of delivering high-quality, accessible care to veterans across the country.

For qualified vendors, this trend translates into substantial and ongoing contract opportunities. With multi-year federal budgets in place and clear procurement priorities outlined, now is a uniquely favorable time to enter the VA marketplace and align with these long-term national goals.

What Sets VA Contracts Apart from Other Federal Schedules

Federal contracting offers several pathways for businesses to work with government agencies, but not all contracts are created equal. The VA Federal Supply Schedule (FSS) is distinctly focused on healthcare-related products and services, which gives it several advantages — especially for vendors in the medical field.

Unlike broader contract vehicles such as the GSA Multiple Award Schedule (MAS), which span dozens of industries, the VA Schedule is tailored to the specific procurement needs of the Department of Veterans Affairs and its healthcare system. This specialization makes the VA Schedule more focused, and in many cases, more accessible for vendors that meet its criteria.

One of the key benefits of the VA program is the direct access it offers to government buyers in the healthcare sector. Suppliers do not have to compete with companies from unrelated industries, and they are evaluated based on criteria directly relevant to their products and services.

Additionally, the VA Schedule tends to be more navigable for small and mid-sized companies. Many of its contract categories are designed around tightly defined niches such as in vitro diagnostics, pharmaceuticals, or patient mobility aids — areas where specialized vendors can offer targeted value.

Perhaps most importantly, VA contracts typically include multi-year agreements that offer recurring revenue potential. In a market often defined by uncertainty, these contracts provide businesses with greater predictability and a stable customer in the form of the U.S. government.

Comparison: VA Schedule vs. GSA MAS Contract

Feature	VA Federal Supply Schedule (FSS)	GSA Multiple Award Schedule (MAS)
Primary Focus	Medical and healthcare-related products and services	Broad categories: IT, office supplies, logistics, consulting
Administering Agency	Department of Veterans Affairs (VA)	General Services Administration (GSA)
Eligibility Requirements	Focus on product compliance and industry certifications	Broader commercial requirements, incl. 2 years of business history
Key Buyers	VA medical centers, clinics, federal healthcare agencies	Wide range of federal, state, and local agencies
Contract Structure	Focused SINs (Special Item Numbers) across 9 healthcare Schedules	Over 300 SINs across 12 broad industry categories
Length of Contract	Typically 5 years with 5-year extension	5 years, renewable for up to 20 years
Competition Level	Lower in niche healthcare categories	Higher due to broad participation
Catalog Publication	NAC catalog, CCST, SIP or EDI required	GSA Advantage (SIP, EDI, or FCP)
Sales Threshold	$25,000 within first 2 years, then annually	$100,000 over first 5 years, then $125,000 per 5 years
Reporting Tools	FAS Sales Reporting Portal	FAS Sales Reporting Portal, TDR (optional)
Best For	Healthcare suppliers, small and specialized vendors	Generalist vendors, B2G service providers, and product resellers

For businesses in medical, pharmaceutical, or healthcare service sectors, the VA Schedule presents a more targeted, efficient, and often less competitive route into the federal marketplace. By focusing on the needs of the largest government-run healthcare system in the U.S., the VA FSS creates a procurement environment where specialization is rewarded and long-term contracts are the norm.

2025 Market Dynamics: Why Timing Matters

The current VA procurement landscape is undergoing significant transformation, and 2025 brings a rare window of opportunity for new vendors. In recent months, the Department of Veterans Affairs has reviewed and canceled hundreds of outdated or overlapping contracts. This has opened the door for new suppliers to step in and meet unmet demand across critical healthcare categories.

In parallel, the VA has made measurable progress in modernizing its acquisition infrastructure. Procurement processes are becoming more transparent and less burdensome. Updates to digital tools, centralized review systems, and contract tracking platforms have reduced delays and simplified submissions. For businesses prepared to navigate the requirements, the path to entry is clearer and more efficient than it was just a few years ago.

In addition, federal policy in 2025 places a strong emphasis on supplier diversity, inclusion of veteran-owned businesses, and support for small enterprises. These priorities are not just aspirational goals. They are embedded in agency-level procurement targets, which means real contract set-asides and preferences for qualified vendors. Businesses that meet these criteria are more likely to be awarded contracts and to build long-term relationships with federal buyers.

The combination of open contract slots, a modernized procurement process, and policy-driven support makes this an ideal time to enter the VA marketplace. Companies that act now are in a strong position to benefit from the changes already underway.

Strategic Advantages of Getting In Early

Entering the VA procurement market now provides a powerful competitive edge. Early movers have the ability to secure visibility and contract positions before competition becomes more intense. With many contract openings currently unfilled and acquisition officers actively seeking new vendors, businesses that step in early can establish themselves as go-to suppliers in their categories.

Getting in early also allows companies to lock in favorable pricing terms. Once awarded, VA contracts typically include multi-year agreements with options to renew. This gives vendors long-term stability while protecting their market position against future price pressures from latecomers.

Trust plays a critical role in federal contracting. Government buyers tend to favor vendors with a track record of reliability and responsiveness. By joining the VA supplier base now, businesses can begin building those relationships while the entry barriers are relatively low. Early engagement provides more time to understand the system, refine compliance practices, and demonstrate performance.

Beyond the VA itself, an established presence within the federal supply ecosystem can serve as a springboard into broader opportunities. Success with a VA contract can position a company for expansion into other agencies, including the Department of Defense, Health and Human Services, and beyond. It also strengthens a firm’s credibility in both public and private sector markets.

Common Misconceptions That Hold Businesses Back

Despite the growing opportunities in federal healthcare procurement, many businesses hesitate to pursue VA contracts because of long-standing misconceptions. These assumptions often prevent capable companies from tapping into one of the most stable and rewarding markets in the United States.

“The process is too complex”
While federal contracting once had a reputation for being slow and paperwork-heavy, much has changed. The VA has made significant improvements to simplify and modernize its acquisition processes. With clearer documentation requirements, digital submission platforms, and more transparent communication from contracting officers, the entry process is now far more manageable. Businesses that take a structured approach can move through the system efficiently and without unnecessary delays.

“You need to be a big company”
This is one of the most persistent myths. In fact, the VA actively seeks participation from small and mid-sized businesses, especially those offering specialized products or services. Many categories under the VA Schedule are well-suited for smaller vendors that can meet targeted needs. There are even programs and set-asides specifically designed to give small businesses a fair shot at federal opportunities.

“Government payments are slow”
Timely payments are a top concern for any supplier, and the VA has addressed this directly. Under VA contracts, payment terms are clearly defined, and systems are in place to ensure prompt processing once delivery and invoicing are confirmed. Many vendors find that VA payments are not only reliable but also faster than what they experience in parts of the private sector.

Dispelling these myths is the first step toward unlocking real business potential. The federal healthcare market is open, accessible, and ready for qualified suppliers who are willing to explore it with the right mindset.

Step-by-Step Overview: How to Pursue a VA Contract

Getting started with a VA Schedule Contract may seem daunting, but the process becomes manageable when broken into clear, structured steps. Each phase is designed to evaluate a company’s qualifications, ensure regulatory compliance, and prepare both parties for a successful long-term partnership.

1. Check Eligibility and Compliance Readiness: Before beginning the application process, a company must meet several baseline criteria. This includes at least two years of operational history, strong financial performance, and the ability to demonstrate past performance or relevant experience. Additionally, vendors must comply with applicable federal regulations, such as product certifications, insurance requirements, and quality standards specific to the healthcare industry.
2. Prepare Your Proposal and Supporting Documentation: The core of your application is a detailed proposal that outlines your company’s offerings, pricing structure, commercial sales practices, and past performance. You will need to provide technical specifications, product or service descriptions, and relevant licenses or registrations. The proposal should also include a pricing narrative that demonstrates fair and reasonable rates for the federal market.
3. Submit, Review, and Negotiate: Once your proposal is complete, it is submitted to the VA for review. This stage may include clarifications, requests for additional documentation, or direct negotiation of terms. Contracting officers evaluate offers based on pricing, technical accuracy, compliance, and overall value. Successful applicants may enter negotiation to finalize pricing and conditions before receiving an award.
4. Contract Award and Activation: After approval, the contract is formally awarded. Your offerings are then published to federal purchasing platforms such as GSA Advantage and made available to VA buyers. At this point, your business becomes an official government supplier and can begin fulfilling orders.
5. Post-Award Management and Compliance: Winning the contract is only the beginning. Ongoing success depends on timely catalog updates, accurate pricing, and compliance with reporting requirements. Vendors are also expected to meet minimum sales thresholds and maintain high levels of performance. Regular communication with contracting officers and active participation in the program are essential for long-term success.

Final Thoughts:

In today’s rapidly evolving procurement environment, timing is everything. Businesses that act early not only gain access to available contract slots but also build a competitive edge before the field becomes saturated. As more companies recognize the long-term value of VA contracts, competition will intensify, and funding cycles may close before late entrants have a chance to qualify.

This is why proactive companies are already taking steps to assess their fit and enter the VA marketplace. Organizations like Price Reporter, with nearly two decades of experience in federal contracting, provide expert support to businesses navigating this complex space. Their deep knowledge of government procurement and contract strategy helps new vendors move quickly and effectively — turning opportunity into long-term success.