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Federal Supplier Base Continued to Shrink in Fiscal 2018

May 23, 2019, 5:41 PM

The number of federal contractors working on unclassified prime contracts is at its lowest level in 10 years despite a steady rise in government contract spending in recent years. The fiscal 2018 vendor count now stands at 115,000, a 27% drop since fiscal 2009.

The causes of fluctuations in annual vendor counts are diverse. But the decline — accompanied by signs that competitively awarded dollars may be declining as well — raises questions about the effect of diminishing diversity in the government’s supply chain, the quality of proposals received in response to solicitations and whether prices charged represent best value. ...