Rising Contract Spending Fails to Lure, Keep Vendors in Market

The number of federal vendors dropped 2% in fiscal 2023, according to Bloomberg Government data, even as agencies spent record amounts on procurement and the White House has touted contracts as a strong growth option for small businesses.

A 28.2% drop in the number of contractors over a decade led to a total of 89,523 active federal suppliers in fiscal 2023.

Having fewer vendors puts pressure on agencies trying to keep up with technological change and get work done efficiently, securely, on time, and at competitive prices—all while achieving statutory goals for diversity.

The number of small business participants declined ...