$74B in Healthcare Staffing Awards

Unlocking the Opportunity in Federal Healthcare Staffing Contracts

The U.S. government has committed over $74 billion to healthcare staffing contracts through the Department of Veterans Affairs (VA), the Defense Health Agency (DHA), and the Department of Defense (DoD). With 23% of these funds set aside for small businesses, the real play is subcontracting under the awarded primes—not chasing prime contracts directly.

The smartest move for small and midsize businesses is to align with these primes, who already hold the contracts and need qualified subcontractors to execute them. This is where the opportunity is. Businesses that position themselves effectively as reliable partners will gain the most.

Success in this space requires strategy, positioning, and execution. Understanding the landscape, identifying key entry points, and engaging with the most active primes is the key to securing work. A well-defined roadmap ensures businesses maximize these opportunities and build sustainable growth.

VA Integrated Critical Staffing Program (ICSP) – $23 Billion

• Contract Overview: 10-year Indefinite Delivery/Indefinite Quantity (IDIQ) contract.

• Opportunity: VA relies on contractors to address staffing shortages across its hospitals and clinics.

• Awarded Primes:

  • Arrow Arc LLC

  • Aspire-Luke JV LLC

  • Blue Water Thinking LLC

  • North American United Healthcare Services JV LLC

  • Prometheus Federal Services LLC

  • Titan-Auxo LLC

  • Veteran First Technologies LLC

  • Wellpath Medical LLC

• Strategic Approach: These primes need reliable partners to fulfill their set-aside obligations. Identifying where they have gaps and how to position effectively is critical to success.

DHA Medical Q-Coded Support & Services-Next Generation (MQS2-NG) – $43 Billion

• Contract Overview: 10-year IDIQ contract for medical staffing support services.

• Opportunity: Supports healthcare staffing at U.S. military healthcare facilities.

• Awarded Primes:

  • Decypher Health Services

  • Epic Government (Federal Staffing Resources)

  • KBR

  • Loyal Source Government Services

  • Luke & Associates

  • Matrix Providers

  • OptumServe Health Services

  • Spectrum Healthcare Resources

  • The Arora Group

  • U.S. Got People

  • Vesa Health & Technology

• Strategic Approach: Aligning with the right primes requires insight into their past performance, contract vehicles, and current staffing needs. A targeted approach is essential.

DoD/DHA Military Hospital Staffing – $7.5 Billion

• Contract Overview: IDIQ contract for military hospital staffing needs.

• Opportunity: Provides medical professionals across military treatment facilities.

• Known Awarded Primes:

  • Loyal Source Government Services

  • Spectrum Healthcare Resources

  • Matrix Providers

• Strategic Approach: These primes serve a highly specialized sector. Understanding their contract structures and where subcontractors fit in is key to engaging effectively.

Positioning for Success

• Focus on Subcontracting: The real opportunity is working under the primes that control these contracts—not trying to compete with them.

• Strategic Entry Points: Knowing which primes are the most active, where they have gaps, and how to engage with them is crucial.

• Building Credibility: Small businesses that position themselves as capable, compliant, and contract-ready have a distinct advantage.

• Long-Term Growth: Success in subcontracting opens doors to future opportunities, potentially leading to direct awards and prime contracting roles.

The path to success is clear:

subcontract under the primes that already control these contracts. The right strategy will position your business for long-term success in the federal healthcare staffing market.

Interested in taking the next step? Let’s explore how to build a roadmap that aligns with these major opportunities.