The civilian agency supplier base continued to shrink in fiscal 2025 as counts of small and other-than-small businesses hit their lowest levels since at least fiscal 2010.
The diminishing supplier base signals less competition — and potentially hurdles for innovation — amid administration efforts to cut government spending and streamline contracting. Agencies will look to prioritize commercial solutions for modernizing key health, energy, and transportation infrastructure.
The count of small businesses dropped 4% to 51,632 in fiscal 2025 — the 14th year-over-year decline in the last fifteen years, according to Bloomberg Government analysis. The group of companies categorized as other ...