Federal contracting industry amidst pandemic
Saying that the COVID-19 pandemic wreaked havoc globally may be a bit of an understatement. It has been almost two years since it was first identified, yet countries across the globe are still reeling from its devastating effects.
The staggering consequences of the pandemic propelled the administration to pool its resources to fight back against COVID-19. This drastic movement changed the government contracting landscape, and there are new top healthcare government contractors on the list.
In fact, in the fiscal year 2020, the federal government awarded a record-high $682 billion worth of if government contracts and $28 billion were earmarked to healthcare contracts focused on curbing the effects of COVID-19.
From aiding in the development of the vaccines to supplying special medical supplies for the protection of the healthcare providers, the administration mobilized the services of the government contractors in the pharmaceutical health and human services industry to assist the nation in recovering from the pandemic.
As of writing, this figure is still predicted to continue its upward trajectory. If you are a private sector business leader who wants to enter the healthcare sector, here are the top 10 health care and medical giants to look out for!
Who are top healthcare government contractors?
Address: Irving, TX, United States
2020 Revenue From Federal Contracts: $10 billion
What they do: Sitting on top of our list is one of America’s leading health care industry giants, the McKesson Corp. Founded in 1833 by Charles Olcott and John McKesson, the corporation became the pioneer of America’s wholesale pharmaceutical distribution network. With the devastation of the global pandemic, McKesson Corp became a cornerstone of the nation’s effort to curb the effects of COVID-19.
Aside from being the U.S. government’s primary distributor of COVID-19 vaccines and supply kits, the Texas-based corporation also supplies branded, generic, and over-the-counter medicines to more than 40,000 clients and offers a wide range of high-grade medical devices.
Notable Government Contract: Department of Veterans Affairs appoints McKesson Corporation as the central distributor of COVID-19 vaccines and supply kits.
Last 2019, in support of Operation Warp Speed (OWP), McKesson Corporation was awarded the contract to be the primary distributor of COVID-19 vaccines and other related pharmaceuticals. The federal government then renewed the agreement in 2020 in the nation’s continued effort to battle the pandemic. In addition, the government executed this contract under an existing deal with the corporation, which was awarded in 2016.
The Irving-based health care giant is also one of the federal government’s trusted medical and health care contractors. During the H1N1 outbreak in the U.S. way back in 2009, McKesson was appointed by the government as the primary vaccine distributor.
OWS is an initiative by the U.S. administration that mobilized the services of government contractors to accelerate the development of COVID-19 vaccines, diagnostics, and therapeutics.
Address: Phoenix, AZ, United States
2020 Revenue From Federal Contracts: $8.9 billion
What they do: Established in 1996, the TriWest Healthcare Alliance is a health and human services provider of the military and Veteran communities. Working closely with the Department of Veterans Affairs, TriWest has become a household name as the primary care administrator of Community Care programs in select regions nationwide.
Notable Government Contract: Department of Veterans Affairs TriWest the Community Care Network Region 5 – Alaska Contract
Several healthcare contracts have been awarded to the corporation ever since.
In the fiscal year 2020, TriWest Healthcare Alliance Corp. won a $5 billion government contract from the Department of Veteran Affairs to establish and manage an extensive network of healthcare providers and practitioners in Alaska. In other words, TriWest will be acting as a third-party administrator of the federal government. The company will be in charge of delivering exceptional medical services to its constituents, collecting data and performance metrics to refine their services further, and lastly, granting and processing claims.
TriWest was also awarded the Community Care Network Region 4 Contract, a $26 billion worth of government contract in 2019 with the same purpose as the one stated above.
3. Humana Inc.
Address: Louisville, KY, United States
2020 Revenue From Federal Contracts: $6.9 billion
What they do: Humana Inc. is the top-rated healthcare and insurance services provider based in Kentucky. Founded by David A. Jones, Sr. and Wendell Cherry in 1961, which was then known as Extendicare, the corporation quickly became one of the largest nursing homes in the United States.
In 1974, the company decided to rebrand to Humana Inc., then shifted its focus on acquiring hospitals instead of nursing homes. When America’s healthcare landscape started to change in the 1980s, Humana finally entered the health insurance industry. And since then, the corporation continued to grow steadily into the company we know now.
Notable Government Contract: $3.8B Tricare Managed Service Contract Extension by the Defense Health Agency
In 2016, the Defense Health Agency enlisted the services of Humana and Health Net to administer the Tricare Progam, which focuses on providing healthcare and support services to the military and their families. Originally valued at $67.4 million in base value with a potential ceiling value of $40.5 billion, the contract was extended until 2018, granting Humana a $3.8 billion worth of government contract.
Address: Saint Louis, MO, United States
2020 Revenue From Federal Contracts: $3.1 billion
What they do: Centene is the leading Medicaid managed care company in America that assists in government-sponsored and even commercial healthcare programs. In addition, the corporation also conducts education and outreach programs that focus on teaching its target population about accessible and healthcare and insurance services.
Notable Government Contract: Statewide Medicaid Contract And Statewide Specialty Children’s Plan Contract In Oklahoma
Early this year, Centene’s Oklahoma subsidiary, Oklahoma Complete Health, was awarded by the Oklahoma Health Care Authority (OHCA) with statewide contracts to administer managed care services to the government agency’s programs, SoonerSelect and SoonerSelect Specialty Children’s Plan (SCP).
SoonerSelect is a state and federal government-funded Medicaid program that is solely administered in the state of Oklahoma.
Address: Chesterbrook, PA, United States
2020 Revenue From Federal Contracts: $2.1 billion
What they do: AmerisourceBergen Corp is a globally-renowned pharmaceutical company that offers innovative programs and solutions to its diverse network of clientele. AmerisourceBergen makes quality pharmaceuticals more accessible to healthcare providers and drug manufacturers by providing a wide range of services: from drug distribution to consulting services.
The Pennsylvania pharmaceutical giant has a rich history that brought the company to where it is today. In 1871, Lucien Napoleon Brunswig began his journey as the leading drug wholesaler in the industry, then established The Brunswig Drug Company in 1907 after a series of partnerships. Then in 1969, the company renames to Bergen Brunswig after the Bergen Drug Company successfully acquired Brunswig’s enterprise.
After 32 great years, AmeriSource Health Corporation announced its merger with the Bergen Brunswig Corporation in 2001. Together, the company was now known as AmerisourceBergen Corp.
Notable Government Contract: AmerisourceBergen harnesses its global network to deliver COVID-19 vaccines to more than 30 countries
Made in partnership with various government agencies, AmerisourceBergen continues its mission to supply international customers with the much-needed COVID-19 vaccines worldwide.
In 2020, Innomar Strategies, part of AmerisourceBergen, offers their services to the Canadian government to distribute COVID-19 vaccines across the nation as swiftly as possible.
Address: Kenilworth, NJ, United States
2020 Revenue From Federal Contracts: $1.8 billion
What they do: Established in 1891 by George Merck, Merck & Co. Inc is an American multinational company that strives to be at the forefront of research to protect the people and even animals from threatening diseases such as COVID-19, cancer, HIV, Ebola, and more. Specifically, this healthcare industry giant provides health and medical services through its innovation of vaccines, prescription drugs, biologic therapies, and animal health products.
Notable Government Contract: $1.2B CARES Act funds for Antiviral Therapy
Merck & Co. Inc was granted a one-year $1.2 billion contract to distribute nearly 1.7 million treatment courses of Molnupiravir under the Coronavirus Aid, Relief and Economic Security Act or CARES Act last June 2021.
Molnupiravir (MK-448) is an investigational oral antiviral pill against COVID-19, jointly developed by Merck & Co. Inc and Ridgeback Biotherapeutics. Currently, the drug is in its final stages of development, and it exhibited promising results in drastically reducing the risk of hospitalization and even death. If this continues to succeed, the administration will file a series of contracts soon.
Address: Middlesex, United Kingdom
2020 Revenue From Federal Contracts: $1.2 billion
What they do: GlaxoSmithKline PLC (GSK) is a globally renowned multinational healthcare and pharmaceutical company headquartered in the United Kingdom. The research-based corporation operates on two fronts: pharmaceutical and vaccines.
From manufacturing prescription and over-the-counter medicines to developing vaccines, GSK is one of the health care industry leaders, especially during this pandemic where contractors in the medical industry are all dedicating their resources to safeguarding the health and welfare of humanity.
Notable Government Contract: $2.1B to Advance Sanofi-GSK Team’s COVID-19 Vaccine
Last 2020, the federal government has awarded GSK and Sanofi $2.1 billion worth of funding to speed up the companies’ development of a potential COVID-19 m-RNA-based vaccine. And this May 2021, Sanofi and GSK have announced that their joint venture effort to develop a COVID-19 vaccine has shown promising results during their Phase 2 trial.
8. Moderna Inc.
Address: Cambridge, MA, United States
2020 Revenue From Federal Contracts: $2.2 billion
What they do: Established in 2010, Moderna is a pharmaceutical and biotechnology company that focuses on RNA therapeutics, particularly the development of mRNA vaccines.
Although the Massachusetts-based company has never released a commercial product before, Moderna successfully made its world debut and has become the frontrunner in the biotechnology industry with its mRNA-based vaccine of the same name.
For the last decade, Moderna has dedicated its resources to the development and research of RNA therapeutics. The enterprise may be considered young compared to other industry giants. But Moderna’s expertise will continue to bolster their company as society enters into a post-pandemic era.
Notable Government Contract: $3.3B Army Contract Modification to Supply Additional 200M COVID-19 Vaccine Doses
Aside from being contracted by the federal government to deliver 100 million doses of Moderna vaccines last August 2020, the U.S. Army has granted another $3.3 billion contract to the biotechnology company for additional 200 million doses. In addition, this contract also lets the government procure other COVID-19 vaccine candidates from Moderna.
As of writing, the U.S. government has ordered 500 million doses of Moderna vaccines.
9. Pfizer Inc.
Address: New York, NY, United States
2020 Revenue From Federal Contracts: $1.1 billion
What they do: Pfizer Inc. is the world’s premier biopharmaceutical company with networks spanning all across the globe.
This New York-based global corporation is a household name in the health care and medical industry as its leading developer, manufacturer, and distributor of a wide range of biopharmaceutical products, specifically medicines and vaccines.
In the race to develop vaccines against COVID-19, Pfizer, a multinational company, goes into a neck-to-neck face-off with the emerging biopharmaceutical company Moderna Inc. Both companies produced a novel vaccine technology called messenger RNA or mRNA for short. According to the Centers for Disease Control and Prevention, mRNA is a medical innovation that protects the injected person by teaching the cells to make a specific type of protein that will trigger an immune response inside the body.
Notable Government Contract: The departments of departments of Health and Human Services and Defense awards $3.65B in COVID-19 Vaccine Deals With Pfizer-BioNTech
The Department of Health and Human Services and the Department of Defense have awarded another $3.65 billion government contracts to the said companies last February 2021 for the government’s next wave of vaccine procurement. According to the contract, the $3.65 billion worth of contract will be divided between the two companies: $2 billion for Pfizer-BioNTech and $1.65 billion for Moderna.
Last July 2020, the two government agencies also awarded a $1.95B government contract to the Pfizer-BioNTech partnership to support the joint venture’s development of the mRNA-based vaccine that we know of today.
Address: Stevensville, MD, United States
2020 Revenue From Federal Contracts: $1.5 billion
What they do: Established in 1986, Federal Resources has become one of the leading providers of mission-critical solutions to the military and first responders. Although this corporation primarily deals with the procurement of supplies of military personnel, Federal Resources has now been at the forefront of the government’s extensive network of medical equipment acquisition contractors.
Notable Government Contract: DoD Selects Federal Resources for $134M Personal Protective Equipment Supply Contract
In May 2020, The Department of Defense awarded a $134 million government contract to the Federal Resources Supply Company to procure Personal Protective Equipment (PPE) kits to more than 15,000 nursing homes nationwide.
As you can see, the COVID-19 pandemic has dramatically affected the nation on all fronts. Compared to before, the majority of healthcare services giants in this list are all leading the fight against the pandemic.
Moderna, who has not yet produced any commercial products before the pandemic, has suddenly risen to our eighth spot as America’s biggest health care and medical government contractor. The Federal Resources Supply Company who primarily deals in providing tactical supplies to the military and first responders, also got their shot in sealing a medical equipment procurement deal from the federal government.
Living in a time where things have become unpredictable, being flexible, resourceful, and insightful can help you and your business make a name in the government contracting industry.
Who can be a government contractor?
Although it may seem intimidating at first, you only have to familiarize yourself with the federal procurement data system process. Once you have nailed down the basics, things will start to sail smoothly.
The federal administration has enforced a strict registration process to aspiring government contractors to ensure that only the contractors dedicated to delivering quality service can make it to the list.
Furthermore, this will guarantee full transparency to the public since the funding from awarded contracts is all sourced from the taxpayer’s money.
How to register your business
As we have said earlier, registering your business as a government contractor is a tedious process. Several companies aspire to win contracts every year, so the U.S. administration must be meticulous in the process.
Here are the requirements you will need to prepare beforehand:
- State and Federal Tax ID
- DUNS Number
- NAICS Code
- Confirm business size
- Sign up at System for Awards Management (SAM)
- Complete your SBA profile
For a more detailed step-by-step guide on how you can apply as a government contractor, check out this article.
How to start winning government contracts from government agencies?
After you have completed all the requirements to be part of America’s league of contractors, it is now time to let the federal departments know about your products and services! To help you get started, here is a quick guide on how you can prepare your business for success!
1. Know the relevant federal government organizations that can help you out
If you are a small business owner, the U.S. Small Business Administration (SBA) can help you out! The SBA is a government-recognized organization that aims to protect the rights of small businesses, especially to women-owned businesses, small disadvantaged businesses, and businesses located in Historically Underutilized Business Zones or HUBZones!
2. Look up your competitors in health and human services
These health care and medical giants may not be the direct competitors you have in mind initially, but having the initiative to know how they managed to rank high means that you are on the right track! Knowing about these industry leaders can give you inspiration on how to grow and manage your business.
Furthermore, looking up your competitors’ profile and achievements is easier too. Thanks to these free online tools, you can research your competitors and even government agencies who are likely to hire you as well!
3. Establish and engage with your network
The government contracting industry is indeed a highly-competitive field. Although you might have mounted efforts to advertise your business to potential federal agencies through other channels, using word-of-mouth will put you at an advantage.
Networking with key decision leaders is a great way to give your business a chance to win government contracts. But finding these VIPs in the wild can be challenging, so you have to plan out your calendar and attend conferences. Joining conferences allows you to connect with your target client, engage with a diverse set of individuals who can offer you valuable insights and knowledge, and network with other companies for future project collaborations.
To know more about networking, whether during face-to-face events or virtual conferences, read this article here.
4. Be updated on the current market trends
There will always be a federal department that will need the services of the contractors. But, being comfortable with that thought alone shouldn’t be enough. Always be proactive in researching your competing companies and the demands of your target customers.
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