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GovTech: Mid-Tier Government Contractors Claim 26.8% of the Market Share in Fiscal Year 2017

April 26, 2018 By admin Leave a Comment

A Bloomberg Government report, The Mid-Tier Market Report: 2018, finds that companies generating between $25 million and $500 million in federal prime revenue, also known as mid-tiers, are continuing to experience a unique position in the federal marketplace. Despite no special procurement set-aside designation, many of the mid-tier companies are developing successful, yet unconventional, strategies to compete against large prime contractors for federal dollars.

The report highlights federal spending trends within the mid-tier market, key drivers that led to growth, and how multiple-award contract competition is impacting performance. Some companies who are winning mid-tier dollars still rely on certain types of small business designations despite their size, while others outgrow their small business size standards and don’t qualify for those set-asides.

“The federal market grew to $512 billion in fiscal 2017 from $478 billion in fiscal 2016 while the mid-tier market share of those dollars has remained relatively steady, between 25 and 28 percent, since fiscal 2013,” said Donald Thomas, vice president and general manager of government contracting at Bloomberg Government. “Despite that growth, our report highlights the challenges that mid-tier firms face on certain government wide vehicles such as Alliant and OASIS, as well as, the fact that mid-tier firms are increasing their reliance on small-business set-asides.”

Some of the key 2018 report findings include:

Federal spending on mid-tier contractors rose from $126 billion to $138 billion
23 percent of federal spending on mid-tier companies was made through small-business set-asides
838 mid-tier companies – (50%) had at least one large division and one small division
For more information on Bloomberg Government or to download the white paper visit https://about.bgov.com/downloads/2018-mid-tier-market-report/.

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