Federal contract market · NAICS 339112
Surgical and Medical Instrument Manufacturing (NAICS 339112): Federal Contract Market
Data through 2026-08-24 · FY2026 to date
- Obligations, FY2026 to date
- $871M
- Contract awards
- 9,196
- Average award size
- $94.7K
- vs. prior full fiscal year
- 45.9% decline
| Item | Obligations |
|---|---|
| FY21 | $2.3B |
| FY22 | $1.1B |
| FY23 | $1.5B |
| FY24 | $2B |
| FY25 | $1.6B |
| FY26 | $871M |
Obligations fell 45.9% year over year, from $1.6B in FY2025 to $871M in FY2026 to date.
The Surgical and Medical Instrument Manufacturing sector (NAICS 339112) has seen $871M in federal contract obligations in FY2026 to date. The sector recorded 9,196 awards and an average award size of $94.7K. Obligations are down 45.9% year over year. Fiscal-year history shows larger past totals, including $2.3B in FY21, $1.1B in FY22, $1.5B in FY23, $2B in FY24, and $1.6B in FY25. The Department of Veterans Affairs is the dominant buyer in the current year, obligated $740M. The Department of Defense obligated $59M and the Department of Health and Human Services obligated $50.9M in FY2026 to date. SDV OFFICE SYSTEMS LLC is the largest vendor so far, obligated $144M, followed by FIRST NATION GROUP LLC at $97.6M and OLYMPUS AMERICA INC at $80.9M. This mix of high dependence on one agency and a concentrated set of top vendors frames near-term competition and program risk for contractors working in NAICS 339112.
How has federal spending trended for NAICS 339112?
The sector obligated $871M in FY2026 to date, down 45.9% year over year. Fiscal-year obligations peaked at $2.3B in FY21 and have since fluctuated: $1.1B in FY22, $1.5B in FY23, $2B in FY24, and $1.6B in FY25. The current-year total is partial because fiscal year to date figures are incomplete.
| Item | Obligations |
|---|---|
| Department of Veterans Affairs | $740M |
| Department of Defense | $59M |
| Department of Health and Human Services | $50.9M |
| Department of Justice | $16.3M |
| Department of Homeland Security | $1.5M |
| Department of the Interior | $1.3M |
| General Services Administration | $780K |
| Department of Labor | $317K |
| Department of Agriculture | $201K |
| Department of Commerce | $137K |
Department of Veterans Affairs was the top buyer, obligating $740M (85.0% of all obligations).
Who drives demand and which contractors capture the most business?
The Department of Veterans Affairs is the largest buyer, obligated $740M in FY2026 to date. The Department of Defense obligated $59M and the Department of Health and Human Services obligated $50.9M. SDV OFFICE SYSTEMS LLC, FIRST NATION GROUP LLC, and OLYMPUS AMERICA INC are the top three vendors, obligated $144M, $97.6M, and $80.9M respectively.
| Item | Obligations |
|---|---|
| SDV OFFICE SYSTEMS LLC | $144M |
| FIRST NATION GROUP LLC | $97.6M |
| OLYMPUS AMERICA INC | $80.9M |
| MEDICAL PLACE INC | $68.6M |
| MEDLINE INDUSTRIES, LP | $37.8M |
| SCRIPTPRO USA INC | $31.9M |
| OMNICELL, INC. | $25.5M |
| TRILLAMED LLC | $25.2M |
| L1 ENTERPRISES INCORPORATED | $20.9M |
| WELCH ALLYN, INC. | $15.1M |
SDV OFFICE SYSTEMS LLC led all vendors with $144M in obligations, 16.6% of the market.
| Rank | Vendor | Obligations |
|---|---|---|
| 1 | SDV OFFICE SYSTEMS LLC | $144M |
| 2 | FIRST NATION GROUP LLC | $97.6M |
| 3 | OLYMPUS AMERICA INC | $80.9M |
| 4 | MEDICAL PLACE INC | $68.6M |
| 5 | MEDLINE INDUSTRIES, LP | $37.8M |
| 6 | SCRIPTPRO USA INC | $31.9M |
| 7 | OMNICELL, INC. | $25.5M |
| 8 | TRILLAMED LLC | $25.2M |
| 9 | L1 ENTERPRISES INCORPORATED | $20.9M |
| 10 | WELCH ALLYN, INC. | $15.1M |
| Rank | Recipient | Award Amount | Awarding Agency |
|---|---|---|---|
| 1 | STRING KING LACROSSE LLC | $95.9M | Department of Health and Human Services |
| 2 | SDV OFFICE SYSTEMS LLC | $32.1M | Department of Veterans Affairs |
| 3 | FIRST NATION GROUP LLC | $17.7M | Department of Veterans Affairs |
| 4 | MEDICAL PLACE INC | $17.2M | Department of Veterans Affairs |
| 5 | SCRIPTPRO USA INC | $16M | Department of Defense |
| 6 | AVON PROTECTION SYSTEMS INCORPORATED | $15.1M | Department of Defense |
| 7 | FIRST NATION GROUP LLC | $15M | Department of Veterans Affairs |
| 8 | AVON PROTECTION SYSTEMS INCORPORATED | $14.1M | Department of Defense |
| 9 | FIRST NATION GROUP LLC | $13M | Department of Veterans Affairs |
| 10 | FIRST NATION GROUP LLC | $10.6M | Department of Veterans Affairs |
| 11 | SDV OFFICE SYSTEMS LLC | $10.1M | Department of Veterans Affairs |
| 12 | FIRST NATION GROUP LLC | $9.1M | Department of Veterans Affairs |
| 13 | MEDLINE INDUSTRIES, LP | $9M | Department of Health and Human Services |
| 14 | MEDICAL PLACE INC | $8.8M | Department of Veterans Affairs |
| 15 | MEDICAL PLACE INC | $8.7M | Department of Veterans Affairs |
| 16 | KARL STORZ ENDOSCOPY-AMERICA INC | $8.5M | Department of Veterans Affairs |
| 17 | FIRST NATION GROUP LLC | $7.8M | Department of Veterans Affairs |
| 18 | MEDICAL PLACE INC | $7.6M | Department of Veterans Affairs |
| 19 | OLYMPUS AMERICA INC | $7.5M | Department of Veterans Affairs |
| 20 | OLYMPUS AMERICA INC | $7.3M | Department of Veterans Affairs |
| 21 | FIRST NATION GROUP LLC | $7.1M | Department of Veterans Affairs |
| 22 | VARIAN MEDICAL SYSTEMS, INC | $6.9M | Department of Defense |
| 23 | SDV OFFICE SYSTEMS LLC | $6.6M | Department of Veterans Affairs |
| 24 | SDV OFFICE SYSTEMS LLC | $6.4M | Department of Veterans Affairs |
| 25 | OMNICELL, INC. | $6.4M | Department of Veterans Affairs |
| Rank | Contract | Incumbent | Award Value | Awarding Agency | Ends |
|---|---|---|---|---|---|
| 1 | W911SR26FA038 | AVON PROTECTION SYSTEMS INCORPORATED | $14.1M | Department of Defense | 2027-05-11 |
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Frequently asked questions
How much does the federal government spend on NAICS 339112?
The federal government obligated $871M on NAICS 339112 in FY2026 to date. The sector recorded 9,196 awards and an average award size of $94.7K, and obligations are down 45.9% year over year. Historical fiscal-year obligations were $2.3B in FY21, $1.1B in FY22, $1.5B in FY23, $2B in FY24, and $1.6B in FY25.
Which agencies buy the most NAICS 339112 services?
The Department of Veterans Affairs is the largest buyer of NAICS 339112 services, obligated $740M in FY2026 to date. The Department of Defense obligated $59M and the Department of Health and Human Services obligated $50.9M, followed by the Department of Justice at $16.3M and other agencies with smaller totals.
Who are the largest NAICS 339112 government contractors?
SDV OFFICE SYSTEMS LLC is the largest NAICS 339112 government contractor, obligated $144M in FY2026 to date. FIRST NATION GROUP LLC is second at $97.6M, and OLYMPUS AMERICA INC is third at $80.9M; MEDICAL PLACE INC, MEDLINE INDUSTRIES, LP, and others follow with smaller obligations.
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