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Are My Services Actually in Demand?

  • 5 days ago
  • 4 min read
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Let me tell you something most consultants won't admit: not every business is in high demand with government agencies. I learned this lesson personally. After 20 years in procurement and supply chain management, I started Total Optim Solutions because that's my area of expertise. It's what I know. It's what I'm good at. I figured if anyone could win government contracts for procurement consulting, it would be someone who spent two decades managing procurement operations.


Here's the reality: my services are not in high demand in the federal government. Why? Because most government agencies already have in-house procurement officers. They have established purchasing departments. They don't need external consultants to do what their own staff already handles.


I even had a procurement officer at a vendor fair tell me to move along from her table because she thought I was there to steal her job. We laugh about it now, but it was a wake-up call

 

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Understanding Your Potential Buyer Matters

If you're considering government contracting because you've heard "there's so much money to be made," I need to be honest with you: government agencies don't just buy anything. They buy what they need, when they need it, in the quantities they need. And some products and services are purchased far more frequently than others.



What Government Actually Buys Most Often

Here are the services and products that consistently appear in government solicitations, along with 2024 competition data:

 

Top 10 Services in Demand:

1. Information Technology Services - Computer Systems Design Services (NAICS 541512) saw 8,683 awards worth $48.8 billion with an average of only 2.64 bidders per opportunity


2. Professional Services - Engineering Services (NAICS 541330) generated 10,180 awards totaling $50.8 billion with just 2.66 bidders on average


3. Research and Development (NAICS 541715) - 8,009 awards worth $40 billion with 7.21 average bidders


4. Administrative and Business Support Services (NAICS 541611) - 6,642 awards valued at $16.1 billion with 2.88 bidders per opportunity


5. Construction Services - Commercial Building Construction (NAICS 236220) had 12,709 awards worth $27.9 billion with 3.52 average bidders


6. Healthcare and Medical Services - Medical, Dental, and Hospital Equipment (PSC 423450) saw 748,097 awards totaling nearly $3 billion with competition averaging 27.26 bidders


7. Professional Support Services (PSC R499) - 50,852 awards worth $58.5 billion with only 3.47 bidders on average


8. Environmental Services (PSC F999) - 1,264 awards valued at $3.4 billion with just 2.36 bidders competing


9. Pharmaceutical Manufacturing (NAICS 325412) - 19,906 awards worth $18.2 billion with low competition at 2.17 bidders


10. Transportation and Logistics - Liquid Propellants and Fuels (PSC 9130) generated 218,399 awards totaling $10.2 billion with 5.04 average bidders

 

Top Products and Materials:

1. Office Supplies and Equipment

2. Information Technology Hardware - Application Development (PSC DA01) had 5,205 awards worth $32.1 billion with only 2.54 bidders

3. Vehicles - Unmanned Aircraft (PSC 1550) saw 297 awards valued at $4.9 billion with 2.56 bidders

4. Medical Equipment and Supplies - Medical equipment category dominates with nearly 750,000 awards

5. Safety Equipment and PPE - Marine Lifesaving and Diving Equipment (PSC 4220) had 16,420 awards worth $5.4 billion with high competition at 27.87 bidders


 

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What This Data Reveals

 

Notice the competition levels. Some categories like IT services and engineering have surprisingly LOW competition (under 3 bidders per opportunity on average), while others like medical equipment see intense competition with 27+ bidders fighting for contracts.


The award potential values are massive. Engineering services alone represent over $50 billion in annual contract value. Computer systems design is nearly $49 billion. These aren't niche markets - they're substantial government spending categories.


If your business provides these products or services, you're likely to find consistent opportunities across federal, state, and local government levels. More importantly, you now know what level of competition to expect.


If You're Not on the List


Contact us to understand straightforward data about demand for your specific products or services in the government marketplace, so you can decide if this channel deserves your time and investment.


Because the worst thing we could do is waste your time pursuing opportunities that simply aren't there - or fail to show you the massive opportunities that are.


We'll help you understand:

  • How frequently opportunities in your industry actually appear in government contracting

  • What the average competition looks like when they do appear

  • Whether you're competitive for those opportunities given the bidding landscape

  • If modifications to your service offerings could increase your opportunity pool

  • Whether teaming or subcontracting relationships might be a better entry strategy

  • Alternative growth channels that might be more profitable for your business model


The Bottom Line


Government contracting can be incredibly lucrative for businesses providing in-demand products and services. But demand varies significantly by industry, and not every business will find consistent opportunities worth pursuing.

I learned this through my own experience. Understanding where demand actually exists, and what competition looks like saved me from wasting time on strategies that wouldn't yield results. When opportunities present themselves, I make sure I'm ready to respond.



Ready to Know Where You Stand?


Don't spend another month guessing whether government contracting makes sense for your business. Get a data-driven assessment of your market opportunity.


Here's what to do next:


  • Schedule a Discovery Call - We'll analyze your NAICS codes and product/service categories against current government solicitation data to show you exactly how much opportunity exists and what competition you'd face.


  • Receive an Honest Recommendation - Whether the answer is "yes, there's strong demand," "opportunities exist but they're highly competitive," or "your time would be better spent elsewhere," you'll have clarity to make the right strategic choice.


Sometimes the answer is yes, there's strong demand for what you offer with low competition. Sometimes it's opportunities exist but you'll face 20+ competitors. And sometimes it's your time would be better spent elsewhere.

All three answers are valuable - but you need to know which one applies to YOUR business before investing time and money.


Contact us today for your honest assessment.

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