What Is the U.S. Department of Veterans Affairs and How It Works

Key Points:

• The U.S. Department of Veterans Affairs (VA) is a cabinet-level agency serving over 9 million veterans through healthcare, benefits, and memorial programs.
• With an annual budget exceeding 325 billion dollars, the VA is one of the largest federal buyers, awarding more than 30 billion dollars in contracts each year.
• The VA manages nine specialized Federal Supply Schedules (FSS) for medical and healthcare products, enabling streamlined procurement under FAR Subpart 8.4.
• Small and veteran-owned businesses benefit from exclusive opportunities through programs like Veterans First and SDVOSB set-asides, promoting inclusion and growth in federal contracting.

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• VA by the Numbers
• Structure of the Department
• What the VA Buys: Procurement and Federal Contracting
• VA Schedule Contracts (FSS Contracts)
• Contracting Opportunities for Small and Veteran-Owned Businesses
• How to Do Business with the VA
• Why Selling to the VA Matters
• Partnering with the VA Through Compliance and Expertise
• Frequently Asked Questions About the U.S. Department of Veterans Affairs

The U.S. Department of Veterans Affairs (VA) is a cabinet-level federal agency dedicated to serving America’s veterans, their families, and survivors. Its mission is to provide healthcare, benefits, and memorial services to those who served in the nation’s armed forces.

Created in 1930 as the Veterans Administration and elevated to department status in 1989, the VA ensures that veterans’ needs receive attention at the highest levels of government. Today, it stands among the largest federal agencies in both budget and workforce, overseeing hundreds of hospitals, clinics, and national cemeteries across the country.

Through its programs and services, the VA fulfills a promise to support those who defended the United States – delivering care, opportunity, and lasting recognition for their service.

VA by the Numbers

The Department of Veterans Affairs is one of the largest and most complex organizations in the U.S. federal system. Its operations span healthcare, benefits, education, and memorial services – all supported by one of the government’s biggest budgets and workforces.

In Fiscal Year 2025, the VA continues to expand its reach and impact across the country:

• Budget: Approximately $325 billion, representing about 5 percent of total federal spending.
• Workforce: Around 480,000 federal employees, or nearly one-fifth of the entire civilian federal workforce.
• Facilities: A nationwide network of more than 1,300 healthcare facilities, including over 170 VA hospitals, 1,100 outpatient clinics, and 155 national cemeteries.
• Veterans served: More than 9 million enrolled veterans receiving healthcare, disability compensation, pensions, education support, and other essential benefits.

These figures highlight the VA’s scale and significance within the federal structure. Each year, the Department not only provides direct medical and financial assistance but also drives research, innovation, and modernization in veteran care – reaffirming its mission to serve those who served the nation.

Structure of the Department

The Department of Veterans Affairs is organized into three major administrations, each focused on a distinct aspect of veteran support. Together, they form a unified system that delivers healthcare, benefits, and memorial services to millions of veterans and their families.

Administration	Core Function	Key Responsibilities
Veterans Health Administration (VHA)	Healthcare services	Operates the largest integrated healthcare system in the United States, providing hospital and outpatient care, mental health programs, rehabilitation, and telehealth services across more than 1,300 facilities.
Veterans Benefits Administration (VBA)	Financial and educational benefits	Administers programs for disability compensation, pensions, education assistance (GI Bill), vocational rehabilitation, home loans, and life insurance.
National Cemetery Administration (NCA)	Memorial and burial benefits	Maintains national cemeteries and provides burial and memorial services to honor the service and sacrifice of veterans and eligible family members.

These three branches work in close coordination to fulfill the VA’s mission of lifelong service to veterans. A veteran may receive healthcare through the VHA, financial or educational assistance through the VBA, and ultimately be honored by the NCA – forming a complete cycle of support from service to remembrance. This integrated structure allows the VA to address the medical, financial, and emotional needs of veterans with consistency, dignity, and respect.

What the VA Buys: Procurement and Federal Contracting

The Department of Veterans Affairs is one of the largest procurement agencies in the federal government. Each year, the VA awards more than 30 billion dollars in contracts to private companies that supply products and services essential for its hospitals, clinics, and administrative operations.

The VA’s procurement needs reflect the wide range of its mission. From advanced medical technologies to information systems and facility maintenance, the Department relies on thousands of vendors that help deliver care and support to veterans across the country.

Main categories of VA purchases include:

• Medical and dental equipment: Imaging systems, surgical instruments, dental chairs, diagnostic devices, and related supplies used across the VA healthcare network.
• Pharmaceuticals and laboratory supplies: Medications, vaccines, reagents, test kits, and laboratory instruments that support patient care and diagnostics.
• Professional and allied healthcare staffing: Physicians, nurses, therapists, and laboratory specialists working in VA hospitals and outpatient centers.
• IT systems and infrastructure support: Electronic health record modernization, cybersecurity, data management, and telehealth platforms that connect veterans with medical services.
• Facility management and logistics: Building maintenance, transportation, food services, and other operational support that ensures all facilities run efficiently.

All VA procurement activities are conducted through structured and transparent federal processes. Most acquisitions fall under the Federal Supply Schedule (FSS) Program, which provides pre-negotiated contracts with approved vendors. While the General Services Administration (GSA) manages the overall FSS framework, the VA directly oversees the medical-related schedules to ensure that healthcare products and services meet its operational requirements.

This cooperation between the VA and GSA allows the government to buy faster, maintain consistent pricing, and ensure reliable supply chains, helping the Department deliver timely and high-quality care to the nation’s veterans.

VA Schedule Contracts (FSS Contracts)

The Department of Veterans Affairs manages a dedicated branch of the Federal Supply Schedule (FSS) Program, focused on healthcare-related products and services. These VA Schedule Contracts operate under FAR Subpart 8.4, which establishes streamlined acquisition procedures for federal buyers.

While the General Services Administration (GSA) oversees most FSS contracts, the VA is responsible for nine specialized schedules covering medical, dental, and laboratory categories, as well as professional healthcare staffing. This structure allows the VA to negotiate directly with suppliers that meet strict medical and performance standards.

Key features of VA Schedule Contracts include:

• Pre-negotiated pricing and terms that give federal buyers confidence in fair and consistent rates.
• Streamlined ordering procedures that reduce administrative time and accelerate delivery of critical medical products.
• Eligibility for multiple buyers, including federal agencies and certain state or local organizations involved in healthcare or disaster response.
• Ongoing compliance requirements, including regular sales reporting, maintenance of approved pricing, and adherence to contract performance standards.
• Minimum sales thresholds that contractors must meet to keep their contracts active and in good standing.

The following table summarizes the nine primary VA Schedules and their focus areas:

VA Schedule	Focus Area	Description
65 I B	Pharmaceuticals and Drugs	Medications, vaccines, and pharmaceutical products.
65 II A	Medical Equipment and Supplies	Surgical, diagnostic, and patient care equipment.
65 II C	Dental Equipment and Supplies	Dental instruments, chairs, and related materials.
65 II F	Patient Mobility Devices	Wheelchairs, scooters, and other mobility aids.
65 V A	X-Ray Equipment and Supplies	Imaging systems and radiographic accessories.
65 VII	In Vitro Diagnostics and Test Kits	Reagents, test kits, and laboratory diagnostic tools.
66 III	Clinical Analyzers and Laboratory Cost-Per-Test	Laboratory testing and analysis systems.
621 I	Professional and Allied Healthcare Staffing Services	Medical and allied health professionals for temporary or contract positions.
621 II	Medical Laboratory Testing and Analysis Services	Laboratory and diagnostic testing services for VA facilities.

Through these schedules, the VA ensures consistent access to high-quality medical products and services while simplifying the procurement process for government buyers. For contractors, participation in the VA FSS Program provides long-term access to one of the most stable and high-volume markets in the federal sector.

Contracting Opportunities for Small and Veteran-Owned Businesses

The Department of Veterans Affairs actively supports small businesses, especially those owned by veterans and service-disabled veterans. Through its dedicated programs, the VA ensures that qualified small firms have fair access to federal contracting opportunities and can compete effectively within the government marketplace.

A cornerstone of this effort is the Veterans First Contracting Program, managed by the VA Office of Small and Disadvantaged Business Utilization (OSDBU). This initiative gives priority to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs) when awarding VA contracts. It is the only federal program that mandates such a strong preference, reflecting the Department’s commitment to empowering veteran entrepreneurs.

Participation in these programs requires formal verification through VetCert, the VA’s modern certification platform that replaced the earlier CVE verification process. Once approved, SDVOSB and VOSB firms become eligible for exclusive set-aside contracts and sole-source awards, giving them a distinct competitive advantage in bidding for VA opportunities.

Each fiscal year, the VA sets ambitious small business contracting goals and consistently exceeds them. In Fiscal Year 2024, more than 23 percent of total contract awards were directed to service-disabled veteran-owned businesses, reaffirming the Department’s leadership in promoting veteran participation in federal procurement.

This focus on inclusion has fueled steady growth in veteran entrepreneurship. Thousands of former service members now operate government contracting firms that provide everything from healthcare staffing to IT modernization and logistics services. By working with the VA, these businesses not only contribute to national goals but also continue their service to fellow veterans through innovation and reliable support.

How to Do Business with the VA

Working with the Department of Veterans Affairs opens the door to one of the largest and most stable segments of the federal marketplace. However, success requires careful preparation, strict compliance, and an understanding of how the VA’s acquisition process operates under the Federal Supply Schedule framework.

Below is a step-by-step outline for businesses that want to enter the VA contracting arena:

1. Register in SAM.gov. Every federal contractor must be registered in the System for Award Management (SAM.gov). During registration, your company receives a Unique Entity Identifier (UEI), which replaces the former DUNS number and is required for all government transactions.
2. Complete the Pathways to Success training. Before submitting an offer, prospective contractors should complete the GSA Pathways to Success online training. This program helps businesses understand the federal procurement environment, contract requirements, and long-term responsibilities under the FSS program.
3. Review open solicitations and VA FSS opportunities. Identify opportunities that match your company’s products or services by reviewing current VA National Acquisition Center (NAC) solicitations. Each VA Schedule has its own solicitation number and scope, so selecting the right one is essential before submitting an offer.
4. Submit your offer under FAR Subpart 8.4 procedures. The VA uses the Federal Acquisition Regulation (FAR) Subpart 8.4 to manage FSS procurements. Your offer must include detailed pricing, commercial sales practices, past performance documentation, and relevant technical information. Submissions are reviewed by VA contracting officers to ensure compliance and fair pricing.
5. Maintain compliance after award. Once awarded a VA Schedule Contract, contractors must adhere to ongoing reporting and administrative requirements. These include submitting sales reports, paying the Industrial Funding Fee (IFF), maintaining accurate pricing, and responding to modification or audit requests promptly.

The entire contract review and approval process may take between 12 and 24 months, depending on the complexity of the offer and the VA’s evaluation schedule. Many businesses choose to work with experienced federal contracting consultants to simplify this process, avoid delays, and improve their chances of success.

Specialized firms such as Price Reporter assist contractors with proposal preparation, pricing strategy, and compliance management, helping vendors navigate the VA’s requirements efficiently and position their business for long-term success in the federal market.

Why Selling to the VA Matters

The Department of Veterans Affairs is not only a vital federal agency but also one of the most reliable and strategic customers in the U.S. government marketplace. For contractors, selling to the VA means working with an organization that has a continuous demand for essential products and services, long-term funding stability, and a strong commitment to innovation.

The VA’s purchasing priorities create consistent opportunities across multiple industries. Its vast healthcare network, national facilities, and technology-driven systems require constant investment and modernization. As a result, the Department depends on trusted private-sector partners to deliver solutions that improve care, streamline operations, and enhance efficiency.

Why doing business with the VA makes sense:

• Consistent demand: The VA requires a steady flow of medical supplies, pharmaceuticals, diagnostic equipment, and professional healthcare staffing to support millions of veterans each year.
• High-value contracts: Many VA procurements are multi-year agreements that provide predictable revenue and a strong foothold in the federal marketplace.
• Technology modernization: The VA is leading several major modernization initiatives, including upgrades to electronic health record (EHR) systems, expanded telehealth services, and improved cybersecurity infrastructure to protect patient data.
• Innovation in care delivery: The agency invests in advanced analytics, artificial intelligence, and connected medical devices that enable faster and more accurate diagnoses.
• Long-term stability: As a mission-driven organization with guaranteed annual funding, the VA remains a consistent and dependable buyer even during economic fluctuations.

For contractors, these factors translate into lasting growth potential and the opportunity to contribute directly to programs that improve veterans’ lives. By aligning with the VA’s modernization goals and maintaining compliance with federal standards, businesses can build enduring relationships with one of the government’s most respected and forward-looking agencies.

Partnering with the VA Through Compliance and Expertise

The Department of Veterans Affairs serves a dual purpose: it is both a service-driven institution dedicated to supporting veterans and one of the largest federal buyers in the United States. To succeed in doing business with the VA, companies must understand how the Federal Supply Schedule structure works, meet eligibility requirements, and maintain full compliance with reporting and pricing obligations. Adherence to FAR Subpart 8.4 rules, accurate catalog management, and timely modifications are critical for staying competitive and preserving contract performance.

For many businesses, partnering with experienced consultants is the most effective way to navigate these complex processes. Price Reporter, founded in 2006, has helped more than a thousand contractors obtain, manage, and grow their GSA and VA contracts. With nearly two decades of expertise in federal procurement, Price Reporter provides full-cycle support in proposal preparation, compliance management, and schedule optimization. The company’s proven track record in managing over 1,500 contracts demonstrates its ability to help vendors achieve long-term success and secure lasting partnerships within the federal marketplace.

Frequently Asked Questions About the U.S. Department of Veterans Affairs

What is the main purpose of the Department of Veterans Affairs?

The VA’s primary mission is to serve and support U.S. military veterans, their families, and survivors by providing access to healthcare, education, financial benefits, and memorial services.

When was the Department of Veterans Affairs established?

The VA was originally founded in 1930 as the Veterans Administration and became a cabinet-level department in 1989 to ensure that veterans’ issues received direct representation within the federal government.

How large is the VA today?

The VA operates more than 1,300 healthcare facilities across the country and employs about 480,000 federal workers. Its annual budget exceeds 300 billion dollars, making it one of the largest federal agencies.

What are VA Schedule Contracts?

VA Schedule Contracts, also known as Federal Supply Schedule (FSS) Contracts, are long-term agreements between the VA and approved vendors that allow the government to purchase medical and healthcare products and services at pre-negotiated prices.

How can small or veteran-owned businesses work with the VA?

Businesses can participate through programs such as the Veterans First Contracting Program, which prioritizes Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs). Verified companies gain access to exclusive set-aside and sole-source opportunities.

How long does it take to get a VA Schedule Contract?

The review and approval process typically takes between 12 and 24 months, depending on the contract’s complexity and the VA’s evaluation timeline.

Why should a company consider selling to the VA?

The VA is a stable, high-value federal customer with continuous demand for medical, IT, and facility support solutions. Partnering with the VA offers long-term growth potential and the opportunity to contribute to programs that improve veterans’ lives.

Can Price Reporter help with obtaining a VA Contract?

Yes. Price Reporter provides complete support for businesses entering the federal marketplace. The company assists with proposal preparation, compliance, catalog management, and contract optimization, helping vendors build successful and sustainable partnerships with the VA.