Number of New Civilian Vendors Falls 22% as Contract Funds Dip

The number of new vendors joining the civilian procurement market during the last three months of the fiscal year declined about 22% from fiscal 2024 to 2025, according to Bloomberg Government analysis.

The decline to roughly 5,400 first-time sellers in the fourth quarter of fiscal 2025, exacerbated a 9.4% overall nondefense contractor base shrinkage year over year, further concentrating markets and making critical supply chains increasingly vulnerable by stifling competition and innovation.

Fiscal 2025 civilian agency contracting dollar totals fell 6% overall to $277 billion, the first year-over-year drop since fiscal 2013. Traditional sources of small business spending, including ...