Research

Where Real Competition Lives: Offers Per Bid Across 653,735 Federal Contracts

29% of federal contracts get exactly one offer.Another 25% get 2-3. And then there's a long tail of NAICS codes where 60, 70, even 90 vendors line up to bid on every single award. If you're building a federal BD strategy, “competitive” and “competed” aren't the same thing — and the data makes the difference very clear.

The Headline Numbers

653,735
Contracts
With reported offer counts and obligations > $100K
28.8%
Single-offer rate
188,279 contracts awarded with just one bid
19.7
Mean offers
Skewed high by a handful of mega-competitive categories

The 19.7 mean is the trap number. It looks competitive. But the median is much lower, and the distribution is bimodal: a huge chunk of awards see 1 offer, a meaningful chunk see 2-5, and then an outlier tail with dozens. What matters for your BD strategy is which bucket your NAICS codes sit in.

The 15 Most Competitive NAICS Codes

These are the NAICS codes where federal buyers consistently see double-digit numbers of bidders per award. If you're bidding here, your win probability off the base rate alone is brutal — one in 30, one in 60, in some cases one in 90. These are markets where pricing realism, past performance, and niche specialization decide outcomes, not just the basics.

NAICSIndustryAwardsAvg Offers
339940Office Supplies (except Paper) Manufacturing64992.4
336992Military Armored Vehicle, Tank, and Tank Components1,08477.7
333120Construction Machinery Manufacturing2,90068.6
541715R&D in Nanotechnology19,58268.1
541511Custom Computer Programming Services6,80865.9
541512Computer Systems Design Services10,85261.1
325998All Other Miscellaneous Chemical Product Mfg54553.7
541330Engineering Services28,93043.6
444110Home Centers1,19341.8
332510Hardware Manufacturing2,79941.0
332311Prefabricated Metal Building Mfg58236.2
541513Computer Facilities Management Services1,42336.0
423450Medical/Dental/Hospital Equipment Wholesalers7,83935.2
334290Other Communications Equipment Mfg2,71134.9
541611Administrative Management Consulting15,43634.7

Three things jump out:

  • IT consulting is a bloodbath.541511, 541512, and 541611 together represent 33,000+ awards with 35-65 competitors per bid. Every IT staffing firm, every consultancy, every boutique is fighting the same bids. If you're here without clear differentiation, you're spinning wheels.
  • R&D nanotechnology is deceptively hot.541715 has 19,582 awards at 68.1 offers avg. That's because DoD SBIR/STTR funnels thousands of early-stage firms into this NAICS. It looks like science; it bids like a stampede.
  • Some of these are “open market” NAICS.339940 (office supplies), 444110 (home centers), 423450 (medical wholesalers) — these are high-volume, low-margin product categories where any eligible small business can quote. The 90-offer average reflects how many firms are on GSA schedules or open-market, not how deep the real competition is.

The 15 Least Competitive NAICS Codes

On the other end of the distribution, these are NAICS codes where single-offer awards are the norm. Agencies are buying from the only real vendor in their region, or the only one certified, or the only one with the required capacity. If you're in one of these markets, your competitive moat is real.

NAICSIndustryAwardsAvg Offers% 1-Offer
532283Home Health Equipment Rental8881.00100.0%
311812Commercial Bakeries7,9101.0199.8%
623110Nursing Care Facilities (Skilled Nursing)7,1011.0399.5%
541199All Other Legal Services1,0231.4280.5%
334412Bare Printed Circuit Board Manufacturing1,3411.6671.9%
332919Other Metal Valve and Pipe Fitting Mfg1,3051.7070.5%
481212Nonscheduled Chartered Freight Air4,0591.7173.4%
621910Ambulance Services9301.7633.7%
221122Electric Power Distribution1,0531.8128.7%
336412Aircraft Engine and Engine Parts3,2831.8225.4%
811210Electronic and Precision Equipment Repair1,9221.8758.6%
115310Support Activities for Forestry8,7311.8776.7%
332992Small Arms Ammunition Manufacturing5101.9442.4%
221210Natural Gas Distribution5051.9415.0%
562211Hazardous Waste Treatment and Disposal7371.9418.0%

The top three are basically uncontested markets.Nursing homes serving veterans, commercial bakeries feeding specific military bases, home health equipment for specific regions — these awards go to the only qualified local provider 99.5% of the time. If you're an incumbent here, your re-compete risk is structurally near zero. If you're a challenger without geographic presence, you can't enter at all.

The aircraft engine category (336412) is interesting — 1.82 average offers but only 25% single-offer. That means when it's competed, it's genuinely competed (3-5 bidders), but about a quarter of awards go sole-source to OEMs for parts they're the only source for. Two very different buying patterns inside one NAICS.

What This Means For BD Strategy

Three practical takeaways:

  • Score your target NAICS by competition level.If you're evaluating whether to expand into a new NAICS, the average-offers number is a better screening signal than total federal spend. A $5B market with 60 competitors per bid has worse expected value than a $500M market with 3 per bid.
  • Differentiate aggressively in competitive NAICS.If you're already in 541611 or 541512, you know this — but the data quantifies it. Compete on agency relationships, on narrow specialization, on past performance density. Pricing alone isn't going to do it.
  • Look for protected markets for your recompete pipeline.If your firm has existing past performance in a low-competition NAICS (say 332919 metal fittings at 70% single-offer), your re-compete retention rate should be very high. Lean into those contracts; don't chase noisy competitive ones.

Methodology

Data source: USAspending.gov contract awards. Filtered to contracts with a reported non-zero numberOfOffersvalue and obligation above $100K, across FY2022-FY2026. NAICS codes shown required at least 500 awards to qualify, to avoid noise from thinly-populated categories. Set-aside awards are included; filters don't distinguish between full-and-open and reserved. Numbers update nightly.

Note that “number of offers” is self-reported by contracting officers and isn't perfectly clean — some CO's enter the number of valid offers, others enter raw submissions including non-responsive bids. Treat these numbers as directional signals of market dynamics rather than exact competitor counts.

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