Few Bids, Big Wins: 10 NAICS Codes with Shockingly Little Competition
What if you could bid on a government contract and be the only bidder? For small businesses in the know, FY 2024 data reveals exactly that kind of opportunity. A handful of government contracting niches saw barely 1 bid per solicitation on average, yet still awarded substantial contract dollars. These under-the-radar NAICS categories could be goldmines for those ready to step in.
In fiscal year 2024, the average federal solicitation attracted about 3.6 bids. But in certain niches, competition is almost non-existent – typically just one bidder per contract. Our team identified the top 10 NAICS codes that combine ultra-low competition with high total award value. These markets span real estate, healthcare, manufacturing, and supply sectors, and collectively accounted for over a billion dollars in FY 2024 contracts. Below is a quick rundown of these ten “hidden gem” NAICS categories and their FY 2024 stats:
Lessors of Other Real Estate Property (NAICS 531190): ~1.0 bids per solicitation ; 206 awards Government agencies often need to lease specialized or local properties – and landlords faced virtually no competition in these deals.
Men’s & Boys’ Clothing Wholesalers (NAICS 424320): ~1.0 bids per solicitation ; 61 awards Contracts for uniforms and apparel drew a single bidder on average, yet the spend was significant – over $2M per award on average, a lucrative niche for suppliers.
Home Health Care Services (NAICS 621610): ~1.0 bids per solicitation; 231 awards Critical in-home care for veterans and patients saw almost no bidder competition, suggesting agencies often rely on one qualified local provider per area.
Scale and Balance Manufacturing (NAICS 333997): ~1.0 bids per solicitation; 318 awards A niche manufacturing field (think precision scales and balances) where the government’s specialized orders usually had just one bidder – typically the incumbent or a sole capable supplier.
Software & Other Pre-Recorded Media Manufacturing (NAICS 334614): ~1.0 bids per solicitation; 58 awards Even in the digital age, agencies purchased pre-recorded media (software on physical media, training DVDs, etc.) from an average of one bidder, likely because few firms still offer these formats.
Office Supplies & Stationery Stores (NAICS 453210): ~1.01 bids per solicitation; a whopping 110,612 awards Yes, over one hundred thousand small purchase awards – everything from pens to paper – typically with a single quote each. This suggests many micro-purchases or local buys where one vendor filled the need every time.
Home Health Equipment Rental (NAICS 532283): ~1.05 bids per solicitation; 273 awardsRenting durable medical equipment (hospital beds, oxygen, etc.) for home use had almost no competition, hinting at a short list of local vendors serving these contracts.
Nursing Care Facilities (NAICS 623110): ~1.05 bids per solicitation; 3,103 awardsThis is by far the largest in dollar value – nearly a billion in eldercare and long-term care services, awarded through numerous small contracts. Despite the size, competition was scant: typically one nursing home or care facility secured each contract (often to serve a specific region or patient population).
Vocational Rehabilitation Services (NAICS 624310): ~1.06 bids per solicitation; 71 awardsContracts for job training and rehabilitation programs drew just one or two bidders. Non-profits and small firms in workforce development who knew to bid here often had the field to themselves.
Blood and Organ Banks (NAICS 621991): ~1.07 bids per solicitation; 209 awardsHighly specialized healthcare services like blood supply had extremely low competition – typically the local blood bank or a single qualified provider was the only bidder, capturing over $100M in awards.
Why It Matters
Less competition = better odds and margins. For a small business, going after contracts where few others bid can dramatically increase your win rate and profit margin . With only one or two competitors (or sometimes none!), you’re far more likely to snag the award without a race-to-the-bottom pricing war. These low-competition NAICS markets are essentially pockets of unmet demand – the government needs something, but not enough vendors are stepping up. This is a clear opening for agile small businesses to step in and succeed.
High-value opportunities, not scraps. It’s important that these aren’t tiny contracts no one cares about – we’re talking millions of dollars on the table in each category. For example, the nursing care facility space (NAICS 623110) saw nearly a billion dollars in awards with almost no bidder rivalry . Even the more modest categories like vocational rehab or pre-recorded media had meaningful revenue for a small firm. In other words, these niches combine low competition with high contract value. You’re not just picking up easy wins; you’re picking up valuable wins.
Why so few bidders? It’s worth asking why these markets have such low competition. Often it’s because of geographic or specialization factors.. For small businesses, understanding these dynamics is key: low competition often signals an underserved market or a high barrier to entry that you might be able to overcome. If others find it too niche, too local, or not visible enough – that’s your opportunity.
Actionable Advice
So, you’ve got the list of low-competition, high-value NAICS niches – now what? Here are some concrete steps to turn this insight into contract wins:
Align with Your Strengths: First, identify which of these niches fits your business capabilities. Do you provide healthcare or social services? Office or industrial supplies? Facility management? Focus on the NAICS codes that match (or closely relate to) what you already do well. It’s much easier to pivot within your wheelhouse than to start in an entirely new field just for a contract.
Research Opportunities in These NAICS: Use tools like SAM.gov (for federal) and state procurement portals to search current and upcoming solicitations by NAICS code. For example, look up open RFPs under NAICS 621610 (Home Health Care Services) or 532283 (Home Health Equipment Rental). Track expiring contracts as well – if an incumbent has been solo for a while, the recompete could be your chance.
Investigate the Buyer Landscape: For each target NAICS, find out which agencies or departments are buying. If it’s nursing care facilities, a lot might be coming from the Department of Veterans Affairs or state veteran homes. Office supplies might be decentralized across many local agencies. Identify the top buyers and get familiar with their procurement process. You might discover, for instance, that a city school district regularly leases space for adult education classes (real estate leasing), or a state health department contracts out home health equipment rentals. Knowing the buyers helps you plan your marketing and outreach.
Build Your Credentials: Low competition doesn’t mean “no standards.” Make sure you have the necessary licenses, certifications, or past performance to qualify. If you’re eyeing home health care contracts, ensure your staff credentials meet healthcare regulations and consider small business certifications (like HUBZone, 8(a), etc., if applicable) to open set-aside avenues. For product niches, get your supply chain and inventory in order to handle potentially large orders (e.g., $128M in clothing means the winners had to deliver a lot of uniforms !). Also consider getting on relevant contract vehicles – for office supplies, a GSA Schedule or state cooperative contract could be your ticket in when agencies prefer using pre-vetted vendors.
Partner Up or Subcontract: If a niche is appealing but you lack some capacity, team with others. Perhaps you don’t run a nursing facility, but you could partner with one to bid on a government contract together, combining your contracting know-how with their care facilities. Subcontracting is another entry strategy – for instance, if one vendor seems to dominate an area, see if you can become their subcontractor or team member. This lets you get experience (and revenue) in that NAICS market, and you’ll be well positioned to bid prime later if the incumbent ever steps back.
Market Your Uniqueness: When competition is scarce, often the government is eager for new bidders to avoid over-reliance on a single source. Use that to your advantage in your marketing. Highlight what new value or alternative you bring – maybe you have innovative rehab program methods, or your office supply business offers faster local delivery. Make sure agencies know they have another capable vendor around. Attend industry days, reach out to small business offices at relevant agencies, and let them know you’re interested in these under-served areas. Sometimes, simply making yourself known can lead an agency to send an RFP your way or include you in an invitation to bid.
By following these steps, you’ll not only find opportunities others are missing – you’ll also position your business as a go-to solution in a market with plenty of funding and minimal competition.
Bringing it All Together
The government contracting landscape is huge and ever-changing. While overall competition has been inching up (on average ~3.6 bids per contract in FY24 vs. fewer in years prior), there will always be pockets of low competition like the ones we’ve highlighted. For small businesses, the big takeaway is this: you don’t have to fight 50 other companies for every contract. In fact, some of the best opportunities are the ones few are paying attention to.
And remember, this isn’t just about federal contracts. State governments, counties, cities, school systems, and universities all buy similar services and products. Often, their procurements see even fewer bidders than federal ones due to lower visibility.. By targeting these under-served needs across all levels of government, small businesses can build a strong portfolio of wins. If you don’t know how to start, or want to increase your win rate, schedule some time to chat with our team.
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