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NAICS 423450: Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers

Small business size standard: Employee-based (wholesale trade) — verify the current count at sba.gov; the 500-employee Nonmanufacturer Rule governs most set-aside supply buys

The distributor code for medical, dental, and hospital supplies sold to the VA, Defense Health Agency, Indian Health Service, and state health systems — exam gloves and wound care through diagnostic equipment. Wholesale codes use employee-based size standards rather than receipts.

What work falls under NAICS 423450

  • Distribution of medical consumables to government health facilities
  • Medical equipment supply with delivery and warranty support
  • Dental and laboratory supply contracts
  • Emergency/surge medical supply response (FEMA, state health departments)

How to win contracts under this code

  1. Register in SAM.gov with 423450 as a primary or secondary NAICS code, and confirm you're under the size standard for set-aside eligibility.
  2. Set a SAM.gov saved search for NAICS 423450 filtered to your set-aside types and places of performance.
  3. Build a capability statement that leads with this code and your most relevant past performance.
  4. For each solicitation, build a compliance matrix before writing — most losses under this code are compliance losses.

Bidding on a NAICS 423450 solicitation?

Generate your capability statement and compliance matrix free — no account required.

Frequently asked questions

What is the Nonmanufacturer Rule and does it apply to me?

On set-aside supply contracts, a distributor must generally have 500 or fewer employees AND supply the product of a small US manufacturer, unless the SBA has issued a class waiver for that product. Agencies verify letters of supply — secure them before quoting.

Why do medical supply quotes get rejected on country of origin?

The Trade Agreements Act restricts most federal purchases above the threshold to US-made or designated-country products, and many common medical items are manufactured in non-designated countries. Verify TAA compliance per line item before quoting — it's the most common fatal error in this market.

Full industry guide: Medical Supplies Government Contracts — including state-by-state pages for Texas, California, Florida, and more.

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