Getting government contracts starts with registering your business in the federal procurement system, then finding and bidding on opportunities that match your capabilities. The U.S. federal government spends over $700 billion annually on contracts for everything from IT services to office supplies, and a significant share of that spending is directed toward small businesses. The process has multiple entry points depending on your company’s size, experience, and the type of work you do.
Register on SAM.gov First
Before you can bid on any federal contract, you need an active registration in the System for Award Management (SAM.gov). This is the government’s central database of companies eligible to receive federal awards. Registration is free, and no third party is required to complete it, despite what some paid services may suggest.
To start, create a SAM.gov account through Login.gov. During registration, you’ll be assigned a Unique Entity ID (UEI), which replaces the old DUNS number as the universal identifier for your business. If you only need a UEI and aren’t planning to bid right away, you can get one by providing just your legal business name and physical address. A full registration requires more: your business structure, tax identification number, banking information for electronic funds transfer, NAICS codes (the industry classification codes that describe what your business does), and details about your ownership and size. SAM.gov provides a downloadable Entity Registration Checklist that walks through every required field.
Plan for the registration to take a few weeks from start to finish, since the government validates your information against IRS and other federal records. Once active, your registration must be renewed every 365 days or it lapses, which would make you ineligible to receive awards.
Understand How Contracts Are Sized
Federal procurement follows different rules depending on the dollar value of the contract, and knowing where the thresholds fall helps you target realistic opportunities.
The micro-purchase threshold is $15,000. For purchases below this amount, contracting officers can buy directly from a vendor without competitive bidding. These are often credit card purchases for supplies or simple services. Getting on a contracting officer’s radar for micro-purchases can be a good way to build a track record.
The simplified acquisition threshold (SAT) is $350,000. Contracts below this amount use streamlined procedures with less paperwork and shorter timelines. Many of these are reserved for small businesses. Above the SAT, full competitive bidding rules apply, proposals get more complex, and evaluation periods stretch longer.
Find Open Opportunities
The primary place to find federal contract opportunities is SAM.gov’s contract opportunities search (formerly FedBizOpps). Agencies are required to post solicitations there for contracts above $25,000. You can search by keyword, NAICS code, agency, or location, and set up email alerts for new postings that match your profile.
Each listing includes the solicitation documents, submission deadlines, and contact information for the contracting officer. Read the full solicitation carefully. Government proposals are evaluated against specific criteria spelled out in the solicitation, and proposals that don’t address every evaluation factor tend to lose regardless of how qualified the company is.
For smaller purchases, agencies sometimes use their own simplified purchasing platforms or government purchase cards. Building relationships with agency small business offices can help you learn about these less visible opportunities.
Use Small Business Set-Aside Programs
The federal government sets annual goals for awarding contracts to small businesses, and several certification programs give qualifying companies access to contracts reserved specifically for them. These set-asides reduce competition significantly since only certified businesses in the relevant category can bid.
8(a) Business Development Program
The SBA’s 8(a) program is designed for small businesses owned by socially and economically disadvantaged individuals. To qualify, your business must be at least 51% owned and controlled by U.S. citizens who meet the disadvantage criteria. The individual owner’s personal net worth must be $850,000 or less, with adjusted gross income of $400,000 or less and total assets of $6.5 million or less. Your business should have been operating for at least two years and must not have previously participated in the program. The 8(a) program lasts nine years and provides access to sole-source contracts (awards made without competition) as well as mentorship and training.
Other Certification Programs
HUBZone certification targets businesses located in Historically Underutilized Business Zones, where at least 35% of employees also live in a HUBZone. The Women-Owned Small Business (WOSB) program reserves certain contracts for businesses at least 51% owned by women. The Service-Disabled Veteran-Owned Small Business (SDVOSB) program does the same for veteran-owned firms. Each program has its own application process through the SBA, and certification can take several weeks to several months.
Even without a special certification, being registered as a small business in SAM.gov makes you eligible for general small business set-asides, which represent a large share of federal contract dollars.
Get on a GSA Schedule
A GSA Multiple Award Schedule (MAS) contract is a long-term, government-wide contract that pre-negotiates your pricing with the General Services Administration. Once you hold a Schedule contract, federal agencies can buy from you directly without running a new competitive solicitation each time. It functions like being in a pre-approved catalog that government buyers shop from regularly.
GSA generally expects offerors to have two years of corporate experience providing the products or services they’re proposing, along with two years of financial statements. If your company is newer than that, the Startup Springboard program may offer a path in, provided you qualify under GSA’s Fast Lane criteria. Companies without two full years of financials can sometimes substitute other documentation showing financial responsibility. Similarly, if you lack two years of corporate experience, you can present the management and project experience of your company’s executives and key professionals.
The MAS application process is detailed and can take several months. You’ll need to propose pricing, provide past performance references, and demonstrate that your commercial sales practices support the prices you’re offering the government. Once awarded, a MAS contract typically runs for 20 years with periodic reviews.
Start as a Subcontractor
Subcontracting under a large prime contractor is one of the most practical ways to break into government work, especially if you lack past performance on federal projects. Large companies that win major contracts often need to subcontract portions of the work, and many have small business subcontracting plans they’re required to meet.
The SBA operates SUBNet, a subcontracting network where large prime contractors post opportunities specifically for small business subcontractors. You can filter listings by state or keyword and contact the prime contractor directly about each opportunity. Beyond SUBNet, attending industry days and pre-solicitation conferences hosted by federal agencies puts you in the same room as prime contractors who are building their teams for upcoming bids. Many primes also list subcontracting opportunities on their own websites.
Subcontracting builds your past performance record, teaches you how government projects are managed, and creates relationships that can lead to teaming arrangements on future prime contracts.
Write a Competitive Proposal
Government proposals are evaluated methodically against criteria listed in the solicitation, typically covering technical approach, past performance, management capability, and price. A winning proposal doesn’t just describe your company; it explains specifically how you’ll perform the work, who will do it, what your timeline looks like, and why your approach reduces risk for the agency.
Follow the solicitation’s formatting instructions exactly. If it asks for a 25-page technical volume with specific sections labeled A through F, that’s precisely what you submit. Proposals that deviate from instructions or exceed page limits can be disqualified without review. Use clear, direct language and address every evaluation factor explicitly. Proposal reviewers are scoring against a rubric, and they can’t give you credit for qualifications you don’t mention.
For your first few proposals, consider partnering with a company that has proposal writing experience, or investing in a capture management course offered through Procurement Technical Assistance Centers (PTACs). PTACs are funded by the Department of Defense and provide free or low-cost counseling to businesses pursuing government contracts. Every state has at least one.
Build Past Performance Over Time
Past performance is one of the most heavily weighted evaluation factors in federal contracting. Agencies want evidence that you’ve done similar work successfully. This creates a catch-22 for new entrants, but there are ways to build your record. Start with smaller contracts below the simplified acquisition threshold, where competition is lighter and evaluation criteria are less demanding. Subcontracting work counts as relevant experience in many solicitations. State and local government contracts can also demonstrate your ability to work within a government framework.
After completing a federal contract, your performance is rated in the Contractor Performance Assessment Reporting System (CPARS). Strong ratings in CPARS become part of your permanent record and directly influence your competitiveness on future bids. Delivering on time, within budget, and with clear communication to the contracting officer matters more than anything else for your long-term success in this market.