Securing a government contract starts with registering your business in the federal System for Award Management (SAM.gov), then finding opportunities that match your capabilities and submitting a competitive proposal. The federal government is the largest buyer of goods and services in the world, and it actively sets aside a portion of contracts for small businesses. But the process has specific registration requirements, certifications, and proposal formats you need to understand before your first bid.
Register Your Business on SAM.gov
Every business that wants to bid on federal contracts must have an active registration in SAM.gov, the government’s central contractor database. Registration is free and assigns your business a Unique Entity ID (UEI), which replaces the old DUNS number as your federal identifier. You’ll also select one or more NAICS codes during registration. These are six-digit industry classification codes that tell agencies what type of work you perform, and they determine which size standards apply to your business.
To register, create a SAM.gov account (which uses Login.gov for authentication), then choose “Register Entity.” The system walks you through entering your legal business name, physical address, banking information for electronic funds transfer, tax ID, and details about your ownership structure. SAM.gov provides a downloadable checklist of everything you’ll need before you start. Plan ahead: registration can take up to 10 business days to become active, and you must renew it every 365 days to keep it current. A lapsed registration means you can’t receive contract awards, even if you’ve already won a bid.
If you only need a Unique Entity ID and aren’t ready to bid yet, you can request one with just your business name and address. But a UEI alone won’t let you apply for federal awards.
Certifications That Give You an Edge
The federal government has a stated goal of awarding a percentage of contracts to small businesses, and several certification programs reserve (or “set aside”) contracts exclusively for qualifying firms. If your business fits one of these categories, getting certified can dramatically reduce competition on certain solicitations.
The SBA’s 8(a) Business Development program is one of the most valuable. It’s a nine-year program 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 those criteria, with a personal net worth of $850,000 or less, adjusted gross income of $400,000 or less, and total assets of $6.5 million or less. You also need to show at least two years in business to demonstrate potential for success.
Other key certifications include the Women-Owned Small Business (WOSB) program, the HUBZone program for businesses operating in historically underutilized areas, and the Service-Disabled Veteran-Owned Small Business (SDVOSB) designation. Each has its own eligibility rules and application process through the SBA. Even without a special certification, simply being classified as a small business under your NAICS code’s size standard opens doors to small business set-aside contracts.
Where to Find Contract Opportunities
SAM.gov is also where agencies post active solicitations. The contract opportunities section lets you search by keyword, NAICS code, agency, set-aside type, and location. You can set up saved searches and email alerts so new opportunities matching your profile land in your inbox automatically. This is worth doing early, even before you’re ready to bid, so you can study the types of contracts in your industry and see what agencies are buying.
For longer-term planning, federal agencies publish procurement forecasts that list what they expect to buy in the coming year. Acquisition.gov hosts a central hub linking to forecasts from more than 20 agencies, including the Department of Defense, Department of Health and Human Services, Department of Homeland Security, General Services Administration, NASA, and many others. These forecasts give you advance notice of upcoming needs, sometimes months before a formal solicitation drops, so you can position your business and start building relationships with the right contracting offices.
Purchases under the micro-purchase threshold (recently raised from $10,000 to $15,000) can be awarded without competitive bidding, which means agencies sometimes buy directly from vendors using government purchase cards. Getting on an agency’s radar for smaller purchases can be a stepping stone to larger contracts.
Submitting a Winning Proposal
When an agency issues a Request for Proposal (RFP), it spells out exactly what it needs and how it will evaluate responses. Every RFP describes the government’s requirement, the anticipated contract terms and conditions, what information your proposal must include, and the evaluation factors with their relative importance. Read the evaluation criteria carefully. They tell you precisely how the agency will score your bid, and the most common mistake new contractors make is writing a generic proposal instead of one that directly addresses each factor.
Most proposals have two main components: a technical volume and a price volume. The technical volume is where you explain how you’ll perform the work, demonstrate your qualifications, and show your understanding of the agency’s needs. The price volume details your costs. Some RFPs weight technical quality more heavily than price, meaning the lowest bidder doesn’t automatically win. Others use a “best value” approach that balances both. A few contracts, particularly for commercial products, are awarded based on lowest price among technically acceptable offers.
Pay close attention to formatting requirements, page limits, and submission deadlines. Federal contracting officers can (and do) reject proposals that arrive late or don’t follow the instructions. Most solicitations now accept electronic submissions, and the RFP will specify which methods are allowed.
Start as a Subcontractor
If competing for a prime contract feels like too big a leap, subcontracting under an established prime contractor is one of the best ways to build past performance, which is the track record agencies look for when evaluating your proposals. Federal contracts awarded to large businesses above $900,000 (or $2 million for construction) must include a subcontracting plan that sets goals for how much work the prime will send to small businesses.
The SBA operates a database called SUBNet where large prime contractors post subcontracting opportunities specifically for small businesses. You can search it by keyword, location, and industry. Prime contractors also use the Small Business Search tool on SAM.gov to find potential subcontractors, which is another reason your SAM.gov registration should be thorough and up to date. Some agencies, including the General Services Administration and Department of Transportation, maintain their own subcontracting directories listing prime contractors who may need small business partners.
APEX Accelerators (formerly known as Procurement Technical Assistance Centers) are another resource worth knowing about. These are federally funded organizations located across the country that offer free or low-cost counseling to businesses pursuing government contracts. They can help you with SAM.gov registration, understanding solicitations, writing proposals, and connecting with prime contractors.
Building Past Performance Over Time
Past performance is often one of the highest-weighted evaluation factors in federal proposals. Agencies want to see that you’ve successfully completed similar work, delivered on time, and stayed within budget. This creates a catch-22 for new contractors, which is exactly why subcontracting and smaller contracts matter so much early on.
Contracts under the simplified acquisition threshold (recently raised from $250,000 to $350,000) use streamlined procurement procedures, which means less paperwork and faster award timelines. These smaller contracts are often more accessible to newer firms and still count as past performance for future bids. State and local government contracts, while governed by different rules, can also help you build a track record that federal evaluators will consider.
As you accumulate contract experience, keep detailed records of your performance, client references, and deliverables. The federal Contractor Performance Assessment Reporting System (CPARS) captures evaluations from contracting officers, and those ratings follow your business. Strong ratings become one of your most powerful competitive advantages over time.
What the Process Costs
Registering on SAM.gov is free, and SBA certifications don’t carry application fees. The real costs are time and internal resources. Writing a competitive proposal for a mid-size contract can take dozens or even hundreds of hours, depending on the complexity. Many businesses hire proposal writers or consultants, which can range from a few thousand dollars for a straightforward bid to tens of thousands for complex, multi-volume proposals.
You’ll also need to consider bonding and insurance. Many contracts, especially in construction, require bid bonds, performance bonds, and payment bonds. The SBA’s Surety Bond Guarantee program helps small businesses that can’t obtain bonds through regular channels. General liability insurance and professional liability insurance are commonly required as well, with specific coverage amounts dictated by the contract.
Budget for the long game. Most businesses don’t win their first bid. Understanding how agencies evaluate proposals, refining your pricing strategy, and building relationships with contracting officers and prime contractors are skills that develop over multiple bidding cycles.