What is government contracting?
Government contracting is the process by which federal agencies purchase goods and services from private businesses. The U.S. federal government is the world's largest buyer, spending over $700 billion annually on contracts. These contracts cover everything from IT services and cybersecurity to construction, janitorial services, and medical supplies.
Unlike the private sector, federal procurement follows strict rules defined in the Federal Acquisition Regulation (FAR). These rules ensure fair competition, transparency, and accountability. For businesses willing to learn the system, government contracts offer a stable, recession-resistant revenue stream with reliable payment.
Who can bid on government contracts?
Almost any business can bid on government contracts. There is no minimum company size — sole proprietors, LLCs, S-Corps, and large corporations all participate. You don't need special connections or prior government experience, though past performance on relevant work is a significant advantage.
To get started, you need a legal business entity, a bank account, and the willingness to navigate the registration process. Small businesses have an advantage: the federal government is required to award at least 23% of prime contract dollars to small businesses, and numerous set-aside programs exist to reduce competition for qualified small firms.
How do you register on SAM.gov?
SAM.gov (System for Award Management) is the mandatory registration system for any entity that wants to do business with the federal government. Registration is free and takes 7-10 business days to process.
To register, you'll need your legal business name and address, EIN (Employer Identification Number) from the IRS, bank account and routing number for electronic funds transfer (EFT), NAICS codes that describe your business, and information about your business size and ownership.
During registration, you'll receive a Unique Entity Identifier (UEI) — a 12-character code that replaces the former DUNS number. You'll also receive a CAGE code. Your SAM.gov registration must be renewed annually to remain active.
How do you find government contract opportunities?
Contract opportunities are posted on SAM.gov under the "Contract Opportunities" section. Agencies are generally required to post opportunities above $25,000. You can search by keyword, NAICS code, agency, set-aside type, place of performance, and more.
Common opportunity types include Presolicitation notices (advance notice that a solicitation is coming), Combined Synopsis/Solicitation (the actual solicitation with full requirements), Sources Sought notices (market research to determine if qualified businesses exist), and Award Notices (announcements of who won).
Many contractors also use commercial tools like GovBeacon to get better search, filtering, and analytics capabilities beyond what SAM.gov offers natively.
What is the bid process?
The bid process varies by solicitation type but generally follows these steps:
First, identify a relevant opportunity and download all solicitation documents. Read the entire solicitation carefully — the Statement of Work (SOW) or Performance Work Statement (PWS) describes what the government needs, and the evaluation criteria tell you exactly how proposals will be scored.
Next, prepare your response. For an RFP, this typically includes a technical proposal, past performance volume, and price proposal. For simpler RFQs, you may only need a price quote and brief capability description. Follow all formatting instructions exactly — proposals that don't comply with page limits, font sizes, or submission requirements can be rejected without review.
Submit your response by the deadline. Late submissions are almost never accepted. After evaluation, the government may conduct discussions, request revised proposals, or proceed directly to award.
What are the keys to winning?
Successful government contractors consistently do several things well. They build relationships before opportunities are posted — attending industry days, meeting with small business offices, and responding to sources-sought notices. They focus on opportunities where they have clear past performance and subject matter expertise, rather than bidding on everything.
They invest in their proposals — treating each submission as a professional document that directly addresses evaluation criteria with specific, verifiable claims. They maintain a current capability statement, keep their SAM.gov registration active, and pursue relevant certifications and contract vehicles (like GSA Schedules) that streamline the procurement process.
Most importantly, they start small. Your first contract will likely be a small purchase or subcontracting opportunity. Build past performance, learn the system, and scale from there.