The U.S. federal government is the largest buyer of goods and services on Earth. In fiscal year 2025, federal agencies spent over $700 billion on contracts — and by law, at least 23% of that must go to small businesses. That's more than $160 billion reserved specifically for companies like yours.
Yet most small business owners never bid on a single government contract. Not because they can't, but because the process seems overwhelming. SAM.gov registrations, NAICS codes, solicitations, proposals — it sounds like a different language.
This guide breaks down the entire process into clear, actionable steps. By the end, you'll know exactly what you need and how to submit your first bid.
Getting government contracts isn't reserved for big corporations. The federal government actively seeks small businesses and has billions set aside for them. The process has steps, but none of them are difficult — they just need to be done in the right order.
Before you can bid on any federal contract, you need a few things in place. Think of these as your "government contracting starter kit."
You need an actual registered business — LLC, S-Corp, C-Corp, or sole proprietorship. The government contracts with businesses, not individuals. If you haven't incorporated yet, do that first.
Your business tax ID from the IRS. You can get one for free at irs.gov — it takes about 5 minutes online.
This replaced the old DUNS number in 2022. You'll get your UEI automatically when you register on SAM.gov. It's a 12-character alphanumeric code that identifies your business in all government systems.
The government pays via electronic funds transfer (EFT). You'll need a business bank account linked to your SAM.gov registration. No personal accounts.
North American Industry Classification System codes that describe what your business does. Most businesses have 3-8 relevant codes. Read our full NAICS code guide if you're not sure which ones apply to you.
A one or two-page document that summarizes what your business does, your relevant experience, certifications, and past performance. Think of it as a resume for your company. You'll attach this to bids and hand it out at networking events.
SAM.gov (System for Award Management) is the official government contractor database. Registration is free, required, and — fair warning — takes 2-4 weeks to process. Start this immediately.
While your SAM.gov registration processes, start searching for contracts on FedScanner. Study the types of opportunities in your industry, read solicitation documents, and learn the language. You can't bid yet, but you can be ready the moment your registration goes active.
Certifications aren't required to bid on government contracts, but they dramatically increase your opportunities. Certain contracts are "set aside" exclusively for certified businesses, meaning fewer competitors.
If your business is below the SBA size standard for your NAICS code, you automatically qualify as a small business. No separate application needed — your SAM.gov registration handles this. Over 23% of federal spending is set aside for small businesses.
For socially and economically disadvantaged business owners. Provides access to sole-source contracts up to $4.5 million (services) or $7 million (manufacturing). The application process takes several months but opens enormous opportunity.
For businesses owned by service-disabled veterans. The VA has a 3% government-wide spending goal for SDVOSB firms. Self-certification through SAM.gov plus VA verification.
For businesses at least 51% owned and controlled by women. Access to contracts in industries where women are underrepresented. Certification through SBA or approved third-party certifiers.
For businesses located in Historically Underutilized Business Zones. The government has a 3% spending goal for HUBZone firms. Check if your business address qualifies at the SBA's HUBZone map.
For a detailed breakdown of every set-aside type, read our complete guide to set-aside contracts.
FedScanner lets you filter by set-aside type, NAICS code, and agency. See what's available for your business right now.
Search ContractsOnce your SAM.gov registration is active, you can bid on contracts. But first you need to find ones worth bidding on. Here's where to look:
The official source. All federal contracts over $25,000 must be posted here (formerly FedBizOpps). The interface is functional but notoriously clunky — filtering is limited, search is basic, and results can be overwhelming.
FedScanner aggregates contracts, grants, and awards into a single searchable platform with modern filtering. You can search by keyword, NAICS code, set-aside type, agency, location, and dollar amount — all at once. It's what SAM.gov search should be.
Some agencies maintain their own procurement portals:
Large prime contractors often need small business subcontractors. SubNet on SAM.gov lists subcontracting opportunities where you don't bid to the government directly — you bid to a larger company that already has the contract.
Our Browse by Industry pages pre-filter contracts by sector. If you're in IT, construction, janitorial, healthcare, or any major category, these pages save you from building complex searches every time.
Don't chase the $50 million contracts as a beginner. Look for contracts under $250,000 — especially "simplified acquisitions" between $10,000 and $250,000. These have easier bidding requirements, less competition, and faster award timelines. They're how you build past performance.
Not all government contracts work the same way. Understanding the types helps you bid appropriately:
You agree to deliver a specific scope for a set price. If you finish under budget, you keep the profit. If you go over, you eat the loss. Best for well-defined work where you can accurately estimate costs.
The government reimburses your actual costs plus a fee. Less risk for you, but requires detailed cost accounting systems. More common for R&D and complex services where scope is uncertain.
You bill hourly labor rates plus materials costs. Similar to how most consulting works in the private sector. Common for IT services, maintenance, and support contracts.
A master contract with a minimum and maximum value. The government issues "task orders" against the IDIQ as needs arise. Getting on an IDIQ vehicle is competitive, but once you're on, task orders can be less competitive.
Similar to IDIQs but typically smaller. Used for recurring purchases. A great entry point for small businesses providing commodities or standard services.
You've found a contract that fits your business. Now you need to respond. The solicitation document tells you exactly what to submit, but here's the general process:
Follow the instructions exactly. If they say 20-page limit, submit 20 pages or fewer. If they want 12-point Times New Roman, use 12-point Times New Roman. If they want three past performance references, give three — not two, not four. Evaluators look for reasons to eliminate proposals. Don't give them one.
The waiting period varies widely — from a few weeks for simplified acquisitions to several months for major contracts. During this time:
You'll receive an official notification and contract. Review it carefully, sign it, and begin performance. Deliver what you promised, on time and on budget. Good past performance is your #1 asset for winning future contracts.
Request a debriefing. The government is required to explain why you weren't selected. This feedback is invaluable — it tells you exactly what to improve for next time. Many contractors lose their first 5-10 bids before winning. That's normal.
If you've never done government work, a $10 million contract won't take you seriously regardless of how good your proposal is. Start with contracts under $250,000. Build past performance. Scale up over 2-3 years.
Government solicitations are long and detailed for a reason. Every section matters. Skipping the "administrative requirements" section or missing an attachment leads to automatic rejection.
Copy-pasting the same proposal for different contracts is obvious to evaluators. Each proposal should directly address the specific requirements, evaluation factors, and scope of THAT contract.
The solicitation tells you exactly how proposals will be scored. If "technical approach" is worth 50% and "past performance" is worth 30%, spend proportional effort on each. Too many bidders write great technical proposals but provide weak past performance documentation.
SAM.gov registration takes 2-4 weeks. If you find a perfect contract with a deadline in 10 days and you haven't registered yet, you've already lost. Register NOW, even if you don't plan to bid for months.
Government agencies describe the same work differently. A "facilities maintenance" contract might also appear as "building operations," "custodial and grounds," or "integrated facilities management." Search multiple keywords and NAICS codes to catch everything.
FedScanner searches across contracts, grants, and awards simultaneously. Filter by NAICS, set-aside type, agency, dollar range, and keywords — all in one search.
Start Your SearchHonest answer: most small businesses take 6-18 months from their first bid to their first win. Here's a realistic timeline:
Some businesses win faster — particularly those bidding on set-aside contracts with less competition, or those starting with subcontracting under a prime. The key is persistence. Every bid teaches you something, even the losses.
If bidding directly on contracts feels daunting, subcontracting is an excellent entry point:
Find subcontracting opportunities on SAM.gov's SubNet or by reaching out directly to large contractors in your industry. Most prime contractors have small business liaison officers whose job is finding small business subcontractors.
44% of federal contracts receive only one bid. Competition is far less intense than most people assume. Many small businesses don't bid because they think they can't win — which means those who actually show up have surprisingly good odds. Read more about single-bid contracts.
Search thousands of active federal contracts and grants. Filter by industry, set-aside type, location, and dollar amount. Free to search — no account required.
Search Government Contracts