How to Land Your First Government Contract
Five paths from zero to your first federal contract, ordered from easiest to hardest. Start with path 1, build past performance, and work your way up.
Micro-Purchases (Under $10K)
Government agencies can buy goods and services under $10,000 ($25,000 for DoD) without competition. They can purchase directly from any vendor registered in SAM.gov. This is the lowest-barrier entry point.
How to start
- 1.Register on SAM.gov (required)
- 2.Search SAM.gov for micro-purchase opportunities in your area
- 3.Contact small agency offices directly and introduce your capabilities
- 4.Look for government purchase card (GPC) opportunities
- 5.Deliver excellent work to build past performance
Watch out: Revenue is small ($10K per transaction) but the past performance record is valuable for future competitive bids.
GSA Multiple Award Schedule (MAS)
The GSA Schedule is a pre-negotiated contract vehicle. Once on schedule, agencies can order from you directly without a full competition. It is like being an approved vendor catalog for the federal government.
How to start
- 1.Identify the right Schedule category (SIN) for your services
- 2.Prepare 2+ years of commercial sales history
- 3.Submit an offer through GSA eBuy (GSA Advantage!)
- 4.Negotiate pricing with the GSA contracting officer
- 5.Once awarded, market to agencies and respond to RFQs on eBuy
Watch out: The application is substantial and requires detailed financial documentation. Some companies use GSA Schedule consultants ($5K-$15K) to navigate the process.
Subcontracting with Prime Contractors
Large prime contractors need small business subcontractors to meet their FAR 19.702 subcontracting plan goals. Partnering with a prime gives you federal past performance without the overhead of competing for a prime contract yourself.
How to start
- 1.Identify prime contractors in your NAICS code (search FPDS.gov for recent awards)
- 2.Attend industry days and small business matchmaking events
- 3.Register on prime contractor supplier portals (Leidos, Booz Allen, SAIC, etc.)
- 4.Prepare a capabilities statement (2-page maximum)
- 5.Propose specific roles you can fill on their existing or future contracts
Watch out: You are at the mercy of the prime for payment terms and scope. Negotiate your subcontract terms carefully.
SBIR/STTR Grants (Innovation)
Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs fund R&D for small businesses. Phase I is $50K-$275K for feasibility. Phase II is $500K-$1.7M for development. If you have an innovative technology, this is free money.
How to start
- 1.Search SBIR.gov for topics matching your technology
- 2.Read the solicitation carefully (topics are very specific)
- 3.Write a Phase I proposal (15-25 pages depending on agency)
- 4.Budget 40-80 hours for a quality Phase I proposal
- 5.If awarded, Phase II follows and Phase III is commercialization
Watch out: Win rates are 15-25% depending on agency. The proposals are technical and competitive. But the money is non-dilutive (no equity given up).
Competitive Set-Aside Proposals
Full competitive proposals under FAR Part 15 for small business set-aside contracts. This is the traditional path and offers the largest contract values, but requires proposal writing expertise and past performance.
How to start
- 1.Build past performance through paths 1-4 above first
- 2.Set up saved searches on SAM.gov for your NAICS and set-aside type
- 3.Develop a go/no-go decision framework (do not bid on everything)
- 4.Invest in proposal writing skills or hire a proposal consultant
- 5.Start with smaller set-asides ($100K-$500K) to build your win record
Watch out: Proposal writing is a learned skill. Budget 80-200 hours for a competitive FAR Part 15 proposal. Your first few proposals may not win, and that is normal.
The compounding principle
Past performance is the single most valuable asset in government contracting. Every contract you complete successfully makes the next one easier to win. Start small, deliver well, document everything. A company with 5 excellent past performance records on $50K contracts will outcompete a company with zero past performance bidding on a $5M contract.
Check your eligibility first
Find out which set-asides and contract types you qualify for before you start bidding.
FAQ
How long does it take to win your first government contract?
Micro-purchases can happen within weeks of SAM.gov registration. GSA Schedule takes 6-12 months. Competitive proposals typically take 3-12 months from opportunity identification to award. Plan for 6 months minimum from zero to first revenue.
Do I need a security clearance to bid on government contracts?
No. Most government contracts do not require security clearances. Clearances are only needed for contracts involving classified information. You can build a substantial govcon business without ever obtaining a clearance.
How much does it cost to start a government contracting business?
SAM.gov registration is free. LLC formation is $50-$500 depending on your state. A DCAA-adequate accounting system (QuickBooks) is $30-$80/month. Total startup cost can be under $1,000. The real investment is time.
Can a one-person company win government contracts?
Yes. Many micro-purchases and small set-aside contracts are won by one-person companies. As a small business, you may qualify for WOSB, SDVOSB, or HUBZone set-asides that limit competition to other small businesses.
This guide is for informational purposes only and does not constitute legal or professional contracting advice.