Government Contracting for Beginners: Complete Guide to Winning Your First Contract
Learn how to start government contracting from scratch. Understand SAM.gov registration, NAICS codes, set-aside programs, and how to find and win your first government contract.
Quick Overview: Government Contracting for Beginners
Government contracting offers small businesses access to over $700 billion in federal contracts alone, plus trillions at state and local levels. Getting started requires SAM.gov registration (free), understanding set-aside programs, and finding opportunities through platforms like BidFinds at $99/month. Most small businesses can be bid-ready within 2-4 weeks.
The Government Contracting Market Opportunity
The U.S. government is the world's largest buyer of goods and services. From office supplies to spacecraft, from IT consulting to janitorial services—government agencies need contractors for virtually everything.
Federal Spending by Category
Why Government Contracting?
- ✓Stable Revenue
Government pays reliably (often within 30 days)
- ✓Multi-Year Contracts
Many contracts span 3-5 years with options
- ✓Small Business Preference
23% of contracts reserved for small businesses
- ✓Recession Resistant
Government spending continues in downturns
Getting Started: Your Checklist
Before you can bid on government contracts, you need to complete several prerequisite steps. Here's your roadmap to becoming bid-ready:
Government Contracting Readiness Checklist
Establish Your Business
Legal entity (LLC, Corp), EIN, business bank account
Prerequisite for registration
Register in SAM.gov
Get your UEI, CAGE code, and federal contractor status
Free • 10-15 business days
Identify Your NAICS Codes
Classify your products/services for government search
Research required • No cost
Explore Certifications
8(a), WOSB, SDVOSB, HUBZone if eligible
Optional but valuable • Free to apply
Create Your Capability Statement
One-page marketing document for government buyers
Essential marketing tool
Start Finding Opportunities
Use BidFinds to discover matching bids
$99/month • AI-powered matching
Registration Requirements
Federal contracting requires registration in the System for Award Management (SAM.gov). State and local contracting may have additional requirements.
Federal Contracts
- ✓SAM.gov - Required for all federal contracts
- ✓UEI - Assigned during SAM registration
- ✓CAGE Code - Automatic with SAM
- ○SBA Certifications - Optional but valuable
State & Local Contracts
- ○State Vendor Portal - Varies by state
- ○City/County Registration - Agency-specific
- ○State Certifications - DBE, SBE, etc.
- ○Business Licenses - Location-specific
BidFinds aggregates state portals so you can discover opportunities without registering everywhere first.
Understanding NAICS Codes
NAICS (North American Industry Classification System) codes classify businesses by industry. Government buyers use these codes to find contractors, so choosing the right ones is crucial.
Common NAICS Codes by Industry
| Industry | Primary NAICS | Description |
|---|---|---|
| Construction | 236220 | Commercial Building Construction |
| Janitorial | 561720 | Janitorial Services |
| IT Services | 541512 | Computer Systems Design Services |
| Electrical | 238210 | Electrical Contractors |
| Security | 561612 | Security Guards and Patrol Services |
| Landscaping | 561730 | Landscaping Services |
NAICS Code Tip
You can list multiple NAICS codes in your SAM.gov profile. Start with 3-5 that best describe your core services, then add more as you diversify. Each NAICS code has a small business size standard (usually revenue or employee count) that determines your eligibility for set-aside contracts.
Set-Aside Programs: Your Competitive Advantage
The federal government reserves 23% of contract dollars for small businesses through "set-aside" programs. These programs limit competition, giving qualified small businesses a significant advantage.
8(a) Business Development
For socially and economically disadvantaged small businesses.
- • 9-year program with mentoring
- • Sole-source contracts up to $4M
- • 5% of federal contract goal
WOSB / EDWOSB
Women-Owned Small Business and Economically Disadvantaged WOSB.
- • 51%+ woman-owned and controlled
- • Sole-source contracts up to $4M
- • 5% of federal contract goal
SDVOSB
Service-Disabled Veteran-Owned Small Business.
- • 51%+ veteran-owned and controlled
- • Service-connected disability required
- • 3% of federal contract goal
HUBZone
Historically Underutilized Business Zones.
- • Located in designated HUBZone
- • 35%+ employees live in HUBZone
- • 3% of federal contract goal
Finding Government Contract Opportunities
Government contracts are publicly advertised, but they're scattered across thousands of websites. Here are your main options for finding opportunities:
| Source | Coverage | Cost | Limitations |
|---|---|---|---|
| BidFinds | Federal + State + Local | $99/month | AI-powered matching included |
| SAM.gov | Federal only | Free | Complex interface, no state/local |
| State Portals | Individual state | Free | 50+ separate registrations |
| ConstructConnect | Commercial focus | $300-500+/month | Annual contract, opaque pricing |
Why BidFinds?
Instead of monitoring dozens of portals manually, BidFinds aggregates 2,000+ government sources into one searchable platform. Our AI matches opportunities to your profile automatically—so you never miss a relevant bid.
The Government Bidding Process
Understanding how government procurement works helps you position winning bids.
Types of Solicitations
RFQ (Request for Quote)
Simple price quote for commodities or standard services. Lowest price typically wins.
IFB (Invitation for Bid)
Sealed bidding for well-defined requirements. Award goes to lowest responsive, responsible bidder.
RFP (Request for Proposal)
Negotiated procurement where technical capability, past performance, and price are evaluated.
Sources Sought / RFI
Market research phase—respond to shape requirements and get early visibility.
Typical Bidding Timeline
Common Mistakes to Avoid
1. Letting SAM.gov Registration Expire
SAM.gov registration must be renewed annually. Set a calendar reminder 60 days before expiration. Expired registration = no contract awards.
2. Bidding on Everything
Focus on opportunities you can actually win. Quality proposals on 5 well-matched opportunities beat generic responses to 50 random bids.
3. Missing Deadlines
Government deadlines are strict—even one minute late means automatic rejection. Submit at least 24 hours early.
4. Ignoring Compliance Requirements
Davis-Bacon wages, certified payroll, CMMC compliance—understand requirements BEFORE bidding, not after winning.
5. Underpricing to Win
Unrealistically low bids trigger suspicion. Price to make a profit—government evaluators know what things cost.
Frequently Asked Questions
Is government contracting worth it for small businesses?
Yes—the federal government is legally required to award 23% of contracts to small businesses. With proper preparation, small businesses regularly win against larger competitors, especially in set-aside categories.
How long does it take to win a first contract?
Typically 6-12 months from first registration to first award. This includes registration (2-4 weeks), learning the market (1-2 months), and the procurement cycle (2-4 months). Starting with smaller contracts shortens this timeline.
Do I need experience to bid on government contracts?
Not always. Some contracts require past performance, but many are open to new contractors—especially smaller purchases and set-aside contracts. Start with simplified acquisitions (under $250K) to build your track record.
What's the easiest type of government contract to win?
Micro-purchases (under $10,000) and simplified acquisitions (under $250,000) have streamlined processes. Local government contracts and state contracts often have less competition than federal opportunities.
Can I subcontract before becoming a prime contractor?
Yes—subcontracting is an excellent way to gain experience and past performance. Large primes often need small business subcontractors to meet their set-aside requirements. You still need SAM.gov registration for most federal subcontracting.
How do I know if I'm a "small business" for government purposes?
Small business size standards vary by NAICS code. Check the SBA size standards table—most are based on annual revenue (e.g., $16.5M for janitorial) or employee count (e.g., 500 for manufacturing). You must self-certify in SAM.gov.
Ready to Start Government Contracting?
You've got the knowledge. Now find the opportunities. BidFinds aggregates federal, state, and local bids with AI-powered matching—so you see relevant contracts without searching 50 different portals.
Cancel anytime
Continue Your Learning
Ready to Find Your Next Contract?
Get instant access to thousands of government construction bids with our AI-powered platform.
Get Started