What is Government Contracting?

The federal government is the world's largest buyer of goods and services, spending over $600 billion annually on contracts. Small businesses have access to set-aside programs that reserve a portion of contracts specifically for qualified small businesses.

Step 1: Get Your UEI and Register in SAM.gov

Unique Entity Identifier (UEI)

The UEI replaced the DUNS number as the primary identifier for government contractors. You obtain your UEI during SAM.gov registration—it's free and automatic.

SAM.gov Registration

System for Award Management (SAM) registration is mandatory for all federal contractors:

• Free registration at SAM.gov (beware of paid third-party services)
• Takes 7-10 business days to process
• Must be renewed annually
• Requires business information, banking details, and representations

Step 2: Identify Your NAICS Codes

North American Industry Classification System (NAICS) codes categorize businesses by industry. Government contracts are assigned NAICS codes, and size standards vary by code.

• Select codes that accurately describe your products/services
• You can have multiple NAICS codes
• Size standards (employee count or annual revenue) differ by code
• Find your codes at naics.com or census.gov/naics

Step 3: Consider Small Business Certifications

Certifications can provide competitive advantages through set-aside contracts:

8(a) Business Development Program

• For socially and economically disadvantaged small businesses
• 9-year program with exclusive contract access
• Requires SBA approval
• Must demonstrate social and economic disadvantage

HUBZone

• Historically Underutilized Business Zones
• Must have principal office in a HUBZone
• 35% of employees must live in HUBZones
• Price evaluation preferences on some contracts

WOSB/EDWOSB

• Women-Owned Small Business
• Economically Disadvantaged Women-Owned Small Business
• 51% owned and controlled by women
• Access to set-aside contracts in specific industries

SDVOSB

• Service-Disabled Veteran-Owned Small Business
• 51% owned by service-disabled veterans
• Veteran must manage daily operations
• VA has additional verification requirements

DBE (State/Local)

• Disadvantaged Business Enterprise
• Primarily for state DOT and transit contracts
• Certification through state agencies

Step 4: Find Opportunities

SAM.gov Contract Opportunities

The primary source for federal contract opportunities (formerly FedBizOpps):

• Search by NAICS code, keywords, or agency
• Set up saved searches and email alerts
• Review Sources Sought and RFI notices
• Track full solicitations (RFPs, RFQs)

GSA Schedules

General Services Administration schedule contracts (Multiple Award Schedules):

• Pre-negotiated contracts with federal government
• Agencies can purchase directly without bidding
• Application process can take 6+ months
• Good for commercial products/services

Step 5: Build Past Performance

Past performance is critical for winning contracts. Strategies to build experience:

• Subcontracting: Work under established prime contractors
• Mentor-Protégé programs: Partner with experienced contractors
• State and local contracts: Build track record with smaller governments
• Commercial work: Relevant private sector experience counts

Common Mistakes to Avoid

• Not registering in SAM before pursuing contracts
• Choosing wrong NAICS codes or size standards
• Underpricing to win contracts (unsustainable)
• Not reading solicitations carefully
• Missing deadlines
• Failing to maintain SAM registration
• Ignoring compliance requirements

Realistic Expectations

• First contract often takes 6-24 months to win
• Relationships and networking are crucial
• Compliance requirements are significant
• Cash flow can be challenging (government pays slowly)
• Continuous learning and adaptation required