Never sold to the U.S. government? Start here.

01How the government buys

Every federal purchase follows the Federal Acquisition Regulation (FAR). The dollar value of a purchase decides how formal the process is.

Thresholds as of October 1, 2025. The FAR is being rewritten under the "Revolutionary FAR Overhaul," so section numbers are changing. The basic flow above has not.

02Register in SAM.gov

SAM.gov (the System for Award Management) is where the government keeps its list of companies it can pay. You cannot win a federal contract without an active registration.

1. Gather your details. Legal business name and physical address exactly as the IRS has them, your EIN (tax ID), bank account for payments, and your NAICS codes.
2. Create a Login.gov account and sign in to SAM.gov.
3. Choose "Register Entity" and pick full registration. "Unique Entity ID only" lets you be a subcontractor, but not bid directly.
4. Complete the sections: core data, financial information, points of contact, and the representations and certifications (reps and certs).
5. Wait for activation. SAM.gov says it can take up to 10 business days. You will receive a Unique Entity ID (UEI) and a CAGE code.
6. Renew every 365 days. An expired registration can cost you an award.

03NAICS codes: what you do

A NAICS code is a six-digit number that describes an industry. Every solicitation is assigned one. Your SAM.gov profile lists the codes you work in.

• Pick a primary code that describes most of your revenue, plus the others you can credibly perform.
• The code sets your size standard. Whether you count as "small" depends on the NAICS code of each solicitation, not your company as a whole.
• Examples: 541611 Administrative Management Consulting · 541330 Engineering Services · 611430 Professional Development Training · 561210 Facilities Support.

Look codes up at census.gov/naics.

04PSC codes: what they buy

A Product Service Code (PSC) describes what the government is buying, where NAICS describes who you are. A four-character code like R408 (program management support) or U008 (training) appears on every solicitation and award.

PSC codes are the fastest way to find past awards for work like yours. Search them in the PSC Manual on acquisition.gov.

05Are you small?

The Small Business Administration (SBA) sets a size standard for each NAICS code. It is measured one of two ways:

• Average annual receipts, usually over the last five years, for most service codes. Example: $24.5M for 541611.
• Number of employees for most manufacturing and some other codes.

Affiliates count. If another company controls yours, their size can be added to yours. Check your size with the SBA's size standards tool.

06Set-asides and certifications

When a contracting officer expects two or more capable small businesses to bid at a fair price, the work is generally set aside for small business. This is called the "rule of two." Some set-asides are narrower:

Apply at certify.sba.gov. Certification is free. Program rules change often, so confirm current details with the SBA.

07The capability statement

A capability statement is your one-page company résumé for government buyers. You send it with sources-sought responses, hand it out at industry days, and email it to small business offices.

Keep it to one page, PDF, with a direct phone and email. Tailor it to each agency.

08Finding bids

Federal opportunities over $25,000 are generally posted on SAM.gov Contract Opportunities. Learn the notice types:

Also watch agency procurement forecasts, and contact each agency's Office of Small and Disadvantaged Business Utilization (OSDBU). Subcontracting to a prime contractor is a proven way to build past performance.

09Reading a solicitation

Most losing bids fail on instructions, not ability. Read in this order:

1. The work. The Performance Work Statement (PWS) or Statement of Work (SOW): tasks, location, staffing, clearances.
2. The instructions. Often "Section L": page limits, fonts, volumes, due date and time zone.
3. The evaluation. Often "Section M": what will be scored and how.
4. Pricing. The price schedule (CLINs) and any wage determination that sets minimum pay.
5. Amendments and Q&A. Acknowledge every amendment. Ask questions before the question deadline.

10How bids are evaluated

Smaller buys often use a simplified comparison of price, capability and past performance. The solicitation always says which method applies. Write to it, in its order, using its words.

11Past performance with no federal history

Past performance shows you have done similar work well. Federal performance is rated in CPARS, but you do not need federal contracts to start.

• Commercial and state or local work usually counts if it is similar in size and scope.
• Subcontracts under a prime give you federal references.
• Key personnel experience can count when the solicitation allows it.
• Teaming and mentor-protégé arrangements let you bid with a partner's record.
• If you have no relevant record, you are usually rated neutral, not negative.

12Contract types

The contract type decides who carries the cost risk. It is stated in the solicitation.

13Contract vehicles: IDIQs, BPAs and schedules

A lot of federal money never shows up as a standalone solicitation. It flows through contract vehicles: pre-competed contracts where only the holders can compete for the work.

If a buyer you want already uses a vehicle you are not on, your paths are to team with a holder as a subcontractor, or to get on the vehicle at its next open season.

14Pricing basics

Look at past awards for the same work and agency to see what the government paid and who won. For service contracts, check the wage determination for minimum wages and fringe benefits. Price to the evaluation method: sharp on LPTA, value-backed on best value.

15Grants vs. contracts

A contract buys something the government needs. A grant funds a project that serves a public purpose. They follow different rules and are found in different places.

• Where: grants are posted on Grants.gov, as a Notice of Funding Opportunity (NOFO).
• Who: most grants go to states, universities and nonprofits. Some are open to for-profit companies. Check "eligible applicants" first.
• Registration: you need the same active SAM.gov registration.
• Rules: grants follow the Uniform Guidance (2 CFR 200), with budgets, reporting and audits instead of a delivered product.

16SBIR and STTR: R&D funding

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs fund small companies to develop new technology that agencies need. They were reauthorized in April 2026 through September 30, 2031.

• Who qualifies: for-profit U.S. small businesses, generally 500 employees or fewer, majority U.S.-owned.
• STTR requires a formal partnership with a research institution such as a university.
• Where: agencies publish topics on SBIR.gov and their own portals. Register your company on SBIR.gov before you apply.
• Award sizes and timelines vary by agency. Read each solicitation.

17After you submit

• Lost? Ask for a debriefing. It is the best free coaching you will get.
• Won? Read the contract, attend the kickoff, and set up invoicing. DoD uses PIEE (WAWF). Many civilian agencies use the Invoice Processing Platform.
• Perform and document. Your CPARS rating becomes the past performance for your next bid.

AGlossary

CAGE code

Five-character ID assigned during SAM.gov registration.

CLIN

Contract Line Item Number. Each priced line in a contract.

CO / KO

Contracting Officer. The only person who can bind the government.

CPARS

System where the government rates contractor performance.

DD 254

Security classification specification for work that needs a clearance.

BPA

Blanket Purchase Agreement for repeat purchases.

FFP

Firm-fixed-price contract.

GWAC

Government-wide acquisition contract, an IDIQ any agency can use.

IDIQ

Indefinite Delivery, Indefinite Quantity. A contract that issues task orders over time.

NOFO

Notice of Funding Opportunity, the announcement for a grant.

OSDBU

An agency's small business office.

PWS / SOW

The description of the work to be done.

SBIR / STTR

Federal R&D funding programs for small businesses.

RFI / RFQ / RFP

Request for Information, Quote, or Proposal.

UEI

Unique Entity ID. Your 12-character government ID from SAM.gov.