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

The federal government spends more than $700 billion a year on contracts. In fiscal 2025, small businesses won about $179 billion of it directly as prime contractors. The rules look complicated from the outside. They follow a clear order. This guide walks through it, step by step, in plain English.

01Capability statement02Register03Pick your codes04Get certified05Find opportunities06Bid07Win and perform

01Your capability statement

A capability statement is your company's résumé for government buyers: one or two pages that say who you are, what you do, what you've done and how to reach you. Everyone who wants federal work needs one. You send it with sources-sought responses, to small business offices and to primes you want to team with.

It's also what your AI reads to learn your company. Your codes, certifications and past work are how WARNO matches opportunities to you. Upload it on the homepage and get 5 free targets.

Example capability statement, page 1Example capability statement, page 2: past performance
Example: our own capability statement. Page 1 (contact details blurred) and page 2, past performance.

NAICS codes

Six digits for what you do, like 541611 (management consulting). They set your size standard and which set-asides you qualify for. More →

PSC codes

Four characters for what the government buys, like R408 (program management support). Use them to find past awards like yours. More →

  1. Header: name, UEI and CAGE. Your two government IDs, both issued when you register in SAM.gov (step 02).
  2. Company overview. 3 to 5 sentences: who you serve and what you deliver. Use the buyer's words.
  3. Core competencies. The work you do, as a short list. These words help your AI and the buyer find you.
  4. Differentiators. Why you, in facts: veterans, clearances, locations, speed, awards.
  5. Company data. Certifications (SDVOSB, HUBZone, 8(a), WOSB), NAICS codes and PSC codes.
  6. Past performance. 2 to 4 contracts: customer, contract number, value, dates, what you delivered. Commercial and subcontract work count.
  7. Point of contact. A real person with a direct phone and email.
WARNOHave a capability statement? Upload it and WARNO matches your codes to open opportunities. Get 5 free targets →

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.
Registration is free. Emails offering to "renew your SAM registration" for a fee are not from the government. Free, one-on-one help is available from your local APEX Accelerator.
Bidding on Defense work? Since November 2025, DoD solicitations can require CMMC Level 1 (Self): a yearly self-assessment against the 15 basic requirements of FAR 52.204-21, entered in SPRS with a yearly affirmation by a senior company official. It is free and you do it yourself. How to do it.

03How the government buys

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

ValueWhat happensWhat it means for you
Up to $15,000Micro-purchase. Often bought on a government purchase card, no competition required.Be easy to find and easy to pay. Accept cards.
$15,000 to $350,000Simplified acquisition. Usually a short Request for Quote (RFQ). Generally set aside for small business.The best place to win your first contracts.
Above $350,000Full competition. Usually a Request for Proposal (RFP) with written volumes and formal evaluation.Bigger reward, more work. Team up if you are new.

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.

Keep reading with Core

The rest of this guide covers:

  • NAICS codes: what you do
  • PSC codes: what they buy
  • Are you small?
  • Set-asides and certifications
  • Finding opportunities
  • Reading a solicitation
  • How bids are evaluated
  • Past performance with no federal history
  • Contract types
  • Contract vehicles: IDIQs, BPAs and schedules
  • Pricing basics
  • Grants vs. contracts
  • SBIR and STTR: R&D funding
  • After you submit
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This guide is general information, not legal advice. Rules and thresholds change. Always check the solicitation and official sources (SAM.gov, SBA.gov, Acquisition.gov). Last reviewed September 2026.