Getting Started
How to Win Your First Government Contract
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The federal government spends over $700 billion on contracts every year — and by law, a significant share is reserved for small businesses. Getting your first award takes preparation, but the path is well-defined. This guide walks through every step, using official SBA and SAM.gov guidance.
Why Federal Contracting Is Worth Pursuing
In FY2024, the federal government awarded over $60 billion in contracts explicitly set aside for small businesses — programs like 8(a), SDVOSB, WOSB, and HUBZone that restrict competition to eligible firms. When you include open-competition contracts that small businesses won outright, total small business prime contracting exceeded $183.5 billion (SBA Annual Procurement Scorecard).
Unlike commercial clients, the federal government pays on time, has defined procurement rules that level the playing field, and publishes every opportunity publicly on SAM.gov. The barrier isn't access — it's knowing the process.
Set realistic expectations
SBA notes that some businesses spend between $80,000 and $130,000 in time and resources to earn their first federal contract, and that it can take up to two years to begin making a return on that investment. Federal contracting rewards persistence and preparation — it is not a quick revenue source.
Step 1 — Register in SAM.gov
SAM.gov (System for Award Management) is the federal government's central vendor database. You cannot receive a federal contract award or payment without an active SAM.gov registration. Registration is free — any service charging for it is a third-party, not the government.
Before you register, gather these items:
- UEI (Unique Entity Identifier). A 12-character alphanumeric value assigned by SAM.gov during registration. It replaced the DUNS number in April 2022. You obtain it as part of the registration process — no separate application needed.
- EIN or SSN. Your Employer Identification Number (or Social Security Number for sole proprietors).
- NAICS code(s). The codes that describe your products or services. You can have multiple. See Step 2.
- Banking information. For electronic funds transfer (how the government pays you).
Registration timeline
SAM.gov registration takes up to 10 business days to activate after submission. Your registration must be renewed annually — an expired registration means you cannot receive award or payment. Set a calendar reminder 60 days before your renewal date.
Step 2 — Know Your NAICS Code and Size Standard
Every federal solicitation is assigned a NAICS code — the North American Industry Classification System code that defines the industry. To qualify as a small business on a contract, your firm must meet the SBA size standard for that specific NAICS code.
The two most common size standards are:
- Manufacturing: 500 employees or fewer
- Non-manufacturing (services, professional): Average annual receipts under $7.5 million (the exact threshold varies by NAICS code — some industries use higher or lower caps)
Register the NAICS codes that match what you actually sell. If your registered codes don't match the solicitation's NAICS code, you may not qualify as a small business even if your revenue is well under the threshold. Use the SBA Size Standards Tool at sba.gov to look up the exact limit for your industry.
Step 3 — Target the Right Opportunities First
Not all federal contracts are equally accessible to new entrants. Understanding the thresholds built into the Federal Acquisition Regulation (FAR) helps you target opportunities where you have the best shot.
Micro-purchases (under $15,000)
Below $15,000, contracting officers can buy without competition or posting to SAM.gov (per FAR 2.101). These are often placed by credit card directly with vendors. Getting on an agency's radar through networking or capability statements is how these come in. For construction the threshold is $2,000; for service contracts it's $2,500.
Simplified acquisitions (up to $350,000)
From $15,001 to $350,000 (the Simplified Acquisition Threshold), FAR Part 13 requires that contracts be set aside for small businesses when at least two qualified small businesses can compete. Procedures are streamlined — shorter timelines, simpler evaluations, and less documentation than large contracts. This range is where most first awards happen.
Large contracts (above $350,000)
Above the SAT, full FAR requirements apply — detailed proposals, past performance evaluations, and longer award cycles. Without an established track record, these are difficult to win as a first contract. Focus here after you have a few smaller awards behind you.
Search for simplified acquisitions on SAM.gov by filtering for "Total Small Business" set-aside and sorting by response deadline. EasyGov surfaces these with plain-English summaries so you can quickly evaluate fit.
Step 4 — Consider Subcontracting to Enter the Market
The SBA notes that the federal government "prefers to work with established, reliable businesses" with demonstrated track records. For a first-time contractor, subcontracting is the most direct path to gaining that credibility — you deliver federal work under a prime contractor and build relationships inside the agencies that matter to your business.
The SBA's SUBNet database is where large prime contractors post subcontracting opportunities. Any large business can post a notice, and small businesses can search and apply. Large federal contractors are required by their prime contracts to meet small business subcontracting goals, so demand is real and consistent.
APEX Accelerators — SBA's network of free contracting assistance centers — can also help you find subcontracting opportunities and connect you with prime contractors in your industry.
Step 5 — Explore Set-Aside Certifications
If your business qualifies, SBA certifications unlock opportunities that are restricted to certified firms — including sole-source awards that require no competition at all.
- 8(a) Business Development Program. For socially and economically disadvantaged small businesses. The program lasts 9 years and allows sole-source awards up to $5.5 million for services/goods and $8.5 million for manufacturing — meaning an agency can award directly to you without competition (per FAR 19.805-1).
- SDVOSB (Service-Disabled Veteran-Owned Small Business). Certification is required through SBA VetCert at certifications.sba.gov — as of December 22, 2024, self-certification is no longer valid. Federal spending goal: 5% of all contracting dollars. SDVOSB-certified firms received $32.8 billion in federal prime contracts in FY2024 (SBA Annual Procurement Scorecard).
- WOSB / EDWOSB (Women-Owned Small Business). Recertification every 3 years. Self-certification is no longer permitted. Federal spending goal: 5%. WOSB/EDWOSB set-aside and sole-source contract obligations totaled $2.0 billion in FY2024 (SBA Annual Procurement Scorecard).
- HUBZone. For businesses in historically underutilized business zones with 35% of employees living in the zone. Provides a 10% price evaluation preference in open competition. Federal spending goal: 3%. Recertification every 3 years.
All SBA certifications are managed at certifications.sba.gov. The 8(a) application is the most involved — SBA has up to 90 days to process a complete application.
Common Mistakes First-Time Contractors Make
- Letting SAM.gov registration expire. An expired registration bars you from award or payment. Renewal is annual and must be done proactively — SAM.gov sends reminders, but they are easy to miss.
- Bidding on contracts that are too large. A $5 million sole-source 8(a) contract or a large competitive procurement requires depth of past performance and resources that most first-timers don't have. Starting with simplified acquisitions builds the track record you need to compete upmarket.
- Ignoring the Statement of Work. The SOW is the actual requirement. Proposals that don't address every line of the SOW are routinely marked non-compliant and eliminated before evaluation.
- No capabilities narrative on your SAM.gov profile. Federal agencies use the Small Business Search database — populated from your SAM registration — to find and evaluate contractors. A thin or incomplete profile means agencies won't find you. Include a clear description of what you do, your NAICS codes, and any certifications.
- Wrong NAICS code on your profile. If your SAM.gov NAICS codes don't include the solicitation's primary code, you may not qualify as small even if your revenue is well below the size standard.
How EasyGov Helps You Get There Faster
EasyGov syncs from SAM.gov daily and addresses the three biggest pain points for first-time contractors:
- Plain-English summaries. Instead of parsing pages of legalese, get a clear answer to: what does the agency want, who can bid, and when is it due — in under 60 seconds.
- Set-aside filters. Filter by your certification type and see only the contracts you're eligible to win.
- Simplified acquisition focus. Quickly surface the smaller, more accessible opportunities where new entrants are most competitive.
Related Guides
Frequently Asked Questions
Do I need past performance to win my first government contract?
Not always. For contracts below the Simplified Acquisition Threshold ($350,000), agencies often use simplified procedures where past performance carries less weight. Subcontracting is also a proven way to build a past performance record before pursuing prime contracts. When past performance is required and you have none, you can describe relevant commercial work or document your team's individual experience.
What is the easiest type of government contract to win first?
Simplified acquisitions under $350,000 are the most accessible starting point. Below this threshold, contracting officers use streamlined procedures, and the work is automatically set aside for small businesses when at least two qualified small businesses can compete. Subcontracting opportunities through SBA's SubNet are another low-barrier entry point.
How long does it take to win a first government contract?
The SBA estimates it can take up to two years to begin making a return on your federal contracting investment. SAM.gov registration alone takes up to 10 business days. After that, finding the right opportunity, preparing a competitive proposal, and going through the award process takes additional time. Some businesses accelerate the timeline by subcontracting first to build relationships and market presence before pursuing prime contracts.
Does my business need to be incorporated to get a government contract?
No. Sole proprietors can register in SAM.gov and receive federal contracts using their Social Security Number in place of an EIN. However, most businesses choose to incorporate or form an LLC before entering federal contracting for liability protection and because some solicitations require evidence of a formal business entity.
Can a one-person business win federal contracts?
Yes. Single-person businesses win federal contracts regularly, particularly for professional services (IT consulting, writing, training, accounting). The key is ensuring your SAM.gov registration is active, you have relevant NAICS codes, and you target solicitations sized appropriately for your capacity. Micro-purchase orders under $15,000 require no competition and are a common entry point for sole proprietors.