How to Get Government Contracts: Everything US Businesses Need to Know
Government contracts offer US businesses some of the most stable, high-value revenue opportunities available. Federal agencies alone spend over $600 billion on contracted goods and services each year. However, accessing that spend requires understanding a procurement system that operates very differently from commercial sales.
This guide covers every stage of the process — from registering on SAM.gov to submitting a winning proposal — so your business can compete effectively from the start.
What Are Government Contracts?
Government contracts are formal agreements between a federal, state, or local government agency and a private business to supply goods or services. They are awarded through a competitive procurement process governed by specific regulations — the Federal Acquisition Regulation (FAR) at the federal level, and jurisdiction-specific rules at state and local level.
Contract terms typically run from one to five years, often with option periods. Because government agencies pay reliably and contracts are legally binding, winning a government contract can provide your business with long-term, predictable revenue. Furthermore, a strong government contracting track record opens doors to larger and more complex opportunities over time.
Step 1 — Register on SAM.gov
The System for Award Management (SAM.gov) is the federal government’s primary contractor registration database. Registration is mandatory before you can bid on any federal contract. It is also free.
To register, you will need your Unique Entity Identifier (UEI), your NAICS codes (North American Industry Classification System), your business’s legal name and address, and your banking information for electronic payments. Registration takes approximately two weeks to process. Because it must be renewed annually, set a calendar reminder to avoid lapsing.
SAM.gov also publishes all federal solicitations above the simplified acquisition threshold. After registration, you can set up notifications for opportunities that match your NAICS codes — making it your primary source for federal contract leads.
Step 2 — Identify Your NAICS Codes
NAICS codes classify your business by the goods or services you provide. Every federal solicitation specifies the NAICS code that applies to the contract. Because your SAM.gov registration lists your primary and secondary codes, ensuring your codes accurately reflect your capabilities is essential for appearing in the right searches and qualifying for relevant opportunities.
NAICS codes also determine your small business size standard. The SBA sets different employee and revenue thresholds for each code. Consequently, a business may qualify as a small business under one code but not under another — making accurate classification strategically important.
Step 3 — Understand the Types of Government Solicitations
Federal agencies use three main solicitation types. Each requires a different response approach.
Request for Proposal (RFP)
An RFP is the most common federal solicitation type. It invites offerors to propose a solution and pricing. Evaluation is based on technical merit, past performance, and price — with technical merit typically carrying the highest weighting. Because RFPs require detailed narrative responses, they benefit most from professional RFP writing services.
Request for Quotation (RFQ)
An RFQ focuses primarily on pricing for a well-defined, straightforward requirement. The evaluation is simpler than an RFP, with less emphasis on technical narrative. However, compliance with specifications and competitive pricing are still essential.
Invitation for Bids (IFB)
An IFB is used when the government knows exactly what it needs and wants competitive pricing. The contract is typically awarded to the lowest responsive, responsible bidder. Because negotiation is not permitted, your price must be competitive from the outset.
Step 4 — Assess Set-Aside Opportunities
The SBA requires federal agencies to set aside a proportion of contracts for qualifying small businesses. If your business qualifies, set-aside contracts significantly improve your probability of award by restricting the competition pool.
The main set-aside categories are small businesses generally (23% of all federal contract spending), women-owned small businesses (WOSBs, 5%), small disadvantaged businesses (5%), service-disabled veteran-owned small businesses (SDVOSBs, 3%), and businesses in Historically Underutilized Business Zones (HUBZones, 3%).
Additionally, the 8(a) Business Development Program provides a dedicated nine-year contracting programme for eligible small, disadvantaged businesses. Qualifying for 8(a) status opens access to sole-source and competitive set-aside contracts that are not available to the broader market.
Step 5 — Find the Right Opportunities
SAM.gov is the primary source for federal contracting opportunities. Search by NAICS code, agency, or keyword to find solicitations relevant to your business. Set up email alerts to receive notifications when matching opportunities are posted.
For state and local contracts, each jurisdiction maintains its own procurement portal. Search your state government’s procurement website directly. Additionally, many counties and municipalities publish solicitations through their own portals — worth monitoring if local government contracts are a target market for your business.
Making a bid/no-bid decision quickly is important. Assess each opportunity against your past performance alignment, your realistic probability of winning, your available capacity to produce a strong response, and the strategic value of the contract. Because strong proposals require significant production time, a disciplined no-bid decision protects your resources for opportunities where you can genuinely compete.
Step 6 — Read the Solicitation Thoroughly
Before writing anything, read the full solicitation document. For federal RFPs, pay particular attention to Section L (instructions to offerors) and Section M (evaluation criteria). These sections define exactly how your proposal must be structured and how it will be scored.
Note every formatting requirement, page limit, font specification, and attachment instruction. Additionally, submit questions to the contracting officer before the Q&A deadline — clarification on ambiguous requirements protects your response from assumptions that lower your score.
Step 7 — Write a Competitive Proposal
The quality of your written proposal determines your evaluation score. A competitive federal proposal demonstrates three things: that you understand the requirement, that you have the capability and past performance to deliver it, and that your approach is credible and specific.
Strong proposals lead with the buyer’s priorities, not your company’s credentials. They present past performance that directly mirrors the current requirement. They address every evaluation criterion with specific evidence — not general assertions. And they follow every formatting instruction exactly.
Because professional proposal writing services consistently outperform internally produced proposals on high-value contracts, outsourcing to a specialist writer is worth considering whenever the contract value justifies the investment. Hudson maintains an 87% win rate across 3,500+ clients in 52 countries.
Step 8 — Submit on Time and Follow Up
Federal submission deadlines are absolute. Late proposals are rejected without exception, regardless of reason. Submit your proposal at least several hours before the deadline to allow time to resolve any technical issues with the SAM.gov portal or the agency’s submission system.
After submission, await the award notice. If unsuccessful, request a debrief from the contracting officer — federal agencies are required to provide debriefs upon request. Because evaluator feedback identifies specific weaknesses in your proposal, acting on it systematically is one of the fastest ways to improve your win rate over time.
Common Mistakes When Pursuing Government Contracts
These errors appear consistently in losing proposals and early-stage government contracting attempts.
Bidding Without Checking Eligibility
Every solicitation specifies eligibility requirements — NAICS codes, size standards, clearance levels, and certifications. Submitting a proposal your business is not eligible for wastes production time and damages your relationship with the contracting agency.
Starting the Proposal Too Late
A competitive federal proposal cannot be written in the final week before the deadline. Because strong proposals require strategy development, multiple drafts, and review cycles, the process should begin the day the solicitation is released.
Ignoring the Evaluation Criteria
Section M tells you exactly how your proposal will be scored. Failing to structure your response around those criteria — and to allocate depth proportional to each criterion’s weighting — is the most avoidable reason for low evaluation scores.
Submitting Generic Past Performance
Case studies that are tangentially related to the current requirement, or that lack measurable outcomes, weaken your entire proposal. Select past performance examples that directly mirror the scope and scale of the current contract — and present them with specific, verifiable detail.
How to Get Government Contracts: Frequently Asked Questions
How long does it take to win a first government contract?
Timeline varies significantly by agency, contract type, and competition level. Some small businesses win their first contract within six months of SAM.gov registration. Others spend a year or more building their past performance through subcontracting before winning a prime contract. The most important factor is submitting competitive proposals consistently — each submission builds familiarity with the process and generates evaluator feedback that improves the next one.
Do I need a lawyer to bid on government contracts?
Not for most solicitations. However, legal review is advisable for teaming agreements, subcontracting arrangements, and complex contract terms — particularly on high-value contracts with significant liability provisions. A government contracting attorney can also advise on set-aside eligibility and SBA program requirements.
Can a small business compete against large corporations?
Yes — particularly through SBA set-aside programs that restrict competition to qualifying small businesses. Additionally, subcontracting as part of a larger team is a common route for small businesses to access federal work while building their past performance record. A strong, compliant proposal is the foundation of success in either route.
What is a sources sought notice and should I respond?
A sources sought notice is a market research tool used by federal agencies to assess the availability of capable suppliers before issuing a formal solicitation. Responding demonstrates your capability to the contracting officer and can influence whether the contract is set aside for small businesses. You cannot win a contract at this stage, but a strong response establishes your credibility before the competition opens.
How important is past performance for winning government contracts?
Past performance is one of the highest-weighted evaluation factors in most federal solicitations. Agencies want confidence that the winning contractor can deliver — and documented past performance on comparable contracts is the primary evidence they use. Building a strong past performance record, starting with smaller contracts and subcontracting opportunities, is the most reliable long-term strategy for winning larger federal work.
Get Expert Support for Your Next Government Contract
Winning government contracts requires the right strategy, the right registration, and a proposal that scores well against the evaluation criteria. Hudson supports US businesses at every stage of that process — from identifying the right opportunities to submitting a compliant, competitive proposal.
Find out more about Hudson’s government contract proposal writing services and get in touch today.
Written by Joshua Smith, a seasoned bid-writing expert with experience across the UK, Middle East and US, helping organisations secure the contracts they deserve through high-quality, competitive tender responses.