How to Get into Government Contracting: 5 Essential Tips for Small Businesses
Hey, small business owner. Interested in an annual contracting marketplace between $350 billion and $500 billion?
Of course you are, which is why so many small business owners are looking for ways to break into the world of federal government contracts. Those Washington offices (and offices across the country and around the world) need a lot of stuff. From military vehicles for the Department of Defense to cybersecurity for the housing administration to real estate to catering to paper clips, the U.S. government has massive operations to make it the world’s largest buyer of products and services. Because of this, the U.S. federal government has seemingly endless revenue opportunities for those who can squeeze a foot in those massive, mahogany doors.
Getting that first GovCon opportunity, however, is an enormous challenge and takes serious strategic planning. This grueling process can feel overwhelming and leave you wondering where to even begin. Good news: at Summit Strategy, we have decades of combined experience guiding small business owners with big dreams through this federal government maze to win game-changing contracts.
Registering Your Business with the Federal Government
Unfortunately, becoming a federal contractor isn’t just a matter of showing up. And one way that can help you take the first steps toward your first contract is to qualify as a small business and register as a government contractor.
Here are some important first steps:
- To pursue government contracts, small businesses must first qualify under the Small Business Administration (SBA) guidelines. Check the SBA’s Size Standards tool to understand the size standard, employee count, and revenue you need to qualify.
- Next, register your business in the System for Award Management (SAM) at sam.gov. This is required to bid on federal contracts or work as a subcontractor. You’ll also need a DUNS number and a NAICS code to classify your business.
- Familiarize yourself with the Federal Acquisition Regulation (FAR), which outlines the rules for federal contracting.
Once you’ve registered, you have a chance to explore contracting opportunities with federal agencies or review the database of larger businesses looking for subcontractors.
Bonus tip: Depending on how you want to enter the federal contracting space, you could consider subcontracting with larger firms as a way to gain experience and get a foot in the door as a government contractor. Many federal contracts require agencies to work with small businesses, so subcontracting could be a good vehicle to meet those requirements for a procurement team.
Ready to turn this big government contract dream into a reality? Here are five tips to get you started.
Break into Government Contracting
1. Research, research, research:
This may seem cliché since most projects require some level of research, but there’s some specific information you need to land government contracts. Start by researching government agencies that align with what you offer. Remember, you’re selling your business to fill a need, so there’s no sense in pursuing agencies that don’t need you.
Once you’ve identified the agency you want to pursue, gather all the information you can about its operations and dive deep into its procurement processes, contract requirements, contract vehicles, and upcoming opportunities. If you try to be somebody to everybody, you’ll fail miserably.
Want to know where to start your research? Most agencies post upcoming solicitations and opportunities on platforms like SAM.gov, where you can search for active contracts that fit your capabilities.
In addition to SAM.gov, explore resources like the SBA's Dynamic Small Business Search (DSBS), which allows you to see subcontracting opportunities with larger companies. Many federal contracts require large businesses to work with small businesses, providing you with a great way to enter the market.
Also, look at agency-specific websites or portals, as some agencies offer their own contract forecasts and procurement pages, giving you a heads-up on opportunities before they hit general listings. You can also perform market research by attending government-sponsored events, industry days, and outreach sessions to meet agency buyers directly. This level of preparation allows you to approach each opportunity with an informed and tailored strategy, maximizing your chances of winning contracts.
2. Certifications matter:
Credentials are everything within the federal government. The alphabet of acronyms following someone’s name determines where and what they have access to and to what projects they’ll be assigned. Certifications like 8(a), HUBZone, Woman-Owned Small Business (WOSB), and Service-Disabled Veteran-Owned Small Business (SDVOSB) are not just titles—they're powerful tools that are highly valued by the federal government and will likely get you noticed over competitors who don’t have them. These certifications give you access to set-aside contracts: opportunities specifically reserved for businesses with these designations.
The federal government aims to award a certain percentage of its contracts to small businesses that meet these criteria. For example, 5% of federal contracting dollars are targeted toward WOSBs, and 3% toward HUBZone businesses and Service-Disabled Veteran-Owned businesses. The 8(a) Business Development Program is also designed to assist minority-owned businesses, offering mentorship and exclusive bidding opportunities.
Obtaining these certifications requires effort, but the benefits can be significant. In addition to set-aside contracts, having these credentials often leads to increased visibility and more subcontracting opportunities. Larger firms are frequently required to include small, certified businesses in their bids, which can help you build relationships and win future contracts.
Certifications not only enhance your credibility but also broaden your access to federal contracting opportunities, giving your business a distinct advantage.
3. Get out there:
Remember your first high school crush? Did they even know you existed? Chances are, they didn’t see your potential, your unique qualities, or the fact that you would one day become a successful business owner landing significant government contracts. It’s kind of the same in the world of federal contracting. If the people running these agencies where you want to land contracts don’t know you exist, then they don’t know what they’re missing out on.
That’s why networking is key. Attend industry conferences and government events where you can connect with federal procurement teams. These gatherings provide an excellent opportunity to meet contracting officers, who are the gatekeepers to contracting opportunities and contract awards, as well as other small business owners and prime contractors who can offer valuable partnerships and insights on doing business with the federal government.
Joining relevant professional organizations can also enhance your networking efforts. Many organizations host events, webinars, and workshops that connect you with key players in the federal contracting space. For example, organizations such as the National Contract Management Association (NCMA) or the Association of Procurement Technical Assistance Centers (APTAC) can be great resources.
These relationships can lead to valuable partnerships.
4. Focus on your frenemies:
I know this sounds like a Taylor Swift song (that would probably be awesome), but starting your journey to land government contracts can begin by working with established government prime contractors.
Prime contractors are typically large companies that compete for very large government contracts. They are required in many of these contracts to work with subcontractors to complete the work. And while these firms might be or become your competitors, taking this step allows you to gain experience, valuable past performance KPIs, showcase your capabilities, and establish a track record. One day, you’ll crush these competitors. But for now, they’re stepping stones toward securing your own prime contracts in the future.
5. Your marketing matters:
It may seem like the federal government is made of faceless buildings like something from the Matrix. But do you know how those faceless buildings function? There are actual, living and breathing people working in those buildings with thoughts, feelings, and emotions. That means they respond to marketing like anyone else, so you need to make sure the story you’re telling about your business is the story you want them to hear.
By leveling up your marketing efforts, you can ensure the message you’re sending has the right appeal for the people behind the agency you want to work with.
Patience, Persistence, Resilience
Now it’s time for the hard truth.
Even if you follow these tips exactly, it still may take years to work your way into signing a major federal government contract. Breaking into the federal market is very competitive and can take a hell of a long time. So it’s important to be patient, persistent, and resilient. When your time comes, the hard work will have all been worth it.
Now go get ‘em.
Krystn Macomber
CP APMP Fellow, LEED
There’s magic in disrupting the ordinary. This is the philosophy Krystn brings to working with and empowering her clients. With a 20-year track record of helping global professional services enterprises, Krystn is redefining what’s possible for companies looking to elevate their marketing, pursuit, and business development operations. She is an industry leader, award winner, mentor, coach, and highly sought-after speaker.
If you’re new to the government contracting space, it doesn’t take long before you start hearing terms like “business development,” “capture,” and “proposal development.” You might think, Aren’t they all just about winning work? The short answer is yes. But understanding the roles each plays in the pursuit process can make a big difference in how you structure your efforts, and, ultimately, your success rate.
Strategic Kickoff Mastery: Ensure thorough preparation, align team expectations, and set the stage for a successful proposal effort