Federal contracts worth $25,000 or more are posted publicly on SAM.gov, and that free portal is where most businesses start looking for government contracts. State and local governments run their own separate procurement systems. Finding work you can actually win depends on three things being in place before you bid: an active SAM.gov registration, the correct industry codes attached to your profile, and a clear picture of which set-aside programs, if any, match your business.
Register on SAM.gov First
You cannot submit a bid on a federal contract without an active registration on the System for Award Management. Registration is free, and it also makes you eligible for federal grants and other assistance programs.1SAM.gov. Entity Registration Plan for the process to take a few weeks, because multiple federal systems have to validate your information before your profile goes live.
During registration, SAM assigns you a Unique Entity ID (UEI), a 12-character alphanumeric code that replaced the old DUNS number in April 2022.2Department of Labor. Quick Start Guide for Getting a Unique Entity ID The Defense Logistics Agency also assigns you a Commercial and Government Entity (CAGE) code automatically once you submit; you do not apply for it separately.3DoD Procurement Toolbox. Contractor/Vendor Guide SAM.gov Finding My CAGE Code
Have your Taxpayer Identification Number ready, along with your bank’s routing and account numbers for Electronic Funds Transfer, which is how Treasury pays you.4SAM.gov. Entity Registration Checklist Registration expires after 365 days. An expired profile blocks you from submitting proposals, so set a reminder well before the deadline.1SAM.gov. Entity Registration
Pick Your NAICS Codes and Confirm Your Size Standard
Every federal solicitation is tagged with a North American Industry Classification System (NAICS) code, a six-digit number identifying the industry the work falls under. You can select multiple codes during registration, and getting them right matters, because contracting officers use them to match solicitations to eligible vendors.
NAICS codes also determine whether the government considers you a small business for a specific contract, and that distinction opens set-aside programs worth billions each year. The SBA does not apply one revenue or employee threshold across the board. Size standards vary by NAICS code and are based on either your average annual receipts over the last five fiscal years or your average employee count over the last 24 months. Use the SBA’s size standards tool to check the specific threshold for each code you register under. When calculating your size, you must include the employees or revenue of any affiliated businesses you own or control.5U.S. Small Business Administration. Size Standards
Search Opportunities on SAM.gov
Once your registration is active, the contract opportunities search becomes your primary hunting ground. Agencies are required to publicize proposed contract actions exceeding $25,000 on this portal.6Acquisition.GOV. FAR 5.101 Methods of Disseminating Information Thousands of active solicitations sit there at any given time, and the filters are how you cut through the noise.
- Notice Type: tells you the stage of the procurement. “Presolicitation” signals a future project still being planned. “Combined Synopsis/Solicitation” is an active request accepting bids now. “Sources Sought” means the agency is doing market research before formally soliciting.
- NAICS Code: filters to your registered industry codes.
- Product or Service Code (PSC): more specific than NAICS, these codes describe exactly what the agency is buying.
- Set-Aside: shows opportunities restricted to small businesses, veteran-owned firms, women-owned businesses, or HUBZone companies.
When you find something worth tracking, click the follow icon on the listing. SAM will email you when the contracting officer posts an amendment, answers bidder questions, or shifts a deadline. Amendments frequently change the statement of work or the evaluation criteria, and submitting a proposal against outdated specifications is a fast way to get disqualified.
Start with Smaller Contracts
Federal buying falls into dollar-value tiers, and the lower tiers involve less paperwork and less competition. Purchases under $15,000 fall below the micro-purchase threshold, where agencies can award without competitive bids at all.7Acquisition.GOV. Threshold Changes A contracting officer with a government purchase card can simply buy from any qualified vendor. These transactions rarely appear on SAM.gov because they do not require public notice, so the way to capture them is by making sure your SAM profile is complete and your capability statement is in the hands of local contracting offices.
Between $15,000 and $350,000, agencies use simplified acquisition procedures with lighter proposal requirements than full competitions.8Federal Register. Inflation Adjustment of Acquisition-Related Thresholds The simplified acquisition threshold rose from $250,000 to $350,000 effective October 1, 2025, so a larger range of contracts now follows the simpler process. These solicitations still appear on SAM.gov when they exceed $25,000, and they are often set aside for small businesses. Winning a few of them builds the past performance record you need for larger work.
Research Past Awards Before You Bid
Bidding blind is one of the most common early mistakes. Before writing a proposal, learn who won similar contracts, what they charged, and which agencies actually buy what you sell. SAM.gov includes a contract data section where you can search federal procurement records and award history by agency, contractor name, NAICS code, and set-aside type.9SAM.gov. Contracting You can also download bulk data to spot spending trends.
Two things come out of this. First, you find out whether you are price-competitive. If the incumbent won a five-year IT support contract at $2 million and your cost structure puts you at $3.5 million, you either rethink your approach or target a different opportunity. Second, you see which agencies buy your services and when contracts come up for rebid. A contract nearing the end of its performance period is a rebid opportunity worth watching.
Check Whether You Qualify for a Set-Aside Certification
The federal government reserves a significant share of contract dollars for small businesses through set-aside programs under Federal Acquisition Regulation Part 19.10Acquisition.GOV. FAR Part 19 – Small Business Programs If your business qualifies for one of these certifications, you compete against a smaller pool of bidders.
8(a) Business Development Program
A nine-year program for small businesses owned by socially and economically disadvantaged individuals. The business must be at least 51% owned and controlled by U.S. citizens meeting specific financial thresholds: personal net worth of $850,000 or less, adjusted gross income of $400,000 or less, and total personal assets of $6.5 million or less.11U.S. Small Business Administration. 8(a) Business Development Program The program has a four-year development stage and a five-year transition stage. Participation is one-time-only. Agencies can award 8(a) contracts on a sole-source basis up to certain dollar limits.
Service-Disabled Veteran-Owned Small Business
At least 51% owned and controlled by one or more veterans with a service-connected disability rating from the VA. Veterans who are permanently and totally disabled can still qualify if a spouse or permanent caregiver manages daily operations.12U.S. Small Business Administration. Veteran Contracting Assistance Programs Certification runs through the SBA’s VetCert process.
Women-Owned Small Business and EDWOSB
WOSB requires at least 51% ownership and control by women who are U.S. citizens and who manage day-to-day operations. The economically disadvantaged version (EDWOSB) adds financial thresholds matching the 8(a) program: personal net worth below $850,000, adjusted gross income of $400,000 or less averaged over three years, and personal assets of $6.5 million or less.13U.S. Small Business Administration. Women-Owned Small Business Federal Contract Program Retirement account funds are excluded from the net worth calculation.
HUBZone Program
HUBZone certification targets businesses in historically underutilized areas. Your principal office must be physically located in a designated HUBZone, and at least 35% of your employees must live in one.14U.S. Small Business Administration. HUBZone Program The SBA updates the HUBZone map periodically, including scheduled updates in 2026 for expiring redesignated areas. Check the map before applying and monitor it after.
Subcontracting, Teaming, and Mentor-Protégé
You do not need a prime contract to start earning federal revenue. Large businesses holding major contracts are often required to include small business subcontractors in their performance plans, and they actively look for partners for specialized portions of the work. The SBA’s older SubNet platform is not accepting new postings as of early 2025.15U.S. Small Business Administration. SUBNet Subcontracting Opportunities Researching which companies hold prime contracts through SAM.gov’s award data and reaching out directly is the more reliable approach. The GSA eLibrary lists every company currently holding a GSA schedule contract, organized by product and service offerings.16GSA eLibrary. GSA eLibrary
The SBA Mentor-Protégé Program formalizes these relationships. A small business (the protégé) pairs with an experienced firm (the mentor) for hands-on help with accounting, marketing, strategic planning, and federal procurement. The real advantage: mentors and protégés can form joint ventures to bid on set-aside contracts, including 8(a), SDVOSB, WOSB, and HUBZone opportunities, as long as the protégé qualifies as small for the contract.17U.S. Small Business Administration. SBA Mentor-Protege Program You have to find your mentor yourself; the SBA does not match participants. Both businesses must be registered on SAM.gov, complete the SBA’s online tutorial, and submit a formal agreement through the Certify portal for approval.
GSA Multiple Award Schedules
A GSA Multiple Award Schedule (MAS) contract gives you a pre-negotiated agreement to sell products or services to federal, state, local, and tribal government buyers at approved prices.18GSA. Multiple Award Schedule Buyers like schedules because pricing and terms are already vetted, which shortens their procurement timeline. For you, it means agencies can buy without running a full competitive solicitation each time.
Getting on a schedule requires an offer to GSA showing your pricing is fair and reasonable, your past performance is acceptable, and your offerings fit the relevant category. Expect several months of back-and-forth with a GSA contracting officer before award. Schedule holders pay an Industrial Funding Fee of 0.75% of reported sales under the contract.18GSA. Multiple Award Schedule Schedules are long-term, typically five years with options for extension.
State, Local, and Cooperative Purchasing
State and municipal governments run procurement systems entirely separate from the federal portal. None of them use SAM.gov. Each state has a purchasing department, usually within its department of administration or general services, that operates its own e-procurement website with a separate vendor registration focused on state tax compliance and business licensing.
Finding the right portal means visiting each state’s procurement site individually. The National Association of State Procurement Officials (NASPO) is a useful starting point for identifying which agency handles purchasing in each state. Many states also participate in cooperative purchasing agreements, where multiple jurisdictions pool their buying power. Organizations like Sourcewell run the competitive solicitation on behalf of government and education entities; once a contract is awarded, participating agencies register for free and buy directly from the supplier without running their own bidding process.19Sourcewell. Understanding How Cooperative Purchasing Contracts Work If you sell commodities or standard equipment, a cooperative contract can expose you to thousands of buyers.
Cities, counties, and school districts often use third-party platforms such as BidNet Direct, DemandStar, and Bonfire. Some charge vendors a subscription for bid notifications; others are free to browse. The fragmentation is the real challenge at this level. There is no single place to see every local opportunity, so you identify the specific agencies that buy what you sell and register on their preferred platforms.
Bonding Requirements if You Do Construction
Bonding is worth noting because it can catch new construction contractors off guard. Federal construction contracts exceeding $150,000 require both a performance bond and a payment bond, each at 100% of the contract price. For contracts between $35,000 and $150,000, the contracting officer picks from alternative payment protections such as payment bonds, irrevocable letters of credit, or escrow agreements. Where a performance or payment bond is required, the agency also requires a bid guarantee of at least 20% of your bid, capped at $3 million.20Acquisition.GOV. FAR Subpart 28.1 – Bonds and Other Financial Protections Bonding generally is not required for service or supply contracts, though agencies can require it when the risk justifies it. New contractors with thin financials sometimes struggle to get bonded, which is a practical reason to start with smaller work.
Build a Capability Statement
A capability statement is a one-page document that works as your business card in government contracting. Contracting officers and prime contractors expect to see one when you introduce yourself, and you should have it ready before any networking event or industry day. HHS recommends a front-and-back single page covering your core capabilities, major clients, relevant certifications, and contract vehicles.21HHS.gov. How to Write a Good Capability Statement
- Core competencies: a clear description of what you do best.
- Past performance: two or three relevant projects with measurable results.
- Registration data: your UEI, CAGE code, NAICS codes, and any SBA certifications.
- Differentiators: what separates you from other vendors selling similar services.
- Contact information: name, title, phone, email, and website.
You may need different versions for different audiences. A statement aimed at a Defense Department contracting officer should emphasize security clearances and relevant technical experience. One aimed at a state transportation agency should highlight equipment certifications and local project history.
Get Free Help from APEX Accelerators
APEX Accelerators, formerly known as Procurement Technical Assistance Centers, offer no-cost counseling for businesses pursuing federal, state, and local contracts.22APEX Accelerators. APEX Accelerators With over 300 locations nationwide, one is likely near you. Counselors help with SAM registration, identifying the right NAICS codes, reviewing solicitations, preparing proposals, and understanding compliance. Many businesses spend months trying to figure the system out alone when a trained advisor could walk them through it in an afternoon. Find the location nearest you and schedule an appointment before you start bidding.