How to win your first government contract (with no experience)
The government buys everything from bolts to boots to janitorial services, and it is required to buy much of it from small businesses. Fewer small businesses compete for that work every year, so a newcomer who bids carefully on the right contracts has a real chance. You do not need a track record for most small purchases. You need a registration, a supplier, a sensible price, and the nerve to submit.
1. Register on SAM.gov (it is free)
Every federal contractor needs an active registration on SAM.gov. You will get a Unique Entity ID (UEI) and, during registration, a CAGE code. Registration is free and must be renewed every year. Be wary of companies that charge to register you: the official process costs nothing.
You will need a business entity (an LLC is common), an EIN from the IRS, a bank account for payments, and the NAICS codes that describe what you sell or do.
2. Pick a narrow lane
Beginners do best by choosing one kind of work and learning it well: a family of parts (valves, fasteners, electrical connectors), a type of supply (janitorial, safety, medical consumables), or a local service. A narrow lane means you learn the prices, the buyers and the suppliers quickly.
3. Start small, where the rules favor you
Purchases between $15,000 and $350,000 are generally reserved for small businesses when at least two are expected to compete, and they use simplified procedures: shorter solicitations, quicker awards, often lowest price wins. Below $15,000, agencies can buy without competition, often by government purchase card, so those buys go to vendors the buyer already knows.
A strong first target is a small supply buy of a few thousand to a few tens of thousands of dollars, with a price history you can check, and few past bidders.
4. Find contracts few companies bid on
Nearly one in three competed federal contracts draws a single bid. Those are the easiest to win, because the competition simply is not showing up. Look for repeat buys of the same item, small quantities, and offices whose past awards show one or two offers.
5. Price from what actually won before
For a repeat item, the last winning price is the best single guide to the next one. Get a quote from a supplier or distributor, add shipping, packaging and any fees, and check that your bid still leaves a margin at or a little under the last winning price. If a part has not been bought in years, prices often move a lot: price from a fresh quote, not the history.
6. Read the solicitation, then submit exactly what it asks
- The due date and time, and the time zone.
- How to submit: a portal, email, or DLA's DIBBS.
- The required forms, and any amendments you must acknowledge.
- Delivery terms: how many days after award, FOB origin or destination, packaging requirements.
- Restrictions: an approved-source list, first article testing, or certifications you must hold.
7. Plan for the cash
You usually pay your supplier before the government pays you. Federal agencies generally pay within 30 days of a proper invoice, so plan to front the cost of goods for roughly 30 to 60 days. Start with orders you can comfortably cover.
Sources
- SAM.gov entity registration
- FAR 2.101 thresholds, adjusted October 1, 2025 (90 FR 41872)
- FAR 19.502-2, setting aside acquisitions for small business