How to Get Government Contracts: The Complete 2026 Guide

The U.S. federal government is the world's largest buyer of goods and services, spending over $750 billion annually on contracts. By law, the government must award at least 23% of prime contract dollars to small businesses — that's over $170 billion per year in opportunities specifically targeted at companies like yours.

Government contracts offer several advantages over private-sector work: reliable payment (the government always pays), long contract terms (often 3-5 years with option periods), and predictable revenue streams. Many small businesses that enter government contracting find it becomes their most stable and profitable revenue source.

The government buys everything — IT services, construction, consulting, janitorial services, food services, healthcare, cybersecurity, logistics, engineering, manufacturing, and much more. Whatever your business does, there's likely a federal agency that buys it.

The barriers to entry are lower than most people think. You don't need special connections or lobbyists. The process is transparent and regulated, with clear rules designed to give small businesses a fair shot. This guide walks you through every step.

Before you start bidding on contracts, you need to ensure your business is properly set up.

Business Structure: You need a legal business entity (LLC, Corporation, Sole Proprietorship). If you haven't incorporated yet, do so in your state. You'll also need an Employer Identification Number (EIN) from the IRS — get one free at irs.gov.

UNS Number: Previously known as a DUNS number, you need a Unique Entity Identifier (UEI) which is now assigned automatically when you register in SAM.gov.

NAICS Codes: Identify the North American Industry Classification System (NAICS) codes that describe your business. These codes determine which contracts you're eligible for and what size standard applies to your business. You can have multiple NAICS codes. Use the Census Bureau's NAICS search tool or Bidlync's NAICS Code Finder to identify your codes.

Capability Statement: This is your business's resume for government work. It should be a one-page document that includes your core competencies, past performance, differentiators, company data (NAICS, UEI, cage code), and contact information. This is the single most important marketing document in government contracting.

Financial Readiness: Government contracts often require you to perform work before getting paid (net 30 is standard). Ensure you have sufficient working capital or a line of credit. For larger contracts, you may need to provide performance bonds.

SAM.gov (System for Award Management) registration is mandatory for any business that wants to receive federal contracts or grants. Registration is free and takes about 7-10 business days to process.

The registration process requires: your business's legal name and address, EIN, bank account information for electronic funds transfer (EFT), NAICS codes, products and services codes (PSC), and information about your business size and ownership.

During registration, you'll receive a Unique Entity Identifier (UEI) and a CAGE code (Commercial and Government Entity code). These identifiers are used throughout the federal procurement system.

Important: Your SAM.gov registration must be renewed annually. Set a calendar reminder 60 days before expiration. If your registration lapses, you cannot receive contract awards or payments until it's renewed.

See our detailed SAM.gov Registration Guide for step-by-step instructions with screenshots.

Federal certifications give small businesses access to set-aside contracts that are restricted to qualifying firms. The major certifications are:

8(a) Business Development: For small, socially and economically disadvantaged businesses. Provides access to sole-source contracts up to $4.5M and competitive set-asides. Nine-year program.

HUBZone: For businesses located in and hiring from Historically Underutilized Business Zones. Provides set-asides, sole-source awards, and a 10% price evaluation preference.

WOSB/EDWOSB: For women-owned small businesses. Provides set-asides in designated NAICS codes where women are underrepresented.

SDVOSB: For service-disabled veteran-owned businesses. Provides set-asides and sole-source awards across all NAICS codes.

Small Disadvantaged Business (SDB): Provides a price evaluation adjustment in certain full-and-open competitions.

Not every business qualifies for certifications, and you don't need them to win contracts. Many small businesses win contracts through full-and-open competition or small business set-asides (which only require being a small business under your NAICS code). However, certifications significantly increase your opportunities.

Use Bidlync's 'Do I Qualify?' tool to check your eligibility for each certification program.

Now that you're registered and certified, it's time to find contracts to bid on.

SAM.gov Contract Opportunities: This is the official source for federal contract opportunities over $25,000. All federal agencies must post solicitations here. Use Bidlync to search SAM.gov with advanced filters for keyword, NAICS code, set-aside type, state, and agency.

Grants.gov: For federal grant opportunities. Bidlync also integrates Grants.gov data for easy searching.

Agency Forecast Lists: Many agencies publish annual procurement forecasts listing upcoming contract opportunities. These give you advance notice to prepare. Check your target agencies' OSDBU (Office of Small and Disadvantaged Business Utilization) websites.

Subcontracting Opportunities: Large prime contractors must submit subcontracting plans showing how they'll use small businesses. Check SubNet (the SBA's subcontracting network) and reach out to large primes directly.

GSA Schedule: Getting on a GSA Schedule (now called Multiple Award Schedule or MAS) makes it easier for agencies to buy from you. It's like being in the government's preferred vendor catalog.

State and Local: Don't overlook state and local government opportunities. Many states have their own procurement portals and small business programs.

When you find an opportunity, you need to respond with a compelling proposal. Government proposals are different from commercial sales pitches — they follow strict formats and evaluation criteria.

Read the Solicitation Carefully: Every word matters. The solicitation tells you exactly what the government wants, how proposals will be evaluated, and what format to follow. Non-compliant proposals are eliminated immediately.

Understand Evaluation Criteria: Proposals are typically evaluated on Technical Approach (can you do the work?), Past Performance (have you done similar work before?), and Price (is your price fair and reasonable?). The relative importance of each factor is stated in the solicitation.

Technical Approach: Demonstrate that you understand the requirement and have a clear plan to deliver. Be specific — don't just say you'll provide 'excellent service.' Describe your methodology, tools, team qualifications, and quality control processes.

Past Performance: Provide references from similar work you've completed. Include contract numbers, points of contact, dollar values, and brief descriptions of the work. Even commercial past performance counts if it's relevant.

Pricing: Your price must be fair and reasonable. Too high and you won't win; too low and the government may question whether you can actually perform. Research comparable contracts using USAspending.gov to understand market rates.

Use Bidlync's AI Bid Assistant to analyze solicitations and generate proposal outlines, compliance matrices, and win probability assessments.

Winning your first contract is a milestone, but the real work begins with performance.

Contract Kickoff: After award, there's typically a kickoff meeting with the contracting officer and program manager. Come prepared with your project plan, team introductions, and questions about expectations.

Performance: Deliver exactly what the contract requires — no more, no less. Government contracts are legally binding documents. If you need to change scope, you must go through the formal modification process.

Invoicing: Submit invoices on time and in the correct format. Most agencies use the Invoice Processing Platform (IPP) for electronic invoicing. Late or incorrect invoices delay payment.

Past Performance Reporting: Your performance will be documented in the Contractor Performance Assessment Reporting System (CPARS). Good CPARS ratings are essential for winning future contracts. Communicate proactively with your contracting officer — don't let problems fester.

Growing Your Government Business: Use your first contract as a springboard. Build relationships at the agency, ask about upcoming opportunities, and leverage your past performance to bid on larger contracts. Many successful government contractors started with a single small contract and grew from there.

The government contracting journey takes patience and persistence. Most businesses don't win their first bid. But with the right preparation, certifications, and tools like Bidlync, you can build a thriving government contracting business.