The Complete Guide to Government Contracting (2026)

Before you can bid on federal contracts, you need to complete several registration steps. The process typically takes 2-4 weeks, though some certifications can take longer.

SAM.gov Registration

Every business that wants to do business with the federal government must register in the System for Award Management (SAM.gov). This free registration provides your business with a Unique Entity ID (UEI), which replaced the DUNS number in 2022. Your SAM registration includes company details, NAICS codes, representations and certifications, and points of contact. Registration must be renewed annually.

NAICS Codes

The North American Industry Classification System (NAICS) categorizes your business by industry. Selecting the right NAICS codes is critical because they determine which size standards apply to your business and which set-aside opportunities you can pursue. You can list multiple NAICS codes in SAM, but each contract is assigned a primary code.

Business Size Determination

The SBA sets size standards for each NAICS code, expressed as either annual revenue or number of employees. If your business falls below the threshold for a given NAICS code, you qualify as a small business for contracts under that code. Understanding your size status unlocks access to set-aside programs worth over $170 billion annually.

Get Help from PTAC/APEX

The Procurement Technical Assistance Centers (PTAC/APEX) provide free counseling to businesses pursuing government contracts. They can help with SAM registration, identifying opportunities, understanding solicitations, and preparing proposals. There are over 90 PTAC centers nationwide.

The federal government reserves a significant portion of contracts for small businesses through set-aside programs. These programs limit competition to businesses that meet specific criteria, giving smaller firms a better chance to win. View all set-aside types and their current opportunity counts.

Multiple certifications can be combined. For example, a woman-owned business in a HUBZone that is 8(a) certified has access to several set-aside pools. Learn about the certification process and browse HUBZone maps to check eligibility.

Writing a government proposal is fundamentally different from commercial sales. Proposals are evaluated against specific criteria published in the solicitation, and compliance with instructions is mandatory. A technically superior proposal that doesn't follow formatting requirements can be eliminated without evaluation.

Solicitation Review

Read the entire solicitation before deciding to bid. Pay special attention to Section L (Instructions to Offerors), Section M (Evaluation Criteria), the Statement of Work (SOW) or Performance Work Statement (PWS), and all attachments. Build a compliance matrix that maps every requirement to your proposal response.

Technical Approach

Your technical volume should demonstrate understanding of the requirement, describe your approach in detail, explain how you will manage risks, and show that your team has the skills and experience to perform. Use the evaluation criteria as an outline — if the government says "technical approach" is worth 40% of the evaluation, spend 40% of your proposal on it.

Past Performance

Evaluators want evidence that you have successfully completed similar work. Provide detailed references with contract numbers, dollar values, scope descriptions, and points of contact. If you lack federal past performance, relevant commercial or state/local experience can be cited. Review past performance guidance for more detail.

Pricing

Your price volume must be reasonable, realistic, and complete. For fixed-price contracts, research market rates and factor in all costs including overhead, G&A, and profit. For cost-reimbursement, you will need an adequate accounting system and cost proposals that comply with FAR Part 31 cost principles.

Winning the contract is just the beginning. Successful contract execution builds the past performance and relationships needed to sustain and grow your federal business.

Contract Administration

Assign a dedicated contract manager who understands the terms, conditions, deliverables, and reporting requirements. Track key dates including the period of performance, option exercise deadlines, and modification timelines. Maintain thorough documentation of all work performed and communications with the government.

Invoicing

Submit invoices promptly using the method specified in the contract (often the Invoice Processing Platform or Wide Area Workflow). Ensure invoices match contract line items and include all required backup documentation. Late or incorrect invoicing delays payment and can create performance issues.

CPARS Ratings

The Contractor Performance Assessment Reporting System (CPARS) is the government's system for evaluating contractor performance. Ratings range from Exceptional to Unsatisfactory and are used by future evaluation boards. Proactively manage your performance, communicate with your COR, and respond thoughtfully to any draft assessments.

Contract Modifications

Requirements change during contract execution. Modifications can add or reduce scope, extend the period of performance, exercise options, or adjust pricing. Always insist on a written modification before performing out-of-scope work. Understand the difference between bilateral (both parties agree) and unilateral (government-directed) modifications.