Government Procurement Guide for Small Businesses: Complete 2025 Resource

Most small businesses win their first contract within 6-18 months of actively pursuing opportunities. The timeline depends on factors like your industry, certifications, past performance, and how many proposals you submit. Starting as a subcontractor can accelerate this timeline.

No special certifications are required for most government contracts. However, having certifications like 8(a), HUBZone, WOSB, or SDVOSB gives you access to set-aside contracts with less competition. You can compete for full and open opportunities with just SAM.gov registration.

SAM.gov registration is completely FREE. Beware of third-party services charging fees - registration is free and can be completed yourself in 1-2 hours. Some certifications (like 8(a)) are also free through the SBA.

Yes! Start with smaller contracts ($25K-$100K) that may not require extensive past performance. You can also use commercial references, pursue subcontracting opportunities to build experience, or look for contracts specifically open to new contractors.

For active pursuit, check SAM.gov daily or set up email notifications for saved searches. Most opportunities are open for 15-45 days. The GovCon Giants Opportunity Finder automates this with daily curated matches.

A capability statement is a one-page document (like a business resume) highlighting your company's experience, capabilities, and differentiators. Yes, you absolutely need one - it's used for networking, responding to sources sought notices, and supporting proposals. GovCon Giants provides templates.

Search the NAICS database at <a href="https://www.census.gov/naics" target="_blank" rel="noopener" class="text-blue-600 hover:underline">census.gov/naics</a> for codes matching your products or services. Your NAICS code determines which contracts you're eligible for and your small business size standard. Most businesses select 5-10 codes that match their capabilities.

Yes, but there are limitations. Small business set-aside contracts have limitations on how much you can subcontract (typically must perform 50% or more yourself). The specific percentages vary by contract type and are specified in the solicitation.

The registration process itself takes 1-2 hours to complete. Validation and activation typically takes 7-10 business days. You must renew annually to remain active. GovCon Giants provides a step-by-step guide to make registration easier.

Federal procurement is governed by the FAR and contracts through SAM.gov. State and local governments have their own procurement systems, regulations, and registration requirements. Federal contracts tend to be larger but more complex, while state/local can be more accessible for small businesses.

Payment terms are specified in each contract but typically range from Net 30 to Net 60 days. The government is reliable but often slow. Many contractors use government contract invoice financing to manage cash flow. Payment is usually made via ACH to your bank account on file in SAM.gov.

A GSA Schedule is a pre-negotiated contract vehicle allowing federal agencies to purchase from you quickly. It's not required but can be beneficial if agencies frequently buy your type of products/services. Getting on a schedule takes 4-6 months and requires existing sales history.

Yes, foreign-owned businesses can compete for many U.S. government contracts, but there are restrictions on certain contracts for national security reasons. You must still register in SAM.gov and comply with all requirements. Some set-asides are limited to U.S. citizens.

GovCon Giants provides a complete support system: AI-powered opportunity matching, proposal templates, capability statement builders, a community of 10,000+ contractors, expert guidance, and educational resources. We help you navigate the entire process from SAM.gov registration to contract award.