Government agencies buy a wide range of products and services, and many seek to work with small businesses. But government contracting has its own registrations, vocabulary, and compliance expectations. Businesses that prepare in advance are better positioned to make good decisions about whether and how to pursue contracts.
Start with the basics
- Business formation and EIN. Your legal entity, ownership, and tax identification should be in order.
- Registration. Federal contractors generally need an active registration in SAM.gov, which must be renewed periodically. The registration requires accurate business, banking, and tax information.
- NAICS codes. These codes classify what your business does and are tied to opportunities and small business size standards.
Know where opportunities are posted
Federal contract opportunities are generally posted on SAM.gov. State and local governments typically have their own procurement portals. Agencies also have small business offices that can describe upcoming needs.
Get your financial house in order
Government customers often expect clear, consistent financial records. Before pursuing contracts, consider whether you have:
- Clean, current books with business and personal finances separated
- Up-to-date tax filings and any required payments current
- A way to track costs by project or contract
- Timekeeping and documentation practices appropriate for your work
- Financial statements you can provide when asked
Build your story
- A concise capability statement describing what you do and for whom
- Past performance and references, including commercial work
- Clear descriptions of your products or services in terms a contracting officer can use
Understand compliance expectations
Contracts can carry specific requirements related to reporting, record retention, cost accounting, and security. These vary by agency and contract type. Read each solicitation carefully and ask questions before committing.
Use available help
Small businesses can often access free or low-cost counseling through federal and local programs, including the U.S. Small Business Administration and local procurement assistance programs. Program names and eligibility change over time, so confirm details at the official source.
Set realistic expectations
Government work can take time to win, and no one can guarantee an award. A steady, prepared approach tends to work better than a rushed one. We can help you assess readiness, organize your records, and plan sensible next steps. See our Government page for more information.
General information only. This article is educational and is not tax, legal, or financial advice. Tax rules change and outcomes depend on your individual facts. Please consult a qualified professional about your situation.