1. Introduction

Purpose of the Guide

This comprehensive guide is designed to help startup founders and small business owners understand the federal contracting process better and provide a clear roadmap for how to get started in government contracting as a startup. Government contracting can seem intimidating with its complex regulations, acronyms, and bureaucratic processes; however, beneath this complexity lies one of the most lucrative and stable revenue streams available to growing businesses.

Why Do Business with the Government?

Government contracts for startups represent a significant untapped growth channel. The federal government is the world’s largest customer, contracting $774 billion in total procurement for 2024 on goods and services (Source:govspend.com). Yet, many startups overlook this massive market opportunity, viewing government contracting as too complex or time-intensive. This perception creates a significant competitive advantage for businesses willing to invest in understanding the federal Government contracting process.

Government contracts offer several unique benefits that make them particularly attractive for startups:

• Predictable Revenue Streams: Unlike commercial clients who may delay payments or negotiate extended terms, the federal government typically pays within 30 days and offers multi-year contracts that provide revenue predictability crucial for startup growth planning.
• Premium Pricing: Government buyers often prioritize capability and compliance over cost, allowing businesses to command higher margins than in highly competitive commercial markets.
• Validation and Credibility: Landing federal contracts serves as powerful third-party validation, making it easier to attract commercial clients, investors, and top talent who view government work as a stamp of approval.
• Recession Resistance: Government spending remains relatively stable during economic downturns, providing a buffer against market volatility that can devastate commercial-only businesses.

Key stats: market size, small business set-asides, opportunity volume

The numbers tell a compelling story about government contract opportunities available to small businesses:

• Total Federal Contracting Market: $759 billion awarded in FY 2023, with $774 billion in total procurement for 2024 according to govspend.com
• Small Business Goal: Federal agencies are mandated to award 23% of contracting dollars to small businesses, with recent performance exceeding this goal at 26.5% in FY 2022 ($163 billion), 23.5% in FY 2023 ($179 billion), and 23.3% in FY 2024 ($176 billion) according to govspend.com.
• Set-Aside Categories: Additional goals include 5% for women-owned small businesses, 5% for service-disabled veteran-owned businesses, 3% for HUBZone businesses, and 5% for disadvantaged businesses
• Contract Volume: Over 500,000 contract actions are posted annually on SAM.gov
• Average Contract Value: Small business contracts average $1.2 million, with many opportunities in the $25,000 to $500,000 range perfect for startups

What this guide will help you achieve

By the end of this guide, you will have a clear roadmap to:

• Understand the federal contracting landscape and identify government contract opportunities aligned with your business capabilities
• Complete all necessary registrations and certifications to become eligible for government contracts for small businesses
• Navigate the proposal process with confidence and develop competitive positioning using government contract proposal templates
• Build a sustainable government contracting practice that complements your commercial business
• Avoid common pitfalls that derail first-time government contractors

2. Government Contracting: Understanding the Basics for Startups

What are federal contracts?

Federal contracts are legally binding agreements between the U.S. government and private companies to provide goods, services, or solutions in exchange for payment. These contracts range from simple purchases of office supplies to complex multi-billion-dollar defense systems, with bid opportunities spanning every industry and business function.

The government contracts for virtually everything it needs to operate: information technology services, professional consulting, construction, research and development, maintenance services, training programs, food services, and thousands of other categories. This diversity means that almost any legitimate business capability has potential government applications.

Overview of the federal procurement process 

The Federal Acquisition Regulation (FAR) serves as the primary rulebook governing how federal agencies purchase goods and services. Understanding the FAR framework is essential for successful government contracting, as it establishes the legal and procedural requirements that govern every federal procurement.

The FAR System: The FAR is supplemented by agency-specific regulations (such as the Defense Federal Acquisition Regulation Supplement for DOD contracts) that add additional requirements for particular agencies or contract types. While comprehensive, these regulations are designed to ensure fair competition and protect taxpayer interests.

The contracting cycle for government bids typically follows this pattern:

1. Requirements Definition: Agencies identify needs and develop statements of work
2. Market Research: Contracting officers research available solutions and potential vendors
3. Acquisition Planning: Agencies determine contract type, competition strategy, and evaluation criteria
4. Solicitation: Most opportunities are published on SAM.gov with detailed requirements
5. Proposal Submission: Vendors submit proposals by specified deadlines
6. Evaluation: Government evaluates proposals against published evaluation criteria
7. Award: Contract is awarded to the selected vendor
8. Performance: Contractor delivers goods/services while government monitors performance
9. Closeout: Contract is completed and administratively closed

Key Players: Who Issues Contracts

The key players in issuing government contracts for bid are a mix of federal agencies, procurement officers, and support organizations. Here’s a breakdown of the most important players startups should know:

1. Federal Government Agencies (Requirements or Funding Agencies)

These are the entities that define requirements and request government contracts for goods or services. Each agency has its own mission, priorities, and budget.

Top Contracting Agencies:

Department of Defense (DoD): The largest buyer by far, issuing contracts for everything from cybersecurity to logistics to construction.

Department of Veterans Affairs (VA): Buys healthcare services, medical equipment, IT systems, and facility services.

Department of Homeland Security (DHS): Buys technology, security services, disaster recovery services, and transportation infrastructure.

General Services Administration (GSA): Manages contracts across multiple agencies via long-term GWACs. GSA also manages Multiple-Award Schedules (MAS).

Health and Human Services (HHS): Procures public health technologies, research services, and data solutions.

NASA, Department of Energy (DOE), Department of Transportation (DOT): These agencies also issue a large volume of R&D, infrastructure, and innovation-driven contracts.

2. Procurement Officers and Other Resources

Each role within the federal government’s procurement process serves a unique purpose, and understanding who these individuals are and their value to businesses is crucial. This includes industry resources that help meet federal government small business contracting goals.

• Small Business Specialist (SBS): Located within federal agencies, the SBS guides small businesses through the procurement process.

They help agencies meet small business goals, provide acquisition insights, and support pre-solicitation planning alongside PCRs and CORs.

• Contracting Officer (CO/KO): The only person authorized to award and modify federal contracts.

They are warranted to obligate the federal government and manage solicitation releases, make award decisions, and handle legal commitments. Contact them only with specific, contract-related matters.

• Contract Specialist (CS): Supports the CO during pre-award and post-award phases.

Handles market research, compliance, and communication. May also be assigned duties that align with an SBLO’s responsibilities, or even formally appointed as an SBS, especially in smaller agencies or teams.

• Contracting Officer Representative (COR): Serves as the day-to-day liaison for contractors after award.

Monitors performance, ensures requirements are met, and communicates updates—but cannot make official changes without CO approval.

• Acquisition Program Manager (APM or PM): Manages the technical side of a program.

Not directly involved in contracting but offers insight into agency needs and future requirements—valuable for shaping your proposal strategy.

• Procurement Center Representative (PCR): This person is a Small Business Administration (SBA) official assigned to a federal contracting activity to advocate for small businesses in the federal procurement process.

Ensures agencies include small businesses in procurement plans. Reviews acquisition strategies, suggests set-asides, and helps small businesses compete more effectively.

Tip: Building relationships with contracting officers can improve your odds of success. Attend industry days and virtual agency events to connect.

3. Small Business Offices (OSDBUs)

Offices of Small and Disadvantaged Business Utilization help small businesses help navigate government contracts for socioeconomically owned small businesses, such as small disadvantaged or woman owned small businesses, and other small business categories. Each major agency has its own OSDBU that:

• Educate and advocate for small businesses
• Facilitate matchmaking with buyers
• Guide on set-aside programs and certifications
• Government assistance for small businesses

4. Prime Contractors

A prime contractor is a company or organization that has a direct contractual agreement with a government agency to perform work or provide goods and services. For the most part, large business prime contractors must subcontract portions of the work to smaller businesses through government subcontracting opportunities.

Startups can partner with or subcontract to primes as a path to gaining federal past performance and entering into new government markets such as DHS or VA.

5. SBA and APEX Accelerators

Small Business Administration (SBA) helps define eligibility and provides key certifications fro socioeconomic small businesses (i.e., 8(a), SDVOSB, VOSB, WOSB, HUBZone).

APEX Accelerators (formerly PTACs) provide free support to help small businesses navigate contracting, including proposal reviews and bid strategy. There are around 90 APEX Accelerators in the U.S., with about 300 local offices throughout the 50 states, Washington D.C., Puerto Rico, Guam, the U.S. Vergin Islands, and the Commonwealth of Northern Marianas.

6. General Services Administration (GSA)

The GSA runs the MAS program, a major contracting vehicle for selling commercial products and services across federal agencies. GSA also manages several GWACs, identified later in this guide. If you’re eligible, having a GSA schedule or GWAC simplifies how agencies buy from you.

7. Congress and OMB (Indirect Influence)

While not directly issuing contracts, Congress controls the federal budget, and the Office of Management and Budget (OMB) sets government-wide acquisition policy. Their priorities shape agency procurement behavior and spending focus areas.Understanding who makes purchasing decisions and when they make them is crucial for targeting your marketing efforts effectively.

Budget Cycles: The federal fiscal year runs from October 1 to September 30.Understanding this cycle is crucial because:

• Budget planning typically occurs 12-18 months in advance
• Most procurement activity peaks in the spring and early summer
• “Use it or lose it” spending creates bid opportunities in July through September
• New fiscal year (October 1st) brings fresh budgets and renewed procurement activity

Size standards as per SBA

The Small Business Administration (SBA) establishes size standards that determine whether a business qualifies as “small” for federal contracting purposes. These standards vary by industry and are matched to the NAICS (North American Industry Classification System) codes.

The SBA uses two primary size standards to determine if a business qualifies as small:

• Average number of employees, or
• Average annual receipts (revenue) over the last five years
  

You can find the official rules in 13 CFR Part 121 of the federal regulations.

Important Definitions to Know

• Annual Receipts: This includes total income plus cost of goods sold, averaged over the last 5 fiscal years. For newer businesses, average weekly revenue is multiplied by 52.
• Employee Count: Calculated as the average number of employees per pay period over the last 24 months, regardless of hours worked or employment status. For businesses under 24 months old, use the average for the time in business.
• Affiliates: When calculating size, you must include the employees or revenue of all affiliated companies. Affiliation is based on control, which may exist even without 50% ownership if one party has significant influence.

Learn the full definitions of these terms, and others, in 48 CFR 19

Key Considerations:

• Size is determined at the time of proposal submission for each contract
• Affiliations with other companies may count toward size calculations
• Size standards can change, so verify current standards before bidding
• Exceeding size standards doesn’t disqualify you from all government work, just set-aside opportunities

What buyers look for when evaluating vendors

Government buyers evaluate vendors differently than commercial customers when reviewing government bids, with unique priorities shaped by accountability requirements and risk aversion:

Past Performance: Government buyers heavily weight past performance, particularly on similar government contracts. This creates a “chicken and egg” problem for new contractors, making it essential to start with smaller opportunities to build a track record.

Technical Capability: Buyers need confidence that you can deliver what you promise. This includes not just your solution approach, but your team’s qualifications, experience, and ability to handle government-specific requirements.

Price Reasonableness: While not always the deciding factor, price must be competitive and reasonable. Government buyers must justify their selections and often face audits, making “best value” approaches that balance price and performance common.

Responsibility and Integrity: Vendors must demonstrate financial stability, business integrity, and the organizational capability to perform. This includes having adequate facilities, equipment, personnel, and financial resources.

Compliance Capability: Government contracts include numerous compliance requirements (reporting, security, labor standards, etc.). Buyers evaluate whether vendors understand and can meet these obligations.

3. Getting Started: Registering & Preparing Your Business

How to register on SAM.gov and get a UEI

Registration in the System for Award Management (SAM.gov) is mandatory for any business seeking federal contracts. This free registration process typically takes 7-10 business days but can take longer during peak periods.

Step-by-Step SAM Registration:

1. Gather Required Information: Before starting, collect:
   • Business formation documents (articles of incorporation, partnership agreement, etc.)
   • Tax identification number (EIN or SSN)
   • Banking information for electronic funds transfer
   • Key personnel information (names, titles, addresses)
   • Business address and correspondence information
2. Create SAM.gov Account: Visit SAM.gov and create a user account with a strong password and security questions.
3. Complete Entity Registration: Provide detailed business information, including
   • Legal business name and any doing-business-as names
   • Business structure (corporation, LLC, partnership, etc.)
   • Add all NAICS codes related to your company’s work (discussed below)
   • Size certification
   • Points of contact
4. Obtain UEI: The Unique Entity Identifier (UEI) replaced the DUNS number in 2022. This 12-character alphanumeric identifier is automatically assigned during SAM registration.
5. Validation Process: SAM validates your information against IRS and other databases. This process can take several days and may require additional documentation.

Download Entity Registration Checklist

Important Notes:

• SAM registration must be renewed annually
• Keep your registration current with accurate information
• Register before you bid on government contracts, as the process can be lengthy.
• Consider using the official SAM.gov site only; avoid third-party registration services that charge fees

Choosing your NAICS codes and verifying small business eligibility

North American Industry Classification System (NAICS) codes categorize business activities and are crucial for government contracting because they determine which government contract opportunities you can bid on and your small business size standard.

Selecting NAICS Codes:

1. Primary NAICS Code: Choose the code that best represents your primary business activity. This determines your size standard for small business eligibility.
2. Additional Codes: Select every NAICS code that accurately reflects business activities you can perform since SAM.gov has no limit on the number of NAICS codes you can list. This list expands the opportunities you can pursue.
3. SBA NAICS Document: Pull down the SBA Table of Small Business Size Standards PDF to see the list of NAICS codes and corresponding size standards. Use the search feature to look for NAICS codes that match your business’ core capabilities. The latest copy was effective on 17 March 2023.  For mor information on these size standards, please visit Size standards | U.S. Small Business Administration.
4. Research Opportunities: Before finalizing codes, research SAM.gov to see how many opportunities are posted under each code. Some codes have thousands of opportunities, while others have very few.

Common Startup NAICS Codes:

• 541330: Engineering Services
• 541511: Custom Computer Programming Services
• 541512: Computer Systems Design Services
• 541513: Computer Facilities Management Services
• 541519: Other Computer-Related Services
• 541611: Administrative Management and General Management Consulting Services
• 541618: Other Management Consulting Services
• 541990: All Other Professional, Scientific, and Technical Services

Look for more NAICS codes here.

Size Standard Verification:

• Calculate your average annual revenue for the five-year average fiscal years
• Include revenue from affiliates (parent companies, subsidiaries, or other controlled entities)
• Ensure you meet the size standard for your primary NAICS code
• Document your size calculations in case of protests or audits

Crafting your capability statement and setting up your DSBS profile

Your capability statement serves as your business’s “elevator pitch” to government buyers when pursuing government contract opportunities. This one-page document should concisely communicate your value proposition, differentiators, and contract-ready status.

Essential Capability Statement Elements:

Header Information:

• Company name and logo
• Contact information (address, phone, email, website)
• UEI number
• CAGE code
• NAICS codes and size certifications

Core Competencies: List 3-5 key capabilities that align with government needs. Focus on outcomes and value rather than just describing what you do.

Past Performance: Highlight relevant contract experience, including customer testimonials or metrics when possible. If you lack government experience, showcase relevant commercial work.

Differentiators: Clearly articulate what makes your company unique. This might include proprietary technology, specialized expertise, unique partnerships, or exceptional customer service.

Certifications: List any relevant business certifications (8(a), WOSB, VOSB, HUBZone) as well as professional certifications your team holds.

Contracts: List any federal contracts your company has, especially multiple-award, indefinite duration / indefinite quantity (MA IDIQ) contracts the Government could use to contract for your services (i.e., GSA OASIS).

Design Considerations:

• Keep it to one page, but you can go to two if needed (front and back)
• Use professional design and consistent branding
• Make it scannable with clear sections and bullet points
• Include a QR code linking to your website
• Print on quality paper for networking events

Dynamic Small Business Search (DSBS) Profile: The DSBS database allows government buyers to search for small businesses by capability, location, and certifications. Optimize your profile by:

• Completing all sections thoroughly
• Using keywords that buyers might search for
• Regularly updating your profile with new capabilities or past performance
• Including relevant case studies or project descriptions

Contracting assistance programs: Who needs them and why

The federal government aims to award at least 23 percent of all federal contracting dollars to small businesses annually through specialized programs. The SBA designed these programs to help small businesses secure these contracts. Participating in these programs can give your business a strong competitive edge by making you eligible for set-aside contracts with less competition.

8(a) Business Development Program:

• Eligibility: Businesses owned and controlled by socially and economically disadvantaged individuals
• Benefits: Access to sole-source contracts up to $7 million (manufacturing) or $4.5 million (products and services), business development assistance, and preference in federal contracting, some SDBs have a max of $100 million (DoD) for firms owned by Indian tribes, Alaska Native Corporations (ANCs), and Native Hawaiian Organizations (NHOs)
• Duration: 9-year program with graduation requirements
• Application Process: Extensive documentation required, 6-12 month processing time

Women-Owned Small Business (WOSB):

• Eligibility: Businesses owned and controlled by women (51% ownership minimum)
• Benefits: Access to WOSB set-aside contracts in underrepresented industries
• Types: WOSB (general) and Economically Disadvantaged WOSB (EDWOSB)
• Certification: Self-certification or third-party certification through approved entities

Veteran-Owned Small Business (VOSB):

• Eligibility: Businesses owned and controlled by veterans (51% ownership minimum)
• Benefits: Access to VOSB set-aside contracts
• Service-Disabled Veteran-Owned Small Business (SDVOSB): Enhanced benefits for businesses owned by service-disabled veterans
• Verification: Must be verified through the VA’s VetBiz program

Historically Underutilized Business Zone (HUBZone):

• Eligibility: Businesses located in designated economically distressed areas with 35% of employees living in HUBZone areas
• Benefits: Access to HUBZone set-aside contracts and 10% price preference in full and open competitions
• Verification: SBA verification required with ongoing compliance monitoring

Cybersecurity Maturity Model Certification (CMMC): If your startup plans to pursue contracts with the Department of Defense (DoD), CMMC compliance is a growing requirement. It is designed to ensure contractors meet specific cybersecurity standards to protect controlled unclassified information (CUI).

Depending on the contract, different CMMC levels may apply, with increasing complexity and validation. While it is currently mandatory for DoD contracts, other federal agencies are expected to adopt similar requirements in the near future. Preparing early can give your business a competitive edge. Learn more

Businesses considering certification can begin by visiting MySBA Certifications and completing the eligibility questionnaire to receive a preliminary assessment of their qualifications.

Things to consider before applying:

• Evaluate the volume of set-aside opportunities in your NAICS codes
• Consider the administrative burden of maintaining certifications
• Some certifications are mutually exclusive for specific contracts
• Plan certification timing around business development goals

4. Where to Find Government Contract Opportunities

SAM.gov – navigating the main federal portal

SAM.gov serves as the authoritative source for federal contracting opportunities, consolidating what were previously separate systems into a single platform. Mastering SAM.gov navigation is essential for identifying and pursuing federal contracts effectively.

Key SAM.gov Sections:

Contract Opportunities: This section lists active solicitations from all federal agencies. You can search by:

• Keywords related to your products or services
• NAICS codes
• Agency
• Place of performance
• Set-aside type
• Contract value range

Advanced Search Strategies:

• Set up saved searches with email alerts for new opportunities matching your criteria
• Use Boolean search operators (AND, OR, NOT) to refine results
• Search by Contract Opportunities (current) and Contract Awards (historical) to understand market patterns
• Filter by solicitation type (RFQ, RFP, IFB) to focus on opportunities matching your response capabilities

Understanding Opportunity Listings: Each opportunity includes critical information:

• Synopsis: Brief description of requirements
• Solicitation Number: Unique identifier for tracking
• Response Deadline: Proposal due date and time (usually Eastern Time)
• Procurement Type: Competitive or sole source
• Set-Aside Information: If restricted to certain small business categories
• Point of Contact: Government official managing the procurement
• Solicitation Documents: Draft (RFP, RFI, Draft PWS, RFP) depending on the type of SAM.gov notification

Opportunity Lifecycle Tracking:

• Sources Sought/RFI: Early market research, good for relationship building
• Draft RFP: Preview of requirements, opportunity to ask questions
• Final RFP: Official solicitation requiring formal response
• Amendment: Changes to original solicitation
• Award Notice: Announcement of contract winner

Obtaining a DUNS Number, CAGE Code, and UEI

While the UEI has replaced the DUNS number as the primary federal identifier, understanding all identification systems remains important for small business government contracting.

Unique Entity Identifier (UEI):

• Automatically assigned during SAM.gov registration
• 12-character alphanumeric identifier
• Required for all federal transactions
• Links to your complete SAM registration data

Commercial and Government Entity (CAGE) Code:

• 5-character identifier assigned by the Defense Logistics Agency
• Automatically created during SAM registration for domestic entities
• Required for defense contracts and many other government bids
• International businesses receive NCAGE codes through NATO

Legacy DUNS Numbers:

• Still referenced in some older contract documents
• Dun & Bradstreet maintains these for historical tracking
• Not required for new federal registrations as of April 2022

Subcontracting and teaming opportunities

Many startups find their entry point into government contracting through government subcontracting relationships with established prime contractors. This approach offers several advantages while building the experience and relationships necessary for eventual prime contracting.

Benefits of Subcontracting:

• Lower barriers to entry with reduced administrative burden
• Learning opportunity to understand government requirements
• Relationship building with prime contractors and government customers
• Revenue generation while building past performance experience (which you will need as a prime contractor bidding on a solicitation)
• Access to larger government contract opportunities beyond your company’s current capacity

Finding Subcontracting Opportunities:

Prime Contractor Outreach: Research companies that regularly win contracts in your market space:

• Review SAM.gov award data, FPDS data (Federal Procurement Data System – Next Generation); and USA Spending data (Government Spending Open Data | USAspending) to identify frequent winners and contract values (Pleas note, we define these sites in more detail below)
• Attend industry events and vendor networking sessions
• Join professional associations where prime contractors participate
• Leverage LinkedIn and other professional networks

Subcontracting Plans: Large contracts require prime contractors to develop small business subcontracting plans:

• Request these plans from prime contractors
• Identify specific subcategories where your business fits
• Propose specific value-added services that complement the prime’s offering

Teaming Agreements: Formal partnerships between businesses to pursue specific opportunities:

• Combine complementary capabilities
• Meet small business size requirements while accessing larger opportunities
• Share risk and resources across team members
• Actively participate in proposal development to show your worth and earn your work share
• Establish clear roles, responsibilities, and revenue sharing

Useful Government portals other than SAM.gov

Government agencies publish acquisition data that provide early visibility into contracting opportunities. These portals enable strategic planning and relationship building before formal solicitations are released.

Agency Forecast Portals: Most major agencies maintain forecast portals including:

• GSA Forecast of Contracting Opportunities: eBuy and other GSA platforms
• Acquisition Gateway: Provides a nationwide dashboard of upcoming federal contracting opportunities
• DHS Acquisition Planning Forecast: Department of Homeland Security opportunities
• DOD Forecast of Contracting Opportunities: Defense Department planning information
• NASA Acquisition Forecast: Space and technology opportunities

USAspending.gov: This transparency portal provides comprehensive federal spending data:

• Historical contract awards by agency, contractor, and category
• Trending analysis to identify growing market segments
• Competitive landscape analysis to understand market players
• Geographic spending patterns to identify regional opportunities

Federal Procurement Data System (FPDS): Detailed transactional data on federal contracts:

• Contract modifications and change orders
• Performance metrics and delivery information
• Small business utilization statistics
• Market research data for competitive intelligence

Role of APEX Accelerators and OSDBUs

The government provides extensive support infrastructure to help small businesses succeed in federal contracting. Leveraging these free resources can significantly accelerate your learning curve and increase your success probability.

APEX Accelerators (formerly PTACs): These organizations provide free counseling and training:

• Services Offered: Bid matching, proposal review, capability statement development, registration assistance
• Local Presence: Offices nationwide with counselors familiar with regional opportunities
• Specialized Programs: Industry-specific training and certification preparation
• Networking Events: Regular events connecting small businesses with government buyers

Find your local APEX Accelerator at APEX Accelerators website.

Office of Small and Disadvantaged Business Utilization (OSDBU): Every major federal agency has an OSDBU office:

• Advocacy: Represent small business interests within agencies
• Outreach: Host vendor meetings and industry days
• Compliance: Monitor agency small business goal achievement
• Resources: Provide agency-specific contracting guidance

Additional Support Resources:

• SBA District Offices: Local SBA offices provide counseling and program information
• SCORE Mentors: Experienced business professionals offering free mentoring
• Small Business Development Centers (SBDCs): Comprehensive business development assistance. Find your local SBDC at SBA’s SBDC locator.
• Women’s Business Centers (WBCs): Specialized support for women entrepreneurs

How to use OppyHound to discover contracts tailored to startups

OppyHound represents a new generation of AI-powered tools designed to help small businesses navigate the complex federal contracting landscape more effectively than traditional search methods.

Key Features:

• Document-Level Keyword Search
  Search directly within solicitation documents to find relevant key words, bidding requirements, deadlines, and terms without scrolling through hundreds of pages.
• AI-Powered Solicitation Chat and Extraction
  Ask built-in assistant questions like “What are the submission deadlines?” or “Is this a small business set-aside?” and get instant, reliable answers in a PDF report. Extract eligibility, past performance requirements, and submission instructions in seconds.
• Instant Insight Reports
  Quickly evaluate whether an opportunity is worth your time. OppyHound summarizes the key requirements and highlights areas you need to pay attention to.
• Real-Time Updates and Watchlists
  Track opportunities, get notified when there are changes, and never miss an amendment or clarification again.
• SAM.gov Integration for Smart Research
  OppyHound connects directly with SAM.gov updated several time a day, bringing the latest opportunities into one clean interface where you can sort, filter, and prioritize effectively.

Learn More

5. Understanding Federal Contract Types and Vehicles 

Federal contracts are structured using different pricing mechanisms that allocate risk between the government and contractor in various ways. Understanding these contract types is crucial for pricing strategies and risk management.

• Firm-Fixed-Price (FFP) Contracts

FFP contracts provide for a price that is not subject to adjustment based on the contractor’s cost experience in performing the contract.

Characteristics:

• Contractor bears maximum risk for cost overruns
• Government receives maximum cost protection
• Price includes all costs plus profit/fee
• Most common type for commercial products and well-defined services

When Used:

• Requirements are clearly defined
• Reasonable price competition exists
• Performance risk is minimal
• Contractor has extensive experience with similar work

Startup Considerations:

• Requires accurate cost estimation and project management
• Offers predictable revenue but requires careful scope management
• Profit margin depends entirely on execution efficiency
• Best for services where you have strong experience and can control variables

• Time-and-Materials (T&M) Contracts

T&M contracts provide for the acquisition of supplies or services on the basis of direct labor hours at specified fixed hourly rates and materials at cost.

Characteristics:

• Combines aspects of cost-reimbursement and fixed-price contracts
• Labor rates are fixed, but total hours may vary
• Materials reimbursed at actual cost
• Ceiling price typically established to limit government exposure

When Used:

• Level of effort cannot be precisely determined
• Requirements may evolve during performance
• Emergency or urgent (surge) requirements
• Engineering, technical, or professional services

Startup Considerations:

• Provides flexibility for scope changes
• Revenue tied directly to hours worked
• Requires strong project management to avoid ceiling breaches
• Good for building relationships and demonstrating capabilities

• Cost-Reimbursement Contracts

These contracts provide for payment of allowable incurred costs, to the extent prescribed in the contract, plus a fee.

Types Include:

• Cost-Plus-Fixed-Fee (CPFF): Fixed fee regardless of actual costs
• Cost-Plus-Award-Fee (CPAF): Fee varies based on performance evaluation
• Cost-Plus-Incentive-Fee (CPIF): Fee adjusted based on cost performance

When Used:

• High degree of uncertainty in performance requirements
• Research and development efforts
• Complex technical requirements
• When cost analysis is impractical

Startup Considerations:

• Significant administrative overhead for cost tracking
• Requires robust accounting systems, often certified by the federal government (Defense Finance and Accounting Services – DFAS)
• Lower financial risk but also lower potential profit margins
• Extensive government oversight and audit requirements

Contract Vehicles: GSA Schedules, GWACs, IDIQs, BPAs

Contract vehicles are pre-competed contracting methods that streamline the procurement process for both government buyers and contractors pursuing government contract opportunities. Understanding these vehicles is essential for accessing streamlined contracting opportunities.

• GSA Schedules (Multiple-Award Schedules – MAS)

GSA Schedules are long-term government-wide contracts with commercial firms that provide access to millions of commercial products and services at pre-negotiated prices.

Key Benefits:

• Streamlined ordering process for government buyers
• Pre-negotiated prices and terms
• Marketing opportunities through GSA Advantage! online catalog
• Access to state and local government sales (Cooperative Purchasing)

Schedule Categories Include:

• Schedule 70: Information Technology
• Schedule 84: Total Solutions for Law Enforcement, Security, Facilities Management, Fire, Rescue
• Schedule 541: Professional Services
• Schedule 621 I & II: 621 I is Professional & Allied Healthcare Staffing Services and 621 II is Medical Laboratory Testing and Analysis Services
• Schedule 736: Temporary Administrative and Professional Staffing

Application Process:

• Typically 6-12 months from submission to award
• Requires demonstration of commercial sales
• Detailed pricing analysis and justification
• Ongoing reporting and administrative requirements

• Government-Wide Acquisition Contracts (GWACs)

GWACs are task and delivery order contracts for information technology goods and services that provide government-wide access.

Major GWACs Include:

• CIO-SP3: NIH’s Chief Information Officer-Solutions and Partners 3
• CIO-SP3 Small Business: NIH’s Chief Information Officer-Solutions and Partners 3 set asiide for small businesses
• CIO-CS: NIH’s Chief Information Officer-Commodities/Services (IT hardware)
• SEWP V: NASA’s Solutions for Enterprise-Wide Procurement (IT hardware)
• Alliant 2: GSA’s GWAC to modernize federal agencies IT infrastructure, strengthen cybersecurity capabilities, and drive innovation
• VETS 2: GSA’s GWAC exclusively for service-disabled veteran-owned small businesses (SDVOSB) to sell IT services
• 8(a) STARS III: GSA’s GWAC exclusively for disadvantaged small businesses in the 8(a) program to sell IT services and customized IT services-based solutions. Allows sole source orders up tot he 8(a) competitive threshold
• Polaris: GSA’s GWAC for acquiring customized IT services and IT service-based solutions for small businesses, woman owned small businesses (WOSB), HUBZone businesses, and SDVOSB

Characteristics:

• Multiple award vehicles with several prime contractors
• Task order competition among awarded contractors
• Typically large contracts ($5B+ total ceiling)
• Extensive capability demonstration required for award

• Multiple-Award (MA) Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

IDIQ contracts provide for an indefinite quantity of goods or services during a fixed period, with delivery or performance to occur as specified by the government. An example of and MA IDIQ is GSA’s One Acquisition Solution for Integrated Services (OASIS) contract.

Structure:

• Minimum and maximum order quantities specified
• Orders placed through task orders (services) or delivery orders (products)
• Base period plus option periods
• Competition may occur at contract level, task order level, or both

Advantages:

• Reduced procurement lead times
• Flexibility for changing requirements
• Economies of scale
• Streamlined ordering process

• Blanket Purchase Agreements (BPAs)

BPAs are simplified methods of filling anticipated repetitive needs for supplies or services by establishing charge accounts with qualified sources.

Types:

• Single-award BPA: One contractor selected
• Multiple-award BPA: Several contractors compete for individual orders

Use Cases:

• Repetitive small purchases
• Commercial products and services
• Simplified acquisition procedures
• Reduce administrative costs

• Basic Ordering Agreements (BOAs)

BOAs are written understandings between a government agency and a contractor that set the terms and conditions for future orders over a set period. Unlike a BPA, a BOA is not a contract itself; instead, it creates a framework that simplifies issuing individual contracts for goods or services when exact details (items, quantities, prices) are unknown upfront but multiple purchases are expected.

Use Cases:

• Anticipated recurring needs with variable scope or pricing
• Situations requiring flexibility in ordering terms
• Streamlining procurement when future requirements are hard to predict

Set-Asides and Simplified Acquisition Procedures

The federal government uses various mechanisms to ensure small businesses receive a fair portion of government contracting dollars while streamlining the acquisition process for smaller purchases.

Small Business Set-Asides: Set-aside contracts are restricted to specific categories of small businesses, reducing competition and increasing win probability.

Types of Set-Asides:

• Total Small Business Set-Aside: Open to all small businesses
• 8(a) Set-Aside: Reserved for 8(a) certified businesses (Small Disadvantages Businessses – SBA)
• HUBZone Set-Aside: Reserved for HUBZone certified businesses
• SDVOSB Set-Aside: Reserved for Service-Disabled Veteran-Owned Small Businesses
• WOSB Set-Aside: Reserved for Women-Owned Small Businesses in underrepresented industries

Rule of Two: If two or more small businesses are expected to submit competitive offers, the procurement must be set aside for small businesses (with some exceptions). This is why it is very important for small businesses to respond to government Requests for Information (RFI) if they are able to do the work.

Simplified Acquisition Procedures (SAP): SAP streamlines the procurement process for acquisitions at or below the simplified acquisition threshold (currently $350,000). For commercial items using FAR Subpart 13.5, the threshold can be as high as $7.5 million for acquisitions of commercial products and services, and $15 million for acquisitions supporting contingency operations.

Key Features:

• Reduced documentation requirements
• Oral solicitations permitted
• Streamlined evaluation criteria
• Faster award decisions
• Less formal proposal requirements

Micro-Purchase Threshold: Currently $10,000 for most agencies DoD can elevate this amount to $20K CONUS / $35K OCONUS only when supporting declared contingency, humanitarian, or defense operations

• Credit card purchases
• Minimal competition requirements
• Preference for small businesses
• Quick turnaround opportunities

Commercial Product/Service Acquisitions: Special procedures apply to acquisitions of commercial items:

• Streamlined terms and conditions
• Market-based pricing
• Reduced certification requirements
• Focus on commercial business practices

Micro-Purchases and Government Purchase Cards

Micro-purchases represent the most accessible entry point for new government contractors, offering opportunities to build relationships and demonstrate capabilities with minimal administrative burden.

Micro-Purchase Definition:

• Generally $10,000 or less ($20,000 – $35,000 for DoD with exceptions)
• Simplified acquisition procedures
• Government Purchase Card (GPC) transactions
• Quotation-based rather than formal proposals

GPC Program Scale: The GPC program enables federal employees to make small purchases quickly and efficiently:

• Over $30 billion in annual transactions (based on historical federal purchasing data)
• Millions of individual purchases
• Direct payment to vendors
• Streamlined purchasing process

Micro-Purchase Opportunities:

• Office supplies and equipment
• IT hardware and software
• Professional services (training, consulting)
• Maintenance and repair services
• Research and development supplies

Success Strategies:

• Relationship Building: Establish relationships with cardholders and purchasing agents
• Quick Response: Respond rapidly to informal quotes and purchase requests
• Competitive Pricing: Offer competitive prices with good value proposition
• Reliable Performance: Consistently deliver quality products/services on time
• Payment Terms: Accept government purchase cards and provide easy purchasing process

Finding Micro-Purchase Opportunities:

• eBuy: GSA’s online marketplace for Schedule holders
• Direct Agency Contact: Build relationships with agency purchasing personnel
• Small Business Liaison Officers: Connect with agency small business advocates
• Trade Shows and Events: Network at government and industry events
• Online Marketplaces: Some agencies use commercial platforms for micro-purchases

Building from Micro-Purchases: Success with micro-purchases can lead to larger opportunities:

• Demonstrate reliability and quality
• Build past performance references
• Establish relationships with key personnel
• Understand agency needs and requirements
• Position for larger contract opportunities

6. How to Read and Respond to Solicitations

Understanding how to read and respond to government solicitations is essential for any startup entering federal contracting. Solicitations are formal invitations to bid on government work, usually issued in the form of an RFP (Request for Proposal) or RFQ (Request for Quotation). Knowing how to analyze these documents helps you avoid wasted time and target the right opportunities.

• Start by reviewing the solicitation carefully.
• Do not rush through it.
• Look at the opportunity holistically: what is the agency trying to accomplish, and does your business truly meet their need?
• Always download and read the most of the solicitation document posted on SAM.gov.

Focus your energy on the RFP (Sections C – Scope, L – Instructions, and M – Evaluation Facotrs) first. Always read carefully the Performance Work Statement (PWS) if it is not in Section C of the RFP, Statement of Work (SOW), or Statement of Objectives (SOO), depending on the type of solicitation. Always review in detail the Questions and Answer (Q&A) documents too.

Breaking Down the RFP/RFQ Document

Government agencies use various types of solicitations for government bids, but the most common are Request for Proposal (RFPs) and Request for Quotation (RFQs).

Request for Proposal (RFP): Used when the government has a problem to solve but isn’t entirely sure of the best solution. RFPs often require a more comprehensive, detailed proposal outlining your approach, methodology, and unique value proposition.

Request for Quotation (RFQ): Typically used for more straightforward procurements where the government knows exactly what it needs and is primarily seeking price quotes. RFQs are generally less complex and focus on direct responses to specified requirements. RFQs are also normally used for task or delivery orders in an MA IDIQ contract.

Regardless of the type, every solicitation is a legal document with specific requirements. Resist the urge to skim. Print it out, highlight key areas, and take detailed notes.

Identifying Fit and Eligibility Early

Before investing significant time and resources in government contract opportunities, determine if your startup is a right fit for the opportunity. This involves more than just a surface-level match of services. You should consider your relationship with the customer (the closer the better), the type of work (scope) related to your past experience, the size of the work (dollar value) compared to your highest or average contract values, and the past performance requirements.

NAICS Codes: Every solicitation is tied to one or more NAICS codes. Ensure your primary NAICS code (registered in SAM.gov) aligns with the solicitation’s requirements.

Small Business Set-Asides: Many bid opportunities are set aside specifically for small businesses or particular disadvantaged groups (e.g.,Woman-Owned Small Business (WOSB), Historically Underutilized Business Zone (HUBZone)). Verify your business’s certifications and ensure you meet the size standards for the specified NAICS code. You can find detailed size standards on the Small Business Administration (SBA) website.

Technical Requirements: Do you possess the technical capabilities, personnel, and resources to fulfill the stated scope of work? Be brutally honest in your assessment.

Past Performance: Does the solicitation require specific past performance in similar projects? Assess whether your startup has the necessary track record. If not, consider a teaming arrangement.

Key Sections to Prioritize: Scope, Evaluation, Submission

While every section is important, certain areas demand your immediate attention when reviewing government bids:

• Scope (Section C): Understand the agency’s goals, deliverables, and performance expectations.
• Submission Instructions (Section L): Follow formatting, file naming, and page limits exactly. Any deviation can lead to automatic rejection.
• Evaluation Criteria (Section M): Outlines how the government will evaluate your bid results and what criteria are most important such as price, past performance, or technical skill.

While every section is important, certain areas demand your immediate and most thorough attention:

• Scope (Section C): This section defines the agency’s goals.
  • Statement of Work (SOW): Details specific tasks, deliverables, and timelines.
  • Performance Work Statement (PWS): Focuses on desired outcomes and performance standards, giving contractors more flexibility in how they achieve them.
  • Statement of Objectives (SOO): Provides a high-level set of objectives, allowing the contractor to propose a comprehensive solution.
• Submission Instructions (Section L): This section is your “how-to” guide for preparing your proposal. It dictates formatting, page limits, required sections, and submission methods. Any deviation can lead to automatic rejection (not compliant).
• Evaluation Criteria (Section M): This section outlines how the government will evaluate your proposal and what criteria are most important. It often details the weighting of different factors (e.g., technical approach, past performance, price). Your proposal should directly address and demonstrate superiority in each of these evaluation factors. Ensure you write to all the evaluations factors, even if the requirement is not in the Instructions or Scope (Section C). The evaluator will use all evaluation factors to develop an evaluation checklist.

Compliance Must-Haves to Avoid Disqualification

Failure to comply with fundamental requirements is the quickest way to get disqualified.

• SAM.gov Registration: Your business must be registered in the System for Award Management (SAM.gov) and your registration must be active and up-to-date. This is the primary database for all federal contractors.
• Unique Entity Identifier (UEI): As of April 2022, the UEI has replaced the DUNS number for federal contracting. Your UEI is generated automatically when you register in SAM.gov.
• Required Certifications: Ensure all necessary small business certifications (e.g., WOSB, SDVOSB) are accurately reflected in your SAM.gov profile and that you meet the associated criteria. This includes other certifications such as CMMC, Capability Maturity Model Integration (CMMI), facility security clearance (FCL).
• Submission Deadlines: Adhere to the stated submission deadline. Late proposals are almost universally rejected.
• Format and Page Limits: Strictly follow all formatting guidelines and page limits outlined in Section L. Overlapping pages or incorrect fonts can lead to disqualification.
• Questions to the Government: Most solicitations have a designated period for offerors to submit questions. If anything is unclear, submit your questions through the proper channels. This demonstrates diligence and ensures you’re working with accurate information.

7. Writing a Winning Proposal

Once you know the opportunity is a fit, it’s time to write a strong, compliant proposal that makes your business stand out.

Follow the Format

The backbone of your proposal will align with

• Section L (Instructions): Organize your proposal exactly as directed in the instructions.
• Section M (Evaluation): Emphasize the aspects that will be scored highest.
• Section C (SOW or PWS): Show a deep understanding of the scope.

Craft a Compelling Executive Summary

The executive summary, if required, is often the first, and sometimes only, part of your proposal that the evaluators will read in its entirety. It is not evaluated, but a good executive summary can help an evaluator understand your company, high-level approach, and strengths for executing the contract (why me).

• Concise and Powerful: Summarize your core solution, key differentiators, and why your team is the best choice, all on one to two pages.
• Address the “So What?”: Don’t just restate what’s in the proposal. Explain the benefits of your solution to the government. How will you help them achieve their mission, save money, or mitigate risks?
• Highlight Key Strengths: Briefly mention your relevant past performance, the strength of your team, and any unique methodologies or technologies you bring.
• Tailor to the Solicitation: It should clearly demonstrate you understand the specific needs outlined in the PWS/SOW/SOO.

Highlighting Past Performance, Team Capabilities, and Value Proposition

These are the pillars of a strong proposal that demonstrate your credibility and capacity.

1. Past Performance: Provide detailed examples of successfully completed (usually withing three of five years) or ongoing projects (usually longer than a year) that are similar in scope, size, and complexity to the current opportunity. For each example, include:
   1. Administrative table usually covering client name (government agency, prime contractor, or commercial); point of contact and contact information; contract value; and period of performance to name a few.
   2. Magnititude: Contract value, number of FTEs, or number of locations.
   3. Scope: specific services provided and challenges overcome.
   4. Complexity: What made this contract challenging such as multiple stakeholders with different needs.
   5. Quantifiable results and positive impact, including any positive remarks by the customers (i.e., CPARS, awards, certifications, email of appreciation).
   6. Ensure past performance references are current and can be verified.
2. Team Capabilities: Showcase the expertise and experience of your company, subcontractors, and key personnel if required.
   1. Include relevant résumés or bios that highlight specific certifications, security clearances, and project experience directly applicable to the solicitation.
   2. Describe your organizational structure and how your team will collaborate effectively to achieve the project goals.
   3. If you’re teaming with other companies, clearly articulate their roles, responsibilities, and the value they bring.
3. Value Proposition: Beyond just meeting requirements, what unique benefits does your startup offer?
   1. Is it an innovative technical approach?
   2. A cost-effective solution without compromising quality?
   3. Specialized expertise or technology?
   4. A deep understanding of the agency’s mission?
   5. Clearly articulate how your solution provides the best value for the government’s investment.

Common Pitfalls and Red Flags to Avoid

Even the most promising startups can stumble due to common proposal mistakes.

• Non-Compliance: As mentioned, failure to follow Section L instructions, Section M evaluation factors, or PWS requirements is a fatal error.
• Generic Language: Avoid boilerplate or marketing text. Evaluators can spot generic proposals from a mile away. Tailor every sentence to the specific solicitation. Describe your approach by explaining the process, people, and tools. Provide an examples where your company did this work successfully on other contracts.
• Overpromising and Under-delivering: Be realistic about your capabilities. It’s better to propose a solid, achievable solution than an overly ambitious one you can’t deliver.
• Errors and Typos: Proofread meticulously. Errors suggest a lack of attention to detail, which can reflect poorly on your ability to manage a contract.
• Ignoring Cost: While technical merit is crucial, price is almost always a significant factor. Ensure your pricing is competitive, justified, clearly presented and maps to your technical and management solutions.
• Lack of Responsiveness: Ensure every requirement in Section C (PWS/SOW/SOO) is addressed. If a requirement is missed, the evaluators will assume you cannot fulfill it.
• Late Submission: As stated, late proposals are automatically rejected. Plan to submit well in advance of the deadline to account for any technical issues.

8. Compliance, Delivery, and Performance

Winning the contract is only the beginning. To build long-term success in government contracting, you must deliver results while staying compliant.

Delivering Value Without Burning Out

Government contracts, especially for startups, can be resource-intensive. Strategic delivery is key to long-term success.

• Realistic Planning: Don’t overcommit. Develop a detailed project plan that accounts for all tasks, resources, and timelines.
• Efficient Resource Allocation: Optimize your team’s strengths. Delegate effectively and avoid unnecessary overhead.
• Proactive Communication: Maintain open and frequent communication with your Contracting Officer (CO) and Contracting Officer’s Representative (COR). Inform them promptly of any potential issues or changes.
• Quality Control: Establish robust quality assurance processes to ensure deliverables consistently meet or exceed expectations.
• Manage Expectations: Be transparent with the government regarding capabilities and timelines. It’s better to set realistic expectations than to under-deliver.
• Invest in Infrastructure: As you grow, invest in tools and systems (e.g., project management software, accounting systems) that streamline operations and reduce administrative burden.

Ensure compliant program execution

Compliance is non-negotiable in government contracting. Failures can lead to payment delays, contract termination, or even debarment.

• Reporting: Adhere strictly to all reporting requirements outlined in your contract. This may include progress reports, financial reports, or subcontracting reports.
• Invoicing: Submit accurate and timely invoices through the designated system. Understand the payment terms and follow up promptly on any payment delays.
• Communication: Maintain a professional and transparent relationship with your government points of contact. All official correspondence, especially related to contract modifications or changes, should be in writing.

9. Tools and Resources to Support Small Businesses

The government is committed to supporting small businesses. Numerous free and low-cost resources are available to help you navigate the contracting landscape. There are many free and low-cost resources available:

Market Research Tools

• USAspending.gov: This is the official open data source for federal spending. Use it to research which agencies are buying what, from whom, and at what price. You can identify potential customers and competitors. The site reports over $600 billion in federal contracts annually.
• SAM.gov (Entity Data): Beyond registration, SAM.gov allows you to search for active government contracts, view contract awards, and research specific entities (companies or government agencies). This can help you identify potential partners or target agencies.
• Federal Procurement Data System – Next Generation (FPDS-NG): This system provides detailed information on federal contracts awarded, including contract type, value, and vendor information. While USAspending.gov offers a more user-friendly interface for general queries, FPDS-NG can provide more granular data for in-depth market research.

Mentor-Protégé Programs

• These programs, primarily offered by the SBA and some large prime contractors, connect experienced government contractors (mentors) with small businesses (protégés) to help them develop their capabilities and compete more effectively for federal contracts. Participation can provide invaluable guidance, networking opportunities, and even subcontracting work.

10. Growth and Long-Term Success

Government contracting is a long game. Building a sustainable business requires strategic planning for growth and positioning for larger opportunities.

Building Past Performance

Every successful contract you complete is an opportunity to build robust past performance.

• Exceed Expectations: Go above and beyond to deliver exceptional results. This increases the likelihood of positive CPARS (Contractor Performance Assessment Reporting System) ratings.
• Document Successes: Maintain detailed records of project achievements, client testimonials, and measurable outcomes. This data will be invaluable for future proposals.
• Request CPARS: Ensure your government clients submit CPARS reports for your contracts. These official evaluations are critical for future contract awards.

Leveraging Phase III and Sole Source Opportunities (SBIR/STTR)

For technology-focused startups, the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs offer a unique pathway to growth.

• SBIR/STTR: These programs award contracts to small businesses for R&D that has the potential for commercialization.
  • Phase I: Focus on feasibility. The deliverable is a Feasibility Paper.
  • Phase II: Development of the technology. The deliverable is a prototype of the SBIR technology.
  • Phase III: The critical stage where agencies can “sole source” (award a non-competitive contract) to a company that developed a technology under SBIR/STTR, provided the work completes, extends, or derives from the original R&D. This can be a game-changer for startups, providing direct access to significant contracts without traditional competition.
• Sole Source Opportunities: Beyond SBIR/STTR, certain conditions allow agencies to award contracts directly to a specific company without full and open competition. This often happens for highly specialized services, urgent needs, or when only one contractor can provide the required solution. Building unique capabilities and strong relationships can position your startup for these opportunities.

Positioning for IDIQs and Prime Contracts

As your startup matures, aim for larger, more strategic contracts.

• Indefinite Delivery, Indefinite Quantity (IDIQ) Contracts: Getting on an IDIQ vehicle (e.g., GSA Schedules, agency-specific IDIQs) can significantly streamline the contracting process for both you and the government. It positions you for a steady stream of task orders.
• Prime Contracts: While subcontracting is an excellent entry point, ultimately, you’ll want to pursue prime contracts. This demonstrates your ability to manage entire projects and take full contracutal and program responsibility.
  • Strategic Teaming: For larger prime opportunities, consider forming strategic joint ventures or prime-subcontractor teams with larger, established firms on small business set aside contracts. This allows you to leverage their past performance and experience while gaining exposure to larger projects.
• Graduation from Small Business: As your company grows and surpasses small business size standards, prepare for the transition. This means focusing on full and open competition and potentially pursuing larger, unrestricted contracts.

Strategic Planning

Sustainable growth in government contracting requires a well-defined long-term strategy.

• Targeted Marketing: Identify specific agencies and missions where your capabilities are a strong fit. Develop targeted marketing materials and build relationships with key decision-makers.
• Capability Development: Continuously invest in developing new capabilities, technologies, and certifications that align with emerging government needs.
• Networking: Attend industry events, participate in government-industry forums, and connect with other contractors and government personnel. Networking can uncover new opportunities and lead to valuable partnerships.
• Continuous Learning: The federal procurement landscape is dynamic. Stay informed about changes in regulations, policies, and agency priorities.
• Financial Management: Robust financial planning is crucial. Government contracts can have long payment cycles, so ensure you have sufficient working capital.

11. Making It All Easier with OppyHound

Challenges startups face in government contracting

For many startups, entering the world of government contracting feels like stepping into a maze. Between hundreds of pages of solicitations, dense regulatory language, and multiple platforms that do not speak to each other, even finding the right opportunity can be overwhelming. Time, energy, and resources are stretched thin, especially for lean teams trying to compete with larger, more experienced firms.

This is exactly why we built OppyHound.

Our team experienced firsthand how frustrating the government contracting process can be hours lost combing through SAM.gov, deciphering RFPs, and maintaining clunky spreadsheets just to stay organized. We knew there had to be a better way for startups and small businesses to find and bid on contracts without wasting their most valuable resource – time.

How OppyHound Simplifies the Contracting Process

OppyHound is an advanced AI-powered government contracting platform designed to help businesses of every size efficiently navigate the federal marketplace. Most market intelligence and business tools for government contracting were originally built with large primes in mind, often requiring extensive resources and dedicated teams. OppyHound changes the game for businesses of all sizes. Our solution, built by procurement experts who understand the complexities firsthand, empowers users to seamlessly find, analyze, and pursue government contracting opportunities—without relying on expensive platforms, complicated tools, or cumbersome workflows. OppyHound is designed to remove complexity and bring clarity, speed, and focus to your business development efforts. Here is how:

1. AI-Powered analysis: It allows smart search down to the document level with quick opportunity analysis and chat features with documents that reduce complexity
2. Real-Time Tracking & Alerts

• Monitor government websites 24/7 for live opportunity updates
• Receive instant alerts when changes occur in opportunities, agencies, or entities once opportunities are added to your watchlist
• Avoid costly delays or missed deadlines caused by human oversight

3. AI-Powered Document Intelligence

• Chat directly with solicitation documents to get fast, specific answers
• Use Deep Dive to instantly pull out scope, evaluation factors, and proposal requirements with one click.
• Search smarter at the document level for key capabilities, labor categories, or keywords
• Ask government Q&A responses questions during proposal development to quickly understand changes in specific areas.
• Understand Q&A and amendments during proposal development by running new deep dives or asking the document questions to ensure you do not miss important updates/changes.

4. SAM.gov Integration & Entity Intelligence

• Auto-link to SAM.gov profiles for a full view of agency or competitor activity
• Import past contract data and top NAICS codes to map your position

5. Built by Government Procurement Experts

• Navigate easily with workflows designed by former government procurement professionals
• Leverage insider insight from people who know how GovCon really works
• Use features built for you, grounded in real industry experience and pain points

6. Comprehensive Opportunity Intelligence

• Access to opportunities, entities, and past awards in one platform
• Search deeper with advanced filters and relevance-based results
• Evaluate faster with built-in tools to assess opportunity fit
• Ask live questions on pre-solicitations, solicitations, and amendments to clarify requirements and reduce proposal risk

7. Built for Startups
   OppyHound’s interface is clean, intuitive, and requires no training. Unlike traditional GovCon tools designed for large primes, it is light, fast, and affordable for smaller teams.

Take the first step toward a more efficient, less stressful government contracting journey.

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12. Final Thoughts

Government contracting is a long game, but for startups willing to navigate the system, the rewards are real. Start small, stay compliant, and deliver exceptional results. Every successful contract builds your past performance and strengthens your chances for bigger awards.

Government contracts for startups represent a long-term opportunity, but for businesses willing to navigate the system, the rewards are substantial. Start small with government contract opportunities, stay compliant, and deliver exceptional results.

Learning how to get started on government contracts as a startup doesn’t have to be overwhelming. Between federal support programs like APEX Accelerators providing govt assistance for small businesses and modern tools like OppyHound, the resources you need are within reach.

Sign up for free on OppyHound and get started today.

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