Entering the world of government contracting requires more than ambition. It demands a solid understanding of the registration process, compliance requirements, and positioning strategies that allow startups to compete effectively. From securing a SAM.gov registration to identifying the right NAICS codes and crafting a capability statement, these foundational steps ensure your business is prepared to pursue federal opportunities.

This guide outlines the essential first actions to take, helping you build a strong base for long-term success in the government contracting space.

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.

Check out our full guide, A Step-by-Step Guide to Government Contracting, for a detailed roadmap to winning your first federal contract.

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

Conclusion

Breaking into government contracting doesn’t happen overnight, but every step you take brings you closer to landing your first contract.

Think of this stage as laying the groundwork. With your business properly registered and prepared, you’ll be ready to compete for opportunities and grow in one of the most stable and lucrative markets out there.

If you’re ready for the next stage, dive into our full resource: Government Contracting for Startups: A Step-by-Step Guide. It covers everything from finding opportunities to submitting winning proposals, giving you a clear roadmap to succeed in federal contracting.