How to Bid on
Government Contracts
A complete step-by-step guide for contractors ready to win government work. From registration to submission — everything you need to know.
Guide Sections
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Browse OpportunitiesUnderstanding Government Contracts
What Are Government Contracts?
Government contracts are agreements between public agencies (federal, state, or local) and private businesses to provide goods or services. These contracts range from small micro-purchases under $10,000 to multi-million dollar infrastructure projects. The U.S. government is the largest buyer of goods and services in the world, spending over $600 billion annually.
Types of Contracts
Fixed-Price Contracts: You agree to complete the work for a set price. Best for well-defined projects. Cost-Reimbursement Contracts: The government pays your actual costs plus a fee. Common for research and development. Time-and-Materials: Payment based on labor hours and materials used. Good for projects with uncertain scope. Indefinite Delivery/Indefinite Quantity (IDIQ): A contract vehicle that allows agencies to order variable quantities over time.
Who Can Bid?
Any legally registered business can bid on government contracts. However, certain opportunities are 'set-asides' exclusively for small businesses, women-owned businesses (WOSB), minority-owned businesses (MBE), service-disabled veteran-owned businesses (SDVOSB), and businesses in HUBZones. These set-asides reduce competition significantly.
Getting Registered
Obtain a DUNS Number
The Data Universal Numbering System (DUNS) number is a unique 9-digit identifier for your business. It's free and required for all federal contracting. Visit the Dun & Bradstreet website to request yours. Processing typically takes 1-2 business days.
Register in SAM.gov
The System for Award Management (SAM.gov) is the official U.S. government database of vendors. Registration is free but detailed — you'll need your DUNS number, NAICS codes, tax ID, and banking information for electronic payments. The process takes 2-8 weeks for approval, so start early.
Get Your NAICS Codes
North American Industry Classification System (NAICS) codes categorize your business by industry. You can have multiple codes. Choose codes that accurately describe what you do — agencies search by NAICS code when looking for vendors. Common codes for contractors include 561720 (Janitorial), 722310 (Food Service), and 238210 (Electrical).
Finding Opportunities
Federal Opportunities: SAM.gov
SAM.gov is the primary source for federal contracts over $25,000. You can search by keyword, NAICS code, agency, or location. Set up saved searches to get email alerts when new opportunities match your criteria. Review opportunities daily — deadlines are firm and late submissions are rejected.
State and Local Opportunities
Each state maintains its own procurement portal. Pennsylvania uses eMarketplace, New Jersey uses NJSTART, and Delaware uses Delaware Marketplace. Local governments often post on their websites or use platforms like DemandStar or BidNet. Check these weekly for new postings.
Using Opportunity Contract Hub
Opportunity Contract Hub aggregates contracts from multiple sources — federal, state, and local — into one searchable platform. Filter by category, location, contract value, and deadline. Set up Smart Alerts to get notified when new opportunities match your business profile. This saves hours of searching across multiple websites.
Evaluating Opportunities
Read the Solicitation Carefully
The solicitation document (RFP, IFB, or RFQ) contains everything you need to know. Pay special attention to: Scope of Work (exactly what you're being asked to do), Evaluation Criteria (how your bid will be scored), Mandatory Requirements (must-haves to be considered), and Submission Instructions (format, deadline, and delivery method).
Lowest Price Technically Acceptable (LPTA)
Under LPTA evaluation, the government first determines if your proposal is technically acceptable — meeting all requirements. Among technically acceptable bids, the lowest price wins. Focus on meeting every requirement precisely and offering your most competitive price. Don't over-engineer your solution.
Best Value Tradeoff
Best value evaluations consider both price and non-price factors like technical approach, past performance, and management plan. You can win with a higher price if your technical score is significantly better. Invest time in crafting a compelling technical narrative that differentiates your business.
Preparing Your Bid
Gather Required Documents
Most bids require: Company information and SAM registration, Past performance references (3-5 similar contracts), Technical approach narrative, Price/cost proposal, Certifications and licenses, Insurance certificates, and Small business certifications if applicable. Start collecting these before you find an opportunity — you'll need them repeatedly.
Write a Winning Technical Proposal
Address every requirement in the solicitation. Use the government's language and structure. Be specific — vague statements don't score points. Include concrete examples from past work. Keep it concise — evaluators read dozens of proposals. Proofread carefully — errors suggest carelessness in execution.
Price Your Bid Competitively
Research what similar contracts have awarded for. Government contract awards are public information. Factor in all costs: labor, materials, overhead, profit, and contingency. Don't low-ball to win — you must deliver at that price. But don't overprice either — government buyers are price-sensitive, especially on LPTA contracts.
Submitting Your Bid
Follow Instructions Exactly
Government buyers are required to reject non-compliant bids. If they ask for 12-point font, use 12-point font. If they want PDF format, don't submit Word. If the deadline is 5:00 PM, 5:01 PM is late. Attention to detail in submission reflects attention to detail in execution.
Submit Early
Technical issues happen. Websites crash. Files corrupt. Submit at least 24 hours before the deadline to allow time to resolve problems. If mailing, send with tracking and proof of delivery. Keep copies of everything you submit.
Confirm Receipt
Always confirm your bid was received. SAM.gov provides confirmation numbers. For email submissions, request a read receipt. For physical submissions, get a signed receipt. Follow up if you don't receive confirmation within 24 hours of the deadline.
After You Submit
Debrief Win or Lose
Always request a debrief after award. If you won, understand what scored well so you can replicate it. If you lost, learn why — was it price, technical approach, or missing requirements? This feedback is invaluable for improving future bids. Agencies are required to provide debriefs if requested.
Build Your Past Performance Record
Your first government contract is the hardest to win. Once you have performance history, each subsequent win gets easier. Document everything from your first contract — performance metrics, customer testimonials, and lessons learned. This becomes your past performance library for future bids.
Protest as Last Resort
If you believe the award was improper, you can file a protest. But protests are expensive, time-consuming, and can damage agency relationships. Reserve protests for clear procedural violations or conflicts of interest. Most contractors are better served moving on to the next opportunity.
Quick Tips for Success
Track Deadlines
Use a calendar system. Government deadlines are absolute.
Stay Organized
Keep templates, past proposals, and certifications in one place.
Network
Attend industry days and matchmaking events. Relationships matter.
Be Patient
Government procurement moves slowly. First win often takes 6-12 months.
Ready to Start Bidding?
Put this guide into practice. Browse active government contracts on Opportunity Contract Hub and find your first — or next — win.