The contract type isn’t just another form to fill out. It’s the piece that decides who’s on the hook for risk, how the work gets done, how payment flows—and whether the whole thing holds together or falls apart. Pick the right one, and the job runs smooth. Pick wrong, and even a well-thought-out plan can hit a wall. Let’s unpack why this matters and how to handle it.

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Fixed Price vs. Cost Reimbursement

Contract types split into two main camps based on who carries the risk. With a Firm Fixed Price (FFP) deal, you agree to deliver something—like a finished product or service—for a set amount. If your costs run over, that’s your problem, not the government’s. Conversely, Cost Reimbursement means the government covers your allowable expenses while you work toward fulfilling the contract objectives, with no challenging total locked in. The government takes on more risk here, and you get some breathing room if expenses shoot up. Think inflation spikes, like what happened during COVID-19.

When does each make sense? FFP fits jobs where the finish line’s clear. Say you’re selling 50 laptops or roofing a building with specs already nailed down—everyone knows what’s expected, so a fixed price keeps it simple. Cost-type deals are better when things are hazy. Think research projects or early prototypes where the needs might shift as you go. For example, I’ve seen a contractor lock in an FFP deal to deliver a software tool, only to find the client’s requirements changed halfway through. They ate the extra cost. A cost-type setup would’ve let them bill those adjustments instead.

Example: You’re buying a commercial software license at a fixed price. You’re funding a research prototype with evolving requirements — cost reimbursement.

How It Plays Out

That choice isn’t just theory—it changes the daily job. With FFP, you’re the one under pressure. Overestimate the effort, and you’ve got some cushion; underestimate, and you’re pulling from your wallet to finish. It pushes you to plan tight and work fast. Cost-type turns that around. The government tracks the budget, so you have space to adjust as things evolve. The trade-off is they’ll dig into every invoice—expect plenty of paperwork.

Take a real case: A contractor took a fixed-price job to install HVAC systems. Partway in, they found the building’s wiring was a mess nobody saw coming. They spent weeks chasing a change order to cover the extra work, racing deadlines the whole time. If it’d been cost-type, they could’ve logged the hours, sent the bill, and kept moving.

Do not assume that you know all the expenses without conducting a detailed site survey of the work, refining requirements, and setting clear expectations with the government. Many new contractors focus on winning a contract, not realizing that they might spend thousands on overhead just to win if contract details are not set up properly.

Finishing The Work

Closing a contract sounds straightforward, but it’s not always. With FFP, it’s clean—work’s done, payment’s sent, and you move on. Cost-type? That’s another story. You’re looking at years of back-and-forth—final rate settlements, incurred cost audits, and closeout reviews. Think about closeout from day one, or get burned.

For example, one contractor had a $200K job linger three years over rate disputes, tying up cash they needed elsewhere. Do not let this be you!

Government: Why You Should Care

If you’re on the government end, contract type is the base of your acquisition. It drives how you pick bidders, how the work plays out, who’s at risk, and how long it takes to finish. Choose wrong, and you’re stuck with extra paperwork, late delivery, or bidders who walk away because they can’t handle the structure.

The sharp contracting officers get ahead of this. They talk to their program teams and industry early—RFIs, draft RFPs, whatever works. That way, they match the type to the need before it’s set in stone. Early chats save late regrets.

Industry: Why You Should Care

For contractors, this hits where it counts: pricing, profit, cash flow, and your shot at winning. Price an FFP job too low, and you’re working for free. Price a cost-type job too high, and you lose to someone who got it right.

It’s not just about the label. You need to know what day-to-day billing and reporting mean. Study the RFP like it’s your paycheck because it is.

Plan It

Start by digging in early. Read the RFP and fire off questions pre-bid. Ask about everything you can think of. Request a site visit in person to find every possible gap in the contract. This is the purpose of RFIs. The government gets clarity, and you get to spend time with the project before bidding.

Clear scope? Fixed price. Uncertain path? Cost-type.

The contract type sets up how the work flows, who pays what, and how easy it is to finish. Get it right early, and you cut the headaches. Get it wrong, and you’re stuck fixing it later.

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CLINs show how a contract breaks down, how work gets tracked, and how money moves. Get them right, and the job stays on the rails. Get them wrong, and you’re stuck sorting out a mess later. Let’s walk through what they are, why they matter, and when they come into play.

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CLINs are like the individual bricks that hold the different foundations of a contract. Each one’s a line with a job to do—delivering something, finishing a task, or covering a cost—and they don’t overlap.

But what goes into a CLIN? Every one has a few core pieces: a description of what’s being done (like “deliver 10 widgets” or “provide 100 hours of support”), a quantity (how many or how much), a unit price or total cost, a delivery date or timeline, and a contract type (fixed price, cost-reimbursable, whatever fits). Those details lock in what you’re promising and how it’s measured.

Take a simple case:

• Say you’re contracted to deliver six widgets by June. That’s CLIN 0001—description: “widget delivery,” quantity: 6, unit price: $100 each, total: $600, due: June 30, fixed price.

• Then six more by December? That’s CLIN 0002 with its own numbers and date. Maybe labor’s CLIN 0003—100 hours at $50/hour, due end of year, cost-reimbursable.

• As needed, travel might be CLIN 0004—$5K cap, fixed price.

Each CLIN has its own rules, and on big jobs, different people might even manage them.

Contract Details

The CLIN details are spread across the contract:

• Section B lists the description and price.

• Section E says how it’s checked.

• Section F sets the due date.

• Section G ties it to the funds.

Miss one piece—like forgetting to pin down quantity—and you’re guessing what’s owed.

For example, If a contractor misread a CLIN as “per unit” when it was “per lot,” they underbid by thousands because they missed the difference. It was a small mistake with a hefty cost.

When Do CLINs Show Up?

CLINs start mattering when sketching out a contract—think requirements or the RFP stage—but they have the most impact during execution. Imagine a contract with one CLIN for a year’s work, fixed price, all tidy. Picture another with a new monthly CLIN, mixing cost-type and fixed-price rules. The first one’s easy to bill; the second’s a complication of invoices and tracking.

They’re usually four-digit numbers—0001, 0002, and so on. If you need to split things further, you get sub-CLINs like 0001AA or 0001AB. Those might break out funding or tasks under the main CLIN. Each carries a contract type—fixed price, cost-reimbursable, time-and-materials—and subs usually match their parent. So if CLIN 0001 is fixed price, 0001AA can’t be cost-type without a unique setup.

Why They Matter to the Government

For the government, CLINs are how they keep everything organized. Those components—description, quantity, price, timeline, type—tie work to cash, track what’s done, and line up payments. More CLINs mean more to manage. A complicated contract can bury the contracting officer in invoices instead of letting them push progress.

Push the government to simplify CLINs as much as possible. Remember that the contracting team probably is not an expert at what you do. This is the part you can influence during the RFI and RFP phases. The government wants simplicity as much as you do—nobody likes chasing loose ends.

Why They Matter to You

If you’re the contractor, CLINs are your lifeline to getting paid. Those pieces—description, quantity, price—tell you what’s due and when. Misread “lot” as “each” on a CLIN for 12 units? You bid for one, they want a dozen, and you’re out thousands. Is the price a monthly service when the CLIN is a year’s total? You’re stuck working 12 times longer than planned.

The contract type in each CLIN matters, too. A cost-reimbursable CLIN lets you bill as costs climb, but you’re stuck with reports and reviews. A fixed-price CLIN caps what you get—any overrun is on you. Money doesn’t move between them either.

Shaping Them Early

You’ve got some pull here. The rules—FAR 15.204-2(i) —let you suggest CLIN setups when bidding. It’s one of two spots the FAR even mentions, so there’s room to work. Do your due diligence—market research, draft RFPs, and do whatever gets you talking. Pitch something sensible: fewer CLINs for simple jobs and evident splits for complicated ones. Most contracting officers will hear you out. If not, you’ve still got a better grip going in.

For example, you might negotiate monthly CLINs into one yearly CLIN to cut billing hassles.

It’s not about rewriting everything; it’s about making it doable. Dig into the RFP and ask about every component—description, quantity, and all.

CLINs are how contracts work—how work splits, how money flows, how it all gets done. Each has its description, quantity, price, timeline, and type, holding the job together. Set them up early, and you save yourself trouble. Miss the mark, and you’re stuck sorting it out.

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Today, we’re digging deep into a concept every new contractor needs to understand: competitive range determination. If you’re starting out—maybe a small business owner, a vet fresh off active duty, or just testing the waters—this is one of the first hurdles you’ve got to climb in government contracting.

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So, what’s competitive range determination? Picture this: the government posts a solicitation on sam.gov—their central hub for “we need this done” notices.

We will use this scenario to explain the process: Let’s say it’s a $5 million job to set up new computers for a VA hospital in Texas.

Companies of all sizes will send in proposals. The agency then receives many bids of different types and varying quality. Competitive range determination is how the contracting teams narrow it down to a shortlist—the “competitive range”—of contractors who’ve got a real shot at winning.

The rules for the process come from FAR 15.306(c). Simply put, the contracting officer looks at every bid and decides who stays and who goes. They’re checking four main things:

• Price: Is your number reasonable, or are you way out of line?

• Technical Skills: Can you do the job, or is it just fluff?

• Past Performance: Have you done this before, and did it go well?

• Solicitation Match: Did you give them what they asked for and match the exact requirements listed?

If your bid’s too high—like asking $10 million for that $5 million VA job—or you can’t prove you’ve got the skills, you’re out.

Important — the competitive range isn’t a fixed list. It might be one standout bid or ten, depending on the work and who submitted a bid. For that VA computer job, maybe five make it—three primes with subs and two small businesses going solo, for example. The idea is to focus on the ones who can do the job by the requirements.

Why It Matters to You

If you’re new, this is your first big hurdle — making a bid that will take you to the shortlist. For the government, it’s about ensuring taxpayer money is adequately used. If you want an example of how bad things can get, check out this GAO.

The process starts right after you send your proposal, during the agency’s review phase. For that VA job, we used as an example, say bids were due January 15, 2025 (it’s February 21 now, so they’re wrapping up). The agency’s under a timeline—usually 30 to 60 days. If you’re teamed with a prime, your part—like setting up the software—better hold up because it’s their whole bid on the line. You’ll hear back fast, usually within a few weeks, about whether you made it or not.

How the Contracting Team Picks the Competitive Range

What’s the contracting team doing behind closed doors to pick that range? They’ve got a process, and it’s designed to stay fair and select winners. Here’s how it goes, step by step:

1. Gather the Crew: The contracting officer doesn’t do this alone. They pull together a team—usually a technical expert (like an IT pro for that VA job), a price analyst, and sometimes a tiny business rep if it’s a set-aside deal. This group’s job is to dig into every bid.

2. Score the Basics: They start with a checklist from the solicitation. The VA computer job might be: “Can they install 200 machines in 60 days? Do they meet HIPAA rules? Is the price under $6 million?” Every bid gets a quick yes-or-no pass on must-haves.

3. Rate the Details: For the bids that pass, they dive deeper. They’ll score each one—sometimes with points (say, 1-100), sometimes just high/medium/low—on those big four: price, skills, past performance, and fit. For example, your $5.2 million bid with a clear plan and a hospital reference might get a “high,” while a $7 million bid without details receives a “low.”

4. Set the Bar: The contracting officer looks at the scores and picks a cutoff—called the “natural breakpoint.” Say they’ve got 12 bids for the VA job. Five scores are “high” (all under $6 million, solid plans), four are “medium” (pricey or thin on details), and three are “low” (way off-base). The “high” group might be the range—unless the mediums are close enough to give reason for further analysis. It’s not a fixed number; it’s about the quality of the bids.

5. Double-check: Everything is documented. For every cut bid, they write why—like “price exceeds market by 40%” or “no proof of IT experience.” This covers liability if someone protests (more on that in a later article). For our VA example, if your bid’s $5.5 million with a good plan, you’re in; if it’s $9 million with no history, they’ll note “unrealistic cost” and move on.

6. Notify the Players: They send letters once the range is set—say, five bids. You might get a chance to clarify or negotiate if you're in. If you’re out, you’ll get a polite “thanks, but no thanks” with a debrief if you ask for it.

This isn’t random—they follow FAR rules to keep it fair and pick contractors who can deliver.

How Do You Get In? Step-by-Step with Examples

Here’s how you make the cut, with some real examples:

1. Price It Right: The government’s not into the business of paying crazy amounts for historical work. For that VA job, if past contracts (see usaspending.gov) show $4-6 million for similar work, your $8 million bid better have a justifiable reason for why the cost went up so much. Use FDPS to check old contracts by NAICS code—like 541519 for IT services.

2. Show Your Skills: They want proof you can handle it. Say you’re a small business bidding to install those VA computers. Your proposal needs details—how many machines, what software, how long it’ll take—and exactly how every part of the process will match the requirements.

3. Use Your History: Past performance is your baseline. Put it in your capability statement. For example, if you’ve set up computers for a private hospital—say, a $150k job- get a reference from that client. If you have no history, you need to make the case for why you are the best choice for the job. Without work history, you will be fighting an uphill battle. This is again where teaming comes in.

4. Stick to the Ask: Read the solicitation—every word. For the VA job, you will no longer be considered if they need systems that meet HIPAA rules, and you will skip that. This can also be your advantage. If you can submit a bid that meets all the requirements, even a contractor with a work performance history will get cut over you simply because you followed the requirements and they didn’t.

If new, then team with a prime who knows what they are doing. They’ve won bids, lost bids, and learned what sticks. If going alone, research is your lifeline. Pull the solicitation from sam.gov, check NAICS codes, and study winners on usaspending.gov.

Research, research, and research some more.

Recap—Keep this in mind

Competitive range determination is the first gate in the government contracting world. For small businesses or set-aside, it’s your chance to step up. Nail it with a good prime, and you’re on the shortlist. Mess up—or pick a weak partner—and you’re watching from the sidelines. Relationships matter here—20-30% of your opportunity cost.

I’ve said it before: Pick what you sell, stick to one or two NAICS codes (541519, maybe 541512), research it hard (sam.gov, FDPS, agency sites), and team up with the right businesses. The first real win is always the hardest.

Got questions? Drop them below. If you have suggestions on future contract articles, message me.

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Here is an overview of the regulation that sets the requirements for government contracting—and how it works.

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The Federal Acquisition Regulation (FAR) is the cornerstone of government contracting and the most essential set of rules you’ll need to become familiar with on your contracting journey.

The FAR establishes the high-level, overarching framework for governing federal agencies' procurement of goods and services. It also guides contractors' operations. It isn’t designed to cover every detail of every contract; that’s where additional, agency-specific regulations come into play, but the FAR is an essential guide and the starting point before examining other, more specific rules.

These are the sections of the FAR you should be aware of as a small business contractor:

• FAR Part 19, which covers Small Business Programs, outlines set-asides, subcontracting goals, and other policies designed to support small businesses.

• FAR Part 12, dealing with the acquisition of commercial items, is highly relevant as many small businesses offer commercial products or services that can be adapted for government needs.

• FAR Part 13, which provides simplified acquisition procedures, can help you compete for lower-dollar contracts through a less complex bidding process.

• FAR Part 15 is key for understanding the negotiation and proposal process, ensuring that your responses to requests for proposals (RFPs) are competitive and well-prepared.

Understanding these sections can help you target the right opportunities and focus your approach.

Remember, the FAR is not a document you need to memorize; instead, you should know it exists and learn how to quickly reference its material when needed.

The Regulation Hierarchy: How Does It Work?

At the top of the regulatory hierarchy is the FAR, which every federal agency must abide by. Each agency then tailors these guidelines to meet its unique operational needs by issuing their own regulation supplements. For example, the Department of Defense uses the Defense Federal Acquisition Regulation Supplement (DFARS). Within the military, individual branches like the Army, Navy, and Air Force publish additional supplements—such as the Army Supplement, the Air Force Supplement, and the Navy-Marine Corps Acquisition Regulation Supplement. Then, civilian and non-military agencies develop their own doctrine to address their specific circumstances.

Although you might see figures cited—sometimes described as “dozens” of supplements—the exact number is always evolving as new policies are introduced and outdated ones are retired (in theory). What’s important to understand is that each agency’s supplement adds another layer of mandatory procedures designed to enforce the FAR’s general principles in a way that fits the agency’s mission. This layered structure can make the contracting environment seem overwhelming, especially when a project involves multiple agencies. In such cases, you might have to navigate overlapping regulations and even some grey areas regarding which rules apply to each part of the contract. Moreover, when issues arise, it’s common for agencies to introduce new amendments or layers of regulation to prevent future problems—adding more steps to an already complex process.

How To Use This Information

1. Become Familiar with Acquisition.gov:

   1. This is the primary portal to access the FAR, agency supplements, and related documents. Bookmark this site and explore its layout to understand where the information is housed. It’s your first stop for gathering the regulatory material you’ll need for bidding and contract management.

2. Reference, Don’t Memorize:

   1. The FAR is extensive and constantly updated. Your goal should be to know how to navigate it rather than memorizing every clause. Learn how the FAR is structured—its parts, subparts, and clauses—and practice using the search function to find sections that are relevant to your business. This skill will help you quickly reference the material during the proposal process or contract performance.

3. Study Agency Supplements:

   1. When preparing a bid, identify the agency-specific supplements that apply to that opportunity. Read these documents carefully, and note any additional procedures or requirements that differ from the general FAR. For example, if you’re targeting a DoD contract, make sure to review DFARS and any branch-specific supplements that might apply. This extra step will ensure that your proposal is compliant with all the necessary rules.

      1. Use a simple Google search to find specific agency supplements.

4. Engage with Support Resources:

   1. Each agency typically has a small business office or a procurement technical assistance center (PTAC) designed to help guide contractors through these regulations. Don’t hesitate to reach out with specific, well-researched questions. Similarly, the contracting officer assigned to your bid is a valuable resource who can clarify which regulations you need to follow. Just be sure to do your homework first so that your questions are focused and informed.

5. Keep Detailed Records:

   1. As you review the FAR and its supplements, maintain a personal reference library of frequently used sections, key clauses, and your own notes. This will save you time in future proposals and help prevent costly mistakes. It’s also a good idea to record any clarifications or answers you receive from agency representatives or contracting officers.

Additional Considerations

Beyond the FAR and its supplements, be aware that agencies sometimes issue policy memos, guidance documents, and updates that further clarify their acquisition procedures. Attending training sessions, workshops, or webinars offered by PTACs or similar organizations can also provide practical insights that enhance your understanding of these regulations. Networking with experienced contractors can further demystify the process by offering real-world advice on how to apply these rules effectively.

Remember, the main intention of the FAR is to provide an overarching regulatory framework that ensures fairness, transparency, and accountability in federal procurement. While the system can seem layered and complex, understanding where to look for information—and knowing whom to ask when questions arise—can help you navigate the red tape more efficiently.

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If you’ve ever wondered why some contractors thrive in government while others struggle to gain traction, this one’s for you. Today, we’re taking a deeper look at what makes selling to the government unique and some actions you can take to improve your marketing.

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Private firms often keep their purchasing decisions under wraps in the commercial world. In government contracting, though, the transparency is built in. Contracts are publicly listed, the awarded values are out in the open, and the buying agencies are a matter of public record. This means you can study real-world data to focus your marketing strategy.

Beyond the data, it’s still about people. Federal agencies may adhere to rules like the FAR, but human relationships and trust play a significant role in who wins and who doesn’t. Contracting officers and program managers look for partners who understand the agency’s mission, can solve their problems, and consistently deliver on time. Showcasing genuine comprehension of an agency’s goals—plus a track record to back it up—goes a long way!

Reputation Matters…

Every interaction with an agency contributes to how they perceive your business. In the commercial sector, a few unhappy clients might leave bad reviews, but in government contracting, their impressions can appear in performance records and, most definitely, word of mouth. The government is large, but reputation spreads fast. You’ll find it easier to land future opportunities if you consistently exceed expectations. If you drop the ball without taking corrective measures, that can linger in your file and hinder future contract opportunities.

Communication with the contracting team is essential to building a good reputation. When you sense a project veering off course—maybe deadlines are at risk or new requirements pop up—get in front of it immediately. Be open and transparent about the issue, and do not hide problems from the contracting team.

It’s equally important to keep records of these efforts. A paper trail of your responsiveness and solutions can make a difference if questions arise later. Any interaction with a government official should be documented, even just a phone call or email.

Pro tip: The aspect of records-keeping is crucial in government interactions.

Focusing on the Right Market Segments

Many contractors rely on North American Industry Classification System (NAICS) codes to define what they do, but NAICS can be broad and often includes services you don’t provide. It’s better to zero in on your true strengths. Then, refine your search by looking at Product Service Codes (PSCs), which can be much more specific. The government buys an enormous variety of products and services, but no single company can be an expert in all of them. Specializing in a narrow set of PSCs helps you master a particular market corner, making you more attractive to the agencies looking for real expertise.

• NAICS deals with the classification of businesses by their primary activities

• PSC is strictly for government procurement

The NAICS and PSC codes should be translated directly into your website (government-facing part) and marking materials.

Once you’ve identified the PSCs that match your most substantial offerings, you can research which agencies are buying those services and their budget levels. Over time, you’ll understand where real opportunities exist and where competition is too fierce or thin to make sense. This focus also makes it easier to craft messaging that speaks directly to an agency’s needs rather than using a scattershot approach that tries to cover everything.

Specific targeting is the name of the game here.

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Strategies for Effective Outreach

Building relationships with government decision-makers is often a long game, sometimes tedious and frustrating. Government officials are notoriously out of office, and each agency structures itself differently, making identifying the proper person difficult. Also, officials can be rude, pompous, egotistical, or, in many cases, totally incompetent at what they do. Then there is the government language problem, understanding hundreds of acronyms, contracting lingo, and the responsibilities and titles of each government official. This part takes time and has a steep learning curve.

Before any outreach, make sure you look at each agency’s website, look for their small business office, and check for any mention of contracting teams or organizational charts. Often, this information is all public if you know where to look.

Cold emails are often ignored, so it helps to warm those up with referrals, phone calls, and in-person conversations (if possible). One of the favorite questions, even within the government, is “Did you see my email,” which says a lot about how it operates internally.

Attend online or in-person events where federal buyers discuss upcoming requirements or challenges they’re facing. Take part in small business networking sessions, industry days, or local contracting workshops where available.

Social media—particularly LinkedIn—can be a surprisingly effective tool for outreach, but again, you need to understand the titles and responsibilities of the people you search for. If you do connect online, keep the conversation professional and solution-focused. A short introduction highlighting your niche is typically more welcome than a lengthy sales pitch. Do your best to get the person's number or email, and try to set up a “quick” phone call or, even better, an in-person meeting.

Traveling to every event for in-person meetings will drain your resources, so choose the ones most relevant to your specialty. If, for instance, you specialize in IT solutions, look for conferences or panels that specifically address federal technology initiatives. If construction is your game, look for procurement workshops and trade shows that cater to facility management or public works. These events often provide an opportunity to meet face-to-face with government reps who may remember you later when a contract need arises.

The goal is to insert your business in as many places as possible and offer direct solutions to the requested problems.

Teaming and Subcontracting

If you’re still establishing your presence, working under a more experienced prime contractor can be the solution you need. By focusing on a segment of the work where you excel, you can build on past commercial performance with less overall risk. Primes often look for niche players who can round out a proposal, especially when specific skill sets or small-business certifications are required.

Before jumping into a teaming arrangement, it’s essential to research the prime’s track record and business culture. A partner with poor performance scores or clashing values can undermine you and reflect poorly on your performance reviews. On the flip side, partnering with a reputable prime can accelerate your learning curve in navigating RFPs, compliance requirements, and project management specific to government contracts.

Pro-Tip: A prime contractor who is experienced and understands the bidding process is worth their weight in gold. Ultimately, this is what you are searching for.

As you grow, you can shift from subcontracting roles to leading your prime bids. Keep in mind—some successful companies thrive primarily as subcontractors, finding consistent, lucrative work by partnering with trusted primes on larger efforts. This is a legitimate strategy.

Keep in mind that your set-aside status will be valuable when partnering with prime vendors. However, don’t be the guy flashing this to the contracting team when you first meet them. List your set-aside status on your marketing and pitch deck, but do not use it as an angle in conversation to get opportunities! Contractors who do this are made fun of behind closed doors.

Navigating a Hybrid Environment

Over the past few years, we’ve seen a surge in virtual engagements; the government space is no exception. Online industry days, Zoom pitches, and digital Q&A sessions can save travel costs and allow for quick initial contact but are less effective than real meetings. Don’t underestimate the power of an occasional in-person visit. Meeting face-to-face, even briefly, can make your company stand out from competitors. This is basic human psychology and probably the fastest way to be remembered and earn trust.

Keep your business (and your company’s value) in front of government contacts through email follow-ups, LinkedIn updates, or short reminders that you’re available for consultations. Then, when there’s a high-potential opportunity—like a new RFP you’ve been following—consider planning an in-person meeting if feasible. When you demonstrate that you’re both accessible digitally and willing to meet in person, you create a more complete impression of reliability and trustworthiness.

Three Levels of Marketing Efforts

Some business owners jump into government contracting without a plan, so don’t be those people. It might help to think of your efforts in stages. Starting with the most basic steps, moving into intermediate methods, and eventually tackling more advanced strategies can give you a roadmap to follow without overwhelming yourself.

Getting Your Feet Wet:

If you’re brand new, begin by registering on sam.gov and creating a simple but compelling capability statement, update your website, and make a marketing slideshow or brochure. Focus on demonstrating your private company's successes if you have no work record with the government. Emphasize your core services and any relevant commercial experience, and get familiar with fundamental resources like local procurement technical assistance centers (PTACs or APEX Accelerators).

For instance, a small IT firm might compile a single-page overview describing software maintenance and security patching services and then share it with local agencies or prime contractors. Even if no immediate contracts arise, you’re setting the groundwork for future opportunities.

Establishing Your Presence:

Once you understand the basic bidding process, refine your approach by zeroing in on PSC codes and using tools like FPDS to track recent awards in your niche. Identify the top agencies that routinely purchase what you sell and contact their small business offices. This is also the stage to consider small-scale teaming. Find prime and subcontractors in your area who have work experience and meet with them, build a relationship, and find where they need help.

A logistics company, for example, might discover that a specific local agency regularly outsources courier services; contacting a prime with an existing contract can open subcontracting options and help you build credibility.

Expanding and Diversifying:

If you already have some government contracts under your belt, it may be time for larger moves. Explore mentor-protégé programs, multi-year IDIQ contracts, and more complex RFPs. You can also look into forming joint ventures if you have enough bandwidth to manage bigger prime contracts. Brand-building becomes vital at this level. You might host webinars or publish white papers to showcase your thought leadership.

For example, a cybersecurity firm that teams up with a cloud-storage specialist to deliver a more robust solution on a multi-year IDIQ. These advanced plays can substantially boost both revenue and reputation.

Putting It All Together

Government contracting success often boils down to strong positioning, steady relationship-building, and an unshakeable focus on quality delivery. While the market is vast, pursuing too many directions at once can dilute your efforts. By pinpointing the agencies, PSC codes, and teaming opportunities that fit your business best, you can channel your time and resources where they matter most.

Remember that every contract you take on—big or small—is a chance to strengthen your reputation. Provide reliable work, address setbacks proactively, and communicate openly with stakeholders. Over time, your track record becomes a powerful asset that sets you apart from competitors who haven’t invested in those fundamentals.

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Let’s talk about a common misconception in government contracting: many believe the process starts when an RFP (Request for Proposal) goes live on SAM.gov. In truth, much of the groundwork happens well before that announcement!

Agencies might spend months—or even a year—pinning down their requirements, confirming budgets, and choosing an acquisition strategy. By the time you spot the solicitation, a lot of the key decisions have already been made.

If you want to improve your odds of standing out, you need to understand what’s happening behind the scenes before the RFP is issued.

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Before a formal solicitation appears, agencies often conduct internal reviews, discuss possible solutions with program offices, and even go through draft scopes of work. They might consult external experts or test out preliminary ideas in small pilot projects to see if they’re on the right track. If you’re only aware of the opportunity once the final RFP is published, you’re missing out on all that early dialogue, where requirements can shift or expand based on the feedback they receive.

In some cases, the agency will even run a “pre-solicitation” phase—sometimes posting advanced notices or letting certain industry partners know that a specific project is coming. If you’ve built relationships with the right people, you might be looped into these discussions early. That’s why consistent engagement, even when no active solicitation is on the radar, can pay off big later on.

The People Who Make It Happen

Every federal contract generally involves three key roles: the Customer, the Budget Holder, and the Contracting Officer. While they work in tandem, each role has its own focus, and knowing how to identify them in an RFP can give you a major advantage:

1. Customer (End User)

• Who They Are: Typically, this is the agency program office or department that actually needs the product or service. They’re the ones feeling the “pain” and seeking a solution. In some cases, you might see references to a “Program Manager,” “Technical Lead,” or “Project Officer” in the solicitation or related documents—these individuals often represent the Customer side.

• Where to Find Them in the RFP: Look for a “Scope of Work” or “Performance Work Statement” section mentioning the office or division that will use the deliverables.

  • You might also see contact information for a Technical Point of Contact (TPOC) or a COR (Contracting Officer’s Representative) who works closely with the end user.

• Why They Matter: The Customer shapes the technical requirements and often has the final say on whether a proposed solution meets their needs. Tailoring your approach to their stated (and unstated) challenges can set you apart.

2. Budget Holder (Economic Decider)

• Who They Are: This individual or office holds the funding authority. Often, they’re part of the agency’s financial management or resource planning office. Sometimes, the Program Manager also has partial budget authority, especially if they manage a program with allocated funds.

• Where to Find Them in the RFP: They’re not always named outright, but you might spot references to the funding source or statements about how the project is financed (e.g., “Funding provided by Program XYZ”).

  • In larger solicitations, the RFP might include a section on how the project is tied to a broader initiative or program, which can help you trace who’s behind the budget decisions.

• Why They Matter: No matter how urgent the requirement is, it can’t move forward without approved funding. Understanding budget constraints—or how your solution provides cost savings—can be pivotal in winning over this stakeholder.

3. Contracting Officer (CO)

• Who They Are: The CO has the legal authority to award contracts on behalf of the government. They’re responsible for ensuring the acquisition process follows all applicable regulations (like the FAR) and for making sure taxpayer dollars are spent wisely.

• Where to Find Them in the RFP: Check the cover page or “Contract Administration” section; the CO’s name, email address, and phone number are often listed.

  • There may also be a separate contracting specialist who supports the CO, but the CO is the ultimate authority.

• Why They Matter: While the Customer and Budget Holder define the “what” and the “why,” the CO determines the “how.” If you have questions about the solicitation, you’ll typically direct them to the CO (or someone designated by the CO). They also make the final call on contract award and negotiate terms.

Moving Beyond Basic Market Research

You already know the fundamentals—checking SAM.gov and responding to Sources Sought or RFIs—but let’s go a bit deeper. Some agencies publish advanced acquisition forecasts or host private market research discussions with vendors with relevant niche expertise. If you track these forecasts, you’ll see which program offices are planning to spend money in your work area. That’s a chance to reach out before anything is official.

It also pays to follow relevant industry events, especially where agency officials discuss upcoming needs or present newly funded programs. These events are a perfect opportunity to meet the customer and ask targeted questions. Sometimes, you’ll even spot references to the Budget Holder’s priorities—like cost savings or speeding up deployment—giving you clues on how to shape your offering.

The Value of Identifying Re-competes Early

When a contract is nearing its end, the agency typically re-competes that work. But not all re-competes are the same. Sometimes, the scope expands, or the funding might shift to a different program office. That means the Customer and Budget Holder you thought you knew could change from one contract cycle to the next.

How to dive deeper:

• Investigate Past Performance: Look at contractor performance evaluations (if available) or network with people who have knowledge of the project’s history. If you find out the incumbent struggled with specific tasks, highlight how you’ll avoid those pitfalls in your proposal.

  • Use this info to craft a stronger, more tailored solution—if the Customer had issues with the last contractor’s performance, emphasize how you’ll address those pain points.

  • Confirm if the same CO is overseeing the re-compete. A new CO might interpret the requirements or evaluation criteria differently.

• Check for Scope Changes: Monitor official notices or industry chatter about how the agency wants to modify the work. A re-compete can merge two or more tasks from previous contracts.

• Learn Who the New Decision-Makers Are: A different Contracting Officer or a newly assigned Program Manager might bring a fresh approach—and you’ll want to be up to speed on their priorities.

Pro Tip: Build a relationship with subcontractors or other partners involved in the original contract. They may offer insights into workflow bottlenecks, customer preferences, or potential improvements that can strengthen your proposal.

Teaming

For complex procurements, you might need to join forces with businesses that have stronger relationships with certain program offices or are known to a particular Budget Holder. In advanced teaming scenarios, you’re not just bringing skill sets together—you’re combining existing rapport with the relevant decision-makers.

If you’re uncertain about who the incumbent is partnering with, or if there’s a specific small business office championing the program, a bit of targeted networking can uncover these details. From there, you might form a subcontracting partnership with a company that already has a line of communication with the Customer or Budget Holder. That established trust can cut down the ramp-up time for your proposal’s credibility.

We have covered teaming already here.

Where to Begin

Let’s assume you’ve already tried the basics: scanning USASpending.gov for expiring contracts, setting up alerts on SAM.gov, and bookmarking agency forecasts. What else can you do?

1. Study Task Orders on IDIQ Contracts

• Why It Helps: If an agency frequently uses IDIQ (Indefinite Delivery, Indefinite Quantity) vehicles—like GSA schedules or agency-specific multiple-award contracts—pay attention to the task orders released under those vehicles.

• Advanced Move: Look for patterns in which program offices are issuing those task orders and see if they’re tied to certain Budget Holders. You can then tailor your outreach to the offices funding those orders.

Example: If you notice the same office consistently releasing cybersecurity task orders, you can reach out and explain how your specific security solutions address their known vulnerabilities.

2. Leverage Premium Market Intelligence Tools

• Why It Helps: There are paid platforms like GovTribe, GovWin (Deltek), Bloomberg Government, or Govology that compile deeper data on federal opportunities, including upcoming recompetes and organizational charts.

• Advanced Move: Use filters for your specific NAICS codes or keywords, then cross-reference the data with your past performance to identify the best fits.

Example: If GovTribe indicates that Agency XYZ’s software development budget soared last year, that’s your cue to initiate contact or step up marketing to that agency, rather than waiting for a formal posting.

3. Mine Agency Press Releases and Social Media

• Why It Helps: Press releases and official social media channels can reveal who’s in charge of new programs, significant budget increases, or strategic goals for the coming year. It lets you know what might be coming.

• Advanced Move: Instead of just reading them, look for specific names or references to specialized working groups. Then connect with those individuals on LinkedIn or through industry events.

Example: If a press release mentions “Deputy Director of Emerging Tech,” you can approach that person with a relevant case study, introducing yourself well before a project hits the RFP stage.

4. Analyze Organizational Charts and Public Directories

• Why It Helps: Many agencies post organizational charts or staff directories on their websites. These can show how offices relate to each other—identifying both the customer’s technical leads and who likely handles the budget sign-offs.

• Advanced Move: A quick call to the main office or an email introduction can confirm you’ve reached the right individual. Being professional and concise often prompts them to either help you directly or redirect you to the correct contact.

Example: If an org chart shows a “Resource Management Office” under the same directorate that needs your services, you know that’s likely the Budget Holder. Your approach can now highlight cost efficiencies and ROI specifics.

5. Engage at Specialty Conferences or Advisory Boards

• Why It Helps: General industry days can be broad, but specialized conferences—focusing on topics like AI in defense, advanced manufacturing, or health IT—often attract the actual Program Managers and leads with detailed knowledge of upcoming initiatives.

• Advanced Move: Propose or moderate a session, or at least come prepared with relevant questions that align with the agency’s current challenges. Showing thought leadership builds credibility beyond the standard “vendor pitch.”

Example: If you attend a healthcare IT symposium where a VA program office head outlines data management challenges, follow up with them after the event, referencing specifics from their talk. This can lay the groundwork for future RFP collaborations.

6. Monitor Local and Regional Government Contracting Offices

• Why It Helps: Some opportunities start at the regional level or through base contracting offices before scaling up nationally. Being “first in line” at a local level can position you for larger prime contracts later.

• Advanced Move: Develop a relationship with the smaller field offices or labs. These can act as your champion internally once a larger, headquarters-level procurement gets rolling.

Example: If you specialize in facility maintenance, building a rapport with a local military base’s contracting office might lead to word-of-mouth introductions when that base’s expansions require multi-year contracts.

Common Pitfalls to Avoid

These are some pitfalls that can screw up your efforts. One of the biggest issues is simply talking to the wrong person. Since every agency structure can be different, you might end up pitching solutions to the Contracting Officer (CO) when those specifics really matter more to the customer. Or maybe you’re trying to convince the customer about cost savings, even though the Budget Holder is the one who needs to hear that. You need to match your message to the right person—otherwise, you’re wasting time and possibly leaving the wrong impression.

Another slip-up I see is skipping official notices like Sources Sought or RFIs. These announcements are basically an open door to showcase your capabilities and influence the scope before the RFP is locked in. If you ignore them, you’re passing up a chance to stand out. Most other contractors are not following this step and they miss opportunities.

Do not overpromise. Agencies prefer genuine expertise over a vague promise to handle absolutely everything under the sun. The contracting team will have experience with being burned in the past from overpromises. So do not do it. Remember, specialization is key.

Do not show up unprepared. Have pointed questions and a quick pitch deck that summarizes your strengths to the agency’s specific needs.

Always research the incumbent’s history—especially when a re-compete is possibly available. If the current contractor has issues, the agency will often point to those areas for improvement in the next solicitation. If you’re unaware of the incumbent’s shortcomings, you can’t position yourself as the better solution, and that’s a missed opportunity.

Finally, there’s spreading yourself too thin by chasing every solicitation you spot. You’re much better off zeroing in on the opportunities that genuinely match your strengths. That way, you can allocate enough energy and resources to craft proposals that stand out for all the right reasons.

Final Thoughts

Federal contracting success often hinges on knowing who’s who—and that includes the Customer, Budget Holder, Contracting Officer, or anyone else who happens to be important in the contract decision. If you can spot references to these roles early or pinpoint where the money and technical authority intersect, you’ll be better equipped to target your outreach and proposals effectively.

Remember: staying attuned to the internal dynamics well before an RFP drops is what separates reactive bidders from proactive winners.

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Today, we will cover an essential concept for new contractors. If you're starting, you’ll want to read this.

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Teaming is where two or more contractors form a partnership and work on a contract together.

The FAR 9.601 describes it as such:

For description's sake, both arrangements, as listed above, are different types of contract completion models.

A joint venture is when two companies join as a corporate entity to complete a contract. After the contract is completed, they separate.

The prime contractor is the term used to identify who is ultimately responsible for contract execution. This happens when one company is given full responsibility for the project. Subcontractors typically work under a prime contractor to complete specific work that the prime contractor has contracted with them. The subs have a statement of work agreed upon by the prime that lists precisely what they are expected to do. Final decisions and work execution are the ultimate responsibility of the prime, even if the sub does not complete their part.

This is why being a prime vendor can be a headache; the prime is responsible for everything.

When does it start?

When new, you should team with primes in your region before attempting to bid on contracts.

As a new contractor, you may not know how to navigate the regulations and red tape, submit or write bids, or ask questions. Therefore, finding someone with experience and pitching a partnership with them makes the most logical sense.

How do you do this?

If you have researched correctly and understand what you want to sell, follow the steps below.

1. Search sam.gov and FDPS for the NAISC and PSC codes that match what you want to sell to the government.

   1. Pull a list of historical contracts in your region for the past 3-5 years

      1. List every company awarded as a prime for those contracts. (Add to your CRM)

         1. You should have a list of 15 - 30 companies.

            1. Now, you will contact these companies, set up meetings, introduce yourself, and find where your offer/service aligns with their ability to execute current and future contracts.

            2. It is perfectly normal to drop in at their office location for an introduction if they are non-responsive.

2. Look for government contracting groups and organizations in your area. Some specific ones to look into:

   1. The National Association of Government Contractors

   2. Procurement Technical Assistance Centers (now called APEX Accelerators)

   3. Government Contracting Association

   4. Search for local Facebook groups and organizations in your area. Some can be state-specific.

This process will take you many weeks. The recommendation is to use a CRM, keep every contact you can find, and repeatedly reach out to these companies until you get your foot in the door.

So why team?

Teaming determines your ability to both win and, yes, lose.

The point of teaming is to bridge skill and ability by utilizing different strengths within the formed partnership. It can be used to do something technically challenging or to fill strategic gaps where expertise is lacking.

Large businesses often hire smaller businesses to meet SBA goals set in the initial RFP. Even the main DoD contractors do this. A business will be disqualified from the contract if it does not meet all the RFP requirements. This creates an interesting situation because, in regular industry, the best small businesses are selected based on job performance. However, in the government, small businesses can be selected because of the certifications required to win the contract (HUB Zone, Female owned, Vet owned, etc). If those small businesses cannot fulfill the work but are selected based on SBA goals, it can cause issues after the contract work starts.

Many small businesses never have a prime contract. Instead, they find larger businesses and offer their expertise to help the prime win. This lowers their risk profile, allows them to get government work experience, and allows them to participate in lucrative government contracts. This strategy also allows small businesses to dedicate resources directly to an active contract instead of the contract bidding process.

A word of caution: If a small business latches onto the wrong prime, it can determine its future performance history. If the contract goes wrong, that will result in a negative work history with the government and may disqualify you for future contracts.

Studying the work history and reputation of any company you want to partner with is essential. Ask for references and information on work performance.

Remember, whoever you partner with, you need to ensure a good relationship. Everything in the government operates from 20-30% relationships at a minimum, and teaming is no different.

If you are a small business new to contracting, it is highly recommended that you focus your efforts on partnering and teaming rather than worrying about spending your resources on bidding on individual contracts.

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Today we will cover small business set asides, the different set aside categories and why they matter. This happens to be one of the best advantages for a small business in government market, so pay close attention!

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Small business set-asides are designed to help small businesses compete against larger companies in government contracting.

A small business set-aside is a competition that is federally mandated to set-aside selected contracting work for a specific group of companies, such as small businesses. There are various niches under this umbrella, such as 8A competitions that require certification, hub zones for historically underutilized businesses, service-disabled veteran-owned small businesses, and women-owned small businesses. We will get into each category in more detail below.

The U.S. government has a goal of awarding 23% of all federal contracts to qualified small businesses.

These set-asides matter for a few key reasons. First, they allow small businesses to compete on a more level playing field. By setting aside competitions for specific categories of small businesses, the government can give these businesses a chance to work with the government and improve the overall quality of work being done.

Second, the set-asides are good for the overall health of the economy. By giving more businesses the opportunity to work with the government, the government can bring in fresh ideas and perspectives that can improve the quality of work being done. This, in turn, can lead to more innovation and growth in the small business sector.

Without this category of business classification, most contracting work would go to the big players. Hands down, this would always happen. There is no way that “Jim’s plumbing” has the same resources as a General Dynamics.

Remember that in 2024, the government's best interest is to keep employment numbers high, and make it possible to create businesses. This is a runway allowing individuals to both start and enter the government market while taking into account any disadvantages the individual business owners may have.

Regulations:

Guidance for set asides is described in FAR (Federal Acquisition Regulation) Part 19, which is where the small business requirements are found. It's important to note that the contracting officer may set aside contracts for any of these categories, but they are not required to do so.

When a competition is set aside for a small business, it means that no large businesses are allowed to submit a bid. The government has determined through market research that the work can be done by at least one, but usually more than one, small business. This is designed to help small businesses get a leg up in government contracting and improve the overall quality of work being done.

Set-Aside Requirements:

A few things to consider about how the government issues set asides, this comes straight from sba.gov:

The federal government prefers to contract with small businesses whenever possible. Contracting officials can use set-aside and sole-source contracts to help their agencies meet their small business contracting goals.

How you should offer a contract will depend largely on two factors:

• The number and type of small businesses that are able to do the work

• How much the contract is worth

In general, if there are at least two small businesses that could do the work for a fair price, the contract should be set aside exclusively for small businesses to compete. If there are fewer than two, you may be authorized to create a sole-source contract, or otherwise you may offer it for full and open competition.

Again, just because there are set aside businesses available, does not mean the government has to issue the set aside opportunity, but if the requirements are met they generally do.

What Acquisition Phase Do Set-Asides Fall Under?

Set-asides are set as part of the government’s market research phase. During this phase, the government determines if a small business can do the work required. This is typically done through posting on sam.gov and clicking on Contract Opportunities which is where the government posts opportunities like pre-solicitation or solicitation notices. Companies can access the information and respond there.

When the government decides to issue the RFP they will have made the decision to set aside or not. This makes sense logically as first they needed to determine if any companies could actually fulfill the work, then make the set aside for it. Otherwise qualified companies who can actually fulfill the work won’t be able to bid on it.

At the end of the day, if there are no companies that can fulfill the work, the contracting team is not obligated to make a set aside. This often happens with HUB Zone companies, as socioeconomically disadvantaged areas do not often have the ability to fulfil the work requirements.

Again, the FAR outlines the various set-aside options available to the government.

What Are the Different Types of Small Business Set-Asides?

Each of them are linked to the Small Business Association where there are specific details about each and how to apply.

8(a) Set-Aside: This is a competition that is set aside for companies that are certified under the Small Business Administration's 8(a) program. This program is designed to help small businesses owned by socially and economically disadvantaged individuals.

3. HUBZone Set-Aside: This is a competition that is set aside for companies that are located in a historically underutilized business zone (HUBZone). These zones are typically located in low-income areas or areas that have been affected by a natural disaster or military base closure.

4. Service-Disabled Veteran-Owned Small Business (SDVOSB) Set-Aside: This is a competition that is set aside for companies that are owned and controlled by service-disabled veterans.

5. Women-Owned Small Business (WOSB) Set-Aside: This is a competition that is set aside for companies that are owned and controlled by women.

Each of these set-asides is designed to help small businesses that fall into a specific category. By setting aside competitions for these businesses, the government can promote the growth of small businesses and help them compete against larger companies.

A couple things to note on this again from sba.gov:

Set-asides for socio-economic programs can be made if:

• At least two qualified small businesses are likely to submit offers

• The contract can be awarded at a fair market price

If these requirements are not met, then the set aside will not be made.

Please note, this is why you need to do outreach and market to the government. Sometimes the contracting officer will not be aware you can fulfill a contract. So if you see an RFI or pre-solicitation and really feel that you can meet the contract requirements, make sure the contracting officer knows this!

The Negatives of Small Business Set-Asides:

Almost everyone has heard of someone working in the government who either does very little or appears to be unqualified.

This is common, more than we would like to admit, but on a more realistic angle, there are a few other negatives we should cover. First, many small businesses miscalculate the resources and experience needed to fulfil a contract. This hurts them both in competing and in maintaining contracts and when one ultimately fails, the contracting team gets jaded. Because of this, many contract officers are very hesitant to issue set asides unless they are 100% confident in the work being completed on time and per the contract requirements.

The scenarios described above often happen from the regulatory pressure that agencies have to fulfill their set-aside requirements. It is because of these regulations that if you want to start in contracting, it is sometimes recommended that if you are not able to qualify for a set aside category, that you make a partnership with someone who qualifies for the 51% ownership required. Under the proper circumstances, it works but many times it causes issues when the person who owns a majority share of the company does not hold up their end of the work.

If you are looking to get into contracting as a small business, don’t focus only on certification. The reality is scope of work and ability to market and fulfil the contracting requirements matters way more than people like to admit.

Please note: individual states also have their own set aside programs and qualifications. You should definitely look into the requirements and opportunities within your state. State contracting will be covered more in future articles.

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This is a high-level overview of what to expect when starting with government contracting. Remember, this is a challenging industry, but it can be quite lucrative if you stick with it!

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We generally see three “types” who gravitate to this market in the contracting world.

1. The existing business owner: This individual believes that selling to the government will be the same as selling to the commercial market. As a new contractor, you don’t just register on sam.gov, open your doors, and expect the government to come “buy” from you. This is where most small business owners fail before even starting. They expect the same methods they used with their existing business to translate directly to the government, and they expect it to happen fast. It will not be the case.

2. Former gov’t contractor: These individuals are working for, say, Lockheed, General Dynamics, or another large contractor. They work around some clients on site, and one day, they get a hint from their client that if they did whatever their specialty is as their own business, then their client would buy it directly from them instead. They then raced out, formed an LLC with one or two friends, and leveraged their relationships, landing their first contract. All probably went well until they stepped back and started asking how they would replicate it. How do they find the next client? Where do they go from here?

3. Prior military: They will tell themselves they already have a security clearance, socio-economic status, and work history with the government. They often believe it will be easy to jump in and start selling, not realizing that selling is way different from working with the government in the military; their status and clearance are the same as most others in the market, and they are really without much if any, advantage especially since your military crowd tends to confuse selling with directing.

Each scenario brings us to the same conclusion: first and foremost, you need to understand the market and what you plan to sell.

99% of people we communicate with can’t tell me exactly what they want to sell. It’s nearly always the “shotgun approach,” where someone throws stuff out there and sees what sticks. When you do this, you are just wasting everyone’s time; there is no competitive advantage, and you will be unable to understand any specific market with enough detail to develop relationships and sell in it.

Yes, the government does buy everything under the sun, but this does not mean it is “easy” to make them buy. This is a big market and a small community, so relationships are important!

Identify what you will sell (focus on one or two things only), research, and know the market better than anyone else in your region.

So, Where To Start?

Step #1:

Always research what you want to sell and determine who buys it (agencies, state, local government), where, how much, how often, and what contracts currently exist for this product or service.

This is an intensive process about which I will write more articles in the future. However, a solid starting point is understanding the NAICS (North American Industry Classification System) codes. Everything the government buys has a NAICS code assigned to it. Your sam.gov profile is based on which codes you select, as this is how agencies determine what you do.

Step #2:

Take these codes and research websites like usaspending.gov, sam.gov, and FDPS to find the answers to the questions listed above. Each site is used to find contracts or those that have been available and won in the past. Find out exactly who buys what you sell and what amount of money is involved in the average contract.

Save each site to your browser because you will use them weekly.

Cover Your Basics…

After researching and finding possible products or services you think you can sell, you must set up your business branding so it is directed at selling to the government.

You will need a website with at least one landing page directed at the federal government to make sure the government's website pages are accessible and easy to find. The contracting team will look into this for authenticity screening. Also, a capability statement that outlines what you do (like a marketing brochure), some business cards (yes, old school but still works), and social media accounts. For your socials, LinkedIn is an excellent start as, just like for regular companies, many gov’t officials have a LinkedIn.

Another simple addon for your website is any certification you can provide that shows you are a legitimate business. For example, a certification from the Better Business Bureau is small but can help. The contracting officer is deciding based on your business image and past performance, so anything you can do to appear more authentic will help. A little goes a long way with this.

Everything listed above is easily doable for less than $1,000.

The goal is to look professional and for the government officials who review your proposals to get the feeling that you are serious about government contracting.

Use Past Performance:

If you have prior experience in the private sector, you can leverage your portfolio of work to help secure your first contract. You need to be very clear on your past performance and directly relate this to whatever you are selling. Think NAICS codes. If you can get references from individuals you have worked with, that's even better.

In this case, for your marketing materials (capability statement), web design, and communication with the contracting team, you would include your references (names, phone numbers) and highlight what you did in quick bullets. One or two sentences for each of your top projects (action statements) that directly relate to the type of work you are trying to do for the government.

Action Statement Format:

• What you did

• How you did it

• The impact

For example, I roofed five buildings in three weeks by managing a team of 14 subs that completed a $200k project under budget and one week ahead of schedule.

Understand The RFP/RFI Process:

Next, get familiar with the RFP (Request for Proposal) process. The goal is not to focus only on winning contracts (at this stage) but to understand how the process works, what type of things to look for, where to find RFPs, and the timelines. Understanding what to expect with RFPs before you try writing any proposals is best.

RFIs (Request for Information) will be where you want to spend more time when new. RFIs are designed for government officials to collect industry knowledge and expertise on a project. Based on what industry experts have said, they will use RFIs to build the final RFP. RFIs also let you know what will come down the pipeline as an RFP and allow you to position yourself for the final bid.

The information given during the RFI is used to craft the RFP. In this scenario, you can see that offering solutions to the contract team helps you position yourself as a likely candidate to fulfill the contract.

This happens across the contracting world, even at GDIT, Lockheed, etc. You can look at some of these large contracts and see that they are written in a way that a specific company can fill.

There are some general sentiments in the contracting world (mostly huge contracts) that it is too late to bid when you hear about the RFP without participating in the RFI.

In addition to the RFP/RFIs, learn where to get easy wins. For example, the simplified acquisitions process, GPC card limits, or how to set up a pilot program to introduce your product to a potential buyer.

Teaming:

You can find contractors (preferably primes) who have been in the contracting game for a while and convince them to help you. It's easier said than done, but most new contractors start by teaming with others already in the business. This is one of the best strategies to start.

For example, you can sub with a more prominent contractor with government work experience and relationships if you offer a service. This benefits the larger contractor when your company supplies specific expertise that strengthens their bid.

The greater risk would be with the prime, and if you do well as a sub, you now have real government work that you can add to your portfolio, allowing you to bid on larger contracts in the future.

Many small companies grow to be big without a prime contract. They align themselves with the larger players and build a very comfortable business as a subcontractor instead of going after the prime. Doing this allows you to be part of a larger contractor’s proposal process, which can help you decide if you want that responsibility, enabling you to learn the ropes with less risk.

Many of the largest contracts require up to 35% of the work to be subbed to small businesses, so the opportunities are vast, especially if your product or service is very niche.

So many new companies are looking to prime as their first contract. It’s not impossible, but a better use of your time could be strategy and teaming with others. When you realize this exists, it helps your market research as you should be searching both for the agencies buying your product and the companies fulfilling the current contracts, as they can be potential team members.

Start small, build a reputation, get your feet wet, and do a great job; eventually, those lucrative contracts will come.

Communication With Decision Makers:

The next step is outreach. FDPS and USAspending show exactly which agencies and customers buy what you sell. They also show the companies who earned the prime contracts.

You must identify the top three agencies that buy what you sell in your region. Go onto their websites and find their staff. Search for contracting teams (the titles vary with every organization); some sites list emails & phone numbers, others do not. Do searches on LinkedIn or social media (Facebook can work too).

Every agency should have a small business office dedicated to helping new contractors learn the basics, which is part of federal regulation requirements. Contact all of these offices in your region.

Your starting goal should be to gather 20 - 30 names you can contact. Add them to your CRM.

Start calling them.

In future articles, we will go into more depth on this process, but this is the basic summary of what you need to do.

Differentiation:

So many contractors focus on their status (Veteran, Woman Owned, 8(a), etc.), while these are extremely important. If you lead with this, you will shun anyone you talk to.

Most companies lead with this.

From the contracting officer's perspective, they are looking for a company that can fulfill the contract on time and per the requirements without significant issues. Because of this, you need to be an expert at something. Value must be demonstrated in your marketing, brand image, and communication with the decision-makers.

It must be understood that the government approval authorities will only be experts in some things. This is the purpose of the RFI process, but they will recognize when someone is attempting to be a generalist. They want experts, not generalists.

Trying to be a generalist will cause you to be slotted into the pile of companies with 50 NAICS codes. The companies that list cleaning services, IT services, nuclear waste cleanup, and everything else under the sun on their websites. Focus on one thing and then have one or two codes directly related to this if needed.

If you do a service, identify your strong points, be upfront about what you are great at, and hone in on the pain points you fix. If you did your research, you should tell the contracting team what they need help with, not the other way around.

When you can communicate this message simply (one or two sentences), you will be leaps and bounds over your competition, especially since so many working with the government are arrogant about their titles or status.

In the future, we will go into more detail about each aspect of the contracting process listed above. This was a general overview of what you can expect, with a starting timeline of at least six months before seeing any real traction. Government contracting can be highly lucrative, but most do not have the skin to stick with it long-term.

Let me know what questions you have in the comments below. And if you liked this article, be sure to subscribe below. Happy hunting!

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