How to Bid On and Win Federal Contracts
Step 1: Get Your Business Registered in SAM
The System for Award Management (SAM) is the U.S. Federal Governments portal for determining where contracting dollars are going, to who, and for what. Any business or sole proprietor looking to do work or provide a service for the Federal Government MUST be registered in SAM. This registration ensures that you’re recognized as a legitimate federal contractor, allowing you to be seen by agencies searching for vendors.
Step 2: Determine Your Small Business Size Standards and NAICS Codes
The SBA (Small Business Administration) has many opportunities for Small Businesses to obtain and win contracts. 25% of federal contracting dollars are allocated annually to Federally Certified Small Businesses. Below are five of the SBA’s Small Business Size Standards:
- Must be considered a small business by SBA standards
- Must have listed the proper NAICS codes in SAM Registration
- Must not surpass average annual revenue based on NAICS codes
- Must not surpass number of employees based on NAICS codes
Step 3: Identify Relevant Contract Opportunities
There are several platforms where you can find federal contract opportunities:
- SAM.gov: The primary platform for government contract listings. You can set up email notifications for relevant opportunities.
- Federal Procurement Data System (FPDS): A helpful tool to research past contracts and identify agencies that frequently buy what you offer.
Use keywords and your NAICS code to search and filter relevant contracts. Start by bidding on smaller contracts to gain experience before pursuing larger, more complex opportunities.
Step 4: Analyze the Solicitation
Once you find a contract opportunity, analyze the solicitation document carefully. This document includes:
- Scope of Work (SOW): Outlines the specific services or products required.
- Evaluation Criteria: Details on how bids will be judged, such as technical expertise, pricing, or past performance.
- Proposal Submission Guidelines: Follow these instructions exactly to avoid disqualification.
Step 5: Develop a Winning Proposal
Your proposal should not only meet the requirements but also demonstrate why your business is the best choice. Include sections on:
- Technical Approach: Explain how you’ll meet the contract requirements, highlighting any unique methodologies or technologies.
- Past Performance: Showcase relevant past projects, including any completed government contracts or similar work for private-sector clients.
- Pricing: Offer a competitive yet fair price that aligns with industry standards.
- Staffing Plan and Qualifications: Emphasize your team’s experience and credentials to build credibility.
Tip: Tailor each proposal to the specific agency’s needs, avoiding a “one-size-fits-all” approach.
Step 6: Submit Your Proposal and Follow Up
Submit your proposal according to the guidelines and keep track of all important deadlines. After submission, follow up to confirm receipt and politely inquire about the timeline for decisions. Staying proactive and respectful shows agencies that you’re engaged and professional.
Step 7: Be Prepared for Negotiations and Contract Award
If your bid is selected, be prepared to negotiate. Agencies may seek adjustments to pricing, timelines, or deliverables before finalizing the contract. Flexibility and clear communication during this stage can help you secure the award.
Step 8: Deliver High-Quality Performance
Winning a contract is just the beginning. By delivering high-quality performance, you can build a positive reputation within the federal contracting space, increasing your chances of future awards. Collect feedback, build relationships, and seek referrals within the agency to position your business for success in future bids.