How to bid on government contracts, step 1: register in SAM.gov
Federal offerors must be registered in the System for Award Management at the time they submit an offer, with limited exceptions, under FAR 4.1102. Registration is free on SAM.gov and assigns a Unique Entity ID. Renew it at least annually. See the SAM registration guide. State and local governments use their own vendor registrations, listed on each state’s procurement portal.
Step 2: find your NAICS codes and check your size
Every federal solicitation names a NAICS code and a size standard. Your size status for that code decides whether you can compete for small business set-asides. Under FAR 19.502-2, acquisitions above the micro-purchase threshold and up to the simplified acquisition threshold are set aside for small business when the contracting officer expects offers from two or more responsible small businesses. The SBA’s contracting guide explains size standards and programs.
Step 3: find opportunities
Federal agencies publish notices of proposed contract actions to the governmentwide point of entry, SAM.gov, as FAR 5.201 requires. Search by NAICS code, location and set-aside. Also watch:
- Sources sought and requests for information, which shape future solicitations.
- State procurement portals and DOT letting pages. See the state estimating guides.
- County, city and school district bid pages.
- Prime contractors’ subcontracting opportunities.
Step 4: understand the solicitation type
| Type | How it is awarded | What you submit |
|---|---|---|
| Sealed bid (IFB) | Price and price-related factors, public opening | Bid form, bid guarantee, certifications |
| Negotiated (RFP) | Price plus technical factors, possible discussions | Technical and price volumes |
| Two-step sealed bidding | Technical proposals first, then sealed price | Technical, then price |
| Simplified acquisition | Streamlined procedures for smaller buys | Quote |
FAR 6.401 says sealed bids are used when award will be based on price and price-related factors and discussions are not needed; otherwise competitive proposals are used. FAR 13.003 sets simplified procedures for purchases up to the simplified acquisition threshold.
Step 5: decide whether to bid
Check bonding, wage determinations, schedule, location, experience requirements and your capacity before investing time. Federal construction contracts over $150,000 require performance and payment bonds under FAR 28.102-1. Use a bid/no-bid checklist.
Short on time? Bidmere can do this for you. Bid and proposal packages from $1,950, ready in 5 business days. See government contract proposal and bid preparation or get a fixed quote.
Step 6: build a compliance matrix and prepare the response
List every instruction, form, clause and evaluation factor in a compliance matrix. For sealed bids, price every line item, acknowledge every amendment and complete the representations. For negotiated proposals, write to the evaluation factors and keep price in its own volume when required. Agencies prepare an independent government estimate for construction under FAR 36.203, so your price will be compared with one.
Step 7: submit before the deadline and keep the record
Late bids are generally rejected; FAR 14.304 lists narrow exceptions. Submit by the exact method stated, keep confirmation and save a complete copy. After award, debriefings on negotiated procurements can show how to improve.
Government bidding mistakes that cost first-time contractors
- Letting SAM registration lapse right before a bid is due.
- Missing the solicitation’s NAICS code in your SAM record, so your size status is not represented.
- Pricing labor below the attached wage determination.
- Not acknowledging amendments the required way.
- Submitting price inside the technical volume when the RFP requires them separate.
- Bidding work beyond your bonding capacity.
- Starting with large prime contracts instead of building past performance on smaller work or subcontracts.
State and local government contracts work differently
Most public construction is let by states, counties, cities and school districts, not federal agencies. They use their own registration, portals, wage laws, bond thresholds and bidder qualification rules. A state DOT may require prequalification; a city may require a local business license. Start with the owner’s instructions to bidders, then check the state guide for the rules that change your estimate.
Where can you get help?
The SBA lists free resource partners, including APEX Accelerators and Small Business Development Centers, that help with registration and getting started. For the bid itself, Bidmere prepares federal negotiated proposals from $6,950, public sealed bid packages, capability statements and estimates at your rates. Your team signs and submits.
Frequently asked questions
How do I start bidding on government contracts?
Register in SAM.gov and get a Unique Entity ID, list your NAICS codes and size status, and set up searches on SAM.gov and your state procurement portals. Start with smaller contracts or subcontracts that match your experience, and build past performance and bonding capacity as you go.
Is it free to bid on government contracts?
Registration on SAM.gov is free, and searching federal opportunities on SAM.gov is free. Your costs are the time to prepare bids, bond premiums where bonds are required, and any outside help you hire. Be cautious of third parties that charge fees for registration while implying they are required.
What is the difference between an IFB and an RFP?
An invitation for bids uses sealed bidding: award goes on price and price-related factors after a public opening, without discussions. A request for proposals uses negotiation: offers are evaluated on technical factors and price, and the agency may hold discussions before award.
Do I need a bond to bid federal construction?
Often. FAR 28.102-1 requires performance and payment bonds on federal construction contracts over $150,000, with other payment protections between $35,000 and $150,000. A bid guarantee is required whenever a performance or payment bond is required. Check each solicitation and talk to your surety early.
What are small business set-asides?
Set-asides reserve a solicitation for small businesses. Under FAR 19.502-2, acquisitions above the micro-purchase threshold up to the simplified acquisition threshold are set aside when two or more responsible small businesses are expected to offer. Your SAM size representation for the solicitation’s NAICS code decides eligibility.
Should I start as a prime or a subcontractor on government work?
Many contractors start as subcontractors or on smaller primes. Subcontracts build past performance and teach the paperwork without the full bonding and compliance load of a large prime. Smaller set-aside primes are a good next step once your SAM record, bonding and references are in place.
Can Bidmere prepare my government bid?
Yes. Bidmere prepares federal negotiated proposals from $6,950, public sealed bid packages from $1,950, capability statements and estimates at your rates. You get a fixed price within 2 business hours. Your company maintains SAM registration, signs and submits.