Government Contracts for Small Businesses

The US federal government is legally required to award a significant share of its contracting dollars to small businesses - 23% of all prime contract dollars by law, plus specific set-aside percentages for small businesses in particular categories. In practice, the federal government spent over $160 billion with small businesses in fiscal year 2023. This isn't a niche opportunity - it's one of the largest business development channels in the US economy for qualifying companies.

SAM.gov: the essential first step

Registration in the System for Award Management (SAM.gov) is required for any business that wants to receive federal contracts or grants. Registration is free and includes your Unique Entity Identifier (UEI), legal business information, NAICS codes, and business certifications. Your SAM registration must be active and renewed annually. Without it, no federal award can be made regardless of how compelling your proposal is. Complete this before anything else if you're serious about federal markets.

Small business set-aside programmes

Federal agencies are required to set aside certain contracts exclusively for competition among small businesses. The main programmes: Small Business Set-Aside - the broadest category, for any small business meeting SBA size standards. 8(a) Business Development - for businesses owned by socially and economically disadvantaged individuals, including sole-source awards. HUBZone - for businesses in historically underutilised business zones. WOSB/EDWOSB - for women-owned small businesses. SDVOSB/VOSB - for service-disabled veteran-owned and veteran-owned businesses. Qualifying for and pursuing set-aside contracts significantly reduces competition and can be transformational for early-stage government contractors.

Finding opportunities: beta.SAM.gov

Contract opportunities are posted on SAM.gov (formerly FBO.gov / beta.SAM.gov). You can search by NAICS code, agency, place of performance, and value. Setting up daily email alerts for relevant NAICS codes is standard practice. The dynamic small business search and small business set-aside filters allow you to focus on competitions where you have structural advantages. For contracts under $25,000, agencies aren't required to compete on SAM.gov - building relationships with contracting officers at target agencies for small purchases is a parallel strategy.

GSA Schedule: becoming a preferred vendor

The General Services Administration (GSA) Multiple Award Schedule (MAS) is a pre-negotiated price list that allows federal agencies to buy from approved vendors without running a full procurement process. Getting on the GSA Schedule is a multi-month process, but once you're on it, you're accessible to any of the tens of thousands of contracting officers across the federal government. GSA Schedule contracts have no minimum order - agencies can place orders of any size from approved schedule contractors. For professional services, IT, and products businesses with federal ambitions, GSA Schedule is a significant asset.