You can increase your chance of winning a government contract by researching the federal marketplace and taking advantage of SBA resources.
How to win contracts
Types of contracts
How to win contracts
You can increase your chance of winning a government contract by researching the federal marketplace and taking advantage of SBA resources.
Find contracts
There are a number of databases you can use to find federal contracts to bid on. Similarly, there are multiple databases that government agencies use to find contractors.
Small Business Search
The Small Business Search (SBS, formerly known as the Dynamic Small Business Search) is a database that government agencies use to find small business contractors for upcoming contracts. Small businesses can also use SBS to find other small businesses to work with.
SBA maintains the SBS database. The information you provide when you register your business in the System for Award Management (SAM) is used to populate SBS, so you should create a comprehensive business profile.
Contract opportunities
Federal business opportunities for contractors are listed at SAM.gov. Government agencies are required to use SAM to advertise all contracts over $25,000.
GSA schedules
If you want to sell to the government, securing a contract with the U.S. General Services Administration (GSA) — the government agency that connects government buyers with contractors — is a great way to start. Securing a contract with the GSA is also called “getting onto the GSA Schedule,” which means you’ve been approved to do business with the government.
Subcontracting opportunities
SUBNet is a database of subcontracting opportunities posted by large contractors looking for small businesses to serve as subcontractors.
SBA maintains a directory of federal government prime contractors with subcontracting plans.
The GSA publishes a subcontracting directory for small businesses that are looking for subcontracting opportunities with prime contractors. The directory lists large business prime contractors that are required to establish plans and goals for subcontracting with small businesses.
Marketing to the government
You may want to market your small business directly to a government agency or prime contractor. You can do that by learning what agencies or prime contractors need, and then showing them how your business can fulfill that need.
Federal Procurement Data System
Federal Procurement Data System – Next Generation is the repository of all federal contracting data for contracts over $25,000. With this system, you can see which agencies have contracts and with whom they have contracts, what agencies buy, and which contractors have contracts.
USASpending.gov
USASpending.gov tracks government spending through contracts awarded. This searchable database contains information for each federal contract. You can use this information to help identify procurement trends within the government and potential opportunities.
Small business offices
Many federal agencies have what’s called an Office of Small and Disadvantaged Business Utilization (OSDBU) or an Office of Small Business Programs (OSBP). These offices work to identify opportunities to contract with small businesses.
Each agency releases a procurement forecast that includes contracting opportunities for small and disadvantaged businesses. Once you’ve reviewed an agency forecast and used systems like the Federal Procurement Data System and USASpending.gov to identify opportunities at a specific agency, you can contact that agency’s small business office. Also, each office hosts training and networking events to help small businesses identify contract opportunities.
Contract opportunities: Search, find, bid
Government agencies use sam.gov to list contracts over $25,000. Find a contract that fits your business and submit a bid.
Handling protests
When the government awards a contract, someone may allege that a winning business misrepresented itself, causing the contract to be awarded unfairly.
Size and status protests
A losing bidder, contracting officer, SBA, or another interested party or government official can file a protest, questioning a winning business’ size or socio-economic status.
In the event of a protest, SBA will determine the size or status of the winning small business. If SBA determines that the business did not qualify for the set-aside, the business is no longer eligible for that contract.
Any of the interested parties can appeal SBA’s size determination to SBA’s Office of Hearings and Appeals, which issues a final decision.
Certificate of Competency
If a federal contracting officer rejects a low bid from a small business because of questions about the business’ ability to fulfill the contract, the case is referred to SBA.
SBA will then offer the small business a chance to apply for a Certificate of Competency (COC). If the small business applies for a COC, SBA will review the business’ ability to fulfill the contract. If the business demonstrates the ability to fulfill the contract, SBA will issue a COC to the contracting officer, requiring the award of that contract to the small business.
A COC is valid only for the specific contract for which it is issued. A small business that’s capable of handling one contract may not be qualified to handle another.
Bundling and consolidation
If you think a federal agency has engaged in bundling or consolidation practices that keep a small business from competing for a contract, contact your local Procurement Center Representative (PCR).
Bundling and consolidation are defined in Title 13 Part 125.1 of the Code of Federal Regulations (CFR).
Need help?
SBA offers counseling and other assistance to small businesses that want to sell products and services to the government.
Types of contracts
There are several different ways of contracting that can help you win awards from the federal government.
Set-aside contracts for small businesses
To help provide a level playing field for small businesses, the government limits competition for certain contracts to small businesses. Those contracts are called “small business set-asides,” and they help small businesses compete for and win federal contracts.
There are two kinds of set-aside contracts: competitive set-asides and sole-source set-asides.
Competitive set-aside contracts
When at least two small businesses could perform the work or provide the products being purchased, the government sets aside the contract exclusively for small businesses. With few exceptions, this happens automatically for all government contracts under $150,000.
Some set-asides are open to any small business, but some are open only to small businesses who participate in SBA contracting assistance programs.
Sole-source set-aside contracts
Most contracts are competitive, but sometimes there are exceptions to this rule. Sole-source contracts are a kind of contract that can be issued without a competitive bidding process. This usually happens in situations where only a single business can fulfill the requirements of a contract.
To be considered for a sole-source contract, register your business with the System for Award Management (SAM) and participate in any contracting program you may qualify for.
In some cases, sole-source contracts must be published publicly, and will be marked with an intent to sole source. Potential vendors can still view and bid on these contracts. Once the bidding process begins, the intent to sole-source may be withdrawn.
Set-asides for government contracting programs
Some set-asides are for small businesses in certain socio-economic categories. You can bid on these set-aside contracts by participating in the following SBA contracting assistance programs:
- 8(a) Business Development program
- HUBZone program
- Women-Owned Small Business Federal Contract program
- Service-Disabled Veteran-Owned Small Business program
Participating in one of these SBA programs means you’ll have fewer businesses to compete with to win a government contract. However, you must meet eligibility requirements and certify your business’ socio-economic status before you can bid on a set-aside contract.
How to certify
The certification process may vary depending on the SBA contracting program. For some, you can self-certify just by updating your business profile in the System for Award Management (SAM).
For other programs, you have to apply for certification. As part of the application, you’ll answer questions about your business and its ownership, and upload supporting documents.
Check each contracting program’s page for specific details about eligibility requirements and the certification process.
Joint ventures
Two or more small businesses may pool their efforts by forming a joint venture to compete for a contract award. A joint venture of multiple small businesses still qualifies for small business set-aside contracts if its documentation meets SBA requirements.
Small businesses that have a mentor-protege relationship through the SBA Mentor-Protégé program can form a joint venture with a mentor (which can be a large business). These joint ventures can compete together for government contracts reserved for small businesses.
A joint venture can also bid on contracts that are set aside for service-disabled veteran-owned, women-owned, or HUBZone businesses, if a member of the joint venture meets SBA requirements to do so.
Need help?
Office of Government Contracting & Business Development
409 3rd St. SW, Suite 8000
Washington, DC 20416
Email: contracting@sba.gov