Federal Contracting FAQ

No special license is required in most cases. You need a legitimate registered business entity (LLC, corporation, or sole proprietor), an EIN from the IRS, and any professional licenses your industry requires. Some contracts require specific security clearances, but most don't.

Yes. There is no minimum time-in-business requirement to bid. However, some solicitations require "past performance", documented examples of similar work. New businesses often target contracts under $250K or partner as a subcontractor with an established firm first to build a track record.

FedContract pulls all federal solicitations and awarded contracts into a single searchable database. You can filter by industry (NAICS code), state, agency, and set-aside type. Free users see basic info, title, agency, deadline. Paid users get full details, point of contact info, and a direct link to apply.

Every solicitation has a unique identifier, usually called the solicitation number or notice ID. It looks something like "W912BU-24-R-0017". You'll use this number to download the full RFP, ask questions through the official Q&A process, and submit your proposal.

A solicitation is an announcement that the government wants to buy something, it's an open opportunity you can bid on. A contract award is the result after a winner is selected. Our Open Bids page shows current solicitations. Our Awarded page shows completed contracts, who won, how much, and from which agency.

With a FedContract paid account, you can set your NAICS code and state, you'll receive email alerts when matching solicitations are posted. Staying on top of new opportunities as soon as they go live gives you the most time to prepare a competitive proposal.

It varies widely. Small set-aside contracts often attract 3-8 bidders. Larger unrestricted contracts can attract 20+. Your odds improve significantly with set-aside certifications, incumbent knowledge, strong past performance, and competitive pricing. Most experienced contractors target a 15-25% win rate. Expect to submit multiple proposals before your first award, this is normal.

A capabilities statement is a 1-2 page marketing document that summarizes your business's core competencies, past performance, NAICS codes, UEI number, and contact info. It's the federal contracting equivalent of a resume. You should have one ready before pursuing contracts, contracting officers and prime contractors will request it constantly.

Absolutely, subcontracting is a great way to enter federal contracting. As a subcontractor, you work under a prime contractor who holds the government contract. You don't need to win the bid yourself. Many small businesses start as subs to gain past performance, learn agency requirements, and build relationships before pursuing prime contracts directly.

Late proposals are almost never accepted. Federal acquisition rules are strict, contracting officers cannot legally accept a late proposal except in very rare circumstances involving government-side delays. Always build extra time into your proposal schedule. If you realize you cannot submit on time, contact the contracting officer immediately to see if an extension was granted (sometimes they do post amendments extending deadlines).

A set-aside reserves a contract for a specific category of businesses, small businesses, veteran-owned firms, women-owned businesses, HUBZone companies, etc. If a contract is set aside for Small Business, only small businesses can bid. This eliminates competition from large corporations. The government is required by law to award at least 23% of all contracts to small businesses, that's over $160 billion per year exclusively for small businesses.

The SBA defines "small" differently for each NAICS code, based on either annual revenue or employee count. For most services, the threshold is $25M, $40M in annual revenue. For manufacturing, it's usually under 500-1,500 employees. You can look up your NAICS code's size standard at sba.gov. Self-certification is all that's required for basic Small Business set-asides, no formal SBA approval needed.

The SBA 8(a) application process typically takes 3-4 months. You'll need to document social and economic disadvantage, demonstrate that the applicant controls and manages the business, and show at least 2 years of business operation (in most cases). Once certified, you're in the 9-year program and eligible for sole-source awards up to $4.5M for services.

Yes. Size standards are recertified regularly. If your revenue or employee count exceeds the SBA threshold for your NAICS code, you no longer qualify for small business set-asides. However, contracts already awarded under a small business set-aside can typically be completed. This is called "size recertification" and is an important consideration as your business grows.

The federal government pays via Electronic Funds Transfer (EFT) directly to your business bank account. Payment terms are typically Net 30, payment due within 30 days of invoice. Under the Prompt Payment Act, the government must pay interest if they pay late.

The simplified acquisition threshold (SAT) is currently $250,000. Contracts below this amount go through a streamlined process, fewer regulations, faster awards, and simplified proposal requirements. This is an ideal entry point for first-time government contractors. Many agencies use purchase orders, credit cards, or BPAs for purchases under $10,000, these micro-purchases have almost no competition.

Most contracts require proof of commercial general liability insurance, typically $1M per occurrence minimum. Construction and engineering contracts often require higher limits. Professional services contracts may require errors and omissions (E&O) insurance. Check the specific solicitation's terms and conditions, they will specify exactly what insurance is required before award.