Your Complete Guide to Government Contract Bidding

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Government Contract Bidding

Government Contract Bidding

Did you know that the United States Government spent $665 billion on government contracting in the year 2020? If you’re the owner of a small business then you’re already on the path to making a good living and being your own boss. There are many routes to getting your small business or startup on good ground, and one is government contract bidding.

One of the most overlooked and underrated options, when you’re looking to get a new client for your business, is choosing to bid on a government contract. A federal government contract will pay well for the goods or services that you provide. It is important that you learn about the process of government bidding in order to win government contracts.

The good news is that you’re in the right place to learn about the steps to take in order to make your business eligible for government contract bidding. You’ll also learn about the benefits of taking these steps for your business. Keep reading to learn more about government contracting in the United States today.

Finding Contracts

There are multiple resources that you have at your disposal for finding contracts for government contract bidding. The best way to start is by learning about the different databases that the federal government uses to list jobs that you can start bidding on. Your best bet for securing your first government contracting job is to become a member of all of these databases.

The Dynamic Small Business Search is one of the best places to start your search for work and government contracts for your small business. The government uses this database or portal as a way to post jobs for upcoming contracts. This database also works in a way where you can find other small businesses to partner with.

The Small Business Administration maintains the Dynamic Small Business Search database for small businesses like yours. They help you to get a fair shake at securing a government contract.

You’ll need to register your business with the System for Award Management. That will make signing on to this database a much easier proposition.

GSA Schedules

If you have a good or a service that you wish to sell to the federal government then there is a different path that you’ll want to take. Start by getting a contract from the United States General Services Administration. The GSA specializes in helping businesses connect with the federal government.

It is one of the most effective ways to get started with government contract bidding and growing your business. If you get a contract with the GSA then you’ll officially get “on the GSA schedule”. That is your official clearance to start doing business with the federal government. You can start bidding on a federal government contract.


Another great way to get started with government contract bidding is through subcontracting. You’ll want to make sure that you get your business on SubNet since it is a database that is filled with subcontracting opportunities that you can bid on.

It entails large businesses that win government contracts. They need help from small businesses to meet the needs of the government.

Your job is made easier because you get to work with a directory that is maintained by the Small Business Administration. It is a great way to get government contract work if you’re first starting out. The GSA also has a database that focuses on subcontracting opportunities for your small business.

Marketing to the Federal Government

You’ll also need to place an emphasis on your marketing strategy when it comes to winning government contracting bidding for your business. Some businesses opt to market their goods or services to the federal government or the general contractor. Others choose to go a different route.

Here is a closer look at your options for marketing your small businesses for a federal government contract.

Federal Procurement Data System

The Federal Procurement Data System is a great way to start marketing your business. You’ll find all types of useful data in this database on any government contract that is worth more than $25,000.

Using this system will give you insight into which companies have which contracts as well as the details of those contracts. You’ll also get to see what certain agencies are buying from these businesses and which contractors have won or secured contracts.


Another useful marketing tool that you should use for your small business if you want to bid on a government contract is USASpending.gov. You’ll find a ton of information about how much the federal government and its agencies are paying for goods or services. This site is dedicated to tracking federal spending on contracts with businesses.

You use the search function of this database to find specific information pertaining to your industry or your niche. It is a valuable asset for finding trends within the market and learning about what the federal government is looking for. The opportunities are endless when you start using resources like USASpending.gov.

Small Business Offices

There are a great number of federal agencies that make use of the Small Business Office. You need to find the agencies that use this database and try to work with them. They’re meant to identify small businesses and disadvantaged businesses to work with on a contractual basis.

The agency using the Small Business Office will release a forecast. This prediction shows how much help they’ll need from small businesses and large businesses alike. After you get done reviewing a forecast from an agency you’ll have a much better idea of how you can help them out and meet their needs.

Make sure that you’re ready to contact the agency that has a need that you can fill. Getting ahold of that agency is the best way to win government contracts for your business.

Advantages of Government Contract Bidding

There are tons of advantages that your business will get by securing a government contract. Knowing these advantages will help you understand why it is a route that you should take for growing your business and your revenue. Let’s take a look at the advantages that you’ll gain for your business by taking part in government contract bidding.

Helpful for Small Businesses and Minority-Owned Businesses

It is no secret that there is a lot of work that goes into getting started with government contract bidding. You need to realize that all of the work you’ll put in is worth it. There are a number of contract opportunities that are reserved for small businesses and minority-owned businesses in the United States.

About one-quarter of federal government contracts get reserved for small businesses. Another ten percent of these contracts get reserved for minority-owned businesses. Keep in mind that the government will buy anything that a normal person or business requires.

The main difference between having the government as a customer and a private citizen as a customer is that the government purchases in massive quantities. If you win a government contract then you’ll make a ton of money off of producing a large quantity of the goods needed by the government or the agency.

One thing to keep in mind is that the government could face certain stipulations about the products that they can purchase or use. They might only want to purchase recycled paper products or vehicles that are hybrids for eco-friendly purposes. If you can meet their needs then you’ll have a great way to grow your business.

Builds Your Foundation

Starting and building a business is no easy task. There is a lot of time, energy, and money that goes into building a strong foundation for a business that will last for decades. A big part of getting your business started is finding the right clients to work with.

A big reason why you should consider government contract bidding as a way to grow your business is that it sets the stones for a strong foundation. Many government contracting jobs last for decades. That means that you have a trusted and steady business partnership with the government.

If your business has a copyright on the goods that you provide the government then you have a huge advantage over your competition. The government will respect your intellectual property rights. Getting your start through a government contract is a proven and effective way to get your business started.

Many powerful and successful businesses got their start with government contract bidding. Big names like IBM and Tang are famous because of the government contract work that they provided.

Fair Competition Regulations

The government is required to abide by different laws when compared to those that the private sector is subject to. This is a huge advantage for small businesses in the United States. There is no favoritism or nepotism when it comes to winning government contracts.

The contracts are required to be open for government contract bidding to any and all qualified bidders. There are even laws in place that protect the businesses that are bidding from being victims of favoritism.

You’ll gain peace of mind that the government is going through the right processes for picking a business to work with. They have to choose a bidder in a professional, fair, and honest way. That is a much better guarantee than anything that the private sector can offer you.

Steady Monthly Cash Flow

Once you’ve landed your first government contract, you’ll need to make sure that you comply with all of the terms within. As long as you abide by those terms and deliver your products to the government in a timely manner, you’ll have a large and consistent flow of cash coming to your company.

Each government contract pays the business that wins the contract within the first 30 days. That is part of the contractual agreement that you’ve entered with the government. As long as you hold up your end of the bargain, you’ll have a wealthy and reliable business partner that values your products.

If your business tends to have a slow season then government contract bidding is the perfect solution for filling those gaps. That extra money will help you come up with new marketing strategies and hire additional employees.

Boosts the Value of Your Company

The best way to maintain and grow the value of your company is through strong relationships with your clients and customers. There aren’t many better customers that you could ask for than the United States Government. If your business goes above and beyond to show that you’ll stick by government regulations then you’ll be on your way to boosting your value.

Not only will it enhance the relationship that you have with your customers but it will also increase your chances of referrals to other businesses and agencies that need your goods or services. You’ll also help by improving the local economy where your business is located.

Better Client Portfolio

If you want to make your client portfolio look better then you need to consider government contracting for your business. You can tell potential customers all about the large clients that you work with, like the government of the United States of America. It is a great way to add some credibility to your business’s name.

Testimonials from those government agencies are a great feather in your cap if you want to find new clients to work with. You’ll also diversify your client portfolio by working with customers in the private sector as well as the public sector.

Having diversity in your client portfolio and doing business with powerful customers is a sure way to show other businesses that they should do business with you. It is the right path for success and growth.

Start Your Government Contract Bidding Today

If you’re a small business owner and you’re looking for new opportunities for growth then you need to start with government contract bidding. It will boost your client portfolio and the clout of your business’s name. It is also a sure way to increase the amount of money that your business brings in each month thanks to government contracting.

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