How to Bid for Government Contracts: 6 Steps

Government agencies buy everything from janitorial services to software. Here is how a small business registers, finds bids and wins its first public contract.

Learning how to bid for government contracts is one of the surest ways for a small business to find steady, well-paying customers. Public agencies must buy from someone, and the federal government aims to award at least 23% of its contracting dollars to small businesses. These six steps show where to start.

Every year, federal, state and local agencies buy billions of dollars in goods and services, and the federal government sets a goal of awarding at least 23% of its contracting dollars to small businesses (U.S. Small Business Administration). The process rewards preparation more than size.

Step 1: Register where agencies look

Federal: register your business on SAM.gov. Registration assigns your Unique Entity ID (UEI), and you must renew it every 365 days to stay active.
State of California: register with the Department of General Services (DGS) on Cal eProcure, the state’s bidding system, and apply for small business certification if you qualify.
Local: register on each agency’s own vendor portal, such as SMUD’s Vendor Portal or Sacramento County’s purchasing system.

Step 2: Get the certifications you qualify for

Certifications open set-aside contracts, bid preferences and evaluation points. Start with California small business certification, then add any that fit your ownership: women-owned, veteran-owned, disabled veteran-owned or minority-owned. Our certification guides explain each one.

Step 3: Find the right opportunities

Search by your industry codes (NAICS codes) and set alerts. Start small: purchases under formal bid limits, subcontracts with prime contractors and set-aside solicitations are the most realistic first wins.

Step 4: Read the solicitation twice

Most bids are lost on paperwork, not price. List every required form, signature and deadline. Ask questions during the official question period; answers are shared with all bidders.

Step 5: Price to win and to profit

Know your full cost, including insurance, bonding, labor and overhead. Apply any bid preference you qualify for; for example, SMUD gives certified SEED vendors up to a 5% bid price advantage.

Step 6: Submit, follow up and learn

Submit early. If you lose, request a debriefing or review the award results, and use what you learn on the next bid.

Free help in the Sacramento region

APEX Accelerators, formerly called Procurement Technical Assistance Centers (PTACs), help small businesses with registrations, certifications and bids. In the Sacramento region, California Capital operates an APEX Accelerator.

Key takeaways

Register on SAM.gov (renew every 365 days), Cal eProcure and each local agency’s portal.
Certifications turn into set-asides, bid preferences and evaluation points.
Start with small purchases and subcontracts; read every solicitation twice.