How to start bidding on federal work

Is federal work right for you?

The federal government hires contractors for the same work you already do: repairs, maintenance, installs, cleaning, roofing, and supplies by the box. Most of it is posted publicly on SAM.gov.

The good

• It pays on a schedule. Payment is generally due 30 days after the government gets a proper invoice (or accepts the work, whichever is later), and if it pays late it adds interest automatically.
• Plenty of small jobs. Purchases up to $15,000 count as "micro-purchases" and are often paid by government credit card. Jobs up to $350,000 use simpler, faster buying rules.
• Some work is reserved for small businesses (called "set-asides"), so you're not always up against giant companies.

The honest part

• Paperwork. Every bid has instructions and forms, and missing one can get your quote thrown out.
• Wage rules. Many service and construction jobs require you to pay at least set local wage rates (more in Step 6).
• Hard deadlines. A quote that arrives late is usually rejected, no exceptions.

None of this is hard once you've done it once. That's what the rest of this guide is for.

Register your business on SAM.gov (free)

You must be registered when you send a quote, and still registered when the contract is awarded. So start this first: it takes a couple of weeks.

Have these ready

• Your legal business name and physical address, exactly as the IRS has them. A P.O. box isn't allowed.
• Your EIN (tax ID number), plus your date and state of incorporation.
• Business bank account: routing and account number, so the government can pay you electronically.
• Your industry codes (NAICS). See Step 3.
• Your size: average yearly revenue and number of employees.
• Contact people for your business: names, emails and phone numbers.

The steps

1. Create a free account at Login.gov. SAM.gov uses it to sign you in.
2. Sign in at SAM.gov and choose to register your entity (your business).
3. Get your Unique Entity ID (UEI): your business's permanent government ID number.
4. Finish the full registration: business details, bank info, industry codes, size, a set of yes/no questions (called "representations and certifications"), and your contacts. Then submit.

How long it takes

Official guidance says to allow at least ten business days after you submit. Your business name, address and tax ID are checked against IRS records, and a mismatch is the most common reason for delays, so type them exactly as they appear on your IRS paperwork. A draft you never submit is deleted after 90 days.

Renew every year

Registration must be renewed every 365 days or it goes inactive, and an inactive business can't bid. Put a reminder on your calendar for 11 months out. Renewing is free too.

Pick your industry codes (NAICS)

NAICS codes are six-digit numbers that describe what a business does. You list yours in SAM.gov, and the government tags each bid with one. Your code also decides whether you count as "small" for that job: check yours with the SBA's size standards tool. You can list more than one code.

Look up any code at census.gov/naics.

Small-business certifications (optional)

When you register, you tell SAM.gov whether you're a small business for your codes. That alone lets you bid on jobs set aside for small businesses. Some set-asides are narrower and need an SBA certification:

• Women-owned (WOSB / EDWOSB): at least 51% owned and controlled by women who are U.S. citizens.
• Veteran-owned (VOSB / SDVOSB): at least 51% owned and controlled by veterans, or service-disabled veterans. Certified by the SBA ("VetCert").
• HUBZone: your main office is in a HUBZone and at least 35% of your employees live in one.
• 8(a): a development program of up to 9 years for small businesses owned by socially and economically disadvantaged people.

Apply at MySBA Certifications. The SBA doesn't charge to apply. (For women-owned, you can also use one of a few SBA-approved private certifiers, which may charge a fee.)

Find bids

Federal bids are posted on SAM.gov under Contract Opportunities. You'll see a few kinds of notices:

The hard part isn't the notice types. It's the volume: thousands of notices a week, filed under codes and titles that don't always match how you'd describe the work.

Read a bid before you price it

A bid package can be one page or sixty. Before you spend time pricing, find these:

• The due date, time and time zone, and how to submit (email, a portal, or by mail).
• The questions deadline. Questions usually have to be sent in writing before a set date.
• The scope of work: what exactly you'd be doing, how often, and to what standard.
• The item list: quantities, brands, and whether "or equal" products are allowed.
• Site visits: some jobs have a scheduled walk-through, sometimes required.
• The wage determination: service jobs over $2,500 (Service Contract Act) and construction jobs over $2,000 (Davis-Bacon) usually require set minimum wages. The bid includes the rates; build them into your price.
• Amendments: changes posted after the bid went up. Check for them right before you submit.

Send your quote

• Follow the instructions exactly. Use their forms, fill every block they ask for, and include every document they list. Quotes are often rejected for a missing form, not a high price.
• Ask questions early, in writing, before the questions deadline. The answers are often posted for everyone.
• Price with the wage rates in the bid, not your usual rates, if a wage determination is included.
• Submit before the deadline. Late quotes are generally rejected.

Get paid

Your contract says where to send invoices. The two you'll see most:

• Military jobs: invoices go through Wide Area WorkFlow (WAWF) in the PIEE system. You register there as a vendor.
• Many civilian agencies: the Treasury's free Invoice Processing Platform (IPP).

Payment is generally due within 30 days of a proper invoice or the government accepting the work, whichever is later. If they pay late, interest is added automatically. Keep your SAM.gov registration active until the final payment.

Small jobs (micro-purchases) are often paid on the spot with a government credit card, so accepting cards helps.

Free help

• APEX Accelerators (formerly called PTACs) give generally free, one-on-one help with registration, certifications and reviewing your bids. Find one near you.
• The SBA has guides and local offices: sba.gov/federal-contracting.
• The Federal Service Desk answers SAM.gov registration questions for free: fsd.gov.

More guides

• SAM.gov alerts vs Solicity: an honest side-by-side.
• What is a set-aside? Federal bids only some businesses can win.
• Can I sub out a federal job? How much of the work you have to do yourself.
• Prevailing wage on federal jobs: Davis-Bacon and the Service Contract Act.
• How to write a capability statement, the one page buyers ask for.
• NAICS codes for the trades, and the traps that hide your jobs.