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US federal contracting

US federal contracting for beginners

Published 5 February 2026 by eSourcingData

The US federal government is the largest single buyer of goods and services in the world, and most of what it buys is posted publicly. This guide explains how federal buying works, where opportunities appear, and the practical first steps any new supplier needs to take before bidding.

How the federal government buys

Federal agencies buy under a common rulebook called the Federal Acquisition Regulation, or FAR. The FAR standardises how requirements are advertised, how offers are evaluated, and how contracts are awarded, so a supplier who learns the process for one agency can apply the same knowledge across the whole of government.

Purchases range from simple commercial products bought off a catalogue to multi-year professional services and complex systems. The dollar value of a requirement largely determines the process: micro-purchases and simplified acquisitions are fast and light-touch, while larger awards follow formal competition with published solicitations and detailed evaluation.

Understanding which lane a requirement falls into helps you judge whether it is worth pursuing. A small commercial order may be won on price and availability, whereas a large services contract will weigh past performance, technical approach, and management as heavily as cost.

Where opportunities are published

Most federal opportunities above the simplified acquisition threshold are posted on SAM.gov, the government's central system for contract notices. Agencies publish requests for proposals, quotes, and information there, along with award notices you can study to learn who is winning work.

Below the formal threshold, a lot of buying happens through pre-negotiated vehicles such as GSA Schedules, where agencies order directly from approved suppliers. Learning to read both channels, the open market and the vehicles, gives you a fuller picture of where demand actually sits in your sector.

The core terms you will meet

You will quickly encounter RFP, RFQ, and RFI. A request for proposal seeks a full technical and price offer for a defined requirement, a request for quotation asks for pricing on commercial items, and a request for information is market research that does not lead directly to an award.

Other essentials include NAICS codes, which classify the type of work, and set-asides, which reserve certain contracts for small businesses and specific socio-economic categories. Getting comfortable with this vocabulary early makes solicitations far easier to read and respond to.

Your first practical steps

Before you can be paid by the federal government you must register in SAM.gov and obtain a Unique Entity ID, or UEI. Registration is free and establishes your business as an eligible entity, capturing your details, banking information, and the codes that describe what you sell.

Alongside registration, prepare a capability statement: a concise one-page summary of what you do, your differentiators, relevant codes, and past performance. It is the calling card contracting officers and prime contractors expect to see when you introduce your business.

Building a realistic pipeline

New entrants rarely win a large prime contract first time out. A common route is to start with small simplified purchases, subcontract to established primes, or pursue set-aside opportunities matched to your business size and category, building past performance that strengthens later bids.

Treat the first year as learning the market as much as chasing awards. Track the agencies that buy what you sell, study their recent awards, and build relationships with small business specialists at those agencies, who exist specifically to help suppliers navigate the process.

See what the US government is buying

WinAContract US searches federal opportunities across SAM.gov and state and local portals in one place, and its AI RFP writing helps you turn a solicitation into a draft proposal fast. Its GovCon product line is built for exactly this market, and founding members are open now.

Search US federal contracts

Frequently asked questions

Is it free to register as a federal supplier?

Yes. Registering in SAM.gov and obtaining a Unique Entity ID costs nothing. Be wary of third parties that charge a fee to complete a registration you can do yourself.

Do I need past performance to win my first contract?

Not always. Smaller simplified purchases and some set-asides weigh price and capability heavily, and subcontracting to a prime is a common way to build the past performance larger bids expect.

Where do I actually find the opportunities?

Formal solicitations above the simplified acquisition threshold appear on SAM.gov. A lot of smaller buying happens through vehicles such as GSA Schedules, so it helps to watch both channels.

What is the difference between an RFP and an RFQ?

An RFP seeks a full technical and price proposal for a defined requirement, while an RFQ asks for pricing on commercial items. An RFI is market research and does not lead directly to an award.

Related

How to register on SAM.gov What is GovCon? How to find US government RFPs US federal contract search AI bid & proposal writing Talk to our team

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