← Blog · April 2, 2026

How to Bid on Government Contracts: A Step-by-Step Guide for Small Businesses

You've registered on SAM.gov, picked your NAICS codes, and maybe even found a few interesting opportunities. Now what?

Bidding on government contracts for the first time can feel overwhelming. The language is unfamiliar, the requirements are dense, and the stakes feel high. But the process is more approachable than it looks — especially if you know what to expect at each step.

This guide walks you through the bidding process from start to finish.

Step 1: Find the Right Opportunities

Not every contract is worth bidding on. Before you invest time in a proposal, filter for opportunities that match your capabilities:

• NAICS code match — Does the solicitation use one of your registered NAICS codes?
• Size standard — Are you under the SBA size standard for that NAICS code? If so, you may qualify for set-aside contracts with less competition.
• Geographic fit — Some contracts require on-site work or a local presence.
• Past performance requirements — Many contracts want 2-3 examples of similar prior work. If you're brand new, look for contracts that waive this requirement or explicitly welcome new entrants.

Pro tip: Tools like GovLens can match opportunities to your NAICS codes automatically and alert you when new solicitations appear — saving hours of manual SAM.gov searching.

Step 2: Read the Solicitation Carefully

Every government solicitation includes several key documents:

• Statement of Work (SOW) or Performance Work Statement (PWS) — What the government actually needs done.
• Section L: Instructions to Offerors — How to format and submit your proposal. Follow these exactly.
• Section M: Evaluation Criteria — How proposals will be scored. This tells you what matters most — price, technical approach, past performance, or a combination.
• Contract Line Item Numbers (CLINs) — The specific deliverables and pricing structure.

Read Section M first. It tells you how to win. If the evaluation is "lowest price technically acceptable" (LPTA), your proposal needs to meet requirements at the best price. If it's "best value," invest more time in your technical narrative.

Step 3: Attend the Industry Day (If Offered)

Many larger contracts hold pre-solicitation conferences or industry days. These are valuable because:

• You can ask questions directly to the contracting officer
• You learn what the agency really cares about (beyond the written SOW)
• You can identify potential teaming partners for larger contracts
• Questions and answers are usually published for all bidders, giving you additional insight

Even if you're not sure you'll bid, attending industry days builds relationships and market knowledge.

Step 4: Prepare Your Proposal

A typical government proposal has three volumes:

Volume 1: Technical Approach

• Address every requirement in the SOW point by point
• Explain how you'll do the work, not just what you'll do
• Include a management plan, staffing approach, and risk mitigation
• Use the government's language — mirror the terms from the solicitation

Volume 2: Past Performance

• Provide 2-3 references for similar work (contracts of similar size, scope, and complexity)
• Include contract numbers, points of contact, dollar values, and relevance descriptions
• If you lack federal past performance, commercial or state/local contracts can sometimes substitute

Volume 3: Price/Cost

• Use the exact pricing format specified in the solicitation
• Make sure your pricing is realistic — agencies are suspicious of prices that are too low (it suggests you don't understand the work)
• For time-and-materials contracts, research prevailing labor rates using the GSA price lists or Bureau of Labor Statistics data

Step 5: Ask Questions Through Official Channels

Never contact the contracting officer directly outside of the designated Q&A process. During open solicitations:

• Submit questions by the published deadline
• All questions and answers are shared with all bidders
• If something in the solicitation is ambiguous, asking for clarification is normal and expected

Step 6: Submit on Time

This sounds obvious, but late submissions are automatically rejected — no exceptions.

• Submit at least 24 hours before the deadline
• Test the submission portal (usually SAM.gov or a specific agency system) before the deadline day
• Confirm you receive a submission receipt or confirmation number
• Keep copies of everything you submitted

Step 7: After Submission

After you submit, the waiting period can take weeks to months depending on the contract size. During this time:

• Don't contact the contracting officer about your proposal status
• Prepare for possible oral presentations — some evaluations include a presentation phase
• Be ready for clarification questions — the agency may ask you to clarify parts of your proposal

If you win, you'll receive a notice of award. If you don't, you can request a debrief to learn how your proposal was evaluated and where to improve.

Common Mistakes First-Time Bidders Make

1. Bidding on everything — Focus on 2-3 well-matched opportunities rather than submitting weak proposals to dozens.
2. Ignoring page limits — Evaluators will not read past the page limit. Period.
3. Copy-pasting boilerplate — Agencies can tell when a proposal wasn't written specifically for their requirement. Tailor every response.
4. Underpricing to win — An unrealistically low price raises red flags and can get your proposal rejected.
5. Missing compliance requirements — Small formatting mistakes (wrong font, missing sections) can make your proposal non-compliant.

Getting Started

The best way to learn government bidding is to start small. Look for contracts under $250,000, which often have simplified acquisition procedures and shorter proposals. Micro-purchases (under $10,000) sometimes don't even require a formal bid — just a quote.

As you build past performance and learn the process, you can pursue larger opportunities with confidence.

Ready to find contracts that match your business? Try GovLens free — AI-powered contract search that matches opportunities to your NAICS codes and sends daily alerts so you never miss a relevant solicitation.