Federal Contracting Cheat Sheet

The government's formal announcement that they want to buy something. Includes what they need, rules for bidding, and a due date. Think of it like a job posting — but for contracts.

Request for Proposal. The most common bid type. You submit a full proposal — your approach, team, price, past performance. They pick the best overall package, not just the lowest price.

Request for Quote. Simpler than an RFP. Usually for smaller purchases. You just quote a price. Less paperwork, faster process.

Invitation for Bid. Lowest price wins, period. No "best value" judgment. Common for construction. If you can do the work at the lowest cost, you win.

A contract reserved only for certain types of businesses — like small businesses, HUBZone companies, veteran-owned, women-owned, etc. Big companies can't even bid. This is your biggest advantage right now.

Historically Underutilized Business Zone. An SBA certification for businesses in economically distressed areas. If you qualify, the government is required to give you preferential treatment — and a 10% price advantage on some bids. Check the SBA HUBZone map to see if your address qualifies.

Your one-page business résumé for the government. Lists your NAICS codes, past performance, certifications, contact info, and what makes you different. Every contracting officer will ask for this. You need one ready at all times.

Your track record of completing similar work. The government wants proof you've done it before. No federal past performance yet? Use commercial work — trucking jobs, facilities work, anything relevant. First contract is the hardest to get for this reason.

Three different types of scope documents — not the same thing. SOW (Statement of Work) = tells you exactly what tasks to perform. PWS (Performance Work Statement) = tells you the results they want, you decide how to achieve them. SOO (Statement of Objectives) = the broadest — just gives goals, you propose everything. Always read whichever one is in the solicitation before writing a single word of your proposal.

Lowest Price Technically Acceptable. As long as your proposal passes a minimum bar, the cheapest bid wins. Good if you're efficient. Bad if you price too low and lose money.

The government weighs your price + quality + experience together and picks whoever scores best overall. You don't have to be the cheapest — you can win on quality. Most RFPs use this method.

A pre-approved vendor list run by the General Services Administration. Once you're on it, any federal agency can buy from you directly without a full bidding process. Huge shortcut once you have past performance. Find the SINs (Special Item Numbers) that match your services at gsa.gov/schedules — every industry has applicable SINs.

Contractor Performance Assessment Reporting System. After each federal contract, the government rates how well you did — like a Yelp review, but it follows you forever. Good CPARS = easier to win future contracts. This is why doing quality work matters beyond just getting paid.

The government employee with the legal authority to award and sign contracts. They're your most important contact. Be professional, responsive, and never go around them. They can also answer questions during the bidding process — use that.

Contracting Officer's Representative. The person on the government's side who monitors your day-to-day work after you win a contract. They write your CPARS rating. Keep them happy.

Prime contractor = the company that holds the contract with the government and is responsible for everything. Subcontractor = a company hired by the prime to do part of the work. Starting as a sub is a fast way to build past performance.

A formal agreement to partner with another company on a bid. You bring what they don't have (HUBZone status, your NAICS codes) and they bring what you need (past performance, bonding capacity). Common for new contractors.

If your revenue is under the SBA size standard for your NAICS codes, you're automatically a small business. No application needed. Qualifies you for small business set-asides, which is the majority of contracts under $250K.

Your principal office must be located in a HUBZone, and at least 35% of your employees must reside in a HUBZone. Check certification.sba.gov to see if your office address qualifies. If it does — apply immediately. HUBZone set-asides have very few eligible competitors.

SBA's Business Development program for socially and economically disadvantaged business owners. 9-year program. Once in, agencies can sole-source contracts directly to you up to $4.5M for services and construction, $7M for manufacturing — without any competition. Very powerful but takes time to get in.

Construction contracts over $150K require performance and payment bonds — basically insurance that you'll finish the job. A surety company backs you. To get bonded, you need financials, credit history, and sometimes past performance. Start building this relationship early.

Under $10,000. Agency can buy from anyone without competition. Get on their radar through capability statements and cold outreach.

Between $10K and $250K. Must be set aside for small businesses if two or more small businesses can do the work. This is your primary target range to start.

Over $250K. Full competitive process. Harder for new contractors — you're competing against established primes. Start below this threshold.

Under the 8(a) program, contracts below the competitive threshold can be sole-sourced directly to your firm — currently $4.5M for services and construction, $7M for manufacturing (thresholds adjust periodically — verify current amounts at sba.gov). Without 8(a), sole-source awards require other justifications and are much harder to get.

One of the largest buyers of construction, facilities work, and environmental services in the federal government. Heavily uses MATOCs and IDIQs nationwide. Getting on an Army Corps IDIQ is a career-making move for a small construction contractor.

Manages thousands of federal buildings nationwide. Constant need for janitorial, landscaping, maintenance, and facilities support. Getting on the GSA MAS Schedule (facilities SINs) is your direct path to steady GSA work without competing on every individual contract.

VA Medical Centers nationwide need facilities, landscaping, and logistics support year-round. Strong preference for small and veteran-owned businesses. Find VA facilities near you at va.gov — most mid-size cities have at least one.

The military's supply chain arm — manages food, fuel, clothing, parts, and equipment for all branches. Huge buyer of transportation, freight, and logistics services. Find your nearest DLA hub at dla.mil and look for small business set-asides in your NAICS codes.

Constant buyers of last-mile logistics, freight, and transportation support nationwide. Smaller contracts, faster awards, and less competition than major DoD work. Good entry points while building past performance.

Every military installation needs trucking, facilities, landscaping, and construction services year-round. Find the nearest base to you and contact their Office of Small Business Programs (OSBP). Local proximity is a real advantage — agencies prefer contractors who can respond quickly.

Late proposals are automatically rejected. No exceptions. No extensions for "technical issues." Submit 24 hours early, minimum. If it's online, submit 48 hours early in case the portal breaks.

Pricing a service or construction bid without checking the SCA/DBA wage rates for that county. Your labor costs could be 30–50% higher than you assumed. Pull the WD first, always.

SAM.gov registration must be renewed every year. If it lapses, you cannot receive payment on any active contract and cannot be awarded new ones. Set a calendar reminder 60 days before your renewal date.

New contractors try to bid every contract they see. Bad strategy. A weak proposal on a bad-fit contract wastes weeks and damages your reputation. Bid fewer, better. Win rate matters more than volume.

The government pays Net 30 at best, sometimes Net 60+. You'll spend money on labor and supplies before you see a dime. Make sure you have a credit line or cash reserve to cover 60 days of operations before you start a contract.

Never contact the program office, end user, or anyone else directly about an active solicitation without going through the Contracting Officer. It's against procurement rules and can get your bid disqualified or your company flagged.

Procurement Technical Assistance Centers — free, one-on-one counseling for small businesses pursuing government contracts. They'll review your proposals, help with registrations, and connect you with contracting officers. Find your local center at apexaccelerators.us. This is arguably the most underused resource in federal contracting.

Every federal contract ever awarded is searchable here. Look up what your target agencies paid for similar work, who won, what the contract value was. This is how you price to win and figure out who your competition is.

Federal Procurement Data System. More detailed than USASpending — shows contractor names, award dates, performance locations, and modification history. Good for researching incumbent contractors (the company currently holding a contract you want to go after).

Where you apply for HUBZone, 8(a), WOSB, and SDVOSB certifications. All free. HUBZone application is online. Check your address eligibility at the HUBZone map tool before applying.

Where all federal contract opportunities are posted. Set up saved searches for your NAICS codes and get email alerts when new solicitations match. Also browse manually — automated alerts sometimes miss things.

eBuy is where GSA Schedule task orders are competed among approved vendors. eOffer.gsa.gov is where you submit your GSA Schedule application. sell.gsa.gov has overview info. Once you have past performance, the Schedule is your fastest path to consistent federal work.

The federal government has two main invoicing systems. Civilian agencies (GSA, VA, DHS, etc.) use IPP.gov. DoD agencies (Army, Navy, Air Force, etc.) use WAWF/PIEE (Wide Area Workflow). Your contract will specify which one to use. Register for the right system before you need it — wrong invoicing format = delayed payment.

The government is legally required to pay you within 30 days of receiving a proper invoice. If they're late, they owe you interest. But "proper invoice" is strict — wrong contract number, missing info, submitted wrong = clock doesn't start. Get your invoice template right from day one.

The money you spend getting ready to start a contract — equipment, hiring, supplies, insurance — before your first invoice. The government doesn't advance you cash. You need to have this covered yourself. Budget mobilization into every bid and make sure you have a line of credit ready.

A third-party company buys your government invoices at a discount (e.g. they give you 90 cents now, collect $1 from the government in 30 days). Expensive but useful when cash is tight. Some companies specialize in government contract factoring. Use as a last resort, not a habit.

A formal SBA program where a large contractor mentors a small one — helping with proposals, bonding, financing, and past performance. In exchange, they can form a joint venture to bid on set-aside contracts together. There are two versions: the 8(a) Mentor-Protégé Program (for 8(a) firms only) and the All Small Mentor-Protégé Program (open to any small business). Both are powerful tools for new contractors.

When pricing a contract, your cost isn't just labor + materials. You also need to cover rent, insurance, vehicles, admin time, phone bills — your overhead. Overhead and G&A are calculated separately (see Pricing section below), but combined they typically add 30–45% on top of direct labor costs for a small business — then you add profit margin on top of that.

If you believe a contract was awarded unfairly — the government didn't follow the rules, the solicitation was unclear, or the winner didn't actually meet the requirements — you can file a protest. You challenge the award at the GAO (Government Accountability Office) or Court of Federal Claims. The government must respond. This costs money but sometimes works.

The most common protest venue. File at gao.gov within 10 days of learning about the problem (or 10 days after a required debrief). If filed within 10 days of award, an automatic stay kicks in and the government must stop work while GAO reviews. GAO has 100 days to decide. You don't need a lawyer but it helps.

Already performing a contract and the government asks you to do extra work, changes the scope, or causes you delays? You can submit a Request for Equitable Adjustment (REA) — basically asking to be compensated for the extra cost. If they deny it, you can escalate to a formal Claim. Don't just absorb costs silently — document everything and ask.

The government can cancel your contract at any time for any reason — even if you did nothing wrong. It's called "T for C." You get paid for work already done plus reasonable shutdown costs. It feels brutal but it's standard. Always keep records so you can invoice properly if it happens.

The government cancels your contract because you failed to perform. This is bad. It goes on your record, shows up in CPARS, and can make it nearly impossible to win future contracts. If you're struggling to perform, communicate early with your COR — agencies would rather modify a contract than terminate it.

Armed Services Board of Contract Appeals / Civilian Board of Contract Appeals. These are the courts for federal contract disputes. If you have a claim the CO denies, you appeal here. Slower and more formal than a GAO protest but handles larger dollar disputes. Think of them as the small claims court of federal contracting — except claims can be millions.

Three levels of security clearance. Confidential = basic sensitive info. Secret = more sensitive, required for classified DoD work. Top Secret = highly sensitive, involves a lengthy background investigation. Most facilities and logistics contracts don't require clearances. Construction and IT sometimes do. Check the solicitation — it will say if one is required.

A company-level clearance. If a contract requires classified work, your whole facility may need to be cleared — not just individuals. This is called an FCL. It requires a physical security inspection, background checks on key personnel, and ongoing compliance. Most small service contractors don't need this — but good to know it exists.

Export control regulations. ITAR (International Traffic in Arms Regulations) covers defense-related goods and services. EAR (Export Administration Regulations) covers commercial items with potential military use. If your work involves defense materials, you may need to comply. For general logistics and facilities, these rarely apply — but they come up in DoD contracts.

Cybersecurity Maturity Model Certification. New DoD requirement. If you handle federal contract information or controlled unclassified information on your computer systems — even just emails and invoices — you may need to meet certain cybersecurity standards. Levels 1–3. Most small service contractors need Level 1 at minimum. Start thinking about this now.