Complete Guide to US Government Contracts

SAM.gov (System for Award Management) is the mandatory first step for any company wanting to do business with the federal government. Registration is free and gives you a Unique Entity ID (UEI), which replaced the DUNS number in 2022. You'll need your company's legal name, EIN, NAICS codes, bank account information, and an authorized representative. Registration typically takes 7–10 business days to process. Keep it active — SAM.gov registrations must be renewed annually, and an expired registration makes you ineligible for new awards.

NAICS (North American Industry Classification System) codes classify your business by industry. Every federal contract opportunity is tagged with a NAICS code, and the SBA uses these codes to set small business size standards. Your primary NAICS code determines which set-aside programs you qualify for. Common codes: 541512 (Computer Systems Design), 541330 (Engineering Services), 236220 (Commercial Building Construction), 541611 (Management Consulting). You can list multiple NAICS codes in your SAM.gov profile, but choose your primary code carefully — it affects your small business certification eligibility.

A GSA Schedule (now called Multiple Award Schedule or MAS) is a long-term government-wide contract that pre-negotiates your pricing and terms. Once on a GSA Schedule, agencies can buy from you without running a full competitive procurement — dramatically reducing the sales cycle. Government-Wide Acquisition Contracts (GWACs) like Alliant 2, STARS III, and VETS 2 serve similar purposes for IT services. Getting on a Schedule requires a proposal demonstrating your commercial pricing, past performance, and technical capability. The process takes 3–12 months but creates a recurring revenue channel.

Federal contracts come in several types: Firm-Fixed-Price (FFP) sets a total price upfront — you bear the cost risk but keep any savings. Cost-Plus contracts reimburse allowable costs plus a fee — lower risk but lower margin. Time-and-Materials (T&M) contracts pay hourly rates plus materials. Indefinite Delivery/Indefinite Quantity (IDIQ) contracts establish a ceiling value and allow agencies to issue task orders over the contract period. Understanding which type suits your business model is critical for pricing strategy.

The typical federal procurement follows a predictable sequence: the agency publishes a presolicitation or sources sought notice on SAM.gov, followed by a formal solicitation (RFP/RFQ). Companies submit proposals by the deadline. The agency evaluates proposals against stated criteria — usually technical approach, past performance, and price. Award is made to the 'best value' offeror (not always the cheapest). Debriefs are available to unsuccessful bidders. The entire cycle typically runs 60–180 days from solicitation to award.

Manually checking SAM.gov daily is how most companies start — and it works until you realize you're spending 5–10 hours per week scanning listings that are mostly irrelevant. Automated monitoring tools change the equation entirely. Jorpex monitors SAM.gov alongside 50+ other procurement sources continuously. You configure keyword filters, NAICS codes, contract-value ranges, and geographic preferences once. Matching opportunities are delivered to Slack or email in real time, as a daily digest, or weekly summary. At $49/month, it costs less than a single hour of the BD time it replaces — and it never misses a day or takes a vacation.