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10 Easiest Government Contracts to Win: Jumpstart Your Business in 2023


10 Easiest Government Contracts to Win: Jumpstart Your Business in 2023
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The U.S. government is the nation’s largest and longstanding purchaser, allocating trillions of dollars annually to goods and services. In 2021, the Government Accountability Office (GAO) reported a $637 billion expenditure on contracts, primarily aircraft, food service, software, and healthcare. Within this vast landscape, federal contracting presents boundless opportunities for small businesses seeking to broaden their income sources. Here, we will delve into the most effective strategies for securing contract awards and uncover the easiest government contracts to win.


What Are Government Contracts?

Government contracts are financial agreements between government agencies and companies from the private sector. The contracts are governed by various statutes, policies, and regulations encouraging competition between bidders, maximizing taxpayer funds and promoting socioeconomic objectives. Contract awards are given to a single entity or multiple companies, depending on the project’s specific requirements and scope.


Most common types of government contracts

  • Fixed price contract: An agreement where the price of goods and services is predetermined, ensuring transparency in the project’s terms and obligations. The payment amount remains constant regardless of the resources used or the project’s duration.
  • Indefinite-delivery/indefinite-quantity contract: This provides an unspecified quantity of supplies or services during a specific time frame.
  • Cost-plus-fixed-fee: A contract where the contractor receives a negotiated fee that remains fixed from the contract’s beginning but may be adjusted depending on the modifications in the scope of work.
  • Modification: This is an agreement where the government requests additional work from the contractor. The request for changes includes contract cost, delivery schedule, fee, and terms and conditions.

Finally, government contractors fall into two types: prime contractor and subcontractor. Prime contractors typically comprise large businesses, whereas subcontractors predominantly comprise small businesses. This division delineates the roles and responsibilities of each entity within the contracting process, combining the expertise of large corporations with the agility and specialized skills of smaller businesses.


Pros of Government Contracting

Better Compensation

Government contractors typically enjoy higher compensation compared to government employees performing similar roles. On average, a U.S. government contractor earns $68,094. Notably, those in San Francisco, California, hold the highest compensation at $102,708, 51% higher than the national average.

While government contractors may not receive the same immediate benefits as government employees, the long-term advantages are highly promising. For instance, in 2012, The Rockhill Group strategically pursued big and rare contracts focused on pilot training, aircraft maintenance, and aircraft supply. This decision to expand federal contract work has been beneficial for the business. TRG currently employs more than 300 employees in its 30 locations in the U.S. and overseas.

Easy to Obtain

Contract work, despite involving extensive paperwork like SAM registration, compliance evidence with affirmative action laws, and various certifications and legal documents, remains more accessible compared to securing a government position. Small businesses can also take advantage of set-asides.

Set-aside contracts have values between $10,000 and $25,000, specifically designated for small businesses. These contracts level the playing field for small businesses to compete against others of similar size rather than being overshadowed by large corporations.

To be qualified for these contracts, register with the Small Business Administration and qualify under at least one of the following categories to increase your chances of securing federal government contracts:

  • Service-Disabled-Veteran Owned
  • Women-Owned Small Business
  • Historically Under-Utilized Business Zone (HUB)
  • 8(a) Business Development

Endless Opportunities

Government contracting has many federal business opportunities, with a noticeable increase in federal contract spending in recent years. The government is actively supporting the growth and competitiveness of minority-owned small businesses. If you already provide cybersecurity services to the commercial sector, consider the government as another target market. Utilize web-based resources to access “live” contract listings.


Cons of Government Contracting

Prone to Protests and Disputes

Protests frequently occur in the competitive world of government contracting. Contractors disagree with the evaluation conducted by federal agencies regarding their proposals. Consequently, they may seek to challenge the agency’s source selection decision. This is particularly common with large corporations vying for contracts worth billions of dollars. Such high-stakes competitions intensify the need for thorough scrutiny and transparency in the contract award process.

Big Competition

Governments worldwide are increasingly adopting competitive contracting to leverage market forces in providing government services, and the outcomes have been largely favorable. As a successful contractor, you may compete with large businesses for government projects, which can be an opportunity and a challenge. However, this competitive landscape motivates contractors to continually improve their offerings to innovate and efficiently deliver public services.

High Compliance Requirements

Government contracts carry stringent compliance requirements, ranging from quality control procedures to specific employee training and wage mandates. Non-compliance may result in contract termination and legal consequences. Government contractors encounter the Federal Acquisition Regulations (FAR) as their first compliance hurdle. These extensive regulations span 2100 pages and bind both contractor and federal agencies. Violations suggest hefty fines and even criminal sanctions, with potential financial penalties reaching hundreds of thousands of dollars and several years of federal imprisonment.


Where can you find government contracts?

Where can you find government contracts?
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The first step in bidding on federal contracts is finding them. Fortunately, several websites provide information about the federal contracting process and opportunities.


Use SAM.gov as your main resource for federal contract opportunities. Familiarize yourself with search techniques, saving searches, and setting alerts. Filter options help you find relevant opportunities based on dates, keywords, NAICS codes, etc. It covers every federal agency and active contract awards, making it a great starting point for your search.

The Dynamic Small Business Search (DSBS)

Small businesses can market themselves to the government using tools like the SBA’s Dynamic Small Business Search. By registering in the SAM and filling out their small business profile, they can be listed in the DSBS. This helps the contracting officer find potential small business contractors and facilitates teaming and joint venturing opportunities.

Subcontracting Network (SubNet)

SUBNet is another platform managed by the SBA. It lets big companies with subcontracting plans post opportunities for small businesses. It’s perfect for newcomers starting an enterprise with experienced guidance. Contractors can post various notices utilizing SUBNet’s useful features like registration-free searches, map and advanced search options, and downloadable and printable results.


BidNet aggregates government RFP from federal, state, and local agencies nationwide, providing daily contract opportunities and allowing you to focus on bidding for government contracts. The platform allows you to access market research on closed and awarded solicitations to plan your future proposal.

Small Business Offices

Federal agencies have an Office of Small Disadvantaged Business Utilization (OSDBU) or Office of Small Business Programs (OSBP) to connect with small businesses for contracting opportunities. Agencies release procurement forecasts with opportunities for such businesses. You can contact the agency’s small business office after reviewing forecasts and using systems like Federal Procurement Data System and USASpending.gov. They conduct training and networking events to help businesses find contract opportunities.


How to Start Bidding on a Government Contract Successfully?


How to Start Bidding on a Government Contract Successfully?
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Step 1. Fulfill the Basic Requirements

Your small business must meet these basic requirements before you can compete to sell goods and services to the government:

  • Obtain a Unique Entity Identifier, a unique 12-character, alpha-numeric value you will receive after registering with SAM at SAM.gov
  • Have appropriate NAICS codes for your products or services
  • Meet SBA’s eligibility standards for government contracts reserved for small businesses.
  • Comply with Federal Acquisition Regulation’s laws and regulations
  • For Department of Defense contracts, meet the required Cybersecurity Maturity Model Certification (CMMC) level to safeguard systems and data.

Step 2. Find a Contract Opportunity

The three solicitation types are request for proposal (RFP), request for quote (RFQ), and invitation for bid (IFB). Tailor your response according to the guidelines. Also, ensure you can deliver the required products and services. Only bid on contracts that align precisely with your offerings or are too large for your capacity.

Step 3. Draft the Bid

When creating a bid, customize your business plan to showcase how your company meets the bid request. Consider materials, time frame, and labor costs. Remember, bids aren’t solely awarded to the lowest price but to the company best suited for the project’s needs.

Key points to remember:

  • Justify costs based on project requirements
  • Clarify discounts or premium services
  • Highlight your expertise with relevant certifications and awards
  • Present your company’s best attributes

Step 4. Thoroughly Review Your Bid

Before submitting, address all RFP, RFQ, or IFB requirements and meet all the submission process rules, including the solicitation’s format and content. Properly read and assemble your response for a government agency bid. Failure to address requests in the solicitation type can disqualify a vendor’s response.

Step 5. Submit the Bid

After preparing and reviewing the bid, submit it within the deadline. Then, wait for the government agency’s response, which may take months. They’ll either reject the proposal or send a notice of intent to award the contract. In the latter case, contract negotiations will follow. If rejected, you’re free to bid on other upcoming contracts.

What Are the Easiest Government Contracts to Win?


What Are the Easiest Government Contracts to Win?
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While there is no definite answer on which is the easiest government contract to win, these strategies can help increase your chances of winning government contracts:

  • Evaluate your past performance: Analyze your company’s past performance to gauge the likelihood of winning. If you lack relevant experience, teaming up with other successful companies can be effective.
  • Build a strong team: Assemble a team of companies with a proven track record in similar contracts and those that have won contracts in your target location and agency. This diverse expertise will enhance your competitiveness.
  • Explore the GSA Schedule contract: The GSA Schedule contract is the easiest government contract to secure. It offers access to various commercial services and products at competitive prices, making it attractive to the government.
  • Consider 8a government contracts: 8a government contracts offer promising opportunities for small businesses. Competition is low since only a fraction of businesses are 8a certified. Minority businesses with 8a certification gain access to sole-source and set-aside contracts, providing a distinct advantage. Eligibility also extends to socially disadvantaged people regarding sexual preferences, gender and physical and mental disability.


We expect that outsourcing services through government contracts will continue growing steadily for some time. With that in mind, contractors and commercial companies are increasingly entering traditional industries to seize the abundant opportunities this landscape offers:

  1. Aerospace and Defense Contracts

The aerospace and defense industry includes military product manufacturers and spacecraft producers for government and commercial space tourism. Deal activities in the defense sector are expected to remain stable in 2023, while the commercial aerospace sector focuses on maintenance, repair, and overhaul (MRO) and supply chain transactions.

  1. Construction Contracts

Manufacturing construction spending in the U.S. has dramatically surged, doubling since the end of 2021. Supportive policies like the Infrastructure Investment and Jobs Act (IIJA), Inflation Reduction Act (IRA), and CHIPS Act offer direct funding and tax incentives for public and private manufacturing construction companies. Much of the approved $1.25 trillion infrastructure spending remains untapped, ready to improve the nation’s economy and communities.

  1. Information Technology Contracts

Across the country, local and state governments renew IT service contracts and purchase technology products to maintain, expand and improve their IT infrastructure. GovWin IQ reported 1,664 contracts for information technology services that were bid by government agencies throughout the United States and Canada in one year.

  1. Healthcare Contracts

Texas Health and Human Services offers numerous of programs and services benefiting over 7.5 million Texans monthly. Its Procurement and Contracting Services (PCS) division awards numerous contracts worth billions of dollars annually, covering various goods and services, including IT and direct client support. The agency prioritizes including women- and minority-owned businesses in the contracting process. The Centers for Disease Control and Prevention (CDC) also utilizes contracts to procure goods and services like vaccines and IT to support their public health mission domestically and internationally.

  1. Petroleum Contracts

Petroleum products encompass everything obtained from crude oil or natural gas at a refinery. In 2023, the U.S. Department of Energy’s (DOE) Office of Petroleum Reserves disclosed that contracts were granted for buying crude oil from the Strategic Petroleum Reserve (SPR). This fulfilled the Congressional requirement of selling 26 million barrels during Fiscal Year 2023, as specified in section 403 of the Bipartisan Budget Act of 2015 and section 32204 of the Fixing America’s Surface Transportation Act.

  1. Research and Development Contracts

In Fiscal Year 2023, the federal budget authority allocated for research and development and R&D plant reached $191 billion, representing a 12.7% increase from the proposed amount in Fiscal Year 2022. SBIR and STTR contracts are available to promote research and development in diverse fields. Some federal agencies offering these contracts and programs are The National Science Foundation, the Department of Defense, and NASA.

  1. Janitorial Contracts

The janitorial services sector offers diverse government contracting opportunities, typically with more stringent licensing requirements than small office cleaning contracts. Emphasizing your licensing as a selling point can demonstrate your expertise. Also, the government stipulates at least a two-year operational history as a prerequisite for eligibility to bid on cleaning contracts.

  1. Cloud Computing Contracts

Today’s military personnel need a cloud environment that can quickly enhance their capabilities, ensure strong cybersecurity, and easily adapt to changing mission requirements. The Department of Defense prioritizes cloud adoption through a smart cloud policy to achieve this. This involves developing a well-established portfolio of cloud contracts and enabling automated processes to facilitate the transition to cloud computing. Once cloud service providers obtain a FedRAMP certification, comply with NIST guidelines, and join the FedRAMP marketplace, they will likely secure significant government contracts.

  1. Artificial Intelligence Contracts

AI’s prevalence in government operations has grown, streamlining tasks, supporting mission-critical functions, and enhancing research, all while strengthening cybersecurity efforts. U.S. government spending on AI-related contracts has surged about 2.5 times since 2017. In a year, GovWin IQ tracked 214 AI contracts available for bidding by government agencies in the U.S. and Canada. As AI tools advance, the need for AI readiness in federal procurement will rise, urging the federal government to take concrete steps to tap into AI innovators’ offerings effectively.

  1. Transportation and Logistics Contracts

The GSA Multiple Award Schedule (MAS) contract includes 12 categories of products and services, and one of them is Transportation and Logistics Services. This category covers air charter services, freight transportation, vehicle rentals, shipping containers, and vocational vehicles. Before the MAS Consolidation in 2020, different GSA Legacy Schedules fulfilled transportation needs for federal, local, and municipal agencies. The GSA Transportation Category simplifies the process to enable governmental organizations to procure necessary transportation products and services easily.


Are Government Contracts Profitable?

Government contracting can be highly lucrative because businesses receive payment for products and services supporting the government’s objectives. In total, $682.6 billion was awarded in government contracts in 2022, whereas $158.7 billion was awarded directly to small businesses in the government fiscal year 2022. This is a 3% increase over the prior year and the highest level ever recorded.

Is Government Contracting Easy?

Government contracting is complex that requires years of knowledge and experience to execute correctly, particularly for inexperienced firms. Government agencies rely heavily on past performance information stored in government databases, such as Past Performance Information System and the Federal Awardee Performance and Integrity Information System. The historical performance data will make it crucial for new contractors to establish a strong track record to increase their chances of securing contracts. Therefore, the easiest government contracts to win are not far behind given enough knowledge on how things work.

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