Guide · Federal contracting

How small businesses find government contracts

Most federal contracts a small business can win are posted on SAM.gov, the government’s free contracting site. To find them, register your business in SAM.gov (free, renewed every 365 days), learn the NAICS codes that describe your work, then search Contract Opportunities by those codes and by the small business set-asides you qualify for. Agencies must post any planned purchase over $25,000 there, and most purchases between $15,000 and $350,000 are reserved for small businesses when at least two can compete.

Updated October 2026 · Constantine Peros, XRTech, Honolulu

The numbers that matter

$25,000
Planned purchases above this must be posted publicly, on SAM.gov.
FAR 5.101
$15,000
The micro-purchase threshold. Below it, agencies can buy without posting or competing.
FAR 2.101, since Oct 1, 2025
$350,000
The simplified acquisition threshold. Most buys between $15,000 and this are reserved for small businesses when two or more can compete.
FAR 2.101, since Oct 1, 2025
27.6%
Share of federal prime contract dollars that went to small businesses in FY2025, about $179 billion, against a 23% goal.
SBA FY2025 scorecard

Six steps, in order

  1. Step 01

    Register in SAM.gov and get your Unique Entity ID

    SAM.gov is where the federal government keeps its list of companies it can pay. Registering is free, it assigns your Unique Entity ID (UEI), and it has to be renewed every 365 days or it lapses. Without an active registration you cannot receive most federal awards.

    Ignore companies that offer to register you for a fee or send official-looking renewal notices. You can do it yourself, and if you get stuck, your local APEX Accelerator will help for free.

  2. Step 02

    Find your NAICS codes and check your size

    Every notice is tagged with a NAICS code that describes the work, such as 236220 for commercial building construction or 541511 for custom software. Pick the handful that match what you actually do. Each code has an SBA size standard, set by revenue or by employee count, and that standard decides whether you count as a small business for that particular contract. You can be small under one code and not under another.

  3. Step 03

    See which set-asides you qualify for

    A set-aside reserves a contract for one group of businesses, so you compete against companies like yours instead of everyone. The main ones:

    • Small business: only a SAM.gov registration and meeting the size standard. No certification needed.
    • HUBZone: your main office is in a HUBZone and at least 35% of your employees live in one. The government-wide goal is 3% of contract dollars.
    • Women-owned (WOSB, EDWOSB): certified through the SBA. Goal: 5%.
    • Service-disabled veteran-owned (SDVOSB): certified through the SBA. Goal: 5%.
    • 8(a) Business Development: a nine-year SBA program for socially and economically disadvantaged owners.

    Certifications take time and paperwork, so start with plain small business set-asides while you apply.

  4. Step 04

    Search SAM.gov Contract Opportunities, and save the search

    On SAM.gov, open Contract Opportunities and filter by your NAICS codes, the set-asides you qualify for, and where the work happens. Save the search and turn on email alerts. It is free and it is the single most useful thing on this list.

    Pay attention to the notice type. A sources sought notice or request for information means the agency is still deciding how to buy, and answering it is how small businesses get a contract set aside for them. A presolicitation warns that a bid is coming. A solicitation is the bid itself. An award notice tells you who won and for how much, which is useful for the next one.

  5. Step 05

    Look where SAM.gov does not

    • Purchases under $15,000 are usually not posted at all. Agencies buy them on government purchase cards, often from businesses they already know. Introduce yourself to the small business office at the agencies and bases near you.
    • Agency forecasts list contracts planned for the coming year, months before a notice appears. The Acquisition Gateway collects many of them.
    • Subcontracts with large prime contractors are posted on SBA SubNet. Subcontracting is the usual way to build the past performance that later prime bids ask for.
    • GSA eBuy carries requests only GSA Schedule holders can see. DLA DIBBS carries parts and supply buys for the Defense Logistics Agency.
    • State and county portals run separately from the federal system. In Hawaii that is HIePRO.
    • USAspending.gov shows who bought what, from whom, and for how much. Search your NAICS codes to see which agencies buy your work and who keeps winning it.
  6. Step 06

    Read the whole solicitation before you decide to bid

    The notice summary is not the contract. Read the full solicitation and its attachments for the due date, the deadline for questions, any site visit, how bids are evaluated, and what it asks for in past performance, bonding, insurance, and licenses. Most bad bids come from skipping this. Saying no to a contract you cannot win is part of the job.

Common questions

Is SAM.gov registration free?

Yes. Registering and renewing in SAM.gov costs nothing. Any company charging you for registration is charging for help you can get free from an APEX Accelerator.

Do I need a certification to bid on federal contracts?

No. Contracts open to everyone, and contracts set aside for small businesses in general, only need an active SAM.gov registration and, for set-asides, meeting the size standard for the NAICS code. Certifications like HUBZone, WOSB, SDVOSB, and 8(a) open additional set-asides.

What is the difference between a UEI and a CAGE code?

The Unique Entity ID identifies your business across federal systems and is assigned by SAM.gov. The CAGE code is a separate identifier used heavily by the Department of Defense. US businesses get one assigned as part of SAM.gov registration.

How long does it take to win a first federal contract?

Usually months rather than weeks. Registration, learning the notices, and building past performance all take time, and many first wins are small purchases or subcontracts. Responding to sources sought notices and introducing yourself to small business offices shortens it.

Should I pay for a contract search tool?

Not to start. SAM.gov saved searches are free and cover the posted notices. Paid tools help when the volume of notices gets too large to read, or when you want each one scored and explained against your company. I built SamServer Pro for that; it costs $59 a month and has a free plan.

Want the first search done for you?

Tell me your company and the work you do. I run it through SamServer Pro, the tool I built to score federal opportunities, and send back the open notices that fit, each with a due date and the reason it matched. Free, no account needed.

Sources

Checked October 2026. Thresholds change with inflation every five years; the next adjustment is due in 2030.