How to Bid on Government Contracts

Overview of the Bidding Process

Bidding on government contracts follows a structured procurement process governed by the Federal Acquisition Regulation (FAR). It breaks down into clear, repeatable steps: register, find opportunities, analyze the solicitation, write a compliant proposal, submit on time, and respond to evaluation questions. Every successful government contractor follows this same path.

The federal government spends over $700 billion a year on contracts. Opportunities range from commercial item purchases under $10,000 to multi-billion dollar defense programs. The core bidding process stays the same regardless of size.

This guide covers the standard competitive bidding process for contracts above the simplified acquisition threshold ($250,000). For smaller purchases, the process is abbreviated through simplified acquisition procedures, and for certain socioeconomic programs, agencies may use sole-source authority to bypass competitive bidding entirely.

Step 1: SAM.gov Registration

Before you can bid on any federal contract, your business must be registered in the System for Award Management (SAM.gov). This is a non-negotiable prerequisite. No agency can award you a contract without an active SAM registration.

SAM registration is free. You provide your business details, banking information for electronic funds transfer, and representations and certifications about your business size, ownership, and socioeconomic status. The process takes 7 to 10 business days for initial registration. See our SAM.gov registration guide for detailed instructions.

During registration, you will receive a Unique Entity ID (UEI), which replaces the former DUNS number as your federal business identifier. You will also select your primary NAICS codes, which determine your small business size standard and influence which opportunities you can pursue. Your SAM registration must be renewed annually to remain active.

Step 2: Finding Opportunities

Federal contracting opportunities above $25,000 must be publicly posted. The primary source is SAM.gov's Contract Opportunities section (formerly FedBizOpps or FBO). However, searching SAM.gov manually is time-consuming and easy to miss relevant postings.

Drexault aggregates opportunities from SAM.gov and other sources, automatically scoring and filtering them based on your capabilities and NAICS codes. This saves hours of manual searching and helps ensure you never miss a relevant opportunity.

When evaluating whether to bid on an opportunity, consider these factors: Does the work align with your core capabilities? Do you meet the small business size standard for the assigned NAICS code? Do you have (or can you obtain) any required certifications or clearances? Is the contract type one you are comfortable with (see our contract types guide)? Can you deliver at a competitive price while maintaining acceptable margins?

This is the "bid/no-bid" decision, and it matters more than most new contractors realize. Chase every opportunity and your proposal quality drops across the board. Focus on the ones you can actually win.

Step 3: Reading the Solicitation

The solicitation document (formally called a Request for Proposal, Request for Quotation, or Invitation for Bid) is the government's formal request for offers. It contains everything you need to know about what the government wants to buy, how proposals will be evaluated, and what you must include in your submission.

A typical solicitation follows a uniform structure defined by the FAR:

• Section A: Solicitation/contract form: basic identifying information.
• Section B: Supplies or services and prices: what is being procured and the pricing structure.
• Section C: Description/Specifications/Statement of Work (SOW) or Performance Work Statement (PWS): the detailed requirements.
• Section D-I: Packaging, inspection, delivery, contract administration, and special contract requirements.
• Section J: Attachments and exhibits: additional documents, data requirements, past performance questionnaires.
• Section K: Representations and certifications.
• Section L: Instructions to offerors: exactly how to structure and submit your proposal.
• Section M: Evaluation criteria: how the government will evaluate proposals.

Sections L and M are the most important for proposal writing. Section L tells you exactly what to include and how to organize your proposal. Section M tells you what the evaluators care about and how they will score or rank proposals. Everything in your proposal should be written to directly address Section M evaluation criteria, following Section L formatting instructions.

Step 4: Building a Compliance Matrix

A compliance matrix is a spreadsheet that maps every requirement in the solicitation to a specific location in your proposal. Skip this step and you will almost certainly miss a requirement. Build it well and evaluators can find every answer exactly where they expect it.

To build a compliance matrix, go through the solicitation line by line and extract every requirement, instruction, and evaluation criterion. For each item, record: the section and paragraph reference, the specific requirement language, where it will be addressed in your proposal, who on your team is responsible for writing that section, and the status (not started, in progress, complete, reviewed).

Pay special attention to "shall" statements in the SOW/PWS; these are mandatory requirements. Also note any page limits, font requirements, and formatting restrictions from Section L. Non-compliance with formatting requirements can result in your proposal being rejected without evaluation.

Step 5: Writing Your Proposal

Government proposals typically have three volumes: Technical, Management, and Price. Some solicitations combine Technical and Management into one volume, while others add a Past Performance volume.

Technical Volume. This is where you demonstrate your understanding of the requirement and explain your approach to performing the work. Do not simply restate the SOW. Instead, describe your specific methodology, tools, processes, and innovations. Show that you understand the customer's pain points and that your approach directly addresses them. Use specific examples from similar past work.

Management Volume. Describe your organizational structure, key personnel, staffing plan, quality assurance approach, and risk management strategy. Include resumes for key personnel identified in the solicitation. The management volume demonstrates that you have the organizational capacity to deliver.

Past Performance Volume. Provide references from contracts similar in size, scope, and complexity to the one you are bidding on. Include contract numbers, customer contact information, dollar values, and a description of the work performed. The government will contact your references, so inform them in advance. For guidance on building past performance, see our past performance guide.

For detailed proposal writing techniques, see our proposal writing guide.

Step 6: Developing Your Price Proposal

The price proposal must be realistic, competitive, and defensible. The format depends on the contract type. For firm-fixed-price (FFP) contracts, you provide a total price. For cost-reimbursement contracts, you must provide detailed cost breakdowns including labor rates, overhead, G&A, and profit.

Regardless of contract type, the government will evaluate your pricing for reasonableness. A price significantly below competitors may raise concerns about your understanding of the work (a "buy-in"). A price significantly above may indicate inefficiency. Research the market, understand your fully burdened labor rates, and price to win while maintaining sustainable margins.

For contracts requiring certified cost or pricing data (typically above $2 million), you must submit detailed cost data and certify its accuracy under the Truth in Negotiations Act (TINA). Providing inaccurate or incomplete cost data is a serious offense that can result in contract price adjustments, penalties, and debarment.

Step 7: Submission

Submit your proposal exactly as instructed in Section L. Government proposals are typically submitted electronically through SAM.gov, email, or an agency-specific portal. Some solicitations still require hard copies delivered to a physical address.

The deadline is absolute. Late proposals are almost never accepted. There are extremely narrow exceptions (such as government-caused delays), but do not count on them. Plan to submit at least 24 hours before the deadline to account for technical issues with upload portals. If submitting hard copies, use a delivery service that provides tracking and confirmation.

Before submitting, conduct a final compliance review: verify all required forms are completed and signed, confirm page counts do not exceed limits, ensure all volumes and attachments are included, and verify file formats match the solicitation requirements (PDF, Word, Excel as specified).

Step 8: The Evaluation Process

After the submission deadline, the government assembles an evaluation team (Source Selection Evaluation Board or SSEB) to review all proposals. The evaluation follows the criteria published in Section M, and proposals are assessed only against those published criteria.

Common evaluation methods include:

Best Value Tradeoff. The government evaluates technical merit and price, and may pay a premium for a technically superior proposal. This is the most common method for complex service contracts.

Lowest Price Technically Acceptable (LPTA). All proposals that meet the minimum technical requirements are rated "acceptable," and the award goes to the lowest-priced acceptable proposal. Common for commoditized services.

During evaluation, the government may issue "Evaluation Notices" (ENs) or "Clarification Requests" asking you to explain or correct aspects of your proposal. Respond promptly and precisely. In some procurements, the government may establish a "competitive range" and invite the strongest offerors to revise their proposals through a process called discussions.

After the Award Decision

If you win, the contracting officer will issue a formal contract award. You will receive a notice of award and begin the contract kickoff process, which typically involves a post-award conference to align expectations with the government customer.

If you do not win, you are entitled to a debriefing. Always request one. A debriefing tells you exactly how your proposal was scored, what the evaluators found weak, and where the winning firm outperformed you. That information directly improves your next bid. Common feedback areas include technical approach weaknesses, pricing issues, past performance relevance, and staffing concerns.

If you believe the evaluation was conducted improperly, you have the right to file a protest with the Government Accountability Office (GAO) within 10 days of the debriefing or 5 days of receiving the award notice if no debriefing is offered. Protests should be filed only when you have a substantive basis; they are expensive and can damage your reputation with the agency if frivolous.

Whether you win or lose, document your lessons learned. Track what worked, what did not, and how you can improve for the next bid. Government contracting rewards persistence and continuous improvement. Start discovering your next opportunity on Drexault.