Government Contracting · Learning Center

How to Become a Government Contractor

To become a government contractor, register free on SAM.gov for your Unique Entity ID, join the state and local portals where you want to work, and start bidding where competition is thinnest. This guide walks the whole path, from registration to your first win.

By The Bid Lab Team·Published 1/4/2021·Updated 7/18/2026

To become a government contractor, register your business for free on SAM.gov (which issues your Unique Entity ID), register on the state and local procurement portals where you want to work, then find solicitations that fit your business and submit compliant bids. That's the whole path - and while government contracts can be intimidating from the outside, the process rewards preparation over size. Here's how to work through it step by step.

How Do You Register to Bid on Government Contracts?

Registration is the price of admission, and it differs by level of government:

  1. Federal: SAM.gov: The System for Award Management is the front door to federal contracting. Registration is free, issues your Unique Entity ID (which replaced the old DUNS number) and must be renewed annually. Our guide to SAM.gov registration walks through every screen.
  2. State: One Portal Per State: Every state runs its own eProcurement system with its own registration - and many are free. Our Learning Center has a dedicated registration guide for all 50 states, from Texas's ESBD to California's Cal eProcure.
  3. Local: Cities, Counties and Districts: Local governments often run leaner registrations on their own sites - and their contracts are frequently the friendliest place for a first-time contractor to start.

What Disqualifies a Bid Before It's Read?

Public RFPs are unforgiving about compliance. Before investing in a response, scan for disqualifiers: registration or certification requirements you don't hold, mandatory pre-bid meetings you missed, bonding or insurance thresholds you can't meet, and set-aside restrictions that exclude your business. A near-miss on eligibility isn't a near-win - it's a dead bid. When requirements are ambiguous, use the Q&A period; that's what it's for.

How Do You Research a Government Contract Before Bidding?

Public procurement is public - use that. Look up who holds the contract today, what they bid and how the agency scored past proposals; many agencies publish award tabulations, and FOIA and open-records requests can surface the rest. Knowing the incumbent's price and the agency's evaluation habits turns your bid from a guess into a strategy.

Where Should a New Government Contractor Start Bidding?

Start where competition is thinnest and requirements are lightest: local and state solicitations sized for small vendors. Build past performance there, collect strong references, then work up to federal bids - or enter federal work as a subcontractor on a bigger prime's team first. Government buyers reward track records; every completed contract makes the next one easier to win.

Time for a winning RFP - free consultation with The Bid Lab

You Don't Have to Go It Alone

Becoming a government contractor is a process, not a leap - register, research, start small and build. If you'd like professionals in your corner, The Bid Lab helps businesses register, find the right opportunities on Bid Banana and build compliant, winning responses. Book a free consultation today by calling 1-844-4BIDLAB or emailing respond@thebidlab.com.

Frequently asked questions

How do I become a government contractor?

Register your business for free on SAM.gov to receive your Unique Entity ID for federal work, register on the procurement portals of the states and localities where you want to sell, then find solicitations matching your business and submit compliant bids. Building past performance on smaller local contracts first makes larger wins easier.

How much does it cost to register as a government contractor?

Federal SAM.gov registration is completely free - beware of third-party services charging for it. Most state portals are also free to join, though a few charge modest annual fees (Texas's CMBL, for example, is $70 per year). The real investment is the time to register carefully and keep profiles current.

What is a Unique Entity ID (UEI)?

The Unique Entity ID is the 12-character identifier SAM.gov issues to every registered entity - it replaced the old DUNS number in April 2022. You receive it automatically during SAM registration, and it identifies your business across all federal contracting systems.

Can a small business really win government contracts?

Yes - by law. The federal government sets a goal of awarding 23% of prime contracting dollars to small businesses, with additional sub-goals for certified categories, and most states run their own small business preferences or set-asides. Starting with local and state contracts sized for small vendors is the proven on-ramp.

Should I start with federal, state or local contracts?

For most first-time contractors: local first, then state, then federal. Local solicitations carry lighter requirements and thinner competition, which makes them the fastest way to build the past performance and references that federal evaluators want to see. Subcontracting on a federal prime's team is another proven entry path.