How to get your first government contract

Choose a route to your first customer

“Government contract” can mean several different buying paths. Choose based on who has the problem, how the work is funded, and what your company can deliver today.

• Direct prime contract: Your company contracts with an agency and owns delivery. This gives you the direct customer relationship, but also means you are responsible for the solicitation response, contract administration, reporting, and performance.
• Subcontract to a prime: A large or established contractor brings your product or service into its government program. This can be a practical first route when a prime already has the contract, customer access, integration role, or facility and compliance infrastructure you lack. Negotiate scope, acceptance, payment timing, intellectual property, data rights, and how you may describe the work.
• SBIR/STTR transition: If your product grew from a prior award, explore a customer-funded follow-on and whether the work qualifies as Phase III. The designation depends on the work’s connection to the earlier award and its funding; it is not automatic. See the SBIR Phase III guide.
• Prototype or other transaction: Some defense buyers use prototype agreements or other non-FAR pathways. These can be valuable, but the rules, intellectual-property terms, and follow-on purchase options are specific to the agreement. Treat them as an acquisition route to understand with the sponsor and contracting team, not as a shortcut that guarantees production work. See our Other Transaction Authority guide for the prototype and production paths.

Small businesses can also get practical help from an APEX Accelerator, which SBA says assists with readiness, registration, certifications, and researching opportunities.

Find a real buying need before registering for everything

Start with the job your product performs, the user who needs it, and the program or prime responsible for buying. “The military could use this” is not a market. Identify one mission, one buyer group, and a concrete outcome such as reducing setup time, improving detection, or replacing an unsupported component.

1. Search past awards. Use Defense Tech Base’s contract tracker and contract insights to find agencies and contractors associated with similar work. Check the underlying award records and period of performance; an award record is a lead, not evidence that the same buyer has money or an open requirement now.
2. Check current and planned demand. Search SAM.gov contract opportunities and agency procurement forecasts. Look for repeated requirements, incumbent vendors, the buying office, timing, and any small-business or security conditions.
3. Talk to the right people before a solicitation closes. Meet end users, program staff, small-business offices, and potential prime partners at relevant industry days and events. Ask how they evaluate the problem, what evidence would change a buying decision, and how the work is likely to be funded. Follow each procurement’s communication rules once a solicitation is active.
4. Choose one entry point. Pick a near-term opportunity, prime partner, test sponsor, or SBIR transition target. Write down why the customer would buy now and what specific next step you want from them.

Look for patterns, not just large award totals. A historical award might be a ceiling rather than money spent, combine many work areas, or have already been obligated. Use the contract data methodology and confirm details in the official source.

Set up the business for the route you chose

If you plan to bid as a prime, create an entity workspace at SAM.gov and complete the registration appropriate for federal awards. SAM.gov assigns a Unique Entity ID during registration; requesting a UEI alone is not the same as registering to bid. SAM says active registration is needed to bid on its posted opportunities, and registration must be renewed every 365 days. The process can take time, so prepare your entity and banking details before a deadline.

Use the legal entity name and address consistently. Choose accurate NAICS codes that describe your products or services, confirm the relevant SBA size standard, and keep representations and certifications truthful and current. A registration or small-business certification can make you eligible for a competition; it does not create customer demand or substitute for a strong offer. For help, use the official SAM registration checklist or contact an APEX Accelerator.

If you plan to subcontract, ask the prime what entity registration, identifiers, representations, cyber requirements, and onboarding steps it actually requires. Do not assume that a UEI by itself qualifies you for a particular subcontract, or that every subcontract requires the same prime-award registration.

Decide whether an opportunity is worth pursuing

Before drafting, read the full solicitation and attachments. Make a simple compliance matrix with each requirement, where your response addresses it, the owner, and any evidence you need. Check at least:

• Who may bid, which NAICS code and size standard apply, and whether a set-aside or certification is required.
• The statement of work, deliverables, performance location, schedule, options, and how the buyer will accept the work.
• Evaluation factors and instructions, including page limits, required forms, demonstrations, and the exact submission portal and deadline.
• Pricing structure, payment terms, insurance or bonding, reporting, and any cost or accounting requirements.
• Security clauses, data handling, facility or personnel requirements, export controls, and flow-downs to suppliers or subcontractors.

Use a no-bid test. Pass when you cannot show a credible fit, meet a mandatory condition, submit a compliant response on time, or deliver at a sustainable price. A “no-bid” protects engineering and sales time for a customer problem you can win.

Build proof when you do not have government past performance

Past performance matters, but it is not the only evidence a buyer can evaluate. Use relevant commercial deployments, test results, independent evaluations, production history, key-person experience, and customer references where the solicitation allows them. Be precise about what the company did, what an individual did before joining, and what a prototype has actually demonstrated.

A one-page capability statement can help a buyer or prime understand your fit. Keep it specific: core capability, mission problem, differentiators, proof, relevant NAICS codes, UEI/CAGE if assigned, and a real point of contact. It is a leave-behind, not a replacement for following the solicitation’s instructions.

For a prime response, map every evaluation factor to evidence and explain how the work will be delivered. For a subcontract, agree on a bounded work package, interfaces, acceptance criteria, schedule, security responsibilities, payment milestones, and rights in technical data before committing scarce engineering capacity.

Treat award as the start of delivery

Do not hire, buy long-lead equipment, or begin billable performance based only on a verbal signal or selection notice. Confirm the signed contract or subcontract, funding, start date, scope, authorized contacts, and any required kickoff or system access. For a prime award, follow the contract’s invoicing instructions and required government payment system. For a subcontract, the signed agreement controls your relationship with the prime.

Set up a delivery rhythm early: track milestones, acceptance evidence, changes, risks, invoices, and customer decisions. Raise scope or schedule changes through the contracting path in the agreement before doing extra work. A clean first performance record and a referenceable result can make the next procurement conversation much easier.

A practical 30-day starting plan

1. Week 1: Pick one defense use case and write a short problem statement, buyer hypothesis, and proof summary.
2. Week 2: Review relevant awards, active opportunities, forecasts, and likely primes. Identify three organizations with evidence of a fit.
3. Week 3: Request focused conversations with program, user, small-business, or prime contacts. Ask what evidence and acquisition path would make a next step possible.
4. Week 4: Select one qualified opportunity or partner path, close critical registration or compliance gaps, and set a go/no-go date with clear owners.

Government buying cycles vary widely; a month is enough to build a focused pipeline plan, not a promise that a contract will be awarded.

Common questions

Do I need a government contract vehicle to get my first contract?

No single vehicle is required for every purchase. The agency chooses an acquisition method that fits the requirement; your company may compete directly, subcontract, or use another path the buyer identifies. A GSA Schedule or other vehicle can help with some buys, but getting onto one is not a universal first step.

Should I register in SAM before I have a customer?

Prepare early if direct federal bidding is part of your plan, because validation and activation take time. But do market research first so registration supports a defined route. SAM.gov distinguishes a full entity registration for direct awards from a UEI-only record for certain other transactions.

Is subcontracting a real first contract?

It is a real commercial agreement and can establish relevant delivery history, but it is not the same as holding a prime contract with the government. Review payment terms, intellectual property, data rights, security flow-downs, and customer-contact restrictions carefully.

Can I use an SBIR award as past performance?

Use it as evidence of relevant technical work where the solicitation permits it, and describe the funded work accurately. For a customer-funded continuation, assess whether the new work meets the rules for Phase III using the Phase III guide.

SAM timing, UEI, CAGE and NAICS: what to prepare

How long does SAM registration take?

SAM.gov says registration can take up to ten business days to become active. Treat that as process guidance, not your bid schedule: identity or entity validation issues, mismatched records and requests for documentation can add work. Begin before the solicitation deadline, check the status in your workspace and use the official help process for unresolved issues. Registration and renewal through SAM.gov are free. SAM.gov registration guidance.

For code requirements, consult FAR 52.204-16. Keep a short registration record: owner, legal entity, UEI, applicable codes, status, expiration, unresolved validation items and the official support case number. You do not need a separate paid service simply to obtain a UEI.

When to bring in a government contracts attorney

Seek a defined review when the deal creates an issue your team cannot evaluate: unusual intellectual-property terms, restrictive flow-downs, a bid protest question, a material compliance representation, a dispute or termination exposure. Ask counsel to identify the relevant clause, explain the commercial consequence and propose a change or operating action. A broad legal retainer is a different purchase from reviewing one agreement.

Before the review, assemble the solicitation, amendments, draft agreement, proposed deliverables, pricing assumptions and a list of decisions with deadlines. Compare legal-service providers on experience with that type of matter and who will actually perform the work.