Government Contracting for Beginners: Bonds, SBA Mentor-Protégé, and Past Performance (Team vs Company)
If you are new to government contracting, three issues decide whether you can compete, win, and perform without getting eliminated on a technicality:
Bonding requirements (only when the solicitation requires them)
SBA Mentor-Protégé and joint ventures (teaming to accelerate capability)
Past performance (how to present experience correctly as a new company)
SEO bonus paragraph (useful for search engines and AI search)
If you are starting in federal government contracting, always check whether the solicitation requires a bid guarantee (often a bid bond) or performance and payment bonds, especially for federal construction. Use tools like the SBA Surety Bond Guarantee and growth options like the SBA Mentor-Protégé Program and joint ventures to strengthen compliance, credibility, and past performance positioning.
Key takeaways for new federal contractors
You do not need a surety bond to bid on all federal contracts. Bonding is solicitation-driven.
For federal construction contracts exceeding $150,000, performance and payment bonds are generally required under FAR (Miller Act implementation).
If the solicitation includes FAR 52.228-1 (Bid Guarantee), failing to provide the bid guarantee in the proper form and amount by bid opening may cause rejection.
The SBA Surety Bond Guarantee can help small businesses access bid, performance, and payment surety bonds through participating sureties.
SBA Mentor-Protégé can support capability building, and mentor and protégé can form a joint venture that can bid as small when the protégé qualifies as small.
New firms should avoid claiming corporate past performance they do not have. Present team experience with documentation.
Do you need a bid bond to bid on federal contracts?
The accurate rule: it depends on the solicitation
Many federal buys in IT, services, staffing, and products have no bonding requirement. The government only requires bonding when the solicitation says it is required.
Bid guarantee vs bid bond in federal contracting
A bid guarantee is the requirement. A bid bond is one acceptable way to satisfy it.
FAR 52.228-1 states the bidder shall furnish a bid guarantee as a “firm commitment,” and gives examples that include a bid bond, certified check, cashier’s check, postal money order, or irrevocable letter of credit (among others).
Why this matters: rejection risk
FAR 52.228-1 also warns that failure to furnish the bid guarantee in the proper form and amount by the time set for bid opening may be cause for rejection.
Fast method to spot bonding requirements
Open the solicitation and search for:
bond
bid guarantee
performance bond
payment bond
52.228
If you see FAR 52.228-1, treat it as a compliance requirement, not a suggestion.
When are performance and payment bonds required in federal contracting?
Federal construction over $150,000
FAR 28.102-1 says the Bonds statute (formerly known as the Miller Act) requires performance and payment bonds for any construction contract exceeding $150,000, with limited waivers.
The common clause you will see in solicitations
For construction, solicitations often include FAR 52.228-15 (Performance and Payment Bonds Construction).
Plain-language purpose
Performance bond: protects the government if the contractor defaults and the project must be completed.
Payment bond: protects subcontractors and suppliers by providing a payment remedy.
How to get bid bonds and performance and payment bonds as a new contractor
Sureties generally underwrite a contractor like a risk decision. Practically, you will be evaluated on:
1) Financial capacity
What sureties look for:
clean bookkeeping and financial statements
working capital and liquidity
cash-flow planning (construction can be cash hungry)
What you can do right now:
separate business banking and bookkeeping
track job costs if you do construction
build a simple cash forecast for the next 90 days
2) Operational capacity
What sureties want to know:
who will run the work
whether you have project controls, quality, and safety basics
whether you have performed similar scope (even commercially)
What you can do right now:
build a one-page “who does what” org chart for delivery
create a basic project execution checklist (schedule, sub management, QA, safety)
3) Banking relationship and access to capital
A real banking relationship signals you can manage timing gaps. It is common for sureties to ask about your bank and whether you have a line of credit.
What you can do right now:
establish a business banking relationship
discuss a starter line of credit or working capital plan
Recommendation: get pre-qualified before you bid
If bonding is likely in your lane (especially federal construction), talk to a contractor-focused surety bond agent and request pre-qualification. This prevents you from investing heavily in bids you cannot support.
A simple bonding packet can include:
basic financial statements
banking information
key personnel resumes
project list with scope, value, role, and references
SBA Surety Bond Guarantee Program: a practical on-ramp
If you are close but not bondable under standard terms, the SBA Surety Bond Guarantee may help.
SBA states it guarantees bid, performance, and payment surety bonds issued by certain surety companies.
A Congressional Research Service summary describes the program as designed to increase access to contracting by guaranteeing bonds for small businesses that cannot obtain surety bonds through regular commercial channels.
Recommendation: ask one direct question
Ask your surety agent: “Do you place bonds through the SBA Surety Bond Guarantee program?”
SBA Mentor-Protégé Program in government contracting: what it does and why it matters
Mentor-Protégé is capability transfer, not just networking
The SBA Mentor-Protégé program is designed to help small businesses gain business development assistance. SBA lists support like management systems, accounting, marketing, bonding, navigating federal contracting, and other assistance.
Joint venture advantage in federal contracting
SBA states that a mentor and its protégé can joint venture as a small business for any small business contract, provided the protégé individually qualifies as small.
SBA’s joint venture page also lists benefits including collective representation of past performance, shared costs/resources, and leveraging the other partner’s experience.
Recommendation: pick a mentor based on outcomes
A high value mentor should:
win in the agencies and NAICS codes you target
have systems you can adopt quickly
commit to measurable deliverables (templates, training, oversight, compliance routines)
Past performance in federal proposals: Team vs company (and how to say it correctly)
Why wording matters in government contracting
If your business is new, claiming “my company has done X” when the legal entity has not can harm credibility. Evaluators care about risk and proof.
The right approach: attribute experience accurately
Use this distinction:
Company past performance: what the legal entity has performed
Team experience: what key personnel have performed, and what partners have performed
Team experience is valid when it is documented and clearly attributed.
Documentation checklist for team experience
Include:
key personnel resumes with project roles and dates
project sheets: scope, complexity, dollar value, schedule, role, outcomes
references or performance letters when possible
clear attribution: who performed what, prime or sub role
Proposal language examples you can safely use
“Our proposed project team has delivered similar scope…”
“Key personnel bring experience performing…”
“The team members responsible for X have successfully executed…”
Avoid:
“My company has performed…” if it has not
vague claims without roles, dates, or proof
Before you bid: 10 minute federal solicitation checklist
Identify the buy type: construction, services, or supplies
Search the solicitation for: bond, bid guarantee, performance bond, payment bond
Look for FAR clauses: 52.228-1 and 52.228-15
Confirm the required form and amount for the bid guarantee
Validate you can produce the guarantee by the deadline
Review evaluation factors: past performance, key personnel, technical approach
If new, prepare team experience documentation (resumes and project sheets)
Decide teaming route: subcontract, joint venture, or mentor-protégé
Confirm staffing and cash-flow plan for performance
Only then decide whether to bid
Glossary of key terms
Government contracting (GovCon): Selling products or services to federal agencies.
Bid guarantee: A firm commitment submitted with a bid, often satisfied by a bid bond or other instruments allowed by FAR.
Bid bond: A type of bid guarantee issued by a surety.
Performance bond: Guarantees contract completion if the contractor defaults.
Payment bond: Guarantees payment to subs and suppliers on covered contracts.
SBA Surety Bond Guarantee: SBA program that guarantees certain surety bonds.
SBA Mentor-Protégé: SBA program enabling capability development and potential joint ventures.
Joint venture: A teaming arrangement to pursue and perform contracts together. SBA notes JV benefits like collective past performance representation.
FAQ: Government contracting bonds, Mentor-Protégé, and past performance
Do you need a surety bond to bid on federal government work?
Not automatically. Many federal solicitations do not require bonding. Bonding is required only when the solicitation includes a bid guarantee or performance and payment bond requirements.
Do you need a bid bond to bid on a federal contract?
Only if the solicitation requires a bid guarantee and allows or specifies a bid bond. FAR 52.228-1 covers bid guarantees and warns that not furnishing the guarantee in the proper form and amount by bid opening may cause rejection.
What is the difference between a bid guarantee and a bid bond?
A bid guarantee is the requirement. A bid bond is one acceptable form of bid guarantee. FAR 52.228-1 lists bid bond and other acceptable “firm commitment” forms.
When are performance and payment bonds required for federal contracts?
For federal construction contracts exceeding $150,000, FAR 28.102-1 says performance and payment bonds are required in most cases, with limited waivers.
What clause should I look for to confirm construction bonding requirements?
For construction, look for FAR 52.228-15 (Performance and Payment Bonds Construction) and solicitation instructions that specify bond amounts and timing.
What if I am not bondable yet as a new contractor?
Ask about the SBA Surety Bond Guarantee. SBA states it guarantees bid, performance, and payment surety bonds issued by certain surety companies, and CRS describes it as helping small businesses that cannot obtain bonds through regular commercial channels.
What is the SBA Mentor-Protégé Program in government contracting?
It is an SBA program that provides business development assistance from a mentor to a small business protégé, including help with systems, contracting navigation, and other support. SBA also notes mentor and protégé can joint venture as a small business for small business contracts when the protégé qualifies as small.
Can a mentor and protégé form a joint venture and use combined past performance?
SBA’s joint venture page lists benefits including “collective representation of past performance,” and SBA indicates mentor and protégé can joint venture as a small business when the protégé qualifies as small.
How should a brand-new company present past performance in a federal proposal?
Do not claim corporate past performance you do not have. Present team experience by attributing projects to the key personnel who performed them and supporting with resumes, project sheets, and references.
If you want to win government contracts and grow your business, set up a time to chat with our team and see how we can help you win more!
