How the Fastest-Growing Small GovCon Firms Are Winning—and How You Can Too

Over the past five years, some small government contracting businesses have skyrocketed from modest subcontractors to prime players with multimillion-dollar federal contracts. Their secret? It’s not luck—it’s a blend of strategy, certifications, and smart positioning that any small business can learn from and apply.

Here’s what’s driving their growth—and how you can adapt these playbooks for your own government contracting business.

First, the data is clear: the fastest-growing small GovCon firms share a few critical traits. They build diverse past performance across multiple agencies, often starting as subcontractors before becoming primes. They’re active in SBA programs like 8(a), HUBZone, women owned small business certification, and disabled veteran small business certification—and they use those advantages aggressively. Over half of the top performers held multiple socioeconomic certifications, widening their access to 8(a) contracts services, set-asides, and sole-source awards.

They also secure multiple contract vehicles—GSA MAS, IDIQs, BPAs—to keep opportunities flowing. In FY2024 alone, small businesses sold $18.2B through the GSA Schedule. These firms bid often, but not blindly—they use strategic bid/no-bid discipline to keep win rates high. And they team smartly, using joint ventures and SBA’s Mentor-Protégé Program to expand capabilities.

Why does this matter for your business? Because these traits aren’t reserved for unicorns—they’re repeatable. If you want to scale quickly in government procurement, you need a game plan that includes:

• Certifications that open doors. If you qualify for sba 8a certification, 8a certification assistance, women business certification, or disabled veteran government contracts, use them. Each status is a key to a different set-aside market.

• Multiple channels to market. Get on the best naics codes for small business in your sector, and secure contract vehicles that match those codes. A contractor NAICS code that aligns with high-demand niches—cybersecurity, cloud, healthcare—can be a growth accelerator.

• Proactive teaming. Don’t wait until a solicitation drops. Build relationships with primes and peers now to position for joint bids later.

• Credentials that clear the path. For IT, that may mean ISO or CMMI. For construction, safety and bonding capacity. For R&D, lab accreditations. Certifications aren’t just resume boosters—they’re entry tickets to bigger contracts.

From a practical standpoint, your internal conversations should cover 4 items:

1. Which federal contracting certifications can we realistically obtain in the next 6–12 months?

2. Which contract vehicles (GSA MAS, agency IDIQs) can we target now to build long-term opportunity pipelines?

3. Which teaming partners have complementary past performance we can leverage?

4. Which NAICS codes for government contractors put us in the sweet spot of demand and capability?

The takeaway is that growth in government contracting isn’t just about chasing every RFP—it’s about positioning your company where the competition is thinner, the odds are better, and the opportunities match your strengths.

And remember, rapid growth has its own challenges. If your revenue spikes, you could approach your SBA size standard faster than expected. That’s why top-tier growers manage their size status strategically, leveraging the 5-year average rule to stay eligible for federal contracting opportunities as long as possible before moving into full-and-open competition.

Bottom line: whether you’re a seasoned small business contractor or just starting the government contracting certification process, there’s a proven roadmap to scaling fast. It starts with certifications, vehicles, partnerships, and relentless—but targeted—pursuit of the right bids. If you’re ready to move from subcontractor to prime, now’s the time to act.

For a deep dive into the recent CMMC rules and how to position yourself for them, check out our post: CMMC Deadline Is Real This Time: Why Small DoD Contractors Can’t Afford to Wait. It’s your next step in identifying where your business can thrive in the federal market.

If you aren't a Squared Compass partner, what are you waiting for? From getting your business set up with specific government set aside programs at both the State and Federal level, to being empowered by a Fractional Capture team to win government contracts, to receiving tailored government contract opportunities Squared Compass delivers immense value which helps propel our partners to success. Schedule a chat with our team today.