SLED Is Your Shutdown Backup: Why SMB GovCons Should Be Eyeing Local Education Contracts Now
If you’re a small government contractor frustrated by federal slowdowns, here’s some good news: the state and local education (SLED) market is wide open, and you can land your first contract faster than you think. With the federal government in gridlock and payments delayed, now is the time to pivot your pipeline. K–12 schools are spending billions annually on tech, facilities, transportation, and student services, and they’re not waiting on Congress to get moving.
Let’s break down what’s happening and why it matters for your GovCon business.
The SLED market, short for state, local, and education, is massive. We're talking $1.5 to $2 trillion a year in spend. Unlike the federal space, which is governed by a centralized system (FAR, NAICS codes, SAM.gov, etc.), SLED is fragmented. You’ve got 100,000+ agencies, each with its own rules, procurement portals, and fiscal cycles. That may sound intimidating, but it’s actually an opportunity. Smaller contracts, faster timelines, and less red tape in many cases.
K–12 schools in particular are flush with local and state funds, about 87% of their budgets come from those sources, not federal appropriations. That means even in a federal shutdown, the education sector keeps buying. And they’re buying everything from cloud-based learning software to HVAC upgrades to special education consultants.
Here’s why this pivot should be on your radar, especially if you’re a certified small business.
Many school districts offer extra points or even mandates for vendors with certifications. If you’ve already got SBA 8a certification, women owned small business certification, or disabled veteran small business certification, you’re in a strong position. Some states have their own versions too, HUBs in Texas, MWBE in New York, etc. This can give you a leg up in competitive scoring or sole-source eligibility.
Also, most school districts and state agencies are actively trying to meet DEI goals. That means they’re looking for firms with federal contracting certifications, whether it’s SBA 8a certification services, women business certification, or disabled veteran government contracts experience.
So how do you break into this space? Follow the 7-day roadmap.
Here’s a fast-track version of the SLED Pivot Playbook, which you can find in full on Squared Compass’ site:
Days 1–2: Hunt for bids. Start with state portals (e.g., Cal eProcure, PA eMarketplace, NYS Contract Reporter, Texas CMBL). Set alerts for terms like “education,” “K-12,” or “curriculum.” Also check EdTech co-ops like NASPO ValuePoint, Sourcewell, and OMNIA Partners.
Day 3: Get registered. Most states require vendor registration. Some big districts do too (NYC DOE, Texas Education Agency). Make sure your business is showing up under the right commodity codes (NIGP, not NAICS), especially if you offer tech, tutoring, or construction.
Day 4: Prep your documents. Pull together a packet with insurance certs, W-9, staff bios, and 3–5 past performance examples, even if they’re from federal work. Draft a 1–2 page capability statement tailored to school buyers, showing how you improve safety, efficiency, or learning outcomes.
Day 5: Write the bid. Keep it tight. Use the evaluation criteria from the RFP as your outline. Highlight your compliance readiness (background checks, licensing, etc.) and back up claims with real metrics if you’ve done similar work before.
Day 6: Build relationships. Reach out to procurement officers. Attend bidder conferences or state “vendor days.” If you’re a women-owned, veteran-owned, or 8a business, don’t be shy about highlighting that in your intro email. Many districts want to work with you.
Day 7: Submit and follow up. Double check submission requirements (some systems are strict about upload formats and deadlines). Confirm receipt, request a debrief if you don’t win, and track your performance to build past performance for the next one.
Why this works: SLED education buying is local, active, and underserved.
Unlike the federal space, where competition can be national and timelines stretch for months, SLED education contracts are often awarded quickly and executed within a school year. Many districts recycle the same vendors year after year simply because new small businesses never apply. If you’ve been doing federal work and want to build stability during this shutdown, or diversify your pipeline for the long haul, this is your moment.
This pivot also plays well with strategic services: if you offer Grant Writing for Nonprofits, Government Contract Proposal Writing, or SBIR Grant Assistance, schools and education nonprofits may need those services, too. It’s a natural extension of your existing capabilities.
Final thought: The best NAICS codes for small business may not apply here, learn the NIGP codes.
Don’t trip up by relying only on your usual NAICS code for government contractors. In the SLED space, many agencies use NIGP codes instead. Learn which codes apply to your service areas, whether it’s EdTech, construction, or consulting, and update your registrations accordingly. And while you’re at it, keep your federal contracting certifications visible and active. They’re a differentiator, not just a federal requirement.
Want a deeper dive into this strategy? Check out our full SLED Pivot Playbook here to walk through the one-week plan in more detail.
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.
