SLED Series: What Is SLED Procurement? A Beginner’s Guide for Small Businesses

If you’ve been laser-focused on chasing federal contracts but haven’t looked into SLED procurement, you’re leaving serious money on the table. SLED stands for State, Local, and Education, a massive and often-overlooked public sector market that’s rich with opportunity for small and midsize businesses.

This post kicks off our SLED blog series by breaking down what SLED procurement is, why it’s worth your attention, and how it differs from federal contracting. Whether you’re offering IT services, professional staffing, construction, software, or anything in between, understanding how to engage with SLED agencies can unlock new revenue streams, often with fewer headaches than federal.

Let’s get you oriented.

What exactly is SLED procurement?

SLED refers to procurement by:

• State governments (departments, agencies, boards, commissions)

• Local governments (cities, counties, townships, special districts)

• Education entities (public K–12 school districts, public colleges, universities, and technical schools)

These public bodies purchase everything from janitorial services to cybersecurity software to architectural design. Combined, they spend over an estimated $1.5 trillion annually, roughly twice as much as the federal government, with millions of open contracts issued every year across the U.S.

Unlike federal procurement, which flows through systems like SAM.gov and requires adherence to the FAR (Federal Acquisition Regulation), SLED procurement is fragmented. Each state or local agency runs its own procurement office, with its own rules, systems, and terminology.

That might sound like a pain, and in some ways it is, but it also means fewer barriers to entry.

Why should small businesses care about SLED contracting?

Here's the short answer: SLED is where many small businesses win their first public sector contracts.

Why?

• Lower compliance overhead. Most SLED opportunities don’t require federal contracting certifications, such as SBA 8a certification or women owned small business certification. You won’t need to navigate the FAR or register with SAM.gov.

• Faster buying cycles. SLED agencies often move more quickly than federal agencies, with less red tape and shorter evaluation timelines.

• Easier relationships. You’re more likely to meet face-to-face with decision-makers, and building local relationships pays off over time.

• More diverse opportunities. From fleet management in a rural school district to workforce development grants with a state labor department, the variety is staggering.

Plus, many SLED agencies offer their own small business, veteran-owned, minority-owned, or women business certification programs that give you a leg up, even if you’re still working through your SBA 8a certification services or federal contracting certification process.

How is SLED different from federal contracting?

Here’s a quick comparison:

Federal Contracts

• Centralized (SAM.gov, GSA, etc.)

• Governed by FAR

• Requires federal certifications

• Competitive, high-dollar

• Longer award cycles

SLED Contracts

• Decentralized (state portals, local bid sites)

• State/local procurement codes

• May accept local certifications or none at all

• Often smaller, less competitive

• Quicker award decisions

Think of SLED as the on-ramp. It’s where you can cut your teeth, build a past performance portfolio, and generate steady income while gearing up for larger federal plays like 8a contracts services or SBIR Grant Assistance.

What kinds of contracts are available?

If you’re wondering whether your business fits into SLED, the answer is probably yes.

SLED agencies buy:

• Technology: cybersecurity, hardware, SaaS, helpdesk support

• Professional services: consulting, legal, HR, marketing

• Facilities: HVAC, elevator inspections, construction, landscaping

• Education support: tutoring, curriculum design, digital learning platforms

• Healthcare: staffing, mental health, elder care, health IT

• Administrative support: staffing, temp labor, data entry

Many contracts are under $100K, which makes them easier to pursue for small teams, and often they don’t require bonding, heavy registrations, or teaming partners.

It’s also a great place to get your contractor NAICS code aligned with practical opportunities, especially if you’re trying to identify the best NAICS codes for small business government procurement.

Your next moves: How to start pursuing SLED opportunities

If SLED sounds like a good fit for your business, here’s how to get moving:

1. Research your local and state procurement portals.
   Every state has a vendor registration system. Start with your home state and register as a vendor. Look for certification programs as well, many states mirror federal set-aside categories like disabled veteran small business certification or women business certification.

2. Align your NAICS codes and capability narrative.
   While federal NAICS codes aren’t always required, many SLED buyers still reference them. Make sure your contractor NAICS code reflects the services you actually deliver.

3. Track opportunities and start small.
   Look for smaller bids, under $50K, to start. Focus on direct-award or informal solicitations where the evaluation process is leaner.

4. Invest in relationships.
   Attend local industry days, chambers of commerce events, or agency-sponsored vendor outreach sessions. SLED buyers often prioritize known vendors who show up consistently.

5. Build toward bigger wins.
   Use SLED past performance to strengthen future bids, including federal opportunities that require a track record. Combine your wins with government contract proposal writing support to craft compelling submissions for higher-value contracts.

Bottom line: SLED is your low-friction path into public-sector contracting

It’s easy to get caught up chasing federal certifications, but don’t overlook what’s in your backyard. The SLED market is huge, diverse, and full of manageable entry points for businesses like yours. Whether you’re working toward your SBA 8a certification or just testing the waters with government procurement, SLED can be the bridge between startup and scale.

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.