Your Step-by-Step Guide to Federal Government Contracting for Small Businesses in 2025
If you're a small business owner looking to tap into the massive pool of federal government spending, the process can feel overwhelming—especially if you're just getting started. Acronyms like SAM, NAICS, UEI, and FAR might sound like alphabet soup now, but with a little clarity and a solid roadmap, you'll be well on your way to landing your first government contract.
This guide breaks down the essentials you need to enter the world of government contracting in 2025. No fluff. No jargon. Just the steps you need, in plain English.
What’s Going On? Why Federal Contracting Matters Right Now
Each year, the U.S. government awards over $600 billion in contracts, and by law, a portion of that must go to small businesses. Agencies are actively seeking diverse vendors—especially those with federal contracting certifications like 8(a), women-owned, or veteran-owned small business status.
With tighter supply chains and increased focus on domestic sourcing, 2025 is shaping up to be a strong year for new entrants. But to win government work, you’ve got to get registered, positioned, and prepared. That starts with the basics.
The Step-by-Step Roadmap to Government Contracting for Beginners
1. Get Your Unique Entity ID (UEI) and Register on SAM.gov
Before you can do anything, you need to be registered in SAM.gov—the System for Award Management. This is where agencies go to find vendors and where all payments are processed.
You no longer need a DUNS number. Since 2022, the government uses a UEI (Unique Entity Identifier).
Go to SAM.gov and create a login.gov account if you don’t have one.
Gather your business details: legal name, physical address, taxpayer ID, banking info, and NAICS codes (more on those next).
Complete the entity registration (be ready to verify your business with supporting docs).
2. Know Your NAICS Code(s)
NAICS (North American Industry Classification System) codes are how the government categorizes what you sell.
Use the NAICS lookup tool to find the codes that match your services or products.
You can have more than one, but be strategic—focus on the codes that match your core offerings and have demand in federal procurement.
Pro tip: research best NAICS codes for small business and check low competition NAICS codes on SAM.gov.
3. Check If You Qualify for Small Business Certifications
Certifications help set you apart—and in many cases, they’re required for set-aside contracts.
Here are the big ones to consider:
SBA 8(a) Certification – For socially and economically disadvantaged businesses.
Women-Owned Small Business (WOSB) Certification
Service-Disabled Veteran-Owned Small Business (SDVOSB)
HUBZone – For businesses in historically underutilized areas.
These designations unlock exclusive government contracting opportunities and give you a leg up in competitive bids.
4. Learn How to Find Contracts (and Start Small)
Once you’re registered, head back to SAM.gov to start browsing active opportunities. You can search by:
NAICS code
Agency
Set-aside type
Location
Tips:
Start with Sources Sought or Request for Information (RFI) notices to learn what agencies are looking for.
Consider subcontracting with larger primes before going after prime contracts on your own.
Check out the SBA’s SubNet platform for small business subcontracting leads.
5. Prepare to Write Proposals
Proposal writing is where many businesses get stuck. Every opportunity has unique instructions, but most will require:
A capability statement or corporate overview
Technical approach (how you’ll do the work)
Past performance
Pricing
If this sounds daunting, consider outsourcing proposal help—firms like ours specialize in Government Contract Proposal Writing and can walk you through the process or do it for you.
Why This Matters for Small Businesses
The government isn't just buying tanks and missiles. Agencies need everything from janitorial services to IT support to event planning. And they need it from certified, registered vendors who can deliver on budget and on time.
Federal contracts can be a reliable revenue stream, a foot in the door with major agencies, and a path to long-term growth—if you’re set up correctly.
Next Steps for You
Here’s how to keep the momentum going:
Register on SAM.gov today if you haven’t already.
Get clear on your NAICS codes and research what’s in demand.
Explore certifications—they can open doors you didn’t know existed.
Follow agencies that align with your industry and monitor new opportunities weekly.
Don’t go it alone—seek support for proposal writing or bid strategy as needed.
Federal contracting can absolutely work for small businesses. But it’s not a “submit and forget” process. You need to build relationships, stay compliant, and continually refine your proposals.
Want to go deeper into understanding how Government Contracting works? Check out our next post: So You Want to Sell Your Government Contracting Business: Novations and FAR 42.1204—a practical breakdown to help you decide what’s worth pursuing.
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.
