Evaluate your small business to see if it has what it takes to win a government contract.

Content Overview 

  • Market research
  • What makes a successful contractor?

Market research

In order to bid on and win government contracts, you’ll have to sell products or services that the government buys — and at a competitive price. Use the resources below to see if there’s a market for your product or service, determine how big the market is, and find potential buyers.

Federal Procurement Data System

Federal Procurement Data System – Next Generation is the repository of all federal contracting data for contracts over $25,000. With this system, you can see which agencies have contracts and with who, what agencies buy, and which contractors have contracts.

USASpending.gov

USASpending.gov tracks government spending through the contracts it awards. This searchable database contains information for each federal contract. You can use this information to help identify government purchasing trends

Federal agency procurement forecasts

Each government agency releases a procurement forecast that includes contracting opportunities for small businesses. You can review these Agency Recurring Procurement Forecasts to find out if there are agencies that are buying what you sell.

What makes a successful contractor?

The government prefers to work with established, reliable businesses. Do you have a track record of delivering quality goods and services on time and within budget? Is your reputation within your industry strong?

Not only can it take a long time to win your first government contract, it can take a significant amount of money. Some businesses spend between $80,000 and $130,000 to earn their first contract.

Also, it could take up to two years to start making a return on your investment. You’ll need to have enough cash flow to sustain your business. Maintaining a diverse list of private-sector clients can help offset any potential initial losses.

Being e-commerce savvy is very important in government contracting. For example, if you want to work with the Department of Defense, you must be able to invoice and receive payments electronically.