- Step 1: Decide what you sell, and find your NAICS codes
- Step 2: Register in SAM.gov
- Step 3: Understand the dollar thresholds
- Step 4: Know your size and your programs
- Step 5: Find opportunities that fit
- Step 6: Get your paperwork ready
- Another way in: subcontracting
- Mistakes that cost new contractors time
- Where to get help
Step 1: Decide what you sell, and find your NAICS codes
NAICS (the North American Industry Classification System) is the code system the government uses to classify what a business does. Federal buyers attach a NAICS code to nearly every solicitation, and the small business size standard for that solicitation depends on the code. Pick the codes that truthfully describe what you can deliver. Most small suppliers need two to five codes, not twenty.
Step 2: Register in SAM.gov
SAM.gov (the System for Award Management) is the official site where you register to be paid by the federal government and where you find contract opportunities. Three facts matter most:
- Registration is free. Only SAM.gov is the official site. Companies that charge a fee to “handle your SAM registration” are not the government, and you never need to pay one.
- You receive a Unique Entity ID (UEI) during registration. It replaced the old DUNS number as the government's identifier for your business.
- Your registration must be active when you are awarded a contract, and it has to be renewed every year. A lapsed registration is one of the most avoidable reasons for losing an award.
Registration also leads to a CAGE code, a five-character identifier that many agencies and prime contractors ask for. Allow several weeks for the whole process. The usual delays come from details that do not match exactly, such as your legal name or address compared with your tax records, so enter them the way they appear on your formation and tax documents.
Step 3: Understand the dollar thresholds
Two federal thresholds shape how small suppliers get in. They were raised on October 1, 2025:
| Threshold | Amount | What it means for you |
|---|---|---|
| Micro-purchase threshold | $15,000 (was $10,000) | Agencies can buy at or below this amount with a government card, often without formal competition. Being visible to the people who buy matters most here. |
| Simplified acquisition threshold | $350,000 (was $250,000) | Below this amount, buyers use simpler procedures than a full proposal process. |
Federal buyers generally must set aside purchases above the micro-purchase threshold and up to the simplified acquisition threshold for small businesses, when they expect at least two capable small businesses to bid. That range is where many first contracts are won.
Step 4: Know your size and your programs
Whether you count as a small business depends on your industry's size standard, based on your NAICS code and measured by revenue or employees. If you qualify, you can compete for small business set-asides. Some programs need a separate certification, for example the SBA's 8(a) program, HUBZone, women-owned small business and service-disabled veteran-owned small business. Those take time to obtain, so find out early whether one applies to you.
Step 5: Find opportunities that fit
In SAM.gov, search Contract Opportunities by your NAICS codes and save the searches so new notices come to you. Pay attention to notices called “sources sought” or “request for information.” These are not requests to bid, but responding puts your company in front of the buyer before the real solicitation is written.
Step 6: Get your paperwork ready
- A one-page capability statement: what you do, your codes, your identifiers (UEI and CAGE), your contact details and your best examples.
- Past performance: state and local government work counts. Keep the contract details, dates and a reference who will answer the phone.
- Pricing you can defend: with real supplier quotes behind it.
- Insurance: know what certificate you can produce and how quickly.
Another way in: subcontracting
You do not have to win a prime contract to get federal revenue. Large prime contractors on bigger awards are generally expected to plan for small business subcontracting, so they look for reliable small suppliers. A good capability statement sent to the small business liaison of a prime can be the fastest first step.
Mistakes that cost new contractors time
- Letting the SAM.gov registration expire.
- Choosing broad NAICS codes in the hope of seeing more bids, then bidding on things you cannot deliver.
- Chasing every notice instead of a few that fit your strengths.
- Skipping the sections on instructions and evaluation, which explain exactly how you will be judged.
- Submitting at the last minute. Portals and email fail at the worst times.
Where to get help
In Illinois, the Illinois APEX Accelerator (formerly the PTAC) offers one-on-one counseling, help with SAM.gov, bid package reviews and bid matching. Ask your local center what is covered and whether any fees apply.
Please note. This article is general information, last checked in October 2026. Rules, forms and thresholds change, so confirm the current requirements with the agency or office named in the sources below before you rely on any detail. It is not legal advice.