Government Contracting

Government contracting presents an immense opportunity for businesses to expand their operations and secure stable revenue streams. We will explore the fundamentals of government contracting, including how to secure contracts, the bidding process, and valuable insights into the procurement automation and capture management.

government contracting

Government contracting presents an immense opportunity for businesses to expand their operations and secure stable revenue streams. There are countless opportunities for companies of all sizes to get involved. With an estimated $500 billion spent by the US government on products and services annually, the sector is a goldmine waiting to be explored.

However, navigating the complex landscape of government contracts can be challenging. It can be difficult to know where to start. We explored the fundamentals of government contracting, including how to secure contracts, the bidding process, and valuable insights into procurement automation.

How to get government contracts

The first step in securing a government contract is to bid on it. From there, you can search for available contracts and submit your bid. It’s important to note that the government procurement process is highly competitive. So it’s essential to create a compelling and detailed proposal.

If you’re new to the arena, bidding on government contracts can be overwhelming. Eager to win the bid, you may be tempted to bid lower than usual. But that may cost you more in the long run. Here are a few tips to keep in mind when bidding:

  1. Start with smaller contracts; this will help build credibility and experience.
  2. Research your competition and know what they’re offering, then present a competitive edge.
  3. Price reasonably. Don’t undervalue your work, and don’t go beyond the industry average.
  4. Be mindful of your capacity to deliver, and only bid what you can realistically deliver.

Securing government contracts requires a strategic approach and thorough understanding of the procurement process. Here are some essential steps to increase your chances of winning government contracts:

Register with the necessary entities

To participate in government contracting, start by registering your business with the System for Award Management (SAM). You also need to obtain a D-U-N-S number. This is a vital step that allows the government to identify potential contractors and facilitate the procurement process.

From there, you can search for available contracts and submit your bid. It’s important to note that the government procurement process is highly competitive. So it’s essential to create a compelling and detailed proposal.

Determine the appropriate North American Industry Classification System (NAICS) codes that align with your business’s offerings. These codes help government agencies categorize vendors and find suitable contractors for specific projects.

Build relationships

Networking with procurement officers, small business liaisons, and prime contractors can significantly enhance your chances of securing government contracts. Attend industry events, participate in conferences, and engage with relevant trade associations to expand your network.

Research government opportunities

Stay updated with government procurement opportunities by regularly visiting websites such as Which provides a comprehensive database of federal opportunities. Additionally, explore state and local government websites, as they often have their own procurement portals.

The VisibleThread blog is also a good place to keep informed on the current top government contracts. We’ll also give you guidelines on how to streamline your process to give a competitive advantage.

How to Bid on Government Contracts as a Small Business

For small businesses, the idea of bidding on government contracts may seem like a pipe dream. The complex, competitive and overwhelming nature of federal procurement can make securing these contracts seem impossible. However, working with government agencies can open doors to significant revenue growth, steady cash flow, and long-term business stability.

Having a streamlined rfp response process is a critical aspect of securing government contracts. Here are essential steps for small businesses to effectively bid on government contracts:

Understand the requirements

Thoroughly review the solicitation documents to understand the project’s scope, technical requirements, and evaluation criteria. Familiarize yourself with the terms and conditions, ensuring compliance with all criteria.

Prepare your proposal

Craft a compelling proposal that highlights your business’s capabilities, expertise, and unique value proposition. Clearly outline how your offerings align with the government’s needs. Address any specific evaluation factors mentioned in the solicitation.

Seek subcontracting opportunities

Collaborating with larger prime contractors can provide small businesses with valuable subcontracting opportunities. Partnering with established contractors enhances your chances of winning bids and helps you gain experience and establish credibility.

Leverage set-aside programs

Small businesses can benefit from various set-aside programs, such as

  • The Small Business Administration’s 8(a) Business Development Program,
  • HUBZone program,
  • and Women-Owned Small Business (WOSB) Federal Contracting program.

These programs promote competition and provide advantages to eligible small businesses.

Use automation in your RFP response process

The proposal writing process takes a considerable amount of time and effort. Particularly for smaller teams who need to stretch their resources. Making it very difficult to compete with bigger, more established firms. Using RFP automation software in your proposal process gives time back to proposal teams to boost their win rates with compelling responses.

Automating tedious, repetitive tasks such as creating a compliance matrix and extracting and defining acronyms can help a time-strapped team achieve a lot more.

Using RFP automation software in your proposal process gives time back to proposal teams to boost their win rates with compelling responses.”

The Benefits of Procurement Automation

As technology advances, procurement automation plays a crucial role in government contracting. Government agencies are increasingly adopting automated procurement systems to streamline the acquisition process. These systems enhance efficiency, reduce paperwork, and provide a centralized platform for vendors to submit bids and track opportunities.

Government procurement regulations are constantly evolving. This means contractors must be extremely vigilant and keep themselves updated to avoid any non-compliance issues. However, with technological advancements and the implementation of procurement automation, government contractors know they are managing the entire process efficiently and effectively.

Benefits of using procurement automation in your process

  1. Increased Efficiency

Automation minimizes manual tasks, which means contractors can focus more on strategy and execution rather than administrative tasks. This results in a more efficient process and ultimately, faster results.

  1. Cost Savings

By reducing manual labor and minimizing errors, procurement automation can lower operational costs substantially. Additionally, automation ensures compliance with procurement regulations. This means contractors can avoid fines and penalties, again leading to cost savings.

  1. Improved Accuracy

Manual procurement processes can lead to errors, which can snowball into bigger problems down the line. However, with automation, contractors can significantly reduce errors and achieve greater accuracy in the procurement process. Moreover, automation software stores data in a centralized location. This makes it easier to track expenses and ensure compliance with procurement regulations.

  1. Heightened Transparency

Procurement automation promotes greater transparency in the contracting process. Contractors can easily view the status of contracts, payments, and expenses. This keeps them updated on all aspects of the procurement process. It ensures that they are in control of the process and they can address any issues or concerns and resolve them quickly.

  1. Competitive Advantage

Procurement automation can give contractors a competitive edge in the marketplace. With a streamlined procurement process, contractors can take on more contracts, complete them faster, and reduce overhead costs. Automation also ensures compliance with procurement regulations, which is a major concern for government agencies.

By demonstrating compliance, contractors can win the trust of government agencies, which can lead to more contracts and greater profitability.

The importance of effective capture management in government contracting

As a government contractor, landing a contract is a crucial aspect of your business. But, how do you ensure that you secure a contract amidst the competition? The answer lies in effective capture management. In simple terms, capture management is the process of identifying, qualifying, and capturing opportunities for government contracts.

Capture management involves strategic planning and proactive efforts to position your business for success in government contracting. It includes identifying opportunities, understanding customer needs, and developing a comprehensive strategy to win contracts.

Why effective capture management is critical to success

  1. Identifies Early Opportunities

With effective capture management, you can identify opportunities as early as possible. This way, you can build a relationship with the potential buyer and gain a deeper understanding of their requirement. By doing so, you can tailor your proposal to meet their needs, increasing your chances of winning the contract.

  1. Minimizes Risk

Effective capture management minimizes risk in government contracting. It allows you to thoroughly understand the requirements and objectives of the potential buyer, as well as the competition. This understanding enables you to make informed decisions on whether to bid on a potential opportunity or not. A comprehensive capture plan helps identify and mitigate potential risks, saving you time and resources.

  1. Increase Win Rates

An effective capture plan includes a thorough understanding of the market, the competition, and the buyer. This understanding coupled with tailored solutions increases your win rate. A well-executed capture plan provides a strategic advantage over competitors. It focuses on demonstrating value and differentiation over and above the competition.

  1. Build Strong Relationships

Effective capture management also builds strong relationships with potential buyers and stakeholders. By engaging early in the process, you demonstrate your willingness to partner with them and deliver tailored solutions. It also enables you to identify potential teaming partners, form joint ventures or alliances with other firms. This increases your chances of winning the contract.

  1. Streamlines the Proposal Process

Effective capture management streamlines the proposal process. By engaging early with potential buyers and stakeholders, you can identify their priorities and tailor your proposal accordingly. This approach significantly reduces the last-minute rush when submitting a proposal. As you already have the necessary information and understanding of the customer’s requirements.

Effective capture management is a crucial aspect of government contracting. It provides a strategic advantage by

  • identifying early opportunities,
  • minimizing risk,
  • increasing win rates,
  • building strong relationships,
  • and streamlining the proposal process.

Government contractors who invest in proper capture management reap the reward of increased win rates, higher-quality proposals, and a stronger competitive position. By prioritizing capture management, you put your business in a better position to land the contracts you will thrive in.


Successfully entering the world of government contracting requires dedication, persistence, and a strong understanding of the process. By following the steps outlined in this guide, businesses of all sizes can increase their chances of securing contracts. Remember to stay informed, build relationships, and continuously improve your bidding strategy.

Good luck in your journey toward government contracting success!

Note: Government contracting processes may vary based on country and region. The information provided in this blog primarily focuses on the United States government contracting system.


Book a Demo