How to Win Government Contracts in 2025: A Guide for Small Businesses

How to Win Government Contracts in 2025: A Guide for Small Businesses

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Are you a small business owner looking to grow in 2025? Securing government contracts can be one of the most powerful ways to scale your business. Whether you’re just starting out or already running an established company, this guide will show you how to win the easiest government contracts available today.

Government small business contracts offer an incredible opportunity to do business with the world’s largest buyer—the federal government. These contracts can provide consistent revenue, long-term stability, and a strong reputation boost.

In 2024, the U.S. federal government spent over $600 billion on procurement contracts. By law, at least 25% of that spending is reserved for small businesses. And that’s not all—state and local governments spend an equal amount annually, creating even more chances for your business to grow through government contracts.

A Guide to Winning Government Small Business Contracts

Winning Government Contracts

There are a number of databases you can use to find federal contracts to bid on. Similarly, there are multiple databases that government agencies use to find contractors.

Dynamic Small Business Search

The Dynamic Small Business Search (DSBS) is a database that government agencies use to find small business contractors for upcoming contracts. Small businesses can also use DSBS to find other small businesses to work with.

SBA maintains the DSBS database. The information you provide when you register your business in the System for Award Management (SAM) is used to populate DSBS, so you should create a comprehensive business profile.

Contract Opportunities

Federal business opportunities for contractors are listed at SAM.gov. Government agencies are required to use SAM to advertise all contracts over $25,000.

Read More: Government Small Business Contracts: The SBA is Your Sidekick

Subcontracting opportunities

Navigating the procurement process of government small business contracts can seem like a daunting task. It’s crucial to understand the process and find the right professionals to help you accomplish your goals. 

SubNet is a database of possibilities for subcontracting that big contractors post for small companies to work as subcontractors.

A list of prime contractors with subcontracting plans for the federal government is kept up to date by SBA.

For small companies seeking subcontracting opportunities with prime contractors, the GSA offers a subcontracting directory. The directory includes a list of big business prime contractors who must set up goals and plans for working with small businesses on subcontracts.

Federal government agencies are required to follow strict guidelines including the Federal Acquisition Regulations, often referred to as the FAR, to ensure fair competition and transparency. Any misrepresentations will prohibit you from working with the federal government.

Small businesses need to familiarize themselves with these processes and requirements and ensure their initial registrations in SAM.gov and the Small Business Administration’s (SBA) Dynamic Small Business Search or DSBS are complete and compliant.

Winning Government Small Business Contracts

Additionally, businesses can stand out by obtaining relevant disadvantaged socio-economic certifications they qualify for. These certifications are on the federal level through the SBA, include the 8(a) Business Development Program, Women-Owned Small Business (WOSB), Veteran-Owned Small Business (VOSB), and HUBZone programs.

State and local level certification programs include Minority Business Enterprise (MBE), Women Business Enterprise (WBE), Minority / Women Business Enterprise (MWBE), Disadvantaged Small Business (DBE), Veteran Business Enterprise (VBE / SDVBE), and Small Business Enterprise (SBE). These certifications are primarily offered in your home state and also benefit your commercial business as many companies have vendor diversity programs you can participate in.

One of the quickest ways to get a government small business contract is through a GSA Schedule. The General Services Administration (GSA) is the bulk purchasing division of the federal government formed to streamline the federal procurement process. Think of the GSA as the “Amazon” for government buyers. 

Any quantity you allow, at pricing and terms you set, Sold without going through the general solicitation process; sold though GSA Advantage and GSA eBuy websites. As a GSA Approved vendor, You become a fully vetted vendor that can be easily found by government buyers through the GSA e-Library.

As an example, the GSA spent $41.1 Billion in purchases through GSA Approved Vendors which only had 13,281 registered businesses in FY2022 or approximately $3.1 million on average spent per vendor.

Strategic Steps: Building Relationships and Marketing to Secure Lucrative Government Contracts

Winning Government Small Business Contracts Guide

Building relationships with and marketing to government agencies is your next important step. Government small business contracts are awarded to those businesses who do their research and market themselves. You need to know who buys what you sell. Your SAM and DSBS registrations, capability statement, and website are your initial steps to letting government buyers know your capabilities, core competencies, and past performance.

What Is the Easiest Government Contract to Win?

If you’re new to government contracting, one of the easiest federal contracts to secure is through larger contract vehicles like GSA Schedule contracts. These provide a streamlined path for businesses to start working with the federal government.

Getting on the GSA Schedule—also known as obtaining a GSA contract—means your business is officially authorized to sell products or services to government agencies. It’s often seen as a great starting point for small businesses entering the world of federal contracting.

How Do I Win a Government Contract?

Winning a government contract requires preparation and strategy. Here’s a simplified step-by-step approach:

  1. Do Thorough Research – Understand the agency’s needs and past awards.

  2. Study the Tender Documents Carefully – Know the requirements inside out.

  3. Prepare Strong Supporting Documents – Showcase your experience, capacity, and compliance.

  4. Show, Don’t Just Tell – Use clear examples, case studies, and metrics.

  5. Demonstrate Your Value – Highlight what sets your business apart from competitors.

  6. Review Everything Multiple Times – Double-check for compliance and accuracy.

  7. Submit the Bid On Time – Meeting deadlines is non-negotiable.

What Is a “Best Value” Government Contract?

In federal procurement terms, “Best Value” refers to the solution that offers the greatest overall benefit to the government—not just based on price, but on quality, efficiency, and ability to meet requirements (as defined in FAR 2.101). Agencies look for proposals that balance cost-effectiveness with high performance and reliability.

Conclusion: Take the First Step Toward Winning Government Contracts in 2025

Breaking into the world of government contracting may seem complex, but with the right guidance and preparation, it can become a powerful tool to grow your small business in 2025. From registering your business on SAM.gov and DSBS to understanding GSA Schedules and leveraging socio-economic certifications, the opportunities are vast for those willing to take action. Government contracts offer more than just income—they provide long-term stability, brand credibility, and access to a massive marketplace that prioritizes working with small businesses. By taking the time to understand the process, build relationships, and position your business correctly, you can unlock game-changing contracts that fuel your growth for years to come.

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