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Contracting 101

 

🏛️ Contracting 101: A Complete Guide to Federal Contracting on SAM.gov

Welcome to Contracting 101—a comprehensive guide to help businesses understand how to enter and participate in the U.S. federal contracting marketplace through SAM.gov (System for Award Management). Whether you're just starting or preparing to apply for certifications and contracts, this guide walks you step by step through the entire process.


✅ Step 1: Form Your Legal Business Entity

Before registering with SAM.gov, your business must be properly established. This includes:

  • Registering your business structure (LLC, Corporation, etc.) with your state’s Secretary of State office
     
  • Obtaining an EIN (Employer Identification Number) from the IRS
     
  • Setting up a business bank account in the name of your company
     
  • Ensuring your legal business name and address are consistent across all government databases
     

🧾 Step 2: Obtain a UEI (Unique Entity ID)

Every business that wants to do business with the U.S. government must have a Unique Entity Identifier (UEI). This has replaced the DUNS number.

  • UEI is generated through SAM.gov
     
  • You’ll be asked to verify your business name, physical address, and ownership details
     
  • This step is required before completing SAM.gov registration
     

🔐 Step 3: Register on SAM.gov

SAM.gov is the primary federal database for vendors. All businesses seeking federal contracts must have an active SAM.gov registration.

To register:

  1. Create a Login.gov account
    SAM.gov uses Login.gov for secure authentication. A verified email and phone number are required.
     
  2. Start New Entity Registration
     
    • Legal business name and physical address (must match IRS and UEI info)
       
    • EIN and UEI
       
    • Bank account details for electronic payments
       
    • Business type and ownership structure
       

  1. Select NAICS Codes
     
    • NAICS (North American Industry Classification System) codes define your primary and secondary business activities
       
    • You may select multiple codes, but one must be marked as “primary”
       

  1. Identify Size Standards
    Your business size (small or large) is determined based on your NAICS code and SBA guidelines.
     
  2. Complete Core Data, Representations & Certifications
     
    • Includes information on products/services, ownership, capabilities, and compliance with federal regulations
       
    • You’ll be required to self-certify for certain legal and policy requirements (FAR compliance, executive compensation, etc.)
       

  1. Submit & Await Activation
    Processing typically takes 10–15 business days. You’ll receive a CAGE Code (Commercial and Government Entity Code) upon approval.
     

🗂️ Step 4: Create and Optimize Your DSBS (Dynamic Small Business Search) Profile

Once registered in SAM.gov, your business will appear in the SBA’s Dynamic Small Business Search (DSBS) database. This tool is used by government buyers and prime contractors to find qualified small businesses.

  • Log into the General Login System (GLS) and link your profile to SBA
     
  • Include:
     
    • Capability narrative
       
    • Keywords and special skills
       
    • NAICS codes
       
    • Differentiators and value proposition
       
    • Past performance or references (if available)
       
  • This profile enhances visibility and is essential for small business outreach
     

🏷️ Step 5: Choose Your Set-Aside Certifications (If Applicable)

Federal agencies reserve a portion of contracts for businesses that meet specific criteria. These are known as set-aside certifications, and they can dramatically increase your contracting opportunities.

Available Certifications:

  1. Small Business Certification (standard SBA size requirements)
     
  2. 8(a) Business Development Program
     
    • For socially and economically disadvantaged individuals
       
    • Requires business and personal financial statements, narratives, and supporting documentation
       
    • 9-year program with access to sole-source contracts and business development support
       

  1. WOSB/EDWOSB (Women-Owned Small Business / Economically Disadvantaged WOSB)
     
    • 51% woman-owned and controlled
       
    • Must meet economic eligibility and management criteria
       
    • Apply through SBA’s Certify.SBA.gov portal
       

  1. SDVOSB (Service-Disabled Veteran-Owned Small Business)
     
    • 51% owned and controlled by a service-disabled veteran
       
    • Proof of service-connected disability required
       

  1. HUBZone (Historically Underutilized Business Zone)
     
    • Business must operate in a designated HUBZone area
       
    • 35% of employees must reside in a HUBZone
       
    • Requires map verification, documentation, and annual recertification
       

Each certification has a unique application process and documentation requirements. Eligibility varies based on ownership, location, and operations.


🔍 Step 6: Research and Find Contract Opportunities

After registration, you can begin exploring federal contract opportunities.

Where to Look:

  • SAM.gov → Contract Opportunities
    Search by keywords, NAICS codes, agency, or set-aside type.
     
  • Agency Forecasts
    Many federal agencies publish annual procurement forecasts.
     
  • GSA eBuy
    An online portal for vendors on GSA Schedules.
     
  • SubNet
    A database of subcontracting opportunities for small businesses.
     
  • USAspending.gov
    View federal spending data by agency, vendor, and award type.
     
  • FPDS.gov
    Historical data on federal contracts and awards to help you identify trends.
     

📑 Step 7: Prepare and Submit Government Proposals

Responding to government solicitations involves submitting formal proposals, which vary in length and detail depending on the contract size and agency.

Typical proposal components include:

  • Cover letter and executive summary
     
  • Technical narrative – approach, process, personnel, etc.
     
  • Past performance documentation
     
  • Pricing structure – itemized pricing and cost estimates
     
  • Certifications and representations – often must be completed with each submission
     

Ensure you follow all formatting, submission deadlines, and file requirements precisely. Each RFP (Request for Proposal) includes detailed instructions that must be followed exactly.


🔄 Step 8: Maintain Registration & Stay Compliant

Once your SAM.gov registration is active:

  • Renew registration annually to remain eligible for contracts
     
  • Update NAICS codes or contact info as your business evolves
     
  • Monitor changes to FAR (Federal Acquisition Regulation) and SBA guidelines
     
  • Maintain certifications and submit renewals or recertifications as required
     
  • Comply with performance reporting requirements (e.g., CPARS, FSRS)

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