Can a small business get government contracts?

Yes. Government is one of the largest buyers in the country, and a lot of what it buys is work a small business already does: mowing, cleaning, HVAC service, roofing repairs, pressure washing, IT support, printing, signs, fencing.

Most owners never try, usually for one of three reasons. They assume the work goes to big companies with lobbyists. They tried searching once, landed on a federal website full of codes and acronyms, and closed the tab. Or they think the paperwork will cost more than the job pays. Each of those is partly true, and none of them should stop you.

How much goes to small businesses

Federal law sets a goal that at least 23% of federal prime contract dollars go to small businesses (15 U.S.C. 644(g)). Agencies beat it most years. In fiscal 2025 small businesses won about 28% of eligible federal contract dollars, roughly $179 billion, according to the SBA's annual scorecard (Federal News Network).

Federal rules also reserve a lot of smaller purchases for small firms. Since October 1, 2025, the simplified acquisition threshold is $350,000 and the micro-purchase threshold is $15,000 (Acquisition.gov). Between those two numbers, a contracting officer is generally required to set the purchase aside for small businesses when they expect offers from at least two capable small firms at a fair price.

That's the federal side. For most trade and service businesses, it isn't where the first contract comes from.

Most of the work is local

The Census Bureau counted 90,837 local governments in the United States in 2022: counties, cities, towns, townships, school districts and special districts like water, fire and park districts (Census Bureau). Each one buys its own services, often through several departments, which is one reason Capveon's count of US agencies, at more than 175,000, is higher than the Census count of governments. A school district needs its HVAC units serviced. A county needs its courthouse cleaned. A water district needs its fences repaired and its grounds mowed.

Small local contracts suit a small business for practical reasons:

• The work is close. You can visit the site, meet the facilities manager and finish the job with your own crew.
• Fewer companies bid. A town's annual mowing contract might draw a handful of bids. Plenty of local companies never see the notice.
• The contracts repeat. Many service contracts run one year with options to renew. A good first year often means four more.
• Payment is reliable. Government pays more slowly than some customers, but it pays.

How local governments buy

Every state sets its own rules for cities and counties, and most agencies add their own policy on top. The pattern is similar almost everywhere.

Small purchases are bought with a phone call, a quote or a purchase card. Nobody posts a public notice. You get these by being known to the department that needs the work.

Mid-size purchases usually need a few written quotes. Agencies often ask the vendors on their list, so being registered as a vendor matters.

Larger purchases go out as a formal bid or a request for proposals, advertised in public, with a fixed due date and a public opening. In Texas, for example, a city must use competitive sealed bids or proposals for most purchases over $100,000 (Tex. Local Gov't Code 252.021). Other states set different limits.

How to start

1. Make a list of 20 to 40 agencies near you. Your city, your county, the nearby cities, the school districts, the community college, the water and sewer districts, the housing authority. These are the buyers you can actually serve.

2. Find where each one posts bids. Look on its website for Bids, Purchasing, Procurement or Legal Notices. Write down the page. You'll find that many small agencies post only on their own site and in the local newspaper.

3. Register as a vendor. Most agencies have a free vendor registration form. Some email registered vendors when a bid in their category posts. Pick the categories carefully, because they're how buyers find you.

4. Register in SAM.gov only if you want federal work. Registration is free, and GSA says you don't need to pay a third party to do it (GSA). It can take several days to complete and validate, so do it before you need it.

5. Get free help. APEX Accelerators, which used to be called Procurement Technical Assistance Centers, help businesses with registration, bid searches and first proposals at no cost (APEX Accelerators).

6. Get your insurance and bonding in order. Most public contracts ask for general liability, auto and workers' compensation insurance, and construction work often needs a bid bond. Talk to your insurance agent about certificates, and read our guide to bid bonds before your first construction bid.

7. Bid on something small first. A one-building cleaning contract or a single-site repair teaches you the forms, the deadlines and how the agency pays, with less at stake.

What wins the first one

Price wins most local bids. Many are awarded to the lowest bidder who meets the requirements, so a complete, correct bid at a sharp price beats a glossy one. Read how to read a bid package before you price anything: a missed signature or a skipped mandatory pre-bid meeting can throw out the lowest bid.

After the opening, ask for the results. Bid results are public, and seeing who won and at what price tells you how to price the next one.

Finding the bids

The hard part for most small businesses is the list in step 1. Checking 40 websites every week takes hours, and the small agencies are the ones easiest to miss. Capveon checks every agency in your area, including the ones that only post on their own website, and emails you the bids that fit your business each morning. To see what that list looks like for your company, enter your website and we'll send it to you.