How Small Businesses Can Sell to the Government

 

Government contracting can open new opportunities for small businesses, but many business owners are unsure where to begin. Understanding how federal agencies purchase products and services is an important first step. 

Federal agencies buy billions of dollars in goods and services each year through contracts, contract vehicles, commercial platforms, and small business set-asides. When existing purchasing options do not meet an agency’s needs, new opportunities may be released through the GSA Multiple Award Schedule (MAS) Program or posted on SAM.gov. 

What is a government contract? 

A government contract is a formal agreement between a business and a federal agency for products or services that support government operations. These contracts follow rules outlined in the Federal Acquisition Regulation (FAR). 

There are two common types of contract awards: 

• Single-award contracts: awarded to one business responsible for completing all work under the contract.  

• Multiple-award contracts: awarded to several businesses that compete for individual task orders.  

Contracts may also use different payment structures, including fixed-price and cost-reimbursement agreements, each with different levels of financial risk for the contractor. 

 

Finding government contracting opportunities 

Some opportunities are only available through contract vehicles such as the GSA Schedule, Governmentwide Acquisition Contracts (GWACs), or Multiple Award Contracts (MACs). Businesses that do not hold these contracts may still participate through subcontracting, teaming arrangements or distributor agreements. 

Businesses can also search for open opportunities on SAM.gov, the federal government’s official contracting website. 

 

What is the GSA Multiple Award Schedule (MAS) Program? 

The GSA Multiple Award Schedule (MAS) Program allows approved businesses to sell products and services directly to federal agencies through a pre-negotiated contract vehicle. 

Businesses can apply for the MAS Program year-round, unlike many federal contracting opportunities that only open during limited solicitation periods. 

According to the U.S. General Services Administration (GSA), the MAS Program supports more than $39 billion in annual federal purchasing activity. 

Some advantages of the program include: 

• Streamlined purchasing procedures  

• Pre-approved competitive pricing  

• Access to opportunities across federal agencies  

 

To qualify, businesses typically must have: 

• At least two years in business  

• Two years of financial statements  

• Proven past performance  

 

Some businesses may qualify for waived requirements through GSA’s Startup Springboard Program. 

 

Source: U.S. General Services Administration (GSA)
This article is intended for informational purposes only and should not be considered legal, financial, or procurement advice.