GovCon Academy · Beginner
GovCon Basics
10 min read
What Is Government Contracting?
The U.S. federal government is the world's largest buyer of goods and services — spending over $700 billion annually. Every agency from the Department of Defense to FEMA to the VA purchases products and services from private businesses through a structured procurement process called government contracting, or "GovCon."
Unlike commercial sales, federal purchasing follows strict rules codified in the Federal Acquisition Regulation (FAR) — a uniform set of policies that all agencies must follow. Understanding these rules is the foundation of winning federal work.
Who Buys? The Major Agencies
Department of Defense (DoD)
~$400B/yr
Defense, IT, logistics, construction
Dept. of Homeland Security (DHS / FEMA)
~$25B/yr
Emergency mgmt, disaster response, security
Dept. of Veterans Affairs (VA)
~$30B/yr
Healthcare, IT, professional services
General Services Administration (GSA)
~$75B/yr
Facilities, IT schedules, fleet
Health & Human Services (HHS)
~$30B/yr
Public health, research, IT
State & Local (SEMA)
Varies
Emergency mgmt, infrastructure, services
Set-Asides: Your Competitive Edge
The federal government is legally required to award a percentage of contracts to small businesses. These "set-aside" contracts restrict competition to qualified small businesses, dramatically improving your odds of winning.
Small Business
Size determined by NAICS code revenue/employee thresholds
Service-Disabled Veteran-Owned
51%+ owned by a service-disabled veteran
SBA 8(a) Program
Socially & economically disadvantaged businesses, 9-yr program
Women-Owned Small Business
51%+ owned & controlled by women
Historically Underutilized Business Zone
Located in economically distressed area
The Contracting Lifecycle
- 1
Agency Identifies Need
A Contracting Officer (CO) determines the requirement and available budget.
- 2
Market Research
The CO searches SAM.gov, holds industry days, or issues an RFI to understand the market.
- 3
Solicitation Published
An RFP, RFQ, or IFB is posted to SAM.gov for businesses to respond to.
- 4
Proposals Submitted
Vendors submit technical and price proposals by the closing date.
- 5
Evaluation & Award
The government evaluates on price, technical merit, and past performance. Award issued.
- 6
Performance & CPARS
You deliver the work. Performance is rated in CPARS — your permanent record for future bids.
Key Terms to Know
GovCon has its own language. Head to the full glossary for a complete reference, but here are the most critical terms to get started:
Federal Acquisition Regulation
System for Award Management — mandatory registration
Industry classification code for your business
Unique Entity Identifier — your business ID on SAM.gov
Commercial and Government Entity code
Types of solicitation documents
Contracting Officer — the government buyer
Contractor Performance Assessment Reporting System