How to win your first government contract (with no past performance)
To win your first government contract, register in SAM.gov, pick a narrow niche (one or two NAICS codes in the area you already serve), and bid on small, local jobs first: purchases up to $350,000 are generally reserved for small businesses, and a firm with no past performance is rated neutral, not negative. Answer sources sought notices, use your commercial references and your team's experience, and consider subcontracting or teaming to build a federal record.
The first federal contract is the hardest one. You don't have a federal track record, you don't know the buyers, and the paperwork looks designed for someone else. The good news is that the rules give new small businesses more room than most people think. This guide is a practical plan for getting from registered to awarded.
Why the first contract is winnable
- No record is not a bad record. Under FAR 15.305, an offeror without a record of relevant past performance "may not be evaluated favorably or unfavorably on past performance."
- Experience can come from people and partners. The same rule lets agencies consider the past performance of predecessor companies, key personnel with relevant experience and subcontractors that will perform major parts of the work.
- Small jobs are reserved. Purchases above the $15,000 micro-purchase threshold and up to the $350,000 simplified acquisition threshold are set aside for small businesses when the contracting officer expects quotes from at least two of them (FAR 19.502-2).
- Agencies have goals. The government aims to award at least 23% of prime contract dollars to small businesses, with additional goals for women-owned, service-disabled veteran-owned and HUBZone firms (SBA).
- The SBA backs small businesses on capability. If a contracting officer decides a small business is not responsible, they must refer it to the SBA, which can issue a Certificate of Competency for that contract (FAR 19.601).
The plan, step by step
1. Get the basics in place
Register in SAM.gov (free, and it can take a few weeks; see our SAM.gov registration guide). Confirm your size under the SBA size standard for each NAICS code you list. If you qualify for 8(a), HUBZone, WOSB or SDVOSB, start that application now, because it opens set-asides with fewer competitors: see how to get SBA certifications.
2. Choose a narrow target
New contractors often bid on everything. The ones who win first usually do the opposite: one or two NAICS codes they are clearly qualified for, in the area they already work. A janitorial company in San Antonio should know every federal facility within an hour's drive, not every janitorial notice in the country. Look up your codes on our NAICS pages and see what is posted in your state, for example Florida, Georgia or California.
3. Start small and local
Small jobs are where new contractors win. They have less paperwork, fewer competitors and often price-only evaluation. Two kinds matter:
- Micro-purchases (up to $15,000): usually bought with a purchase card from a supplier the buyer knows, with no public notice.
- Simplified acquisitions (up to $350,000): often posted on SAM.gov as requests for quotations, generally reserved for small businesses.
Our guide to micro-purchase and simplified acquisition thresholds explains how both work.
4. Introduce yourself to the buyers
Write a one-page capability statement and send it to the contracting offices and small business specialists at the federal sites in your area. Ask a simple question: "How do you buy this kind of work, and who should I talk to?" Go to industry days and small business events those offices hold. Contracting officers can only buy from businesses they know exist.
5. Answer sources sought notices
A sources sought notice is the agency asking who can do the work before it writes the solicitation. Answering takes an hour, puts your name in front of the contracting officer and helps convince them to set the job aside for small businesses. See how to respond to a sources sought notice.
6. Use the experience you already have
Past performance does not have to be federal. List commercial, state and local government jobs that are similar in scope, size and complexity. Include the experience of your key people from previous employers when the solicitation allows it. Get a short reference letter from two or three clients now, before you need it.
7. Team up to build a record
- Subcontract first. Prime contractors on large federal contracts need small subcontractors. See how to get federal subcontracts. After a first-tier subcontract on a prime contract with a subcontracting plan, a small business can request a past performance rating from the prime, which the prime must provide; the rules are in 13 CFR 125.11.
- Joint ventures. A joint venture's past performance is evaluated, and when it has none the agency considers each partner's record (FAR 15.305). Your share of the JV's work can later count for you.
- SBA Mentor-Protégé Program. A small business can partner with an experienced mentor; the pair can form joint ventures that compete for set-asides the protégé qualifies for, and the agreement can last up to six years (SBA).
8. Read every solicitation carefully
New bidders lose more often on compliance than on price: a missed form, an unacknowledged amendment, a page limit ignored. Read the evaluation criteria first and the instructions second, and build a checklist. Our guide on how to read a federal solicitation walks through it section by section.
9. Price to win, but never below cost
Build your price from your real costs, including the wage determination, bonds and insurance, then check it against what the agency has paid before. Buying a first contract below cost can leave you with years of losses. See how to price a government bid.
10. Bid steadily and learn from every result
A first win usually comes from a steady rhythm of bids, not one big proposal. After each loss, check the award notice for the winning price, and in negotiated procurements request a debriefing in writing within 3 days of the award notice (FAR 15.506). Keep a log: what you bid, who won, at what price. Patterns appear quickly.
Five mistakes that delay the first win
- Bidding too big. A $5 million job with bonding you don't have, or a scope you have never done, is a lot of work for a likely loss.
- Bidding too wide. Ten trades in twenty states means you never learn any market well.
- Waiting for the perfect solicitation. Sources sought notices and small RFQs are where relationships start.
- Ignoring set-aside rules. On a set-aside you must perform a real share of the work yourself; see small business set-asides.
- Letting registrations lapse. An expired SAM.gov registration can stop an award. Renew every year.
Free help
You don't need to pay anyone to win your first contract. APEX Accelerators (formerly PTACs) offer free counseling on registration, finding opportunities and preparing bids, and Small Business Development Centers help with the business side. Most agencies also have small business specialists whose job is to help firms like yours.
Frequently asked questions
Can I win a government contract with no past performance?
Yes. Under FAR 15.305, an offeror with no relevant past performance record may not be evaluated favorably or unfavorably on past performance, so it is treated as neutral. Many small purchases and sealed bids do not score past performance at all. Agencies can also consider the experience of your key people and of subcontractors doing major parts of the work.
What is the easiest government contract to win first?
Small, local jobs in your own trade: purchases under the $15,000 micro-purchase threshold and simplified acquisitions up to $350,000, which are generally reserved for small businesses. They have less paperwork, fewer competitors and often only price as the deciding factor.
Does commercial experience count as past performance?
Usually yes, if it is relevant to the work. Solicitations typically ask for contracts of similar scope, size and complexity, and they do not always have to be federal. Read the past performance instructions in the solicitation to see what counts.
How long does it take to win a first federal contract?
It varies widely. SAM.gov registration alone often takes a few weeks. After that, businesses that bid regularly on small jobs in a narrow niche tend to win sooner than those that bid occasionally on large ones. Plan for months, not days, and track every bid so you learn from each result.
What if the contracting officer says my company is not capable?
If you are a small business and the contracting officer finds you not responsible, for example for lack of capacity or credit, they must refer the decision to the SBA, which can issue a Certificate of Competency that lets you receive the award. See FAR 19.6.
Your first step this week
Seeing the right notices every day is what turns a plan into bids. BidFox emails you the new federal contracts, sources sought notices and awards for your trade and states every morning. See a free sample alert with today's real notices, or download the free Starter Kit: a 30-day plan, checklists and templates for getting your first bid out the door.
Last reviewed October 20, 2026. This guide is general information, not legal advice. Rules and dollar thresholds change, so check the solicitation and the official sources linked above.