The United States operates one of the world's largest public procurement markets, spending over $700 billion at the federal level alone and more than $2 trillion when state and local governments are included. This guide covers SAM.gov, FAR compliance, SBA set-aside programs, and sector-specific strategies for winning US government contracts.
By TenderRadar Team
The United States has the world's largest public procurement market. The federal government alone spends over $700 billion annually on contracts, while state, county, and municipal governments collectively push total public spending beyond $2 trillion. Procurement is decentralised: each federal agency, state, and locality has its own contracting offices, though federal procurement follows a unified regulatory framework. The system is designed to promote competition, transparency, and value for money, with significant carve-outs for small businesses. Foreign suppliers can participate in federal procurement under WTO GPA and various free-trade agreements, although domestic preference rules such as the Buy American Act apply to many categories.
$700B+ federal, ~$2T total including state and local
Annual procurement value
Approximately 8-10% of GDP
Share of GDP
The primary portal for federal procurement. SAM.gov combines the former Federal Business Opportunities (FBO), System for Award Management (SAM registration), Federal Procurement Data System (FPDS), and several other systems into a single platform. All federal contract opportunities above $25,000 must be posted here. Suppliers must register in SAM.gov to receive federal contract awards.
Visit portalPortal for requesting quotes and proposals from GSA Schedule (MAS) contract holders. Agencies use eBuy to source commercial products and services through pre-negotiated GSA contracts.
Visit portalComprehensive database of all federal spending including contracts, grants, and loans. Useful for market research, identifying buying patterns, and understanding agency spending priorities.
Visit portalEach US state operates its own procurement portal. Examples include BidNet, California eProcure, New York State Contract Reporter, and Texas SmartBuy. Many cities and counties also maintain independent portals. Aggregators like BidNet Direct and GovWin compile opportunities across jurisdictions.
Visit portalThe Department of Defense is the single largest buyer in the US government, spending over $400 billion annually on contracts. Opportunities span weapons systems, IT, logistics, facilities maintenance, and professional services. DFARS and ITAR regulations add complexity.
Federal IT spending exceeds $100 billion per year across civilian and defence agencies. FedRAMP authorisation is essential for cloud services. Key vehicles include CIO-SP3, SEWP, and Alliant 2. Modernisation of legacy systems drives ongoing demand.
The VA, HHS, NIH, and DoD medical commands procure pharmaceuticals, medical devices, IT systems, and clinical services. The VA alone spends $30B+ on contracts. The Federal Supply Schedules for medical equipment are heavily used.
The Army Corps of Engineers, GSA, DOT, and state/local agencies invest heavily in roads, bridges, federal buildings, and water infrastructure. The Infrastructure Investment and Jobs Act has injected hundreds of billions in new funding.
The DOE, EPA, and defence agencies procure renewable energy installations, environmental remediation, and energy-efficient technologies. Federal sustainability mandates are driving demand for green products and services.
Consulting, programme management, staffing, training, and advisory services represent a significant share of federal spending. Agencies frequently use IDIQ and BPA vehicles for these services.
SAM.gov registration is mandatory for any supplier wanting to receive a federal contract award. The registration process can take several weeks, so start early. You will need a Unique Entity ID (UEI), banking information, and NAICS codes. Keep your registration current — it must be renewed annually.
The federal government sets aside approximately 23% of prime contract dollars for small businesses. Programmes include 8(a) Business Development for disadvantaged firms, HUBZone for businesses in underutilised areas, WOSB for women-owned businesses, and SDVOSB for service-disabled veterans. Certification opens doors to less competitive solicitations.
A GSA Multiple Award Schedule contract gives you a pre-negotiated vehicle that agencies can order from directly. It dramatically simplifies the buying process for agencies and positions you as a vetted supplier. The application process is rigorous but the payoff in repeat business is substantial.
Use USAspending.gov and FPDS to study which agencies buy what you sell, contract values, incumbent contractors, and contract expiration dates. Attend industry days and pre-solicitation conferences. Build relationships with contracting officers and small business specialists before opportunities are posted.
Federal contracting comes with significant compliance obligations: FAR clauses, cybersecurity requirements (CMMC for DoD), cost accounting standards, and reporting requirements. Invest in understanding these before bidding. Non-compliance can lead to contract termination or debarment.
Not necessarily. Foreign suppliers from WTO GPA signatory countries and FTA partners can bid on covered procurements above GPA thresholds. However, the Buy American Act restricts many supply contracts to domestic end products, and certain defence and security contracts are limited to US firms. Foreign companies often establish US subsidiaries to participate more broadly.
The timeline varies significantly. Simple commercial purchases under Simplified Acquisition Procedures can be awarded in weeks. Large, complex solicitations under FAR Part 15 typically take 6-18 months from solicitation to award. Building the relationships and past performance needed to be competitive can take 1-3 years for newcomers.
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If you are new to federal contracting, partnering as a subcontractor with an established prime contractor is an excellent way to build past performance, learn the regulatory landscape, and develop agency relationships. Large primes are required to have small business subcontracting plans.
The North American Industry Classification System (NAICS) code categorises your business by industry. Federal solicitations are assigned NAICS codes that determine small business size standards and which set-aside programmes apply. Choosing the right NAICS codes in your SAM.gov registration is critical for being found by contracting officers.
An IDIQ (Indefinite Delivery/Indefinite Quantity) contract sets the terms for an indefinite quantity of work, with task or delivery orders placed over time; it is the most common vehicle for large federal IT and services buying. A GWAC (Government-Wide Acquisition Contract) is a type of IDIQ for IT that any federal agency can use. All GWACs are IDIQs, but most IDIQs are single-agency or narrower in scope. Winning a place on the vehicle is step one; you then compete for individual orders.
If you believe a contract was awarded improperly, you can file a bid protest with the Government Accountability Office (GAO), the Court of Federal Claims, or the contracting agency itself. GAO protests must be filed within 10 days of learning the basis for protest. The process can result in corrective action or re-evaluation of proposals.
The Federal Acquisition Regulation (FAR) is the rulebook for how federal agencies buy goods and services: competition requirements, contract types, pricing, small-business programs and contract administration. Since 2025 it has been rewritten in plain language under the Revolutionary FAR Overhaul, launched by the executive order "Restoring Common Sense to Federal Procurement": agencies adopted the overhauled parts through class deviations, and formal publication of the regulatory changes began in 2026. Parts 12 (commercial products and services), 13 (simplified acquisitions), 15 (negotiated contracts) and 19 (small business) matter most to new contractors. Check the current text of each part on acquisition.gov before you bid.
Very. Past performance is a core evaluation factor in most federal source selections, because agencies use it to judge how likely you are to deliver. New entrants can point to subcontracting work, commercial contracts for similar work and the experience of key personnel. Building a federal record through small awards and subcontracts is the usual way in.
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