Government Contracting FAQs

Form a business entity (LLC or corporation), get an EIN from the IRS, register in SAM.gov to get your UEI number, select your NAICS codes, write a capability statement, research opportunities on SAM.gov and USASpending.gov, and begin pursuing subcontracting or small business set-aside opportunities. Read our full step-by-step guide →

Yes. Many successful federal contractors started as solo consultants or one-person businesses. There is no minimum size requirement to participate in federal contracting. The key is SAM.gov registration, a strong capability statement, and pursuing subcontracting relationships to build initial past performance.

Most small businesses following a systematic approach win their first subcontract within 6–12 months. A prime contract typically takes 12–24 months. Using small business set-asides, teaming arrangements, and subcontracting significantly accelerates the timeline.

Virtually every industry: IT services, cybersecurity, construction, consulting, healthcare, logistics, training, marketing, engineering, accounting, food services, janitorial, and more. The government buys everything. Use NAICS codes and USASpending.gov to see what your specific industry sells to government.

No. Federal contracts are awarded to businesses across all 50 states. The government has a stated preference for geographic diversity and actively seeks contractors from outside the DC area. Being remote from DC is not a disadvantage in most sectors.

Contract values range widely — from micro-purchases under $10,000 to multi-year contracts worth hundreds of millions. Small businesses typically start with contracts in the $50,000–$500,000 range through subcontracting and set-asides, then scale significantly using past performance. Multi-year contracts (IDIQ, BPA) can be especially valuable because they provide stable recurring revenue.

Via electronic funds transfer (EFT) to the bank account you provide in SAM.gov. The Prompt Payment Act requires the government to pay within 30 days — and pay interest if they're late. This makes government clients among the most reliable payers you'll ever have.

Startup costs are lower than most businesses. SAM.gov registration is free. SBA certifications are free. The main costs are: business formation ($50–$500 depending on state), an accountant or attorney for setup if needed, and training — which is where ScaleUp USA's affordable Udemy courses deliver far more value than $10K–$50K+ consultants.

SAM.gov (System for Award Management) is the federal government's official vendor database. Registration is mandatory — you cannot receive any federal contract or grant payment without it. It is free and must be renewed annually. Read our complete SAM.gov guide →

Allow 7–10 business days from submission to active registration. The government must validate your information against IRS records, which takes time. Plan ahead — you cannot receive contract awards or payments until your registration is fully active.

No. SAM.gov registration is completely free and you can do it yourself. Numerous companies charge $500–$3,000+ to "help" with registration. They add no real value. Register directly at sam.gov — it's straightforward with our guide.

The SBA's 8(a) Business Development Program is for small businesses owned by socially and economically disadvantaged individuals. Benefits include sole-source contracts up to $4.5M and set-aside competitions. Apply at certify.sba.gov — the process takes several months. Read our full certification guide →

No. The vast majority of federal contracts don't require security clearances. Civilian agencies — HHS, DOT, USDA, GSA, and many others — collectively award billions in contracts with no clearance requirements. ScaleUp USA focuses entirely on this large, accessible, unclassified market.

Yes — and this is a powerful strategy. A business can simultaneously hold 8(a), WOSB, and HUBZone certifications if it qualifies for all three. Stacking certifications dramatically expands the pool of set-aside contracts available to you and signals strong credibility to contracting officers.

A one-page marketing document communicating who your company is, what you do, and why agencies should work with you. It includes core competencies, differentiators, past performance, company data (UEI, NAICS codes, certifications), and contact information. It's the first document contracting officers request. Read our capability statement guide →

The GSA Multiple Award Schedule (MAS) is a pre-competed government-wide contract vehicle that allows agencies to buy directly from pre-vetted vendors without a full competitive procurement. Getting on the GSA Schedule can significantly simplify purchasing for agencies and increase your contract opportunities — particularly for commodity services and IT products.

Subcontracting means working under an established prime contractor rather than directly with the government. It's the fastest way to build past performance (critical for future prime contract bids), learn the federal delivery process, and generate revenue while you develop your full prime contractor capabilities. Most successful federal contractors started as subcontractors.