The First 3 Steps to Getting Ready for Government Contracting

Government contracts might seem complex at first glance, but once you know the basics, the path forward becomes a lot easier. If you’re thinking about entering government contracting, there are three key steps that lay the foundation.

Step 1: Register with SAM (System for Award Management).

Before anything else, your business needs to be officially registered with SAM.gov. This is the central database the government uses to list open government contracts

SAM registration is free, but it does take a bit of time and documentation. You’ll need:

• Your legal business name and address
• A valid DUNS or UEI number (depending on timing)
• Your banking and tax information
• A clear business structure (LLC, Corp, nonprofit, etc.)

Think of this step as your way of saying, “We’re ready to work with the government.” Without this, you won’t be able to submit a bid or be awarded a contract.

Step 2: Get a NAICS Code (or Multiple)

Once you’re registered, you’ll need to define what your business does using an NAICS code. These codes help government agencies understand what kind of work you’re qualified to do. For example:

• 541611 = Administrative Management and Consulting Services
• 236220 = Commercial and Institutional Building Construction
• 541511 = Custom Computer Programming Services

Most companies don’t just have one. You can pick multiple NAICS codes if you offer a variety of services.

Selecting the right code is more than a formality; it helps your business show up in the right searches when agencies look for potential vendors. With GovSoft, you can easily search and filter opportunities by NAICS code, helping you find the contracts that match your strengths.

Step 3: Create a Capability Statement

This is your one-pager that tells agencies exactly who you are, what you do, and why you’re qualified. Think of it as a mix between a resume and a company intro, but built for the government space.

A good capability statement includes:

• Core competencies
• Past performance or relevant experience
• Company data (NAICS, DUNS/UEI, certifications)
• Contact info
• Differentiators

Many new businesses skip this part, but a strong capability statement gives your contract application real weight. Agencies often refer to it when evaluating vendors, even before the full proposal.

What Makes a Contract Application Strong?

After these first steps, you’ll eventually get to the point where you’re responding to active contracts. At that stage, your success often depends on

• Clear, direct language that aligns with the solicitation
• Real examples of your past work or outcomes
• A pricing structure that’s easy to understand
• Timely submission and attention to what’s being asked

But none of this is possible if the groundwork isn’t ready. That’s why the first three steps matter so much. They help you show up in the right way at the right time.

From Registration to Readiness: What Comes Next?

The path to government contracts isn’t just for insiders or large companies with whole departments dedicated to bidding. With the right setup, small businesses can absolutely get in the game.

GovSoft makes it easier to find new opportunities, keep track of key information, and stay organized without juggling ten tabs or digging through lengthy spreadsheets.

Ready to get started? Take the first three steps and see how far GovSoft can take you.