Small businesses often look locally for customers. But the federal government can be your client too.
Darrell McGraw is a great example. Five years ago, he founded the technical consulting firm Q2 Consulting Solutions in the Washington, D.C., metro area. Now he’s doing $3 million in revenue, and most of it is from the government. The clients he’s supported include the United States Air Force, Department of the Treasury, and Transportation Command.
How’d he do it? The government requires more study than most clients. Thanks to a program called Ascend Atlanta at the Morehouse Innovation & Entrepreneurship Center, which coaches business owners of color on how to snag federal government contracts, he became an expert in navigating the process.
Here are the most important insights he gained:
Step 1: Get Certified.
Before you can compete, you must register at sam.gov. Also check the Small Business Administration to see if there are certifications for certain “set asides” that can improve your odds. For example, some small business contracts are set aside for underrepresented owners like women or those who are socially and economically disadvantaged.
Federal contracts also often require business certifications for capabilities like quality management and cybersecurity. Adding such credentials, like McGraw did, can widen your opportunities: He recently got a security clearance, which enabled him to go after a whole new set of contracts with the intelligence branches.
Step 2: Find a Contract.
The government tries to make sure 23% of federal contracting dollars go to small businesses. (In fiscal year 2025, nearly 28% did.) You can find solicitations for open contracts at sam.gov/opportunities. Individual government agencies often have their own lists as well, and the SBA posts those that meet the criteria for small businesses.
Read through both past and present solicitations to get familiar with what different agencies are looking for. What are their pain points? Where do they align with what you do?
Step 3: Make a Bid.
You’ll often be asked to submit a response to a request for proposal (RFP). Follow the instructions, or your entry will be rejected.
Typically, the government expects you to demonstrate a clear understanding of its needs and explain how you will fulfill them. A key part of your bid is proposing the cost. Here, you’ve got to be competitive, McGraw says. One way to get a benchmark is to go to usaspending.gov to see how much was awarded to the previous winner. Sometimes it’s worth losing a little money in order to win your first contract, he says.
Step 4: Stand Out.
You’ll likely be up against a lot of bidders. To give your proposal more weight, offer proof points, says McGraw. For example, if the contract is for designing a government website, show sites you’ve already done or even make a mock-up of one you might create for this agency. “You can tell them, ‘This is the quality of something we can put together for you,’” he says.
Step 5: Win Your First Contract.
These RFPs often ask for examples of past work you did for the government. So what if you’re totally new?
Here’s one move, says Tiffany Rogers Bussey, executive director of the Morehouse Innovation & Entrepreneurship Center: Go after smaller federal agency jobs that are awarded directly to businesses without competitive bidding, and then build a record of performance from them.
You can even directly approach one of the contracting officers with an unsolicited proposal, says McGraw. It should identify a clear need of the agency and lay out exactly what you would do to address it, backed by deliverables. You might get the job or it could be turned into an RFP for you to bid on, which now you have an advantage on.
Another option: Start by becoming a subcontractor, partnering with another business that’s already worked with the government. “When you can leverage your partner, you both win,” McGraw says.
Small businesses often look locally for customers. But the federal government can be your client too.
Darrell McGraw is a great example. Five years ago, he founded the technical consulting firm Q2 Consulting Solutions in the Washington, D.C., metro area. Now he’s doing $3 million in revenue, and most of it is from the government. The clients he’s supported include the United States Air Force, Department of the Treasury, and Transportation Command.
How’d he do it? The government requires more study than most clients. Thanks to a program called Ascend Atlanta at the Morehouse Innovation & Entrepreneurship Center, which coaches business owners of color on how to snag federal government contracts, he became an expert in navigating the process.