How to Win Your First Federal Contract (Without Past Performance)

Here's the chicken-and-egg problem every new government contractor faces: you need past performance to win contracts, but you need contracts to build past performance.

It's a real barrier. But it's not insurmountable. Thousands of small businesses win their first federal contract every year. This guide shows you how.

First, Get the Basics in Place

Before you can compete for any federal contract, you need these foundational elements. No shortcuts here.

1. Register in SAM.gov

SAM (System for Award Management) registration is mandatory for any federal contract over $10,000. It's free but takes 2-4 weeks to process. Start now.

You'll need:

• Your DUNS/UEI number
• EIN (Employer Identification Number)
• Bank account information for EFT
• NAICS codes that describe your work

2. Get Your Certifications (If Eligible)

Small business certifications open doors. The government sets aside contracts specifically for these groups:

• SDVOSB: Service-Disabled Veteran-Owned Small Business
• WOSB: Women-Owned Small Business
• 8(a): Socially and economically disadvantaged businesses
• HUBZone: Businesses in historically underutilized areas

If you qualify for any of these, get certified. Set-aside contracts have less competition and are often designed to help new contractors break in.

3. Create a Capability Statement

Think of this as your company's resume. One page (two max) that covers:

• What you do (core competencies)
• Your NAICS codes
• Certifications and set-asides
• Past clients (commercial is fine if you're new to federal)
• Contact information

Contracting officers review hundreds of these. Make yours scannable and specific.

Strategies That Work for First-Time Winners

Now the real work begins. Here are proven approaches to landing that first contract.

Strategy 1: Target Micro-Purchases and Simplified Acquisitions

The federal government has spending thresholds that affect how contracts are awarded:

• Micro-purchases (under $10,000): Can be awarded without competition. Any government purchase cardholder can buy from you.
• Simplified acquisitions ($10,000 - $250,000): Streamlined process, less paperwork, past performance requirements are often relaxed.

These smaller contracts are your entry point. Win a few, deliver well, and you'll have past performance for bigger opportunities.

Strategy 2: Subcontract First

Large prime contractors need small business subcontractors to meet their subcontracting goals. This is often the fastest path to federal experience.

1. Identify prime contractors in your field. Look at who's winning contracts you'd want. USASpending.gov shows award data.
2. Find their small business liaison. Large contractors have supplier diversity programs. Reach out directly.
3. Pitch your value. What can you do that they can't or don't want to? Be specific.
4. Deliver exceptionally. Every subcontract is an audition for prime work.

Subcontracting experience counts toward past performance. A track record as a reliable sub opens doors to prime contracts.

Strategy 3: Use GSA Schedules (With Caution)

GSA Schedule contracts (now called MAS—Multiple Award Schedule) put you on a pre-approved vendor list. Government buyers can purchase from Schedule holders without full competition.

Pros:

• Visibility to government buyers
• Streamlined purchasing for customers
• Can lead to task orders and BPAs

Cons:

• Application process takes 6-12 months
• Annual reporting and compliance requirements
• Having a Schedule doesn't guarantee sales

Strategy 4: SBIR/STTR Grants

If you're developing innovative technology, SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) programs are ideal for newcomers. Past performance isn't required—they're specifically designed to fund R&D by small businesses.

Phase I awards range from $50,000 to $275,000. Win one, and you've got federal experience plus funding to grow.

Read our complete SBIR/STTR guide for details.

Strategy 5: State and Local Contracts First

State and local government contracts often have lower barriers to entry than federal. The experience counts—you can reference state contracts in federal proposals.

Many states actively prefer local small businesses. Competition is typically less fierce than at the federal level.

What to Put in Past Performance When You Have None

Every RFP asks about past performance. Here's how to handle it when you're new:

Use Commercial Experience

Private sector work in the same field absolutely counts. If you've delivered IT services to Fortune 500 companies, that's relevant to a federal IT contract. Frame it properly:

• Focus on similar scope and complexity
• Highlight transferable skills and processes
• Get permission from commercial clients to use them as references

Highlight Team Experience

Even if your company is new, your people aren't. Key personnel's prior experience matters. If your project manager spent 10 years doing this work at another company, say so.

Be Honest, Not Apologetic

Don't pretend you have experience you don't. Instead, acknowledge you're new to federal contracting while emphasizing:

• Relevant commercial track record
• Team qualifications and experience
• Your understanding of the specific requirement
• Concrete plans for successful delivery

Contracts Designed for New Entrants

Some contract vehicles are explicitly intended to bring in new contractors:

Set-Aside Contracts

Contracts reserved for small businesses, SDVOSBs, WOSBs, 8(a)s, and HUBZone businesses have restricted competition. If you have a certification, pursue these aggressively.

Sole-Source 8(a) Contracts

Agencies can award contracts up to $4.5 million ($7 million for manufacturing) directly to 8(a) firms without competition. If you're 8(a) certified, build relationships with contracting officers who have requirements matching your capabilities.

Emerging Small Business Set-Asides

Some agencies have "emerging small business" programs specifically for companies new to federal contracting. Check agency-specific small business programs.

Building Relationships (Yes, It Matters)

Government contracting isn't just about proposals. Relationships matter—legally and ethically.

Meet the Contracting Officers

Before a solicitation drops, there's often a market research phase where contracting officers are learning about available solutions. This is when to introduce yourself.

• Attend industry days and pre-solicitation conferences
• Respond to RFIs (Requests for Information)
• Schedule capability briefings with agencies

Work the Small Business Offices

Every federal agency has an Office of Small and Disadvantaged Business Utilization (OSDBU). Their job is to help small businesses get contracts. Use them.

• Register in their vendor databases
• Attend their outreach events
• Ask for introductions to program offices

Don't Expect Overnight Results

Government moves slowly. Contracting cycles are measured in months and years, not weeks. The relationship you build today might lead to a contract 18 months from now. Stay in touch.

Your First Proposal: Keep It Simple

When you find the right opportunity, write a proposal that's:

• Compliant: Follow the instructions exactly. Missing sections or wrong formats can disqualify you.
• Clear: Evaluators read hundreds of proposals. Make yours easy to understand.
• Specific: Generic proposals lose. Show you understand this specific requirement.
• Realistic: Overpromising and underdelivering kills future opportunities. Be honest about what you can do.

Your first proposal probably won't win. That's okay. Request a debrief, learn what you could do better, and try again.

The Timeline: Set Realistic Expectations

Here's roughly what to expect:

• Months 1-2: SAM registration, certifications, capability statement
• Months 2-4: Research opportunities, identify targets, make initial contacts
• Months 4-8: Respond to your first few solicitations, potentially subcontracting opportunities
• Months 8-18: Win first contract (timeline varies widely)

Some companies win faster. Some take longer. But almost no one wins their first federal contract in the first month. Build this into your business plan.

One More Thing

The biggest mistake new contractors make isn't lack of past performance—it's chasing every opportunity instead of focusing on the right ones.

Pick a lane. Identify agencies that buy what you sell. Learn their procurement patterns. Build relationships with their small business offices. Become known for something specific.

Focused persistence beats scattered effort every time.