Contracting guide

The federal government contracts with small businesses to buy products and services.

Benefits of government contracting

Government contracts are a tremendous financial opportunity for small businesses.

The U.S. government is the largest customer in the world. It buys all types of products and services — in both large and small quantities — and it’s required by law to consider buying from small businesses.

The government wants to buy from small businesses for several reasons, including:

  • To ensure that large businesses don’t “muscle out” small businesses
  • To gain access to the new ideas that small businesses provide
  • To support small businesses as engines of economic development and job creation
  • To offer opportunities to disadvantaged socio-economic groups

How it works

The process of requesting proposals, evaluating bids, and awarding contracts should take place on a level playing field. The government should consider a bid from any qualified business.  

Set-aside and sole-source contracts

Federal agencies must publicly list their contract opportunities. Some of these contracts are set aside exclusively for small businesses.

In some cases, these so-called set-aside contracts might consist of certain types of tasks on larger contracts. In others, entire contracts may be reserved for small businesses. When a contract is set-aside for one specific small business, it’s called a sole-source contract.

SBA’s role in contracting

SBA works with federal agencies in order to award 23% of prime government contract dollars to eligible small businesses. It also offers counseling and help to small business contractors.

Get started

Need help?

Get help with specific contracting assistance programs. For additional assistance, contact the Office of Government Contracting and Business Development.

Office of Government Contracting & Business Development
409 3rd St. SW, Suite 8000
Washington, DC 20416
Email: contracting@sba.gov