If you're in federal contracting, teaming up might be your ticket in—but only if you understand the rules of the game.
Many small businesses confuse teaming agreements with subcontracting. They both involve working with other companies. They both can help you win more contracts. But they’re not the same—and mixing them up can cost you opportunities or worse, land you in compliance trouble.
Let’s break it down.
The U.S. government consistently funds large-scale infrastructure and construction projects, providing billions in contract opportunities for businesses of all sizes. While some agencies face budget adjustments, federal construction remains a priority, especially with projects tied to the Infrastructure Investment and Jobs Act (IIJA) and sustainability initiatives.
Federal contracts present an opportunity for stable, long-term work for small and mid-sized contractors. However, understanding the contracting process, positioning your business effectively, and identifying the right opportunities are key to success.
When businesses new to federal contracting hear terms like "Commercially Available Off-the-Shelf (COTS) items," they often think it's just more jargon to memorize. But understanding COTS can actually simplify your entire entry into federal markets, helping you cut through red tape faster.
Incentive contracts are designed to reward contractors for meeting or exceeding performance goals. These agreements motivate businesses to control costs, deliver high-quality work, or complete projects ahead of schedule. Unlike fixed-price contracts, incentive contracts adjust compensation based on results, offering small businesses a chance to increase profitability through efficiency and innovation.
Government agencies use incentive contracts when they need flexibility and strong contractor performance, making them common in defense, IT, and infrastructure projects.
Winning a government contract can be a major opportunity for small businesses, but understanding contract types is key to success. Firm-Fixed-Price (FFP) contracts are one of the most common government contract types, offering a set payment amount that doesn’t change, no matter the contractor’s actual costs.
For small businesses, breaking into federal contracting can be an uphill battle. Traditional contracts often require businesses to front capital, navigate complex regulations, and compete against larger, well-established companies. But what if there was a way to win federal contracts without needing upfront investment?
If you're a small business owner stepping into federal contracting, understanding how government agencies conduct market research can significantly boost your odds of winning your first federal contract.
In simple terms, market research is how federal agencies find businesses like yours. Agencies must check out the market before they start buying. This research helps them figure out what's available, who can supply it, and what the typical costs are.
Recent headlines about Elon Musk’s Department of Government Efficiency (DOGE) canceling more than 1,000 federal contracts and laying off thousands of federal employees have understandably caused concern among businesses. These cuts primarily impact consulting, DEI initiatives, and administrative support contracts, creating genuine uncertainty for many contractors.
If you're new to federal contracting, the System for Award Management (SAM) registration might seem confusing. Many companies that handle SAM registration independently miss critical details, causing costly delays or outright rejection. Such setbacks mean lost opportunities and blocked revenue streams.
